Global Sourcing and Logistics
Global Sourcing and Logistics
Global Sourcing and Logistics
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<strong>Global</strong> <strong>Sourcing</strong> <strong>and</strong> <strong>Logistics</strong><br />
A roadmap for high performance
Contents<br />
The case for transformation 4<br />
Key challenges 6<br />
Guiding principles 8<br />
How to achieve success 9<br />
Excellence in execution 10<br />
Collaboration without complexity 15<br />
Accenture's global network 16<br />
Tools <strong>and</strong> assets 18<br />
<strong>Global</strong> gains 21<br />
Procurement contacts 22
According to an Accenture survey 1 , 230 global supply<br />
chain executives plan to double their low-cost<br />
country sourcing activities in the next three years;<br />
they also believe the savings achieved from such<br />
sourcing will increase by a third.<br />
Market globalization is changing the face of multinational<br />
organizations. In their efforts to restructure to comply with local<br />
regulations <strong>and</strong> take on the challenge of increasing competition<br />
from new Asian br<strong>and</strong>s, companies have turned to low-cost<br />
countries in their search for increased supplier capacity.<br />
As high-cost country supply bases<br />
consolidate, low-cost countries are<br />
increasingly attractive to businesses that<br />
want to boost their bargaining power <strong>and</strong><br />
achieve greater savings. There is also a clear<br />
shift to categories of goods with more<br />
technical <strong>and</strong> engineering components—a<br />
migration from traditional segments, such<br />
as transportation <strong>and</strong> travel services, food<br />
<strong>and</strong> consumer products, <strong>and</strong> retail—to<br />
high-growth, highly attractive markets to<br />
create more value. 2<br />
Our research into the role of supply chain<br />
mastery 3 shows that high-performance<br />
businesses have a deep underst<strong>and</strong>ing of<br />
current <strong>and</strong> future value <strong>and</strong> effectively<br />
leverage those insights to implement<br />
differentiated operating models <strong>and</strong><br />
business architectures. More than ever,<br />
leading companies are using the supply<br />
chain to enhance differentiation, increase<br />
sales, <strong>and</strong> penetrate new markets <strong>and</strong><br />
channels. The approach you take to global<br />
sourcing <strong>and</strong> logistics can be one way to<br />
achieve that differentiation.<br />
Has your existing operating model been<br />
adapted to meet the challenges of a global<br />
market? Are you satisfying your company's<br />
stakeholders' relentless dem<strong>and</strong>s for a<br />
constant wave of innovative products<br />
<strong>and</strong> services?<br />
Accenture underst<strong>and</strong>s what is required to<br />
help companies accelerate their journey to<br />
high performance. High performers push<br />
the envelope. They transform industries.<br />
They outperform their competition, <strong>and</strong><br />
themselves. Our groundbreaking research<br />
<strong>and</strong> deep experience can help you achieve<br />
high performance by attaining—<strong>and</strong><br />
profiting from—your global sourcing <strong>and</strong><br />
logistics goals.<br />
1 Source: "Where East Meets West: Driving high<br />
performance in low-cost country sourcing"<br />
Accenture, 2005.<br />
2 Source: "<strong>Global</strong> <strong>Sourcing</strong> <strong>and</strong> <strong>Logistics</strong> for High<br />
Performance: Leading practices <strong>and</strong> the emerging role<br />
of international procurement organizations in China."<br />
3 Source: "Creating <strong>and</strong> Sustaining the High-<br />
Performance Business: Research <strong>and</strong> Insights on<br />
the Role of Supply Chain Mastery," Accenture.<br />
3
As the economic sense of global sourcing <strong>and</strong><br />
logistics is now a given, executives want to<br />
know how to best implement this critical<br />
supply chain capability. To be effective, a<br />
company's global sourcing <strong>and</strong> logistics<br />
policy must be well integrated with its<br />
overall business strategy. Core tenets of that<br />
strategy see total cost of ownership<br />
prioritized over unit prices; risk mitigation<br />
will complement benefits rather than restrict<br />
them; <strong>and</strong> experience will be leveraged to<br />
address the professional, cultural <strong>and</strong><br />
strategic differences in conducting global<br />
sourcing <strong>and</strong> logistics. Our survey shows that<br />
even companies with considerable experience<br />
in low-cost country sourcing tend to be<br />
overly optimistic in their belief that security<br />
<strong>and</strong> safety risks are manageable. The reality<br />
is that not all companies have the skilled<br />
resources needed to benefit from global<br />
sourcing <strong>and</strong> logistics.<br />
Resources<br />
Category Savings (%)<br />
Pipelines 26<br />
Sheet pile walls 24<br />
Pick points 22<br />
Dredge pumps, impellers 18<br />
Additives 17<br />
Gears 16<br />
Specialty chemicals 15<br />
Proppants 15<br />
Piping (eg hydraulics) 11<br />
Commodity chemicals 10<br />
Diesel engines 10<br />
Tinplate/PP packaging 10<br />
Communications & High Tech<br />
PC accessories <strong>and</strong> storage 34<br />
Passive component 50—RLC 19<br />
Connectors 18<br />
Headset vibration motor 9<br />
Memory 6<br />
Printed circuit board 8<br />
Despite the vast appeal of global sourcing<br />
<strong>and</strong> logistics, the approaches adopted—<strong>and</strong><br />
