Projects
Mobile Phone Procurement Process
Introduction: I led the project to optimize and standardize the decentralized and inefficient mobile phone procurement process.
Challenge: The previous procurement process was uncoordinated, with no standardized models, resulting in high costs. Additionally, the internal support process for defective devices created significant workload and resource strain.
Solution: After conducting a thorough analysis, I developed a streamlined target process. I researched suppliers who could manage device configuration and delivery directly to employees’ locations and negotiated a solution to cover repair times with backup devices. I selected a supplier, negotiated the contract, and implemented the new process.
Result: The process and device standardization reduced downtime and significantly minimized internal workload. By outsourcing the internal support process, we freed up valuable time for IT support staff. The integration of device availability with the Mobile Services contract led to substantial cost optimization through a subsidy and quota model.
Conclusion: This project resulted in a clear end-to-end process, increasing efficiency in IT support, eliminating costly internal replacement devices, and ensuring seamless repair and replacement management.
Global Copier Sourcing Continental Europe
Introduction: I coordinated the "Global Copier Sourcing" project and led its implementation for Zurich Insurance Company in Switzerland.
Challenge: The company's locations used various brands of multifunctional devices from different suppliers, with multiple contracts and decentralized procurement processes. This resulted in missed opportunities for volume discounts and an inefficient, complex support process for the various device brands.
Solution: I initiated a global tender process, evaluated potential suppliers, and ultimately selected a single global supplier. I negotiated and finalized the contract, ensuring that standardized devices were implemented across all locations.
Result: The project led to a 20% cost reduction, the establishment of standardized devices, and a centralized procurement process. We activated multifunctional devices on each floor, eliminated most office printers, and outsourced the support process, including repairs and toner replacements.
Conclusion: This project achieved significant cost optimization (around 20%), volume bundling, the introduction of standardized devices, and the creation of efficient, centralized support processes.
Optimization and Simplification of the Company Car Fleet Procurement Process
Introduction:
I led the optimization and simplification of the internal procurement process for the company car fleet, focusing on improving efficiency and reducing costs.
Challenge:
The existing procurement process was inefficient, with many tasks being done in-house, such as placing orders and generating reports. Manual steps caused delays and inefficiencies in the workflow. Additionally, the process was burdened by numerous manual intermediate steps, leading to time-consuming approvals and slowdowns.
Solution:
I introduced professional spend management and optimized the process by adapting and utilizing the supplier’s reporting tool, which eliminated the need for a complex internal reporting system. The procurement of vehicles was further streamlined by electronically handling intermediate steps such as approvals and model selection, which greatly reduced manual intervention.
Result:
The project resulted in a significant reduction in effort, lowering the Full-Time Equivalent (FTE) required from 1 FTE to just 0.1 FTE. The simplified and automated processes saved valuable time and resources for the company while maintaining compliance with global standards.
Co-Leadership and Implementation of the Print Sourcing Project – Entire Value Chain
Introduction:
As co-leader, I spearheaded the "Print Sourcing" project, which focused on optimizing the entire print value chain, from storage to printing, achieving significant cost savings across multiple areas.
Challenge:
The company was facing high costs for print materials, storage, and reliance on expensive creative agencies for printing. The goal was to find a more cost-effective provider and streamline the entire process.
Solution:
I successfully coordinated the move of print materials to a more affordable provider, achieving a 20% reduction in storage costs. We introduced a new print manager, resulting in a 15% reduction in print costs by eliminating the need for expensive creative agencies. I also implemented a media asset database, breaking the dependency on creative agencies. Additionally, we designed and introduced a webshop, integrated with SAP, allowing direct access to print and promo products from the warehouse, leading to over 30% cost savings by eliminating decentralized storage with sales representatives.
Result:
The project led to a comprehensive cost reduction of 20% in storage costs, 15% in print material costs, and more than 30% savings by centralizing storage. This initiative streamlined the entire print procurement process, making it more efficient and cost-effective.
Order to Cash (Pharmaceutical Logistics Switzerland
Introduction:
I played a key role in the procurement project "Order to Cash," which aimed to optimize pharmaceutical logistics in Switzerland.
Challenge:
The contractual situation was disorganized, service levels were unclear, and costs were non-transparent. The project required a comprehensive tender process and analysis of offers to identify the best supplier for pharmaceutical logistics.
Solution:
I led the tender process, conducted an in-depth analysis of the offers, and worked closely with key stakeholders to ensure the best provider was selected.
Result:
The project resulted in increased efficiency in pharmaceutical logistics, leading to cost savings of CHF 500k and an optimized supply chain. The contractual basis was clarified, with detailed process descriptions where the Order to Cash process played a key role. Additionally, security issues were arranged and significantly improved.
Telecom 2014 – International Tender for Communication Services
Introduction:
I led the "Telecom 2014" project, managing an international tender for mobile and fixed network communication services across 29 countries.
Challenge:
The existing communication services across these countries were fragmented, with multiple providers and contracts, resulting in inefficiencies and unclear service standards. The goal was to consolidate services, standardize contracts, and achieve cost savings while ensuring high-quality service delivery.
Solution:
We conducted a comprehensive international tender process, evaluating and selecting providers capable of managing mobile and fixed network communication services across all 29 countries. I worked closely with stakeholders to align requirements and ensure the chosen solution met both local and international needs.
