6 Success Stories – Agile in Procurement!

6 Success Stories – Agile in Procurement!

The COVID-19 crisis has emphasized the importance of new -more agile- approaches in procurement. But is it just another buzzword, or has it become reality?! Learn from 6 cases all around the world how agile in procurement impacted their business positively. One of the stories just won the World Procurement Award 2020!

INTRO & STATE OF AGILITY IN PROCUREMENT & SUPPLY

John & myself kicked off the event with more than 250 participants from all around the world.

It was my honor to give an even bigger picture what’s going on in terms of agility all over the world and presented a summary of our global annual report State of Agility in Procurement & Supply.

OUR CONCLUSIONS

  • Business Agility became of strategic importance for all companies no matter on the buyer or supplier side
  • More an more commercial functions are or will be including in their company-wide Agile Transformation Initiatives
  • Lean-Agile Procurement is THE agile approach for Procurement beside standard agile approaches like Kanban / Scrum
  • Minority of companies includes their partners in their journey becoming more Agile together yet
  • Also is the value of more agile Contracts still underestimated
  • Finally for 2021 respondents concluded that Education in Agile Practices / Approaches / etc. is the number 1 strategic Priority

MORE ABOUT THE SPEAKERS

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SWISSCASINOS GROUP – SWITZERLAND

Daniel started his talk with the question “Is sourcing of an ERP System in just 4 Weeks possible”?-Obviously it is and his story was recently awarded as the Winner of the World Procurement Awards 2020!

OUR CONCLUSIONS

  • Having all 3 competitors in the same room to co-create their proposals, talk about any concerns / assumptions / questions / etc. was very beneficial also to get the right social- & cultural fit
  • The commercial “negotiations” took place as well and because having the RIGHT people their from all the parties a WIN-WIN could be agreed on, with significant savings
  • Scrum turned out as the optimal operating model for executing a cross-functional sourcing team
  • improving an Agile Contract together with all participants helped to align / setup the delivery team, so that they could start the day after and keeping the partnership as flexible as needed

MORE ABOUT THE SPEAKER

  • Daniel Pellegrini, Former Head of Finance SwissCasinos Group
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ZALANDO – GERMANY

Alejandro told the audience from quite a different story introducing more Professionalism in Procurement into a purely Agile Company like Zalando.

OUR CONCLUSIONS

  • Zalando is a 10 Years old Startup with more than 10,000 Employees, which is already Agile as an organization and introducing more “structure” in Procurement needs to be adapted to the current culture & mindset
  • Also at Zalando the Procurement has applied Scrum in their commercial organization, while swarming cross-functional e.g. for making negotions more effective, etc.
  • Zalando also applied agile practices such as Scrum in development of their P2P Implementation with awesome impact to time-to-market and customer satisfaction

MORE ABOUT THE SPEAKER

  • Alejandro Basterrechea Head of Procurement Excellence Zalando
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AGCO INTERNATIONAL GMBH – GLOBAL

Konstantin introduced us in the world of direct sourcing and how agile principles such as collaboration & transparency with partners / competitors could foster innovation & improve business success.

You might know AGCO’s Brands of Tractors such as e.g. Fendt, Valtra, Massey Ferguson, etc.

OUR CONCLUSIONS

  • AGCO’s approach of Agile Product Clinics where they bring together current Partners & Competitors to review the current m modules / components of their tractors turned out as a very effective way to come up with new ideas / improvements and also to select alternative vendors
  • Those Agile Product Clinics need a cross-functional support lead by a team consisting of Product Management / Marketing, Engineering, Production and Procurement. What a surprise that AGCO uses Scrum as operating model for this cross-functional team – the most effective way to organize a team.
  • Combining those workshops with revisiting / improving the current agreements will boost the outcomes for both parties at buyer and supplier side even beyond.

MORE ABOUT THE SPEAKERS

  • Konstantin Meier-Kulenkampff, Vice President Purchasing & Materials EME at AGCO
  • Jan-Henner Theissen, CPO-Advisor & Interim Manager targetP!

GAZPROM NEFT – RUSSIA

Boris introduced us how to deal with finding the right partner in a huge country like Russia and that applying LAP is also much more fair to all the parties.

OUR CONCLUSIONS

  • Lean-Agile Procurement workshops, to negotiate with multiple vendors simultaneously, can be done 100% online. It even makes a lot of sense if the spend is not so big and the vendors would have inadequate expenses
  • the principles of Lap could be applied to sourcing in the public sector too
  • in many cases with a high promotion of innovation it’s recommended to run a proof-of-concept in parallel

MORE ABOUT THE SPEAKERS

  • Boris Zobnin, Head Procurement Digitalization Program
  • Ivan Dubrovin Agile Coach & Certified LAP Trainer ScrumTrek

AIR FRANCE KLM – FRANCE/GLOBAL

Frédéric introduced us in his world of Cargo and how to outsource a strategic product development at AirFrance KLM.

OUR CONCLUSIONS

  • Social- & Culture fit turned out as important than the hard facts such as price / quality / etc.
  • Just by bringing together the right people and forming a cross-functional team they could ensure that all interests are covered
  • Instead of eliminating the less promising offers they have been able to improve all of them in the big room event together with all the vendors / competitors and choose the best out of it!
  • It’s not just about fast sourcing, but also faster delivery value to the business.
  • LAP has create much more than just a relationship, we became friends!

MORE ABOUT THE SPEAKERS

  • Frédéric Jaques CARGO IT MANAGER Air France KLM
  • Sophie Durand Agile Coach & Certified LAP Trainer Goood!
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APA GROUP – AUSTRALIA

Henriette introduced us in how applying Agile is currently changing a whole Industry and also her Live!-In other words she’s talking us trough how Lean Agile Procurement has helped to shape significant change in individuals, teams, organisations and supply chains within the energy industry 

OUR CONCLUSIONS

  • Agile is more than just a new way of working, it changes lives of the people involved
  • Instead of just following the sourcing process procurement became part of innovation, with e.g. impact on how people in Australia see their energy consumption
  • the inclusive approach and applying scrum to the core-team consisting of all capabilities / functions needed helped to align with the strategy faster and to find the optimal partner

MORE ABOUT THE SPEAKERS

  • Henriette Kamfer Category Specialist at APA Group
  • Marcus Ward Agile Coach & Certified LAP Trainer Twenty2 Collective


Author: Mirko Kleiner

Mirko Kleiner

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