Transforming the Sourcing and Procurement Organization to a

Report
Transforming the Sourcing and Procurement Organization to a Global Category
Management Model will Enable FMC to Drive out and Sustain Cost Reductions
Global Sourcing and Procurement Organization Model
1
Procurement Council
VPShared Services
CIO
VP HR
Legal
APG
SCG
ICG
Global Procurement
COE
 System /Process
 Supplier
Management
Support
 Policies/
Procedures:
Tracking and
Measurement
 Contracting
Process
Procurement Council - key
functional and BU stakeholders
who provide strategy and direction
2
Global Procurement COEprovides center of excellence,
process, tools and technology
3
Category Management –
performs strategic sourcing and
spend under management for
centralized, centrallycoordinated, and decentralized
categories
4
Procurement Operations –
oversee purchasing activities
and compliance of site
purchasing operations; resolve
regional supplier issues;
implement company-wide
purchasing initiatives; perform
site procurement operations
VP Global Services
Procurement Leader
2
1
4
3
Procurement
Operations
Category Management
 Centralized
Categories
 Implement
company-wide
purchasing
initiatives
 CentrallyCoordinated
Categories
 Regional Supplier
Issue Resolution
 Decentralized
Categories
(embedded in
businesses)
 Compliance
tracking
 Site procurement
operations
 Other COE
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High-level Future State Organization Structure
Global
Procurement
Leader
Global
Category
Manager
Global
Procurement COE
Procurement Support
 Conduct market analyses to
support category
management (e.g.,
packaging market in Brazil)
 Provide supplier
management support
 Track and measure
adherence to policies/
procedures
 Develop systems and tools
and provide analyses and
policy updates for the
category and regional
managers to support their
sourcing and procurement
activities
Regional
Procurement
Manager
Category Management
 Manage sourcing activities for
category
 Develop and execute
RFI/RFP’s for category
 Perform negotiations and
contract development
 Maintain cross-BU, crossregional perspective on spend
 Interface with Regional
Procurement Manager to
understand regional
requirements and major
supplier issues
 Perform as a key business
partner to BUs (1 category
manager per BU)
−Act as key sourcing and
procurement contact for the
business
−Understand and
communicate changes that
will impact the business
(e.g., supply disruptions,
cost fluctuations)
Site
Operations
Global Positions
Manage Region Purchasing Activities
 Ensure compliance of negotiated
contracts (e.g., packaging
contracts with Cimplast)
 Resolve regional supplier issues
 Implement region-wide
purchasing initiatives to facilitate
purchasing activities
 Communicate regional
requirements and escalate major
supplier issues to Global Category
Managers
 Provide oversight to the site
operations, and communicate
approved vendors, pricing and
contracts requirements
Execute Against Supplier Contracts
 Perform tactical purchasing
activities
 Follow site purchasing processes to
ensure compliance with global
procurement initiatives
 Report any supplier related issues
Procurement Operations
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