Result:
The project resulted in standardized communication services across 29 countries, improved service quality, and significant cost savings through consolidated contracts. We reduced the supplier base to two main suppliers capable of delivering both mobile and fixed network services across Europe, achieving 15% savings (€1M). The streamlined provider relationship also simplified communication management across international regions.
Procurement Excellence Assessment – Optimization and Harmonization of Procurement Processes
Introduction:
I led the international project "Procurement Excellence Assessment," aimed at optimizing and harmonizing procurement processes and ways of working across Europe.
Challenge:
Procurement processes across European countries were inconsistent, leading to inefficiencies and a lack of alignment in operational standards. The goal was to streamline and harmonize these processes to improve efficiency, communication, and overall procurement performance.
Solution:
I conducted a comprehensive assessment of existing procurement processes and collaborated with key stakeholders to identify areas for improvement. By standardizing best practices and introducing uniform ways of working, I developed a framework for harmonized procurement processes across the European region.
Result:
The project resulted in optimized and standardized procurement processes, leading to greater efficiency and consistency across European countries. This harmonization improved cross-country collaboration, reduced process duplication, and enhanced overall procurement effectiveness.
Annual Tender for Land Transportation Services
Introduction:
At dormakaba, hundreds of freight shipments are organized daily. Materials, including semi-finished and finished goods, are shipped from the European Logistic Center in Germany to various destinations around the world. A significant portion is transported by land to European countries. I lead the annual tender for these land transportation services.
Challenge:
The prices for transportation services can change rapidly due to geopolitical factors and global events. To maintain cost efficiency, it's essential to monitor the market continuously and launch tenders at the optimal time. Additionally, collecting data on costs and volumes is a constant requirement to ensure transparency and accuracy.
Solution:
I implemented continuous market observation and initiated a regular tender process (once per year). In collaboration with Supply Chain Management and Logistics, we selected the right partners for the job using the "Transporeon" tool for the tender process.
Result:
Over the last two tenders, we achieved total savings of €500K. Furthermore, we introduced an additional partner to increase competition, which helped unlock further potential for savings.
Team Development for Europe – Building a Strategic and Operational Indirect Procurement Team
Introduction:
Based on dormakaba’s corporate strategy and goals, I was tasked with building and organizing a team for Indirect Procurement in the European region.
Challenge:
I took over a team following the merger of two regions and was responsible for building a strategic team while unifying both regions into one with a clear direction. The existing tools to support the processes were at a low maturity level, and the team had to work efficiently with these limitations. Additionally, the hiring of new staff was restricted.
Solution:
I reorganized the existing team to better and more efficiently handle tasks. I focused on developing the current staff and implemented a new organizational structure with Regional Category Managers, local Strategic Buyers, and Operational Buyers. I introduced a shared resources concept, enabling team members to manage projects and tasks across multiple countries.
Result:
This approach broke down silo structures, ensuring that we operated as one cohesive team across the region. The shared resources concept also flattened project and task peaks, allowing us to execute more projects more quickly. Additionally, I established working circles for the Services and CAPEX categories with my team, which regularly align, set priorities, and define project responsibilities. Continuous learning and progress are key components that ensure knowledge growth and improved efficiency.
Development of KPIs and Dashboard for Global Indirect Procurement Performance Measurement
Introduction:
To measure the performance of the global Indirect Procurement team, I developed and implemented a KPI concept and dashboard.
Challenge:
Indirect Procurement was a new area for dormakaba, and the systems were at a low maturity level. There was no unified Master Data Management, leading to a lack of transparent data. This situation left us essentially operating "in the dark."
Solution:
I first defined the critical KPIs to be measured and established the calculation basis for each. Using the available data from a reporting tool, I aggregated the information and developed a dashboard that allows us to display the necessary figures using various filters.
Result:
With the newly available data, we were able to take actions to continuously improve KPIs such as Retrospective POs, Maverick Buying, Data Transparency, Savings, and Cost Avoidance. The dashboard is now used globally to measure the performance of Indirect Procurement.
Tender for Sea and Air Freight Services – European Logistic Center
Introduction:
The European Logistic Center ships freight globally every day, with sea and air freight making up a significant portion of the total transportation volume. I conduct tenders for these services every 3 to 6 months to benefit from positive market movements.
Challenge:
The sea and air freight markets were heavily impacted by the COVID crisis, causing prices to soar. Regular negotiations and tenders helped mitigate extreme price fluctuations. However, a major tender in 2023 had the most significant positive impact on prices and overall costs.
Solution:
We conducted a simultaneous tender for both sea and air freight services. Three strategic suppliers were involved, and we carried out two rounds using the Transporeon tool.
Result:
The consolidated volume was awarded to two strategic partners, resulting in a significant positive impact on overall costs.
Development and Implementation of a Mentoring Program
Introduction:
The goal was to ensure that existing resources could take on more value-adding tasks, by transitioning three operational buyers into strategic buyers.
Challenge:
There were too few resources available for strategic, value-adding tasks, but there were motivated and eager learners within the operational procurement team. I needed to create a concept to facilitate this transition.
Solution:
I developed a multi-mentor program that gradually introduced the emerging talent to the work of strategic procurement. The concept involved approximately 5-10% theoretical knowledge transfer, which I compiled, 20% observation, and 75-80% practical work experience.
Result:
As a result, the operational buyers were successfully promoted to strategic buyers and are now capable of independently and professionally managing procurement projects. The team circles further contribute to knowledge transfer, fostering a continuous learning environment.
Pietro Mannino
Indirect Procurement Manager - Leader for Success
© 2024. All rights reserved.