AWARD CATEGORY: Transformation of the Organization
COMPANY: Flextronics
REVENUE: US $26 billion
NUMBER OF EMPLOYEES WORLDWIDE: 151,342
NUMBER OF GLOBAL PROCUREMENT AND SUPPLY CHAIN EMPLOYEES WORLDWIDE: 2,691 employees with solid-line reporting to the organization, with approximately 9,000 in the procurement and supply chain community globally
COMPANY DESCRIPTION: Flextronics is a leading end-to-end supply chain solutions company that delivers design, engineering, manufacturing and logistics services to a range of industries and end markets, including data networking, telecom, enterprise computing and storage, industrial, capital equipment, appliances, automation, medical, automotive, aerospace and defense, energy, mobile, computing and other electronic product categories. Flextronics' service offerings and vertically integrated component technologies optimizes customer supply chains by lowering costs, reducing supply chain risk, increasing flexibility and reducing time to market.
PROJECT FOCUS: To support a companywide transformation, Flextronics' new global procurement and supply chain (GPSC) organization moved from a decentralized to a centralized, center-led structure. Under the direction of a new chief procurement and supply chain officer, all front-end customer supply chain management organizations were consolidated under GPSC along with procurement, and materials and logistics to create an end-to-end supply chain organization.
KEY SUCCESS: In addition to providing organizational synergy to Flextronics, GPSC achieved additional cost savings of $217 million in materials in the first year after centralization. The centralized materials organization increased supplier-managed inventory from 28 percent to 45 percent in the same period, boosting cash generation by $180 million. It also released a policy manual for employees world-wide, provided online training and is beginning to audit for compliance.
KEY INDIVIDUALS: Heimo Trampitsch, senior vice president, materials and logistics; Peter Gutschi, senior vice president, indirect procurement; Tom Linton, senior vice president, strategy supply chain management - integrated network solutions; Daniel Koh, vice president, global commodity management - electrical and components; George O'Kelly, vice president, global commodity management - mechanical and components; Majid Sairafi, vice president, strategic supply chain management - industrial and emerging industries; Purnima Wagle, vice president, chief of staff and business transformation. and Karen Francis, executive assistant. Cross-functional team: Pankaj Srivastava, vice president, finance; Ricardo Basave, senior director, finance; Ben Warnet, vice president, legal; Stephanie Boman, vice president, HR business partner; and Kerry McCracken, vice president IT.
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AWARD CATEGORY: Process
COMPANY: Raytheon
REVENUE: US $6.085 billion (2014)
NUMBER OF EMPLOYEES WORLDWIDE: More than 14,000
NUMBER OF INTEGRATED SUPPLY CHAIN EMPLOYEES WORLDWIDE: 478
COMPANY DESCRIPTION: With a history of innovation spanning 92 years, Raytheon is a technology and innovation leader specializing in defense, security and civil markets throughout the world. Raytheon Integrated Defense Systems (IDS) specializes in air and missile defense, large land- and sea-based radars and systems for managing command, control, violence and reconnaissance. It also produces air-traffic management systems, sonars, torpedoes and electronic systems for ships.
PROJECT FOCUS: IDS' Integrated Supply Chain (ISC) began a multi-phased approach to becoming the supplier customer of choice by operating in new ways, driving affordability and making collaboration integral to building strategic relationships with suppliers. A strategic sourcing organization, comprising supply chain, engineering, quality and finance, was created. A patented seven-step process was developed, guiding the organization in strategic sourcing strategies in specific supplier categories, optimizing designs, analyzing current and future spend, and using data to understand how categories align across the organization.
KEY SUCCESSES: A tiered Raytheon Supplier Excellence Program was created and a Supplier Advisory Council, consisting of senior executives from 13 supplier companies and IDS' ISC leadership, was established. The cross-functional strategic sourcing organization delivered more than 30 percent savings and realized a 35 percent increase in the number of strategic agreements. The ISC organization has established itself as a critical competitive differentiator for the business.
Key Individuals: Mike Shaughnessy, vice president, integrated supply chain; Janet Groebe, senior director, supply chain execution; Neil Perry, director, supply chain operations; John O'Sullivan, Swenson, director, engineering; Netta Lomasney, acting director, supplier quality mission assurance; and Julia Saulino, senior manager, supplier quality.
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AWARD CATEGORY: Sustainability
COMPANY: ConocoPhillips
REVENUE: US $55.52 billion (2014 total revenue and other income)
NUMBER OF EMPLOYEES WORLDWIDE: Approx. 19,100 as of December 31, 2014
NUMBER OF SUPPLY MANAGEMENT EMPLOYEES: 780 (2014)
COMPANY DESCRIPTION: The company explore for, produce, transport, and market crude oil, natural gas, natural gas liquids, liquefied natural gas and bitumen on a worldwide basis - the energy that plays a foundational role in enabling global economic development and human progress. The company is the world's largest independent exploration and production company, based on proven reserves and production of liquids and natural gas. A commitment to safety, operating excellence and environmental stewardship guide the company's operations.
PROJECT FOCUS: Local content.
KEY SUCCESSES: From January 2012 to June 2014: engaged 3,114 representatives of the local supplier community on potential supply opportunities through 24 supplier information sessions conducted throughout Australia; a total of 2,282 supplier have registered their capability through the APLNG supplier portal on the project's supplier registration and information service at www.aplng.icn.org.au; and at the end of June 2014 the cumulative expenditure for the project sourced in Australia reached AUD$15 billion, approximately 71 percent of all project spend.
Key Individuals: Ken Wise, APLNG Downstream Project; Joe Hinojosa, Australia Business Unit East Supply Chain - Brisbane; Tom Curtis, APLNG Upstream Origin; Tim McGrath, APLNG Upstream Origin - Brisbane; Robert Gibb, APLNG Downstream - Gladstone; John Davies, APLNG Downstream - Gladstone; Bob Sevitz, APLNG Upstream - Brisbane; Nage Moummar, Australia Business Unit East - Brisbane.
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AWARD CATEGORY: People
COMPANY: John Deere
REVENUE: 2014 worldwide revenue US $36 billion
NUMBER OF EMPLOYEES WORLDWIDE: Approx. 60,000
NUMBER OF SUPPLY MANAGEMENT EMPLOYEES: Approx. 2,590
COMPANY DESCRIPTION: John Deere is a world leader in providing advanced products and services and is committed to the success of those linked to the land - those who cultivate, harvest, transform, enrich, and build upon the land - to meet the world's dramatically increasing need for food, fuel, shelter and infrastructure.
PROJECT FOCUS: John Deere's internship program has evolved into a more robust program that provides meaningful work to interns and tangible benefits to the business. Successful interns are hired into the supply management development program (SMDP) a three-year rotational program, to provide them with experience across several functional disciplines of supply management.
KEY SUCCESSES: Benefits of the program are varied and include identified cost savings, process efficiencies and improved knowledge management. During summer 2014, interns identified more than $9 million in savings across a number of areas, and realized a number of intangible benefits to improve supply management's efficiency and effectiveness.
KEY INDIVIDUALS: Pierre Guyot, vice president global supply management and logistics; Kelly Duff-Morgan, WWSM strategic planning manager; Kimberly Normoyle, WWSM indirect materials and services director; Rachel Lanning, C&F division supply management manager; Christina Cogdill, WWSM compliance manager; Alec Alessandra, WWSM compliance and strategic planning director; MaryAnn Lindsay, recruiter and intern coordinator.