Stockholm Dispatch 4 – Ericsson, IBX Capgemini and Thomas Cook PowerPoints Paint a Simply Powerful Picture

Posted on October 12, 2010

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In an earlier dispatch from the IBX Capgemini conference in Stockholm this past week I talked about the “integrity of sharing” that marked one of the best conferences with which I have had the privilege to be a part.

The candor, unique insights and meaningful expertise created a truly collaborative environment in which participants and presenters were able to connect in a lively exchange of ideas that will most certainly be carried back to each attendee’s organization.  The fact that IBX Capgemini were able to facilitate a forum that offered such a high level of value in terms of an approach to purchasing and supply chain practice, means that any perspective client would be well advised to seriously consider their service offering through an expanded lens of added value and unquestionable competency.  In short, we live in an era where knowledge accessibility coupled with a practical understanding of how successful programs are created and implemented are of far greater importance than mere technological innovation.  IBX Capgemini possess these necessary characteristics that should be front and center in any organization’s decision-making process relative to selecting a vendor or partner.

As a means of giving you with an idea of what was presented at the 2010 Executive Summit, here are the first in a series of PowerPoints that provide just a sample of the aforementioned unique insights and perspectives that were shared during an energized 2-days in Sweden.

Over the next week we will be uploading the audio on-demand broadcasts of the sessions which will be accessible through the PI Window on Business Show on the Blog Talk Radio website, as well as other PowerPoint presentations and related information.

In the meantime, be sure to visit the IBX Capgemini Executive Summit Event Page for a complete overview of the conference.

Day 1 – October 7th, 2010

13:10 to 14:00 Sourcing Excellence Program – Purchasing Transformation at Ericsson

Overview:

In a world where purchasing and supply chain strategies are a core aspect of almost any business model; the purchasing function is experiencing an unprecedented amount of attention. And rightfully so; recent research has shown that 90 percent of all innovations come from suppliers upstream in the supply chain. Successful manufacturing companies, such as IKEA and Dell, have made efficient purchasing and supply chain strategy core aspects of their business models. On the other end of the spectrum you find disruptions, such as the ones in the Boeing 787 Dreamliner/Airbus A350-race, which are directly related to supply chain issues. Purchasing should be ranked high on the agenda of any company with ambitions in the global market.

This session provides valuable insights on why companies need to change the way they look upon purchasing, by providing you with a pragmatic, inside view through the lens of the successful program at Ericsson.

Over the next 50 minutes, Ericsson’s Chief Procurement Officer Petter Järtby will describe how a purchasing function can transform into a modern and strategic function that will be ready for the challenges of tomorrow . . . today. Dealing with subjects such as organization and governance, value assessment as well as sourcing and procurement; Petter will provide perspectives on purchasing transformation on a number of different levels.

About Petter Järtby:

Petter Järtby is the Chief Procurement Officer for Ericsson.

At Ericsson they are using innovation to empower people, business and society. Ericsson’s mobile and fixed networks, multimedia solutions and telecom services make a real difference to people’s lives and the world we live in, and are an essential part of a sustainable society.

16:50 to 17:35 More for Less – The Tipping Point for BPO Procurement

Overview:

2009 saw a dramatic rise in the number of companies in the market for Business Process Outsourcing (BPO) services for procurement. However many of these companies did not yet commit to outsourced procurement programs.

In this session we will consider:

  • Compelling Event: Is the recession creating a demand for procurement capability?
  • Demand: the markets for BPO finance & administration vs. procurement and the propensity for outsourcing procurement
  • Supply: Capability procurement business process outsourcing – alliances and acquisitions
  • Business Case: The business case for procurement outsourcing – is this about effectiveness or efficiency?
  • Conclusion: is 2010 the tipping point for BPO-Procurement?

About Leif Bohlin:

Leif Bohlin is Head of BPO Procurement for Capgemini.

Leif Bohlin has been with IBX since 2000. He has been a member of the IBX Sweden management team since 2005. Prior to this, Bohlin held several key positions within IBX, such as Key Account Manager for some of the company’s top clients. Before joining IBX, he worked as a management consultant with Booz-Allen Hamilton and A T Kearney. Bohlin has also purchasing experience from the automotive sector.

Day 2 – October 8th, 2010

13:45 to 14:30 Merger and Acquisition: Procurement Integration at Thomas Cook AG

Overview:

In a prcenter.de article titled “CPO Dialog Procurement Excellence: Chief Buyer Exchange Globalization Strategies,” Thomas Cook CPO Nikolaus Kirner made the following statement regarding the introduction of an eSourcing strategy as a “CHANGE” process; “If the coworkers do not pull-along, it can happen easily that the hoped for efficiency gains are missing.”  Kirner, went on to report, “how he transferred” the company’s coworkers to an eSourcing integrated platform, maintaining a high level of motivation.”

How important is effective internal collaboration in terms of motivating coworkers during an M&A integration?  Just ask a candy company in the U.S. mid-west.  As the manufacturer of a number of leading brands, this organization grew dramatically in a very short period of time through a series of acquisitions.

Unfortunately, the degree of collaboration between the different purchasing organizations was not clearly established from the beginning.  This only served to fuel rather than douse the internal division fires resulting in both a practical and operational lack of cohesiveness and coordination.  The end result was a “territorial” struggle that manifested itself in a divided supply base.  This is hardly the ideal environment for a successful consolidation.

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