Jan Sass Hvyass, Director of Procurement at Beumer Group spoke at the CPO Event UK 2013

1. BEUMER Group presentation
CPO Event 2013
Thursday February 7th, 2013

2. CV - Jan Sass Hvass
PERSONAL INFORMATION:
Age: 42 years (170570)
Wife: Pernille Westergaard, MSc in Engineering. Pernille is 40 years old. She holds a position as IT Director with
Danfoss A/S in Silkeborg.
Children: Frederik 7 years old and Emilie 4 years old.
Interests: Vintage cars (Porsche), running, skiing, golf
EDUCATION:
• 2007 Master of Executive Negotiation, Market Watch
• 2000 Business Diploma Manager (EUC)
• 1997 Psychology (VUC)
• 1995 Merkonom - Speciality: Purchasing
• 1990 Business College (HH)
CAREER BACKGROUND:
• Director Procurement, Executive Management, Crisplant A/S April 2011 -
• Global Supply Chain Director, COO at AVN Energy A/S April 2010 – March 2011 (1 year)
• Vice President, Global Procurement at Terma A/S June 2007 – March 2010 (2 years 10 months)
• Director, Procurement at Terma A/S January 2002 – May 2007 (5 years 5 months)
• Global Director Procurement at APV A/S May 2000 – December 2001 (1 year 8 months)
• Global Purchasing Manager at Danfoss A/S December 1997 – April 2000 (2 years 5 months)
• Strategic Purchaser at Danfoss A/S June 1995 – November 1997 (2 years 6 months)
• Purchasing-trainee and purchaser at ECCO SKO A/S August 1990 – May 1995 (4 years 10 months)
NETWORK GROUP:
VL-38
Master of Executive Negotiation
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3. Why Category Management = SYNERGY
Purchasing synergy is the net increase in purchasing performance (e.g. cost savings, value creation,
productivity increase) that is realized when two or more business units collaborate and...
• Buy goods and services together
• Share functional resources
(e.g. commodity experts, business intelligence, etc.)
• Share and exchange purchasing information
(e.g. prices, suppliers, supply market developments)
• Share and exchange purchasing knowledge & experience
• Financial benefits – increased buying power
Perfor- • Supports more efficient Risk Management
mance
Benefits • One voice in the supply market
Knowledge
Resources
• Sharing of good practice, avoids re-investing the wheel
Volume
Category
Manage-
ment • Common understanding of procurement, methodology,
Organi- tools & processes etc.
zational • Enforces collaboration, knowledge sharing and one
Benefits company strategy
• Enables career paths within procurement
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4. Challenge
+ Intellectual understand
• Strategy
- Accept
• Lack of standardized processes
• Hard to get resources
• Difficult to make an effective communication when vision is not clear.
• 100% commitment from executive management
The books have spoken right:
If there is not 100% buy-in from executive management, it will be no success
START WITH THE END (WHAT IS THE GOAL)
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5. Governance:
• Book of duty
• Lead team to define standards and procedures (model enclosed)
• Category Strategy
• Secure involvement and commitment from stakeholders
• R&D
• Q
• Management
- FOCUS ON SOURCING TEAMS -
• Roles and responsibilities in Sourcing Teams
• Define the roles and responsibilities for procurement activities, where cooperation
between regions and global functions is crucial.
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6. Commodity Strategy
Cost/benefit Objectives
Action plan History
(subjective)
Competence KPI (Key
profile Performance
Indicators)
Economic risk
evaluation SWOT
Segmentation
3 year perspective, roling every year
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7. Kraljic
Value
Leverage Strategic
Non critical Bottleneck
Risk
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8. Change management
What works:
• Road show (top management)
• You can not go directly from awareness to commitment (take it step by step)
• Meet people where they are
• What will be the outcome
• Sponsor (local General Manager)
• GPO (Global process owner)
• LPO (Local process owner)
• Ensure that it becomes part of the employees' individual KPIs
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9. Summary
1. Ensure common platform
a) Workshops
b) Training not only in procurement but stakeholders as well
2. Clear objectives
a) Start with the end (what are the objectives)
b) Secure ownership by all stakeholders (R&D, Q, Management)
3. Category Strategy
a) Secure involvement by all stakeholders (R&D, Q, Management)
- WALK THE TALK -
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