Category Strategy Deployment - Summit

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Global Procurement OGSM Summary GOAL: Develop robust supplier relationships to improve supplier performance, create innovation and growth opportunities and provide a material cost advantage KEY MEASURES STRATEGIES (Pillars on All A3s) KEY OBJECTIVES Inflation Management Metrics Cost Out Metrics Indirect Spend as % of Sales Average Days to Pay Spend Under Management Supplier Led Innovations PEOPLE – Develop high performing, cross functional and divisional teams that foster respect by attracting talent, developing capabilities and delivering results MATERIALS COMPETITIVENESS – Drive value beyond market conditions while mitigating business risk by leveraging our external spend and optimizing our supply options BUSINESS DECISION SUPPORT – Provide timely and relevant procurement information by improving spend visibility, forecast accuracy, and analytics across divisions and regions SUPPLIER COLLABORATION – Develop supplier partners that lead cost out and offer novel solutions by ensuring we are the preferred customer of choice SOURCING FOR GROWTH and INNOVATION – Effectively and efficiently identify new suppliers and acquire new materials or solutions by improving our strategic sourcing capabilities XXXXXX XXXXXX XXXXXX XXXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX © AberdeenGroup 2012 Avery Dennison Confidential - 6 -
The Problem: Strategic Proliferation At Avery, we became engulfed in too many strategies and objectives across various functions and divisions causing competing priorities and conflicts If you don’t have and OGSM objective, you must not be important to the company, right! AD had hired a consultancy to help cascade OGSM via A3 problem solving from the Top down to each division… down to each group… down to each function.. down to each department…. CLARITY! After 2 years of deployment, everyone felt the need to have an OGSM and A3s. They became a badge of honor, corporate vindication OGSM’s/A3 proliferated wildly and “Just Do It” projects clouded strategic fundamentals © AberdeenGroup 2012 Avery Dennison Confidential - 7 -
Page 1 and 2: © AberdeenGroup 2012 Strategy Depl
Page 3 and 4: Avery Dennison Materials Procuremen
Page 5: Before we get started….. some def
Page 9 and 10: The Consultant! © AberdeenGroup 20
Page 11 and 12: Step 1: Strategic Statement “What
Page 13 and 14: Step 3: Current and Future State of
Page 15 and 16: Step 5: This Year’s (Updated) Str
Page 17 and 18: Step 7: Stakeholder Review and Appr
Page 19 and 20: The Results Mission Accomplished…
Page 21 and 22: Thank you John M. Klein Global Vice

Category Strategy Deployment - Summit

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