the results achieved—vary dramatically. At<br />
Accenture, we believe excellence in execution<br />
is the factor that makes the difference. A<br />
company is positioned to make effective<br />
sourcing decisions only when it has a<br />
complete picture of the global sourcing <strong>and</strong><br />
logistics opportunity <strong>and</strong> all that it entails.<br />
Moreover, best returns are realized only when<br />
there is close control over all global sourcing<br />
<strong>and</strong> logistics processes.<br />
Regardless of your organization's industry,<br />
you can achieve significant returns.<br />
In Accenture's experience, an industrial<br />
company that may be spending 1 billion<br />
euros in direct material can typically find<br />
that 15 to 40 percent of that spend is<br />
suitable for low-cost country sourcing,<br />
equating to around 150-400 million euros.<br />
The case for transformation<br />
These are just some of the typical savings that Accenture has helped<br />
companies achieve by underst<strong>and</strong>ing <strong>and</strong> harnessing the challenges<br />
of global sourcing <strong>and</strong> logistics.<br />
4<br />
Manufactured goods<br />
Category Savings (%)<br />
Hydraulic cylinders 75<br />
Extruded rubber 50<br />
Extruded aluminium 50<br />
Air filters 50<br />
Machined parts from bar <strong>and</strong> tube 44<br />
Non-metallic components 43<br />
Industrial cardan 42<br />
Water coolers - radiators 42<br />
Agricultural cardan 41<br />
Special iron casting 41<br />
Iron <strong>and</strong> steel castings 39<br />
Wire harness 38<br />
Malleable iron casting 37<br />
Medium <strong>and</strong> small grey iron castings 37<br />
Airco hose assembly 34<br />
Alternators 34<br />
Hose <strong>and</strong> tube assembly 34<br />
Lights, lamps, bulbs <strong>and</strong> reflectors 34<br />
Hose assembly 32<br />
Seats (bus) 32<br />
Steering rods 32<br />
Electromechanical clutches 31<br />
Fuel filters 30<br />
The subsequent savings that may be achieved<br />
through a successful low-cost country<br />
sourcing program are also in the region of 10<br />
to 30 percent, or equating to 15-133 million<br />
euros.<br />
Category Savings (%)<br />
Audio/visual devices 30<br />
Welded parts <strong>and</strong> assemblies 30<br />
Glass 29<br />
Machined parts from castings 29<br />
Sieves (welded parts) 28<br />
Welded parts <strong>and</strong> assemblies 27<br />
Ball bearings 26<br />
Fuel filters (including water separators) 26<br />
Oil filters 26<br />
Seals <strong>and</strong> O rings 26<br />
Automotive parts <strong>and</strong> accessories 25<br />
Gaskets 25<br />
Corrugated packaging 28<br />
Door h<strong>and</strong>ling systems 18
Key challenges<br />
With foreign direct investment<br />
climbing year-on-year by 25.4<br />
percent <strong>and</strong> exports growing at<br />
16.5 percent, China is rapidly<br />
becoming a global economic<br />
powerhouse. Currently ranked as<br />
the fourth largest exporter in the<br />
world, China has quickly become<br />
a benchmark option that no<br />
procurement executive can<br />
afford to ignore.<br />
A key question for senior<br />
executives considering a global<br />
sourcing <strong>and</strong> logistics strategy is<br />
whether the time <strong>and</strong> effort<br />
invested in setting up an<br />
international procurement<br />
organization in China will yield<br />
the expected returns. The short<br />
6<br />
answer is yes. More than 70<br />
percent of companies that set up<br />
international procurement<br />
organizations in China believe<br />
that the ventures have met or<br />
exceeded their expectations.<br />
Surveys of procurement<br />
executives also confirm that<br />
executives view highperformance<br />
procurement<br />
organizations in China as a<br />
fundamental part of a global<br />
sourcing <strong>and</strong> logistics strategy.<br />
Many companies plan to double<br />
their expenditure in low-cost<br />
countries over the next three<br />
years <strong>and</strong> expect to reap the<br />
benefit of even greater savings. 4<br />
Accenture's broad experience coupled with<br />
the insights we have distilled from<br />
continuous research enable us to<br />
successfully address many of the issues on<br />
the road to profitable global sourcing <strong>and</strong><br />
logistics. Those issues include:<br />
Information <strong>and</strong> certification<br />
integrity<br />
Companies that contact suppliers in<br />
countries such as China with requests for<br />
proposals often receive initial quotations<br />
<strong>and</strong> quality assurances that are hard to<br />
resist, only to find out further into the<br />
process that those statements are<br />
frequently misleading or incorrect. For<br />
Western companies, integrity is therefore a<br />
serious concern.<br />
English or foreign language<br />
proficiency<br />
Although many suppliers in low-cost<br />
countries have English-speaking sales<br />
people, difficulties can arise when they<br />
need to interact with Western executives to<br />
discuss technical intricacies. Key personnel
at low-cost country suppliers do not always<br />
have sufficient comm<strong>and</strong> of English or of<br />
other Western languages to engage in<br />
lengthy or detailed exchanges. Using<br />
translators is one option, but they often do<br />
not have the technical background to<br />
address industry specifics. The risk of<br />
misunderst<strong>and</strong>ing <strong>and</strong> communication<br />
impasse cannot be underestimated.<br />
Industry st<strong>and</strong>ards not<br />
synchronized with international<br />
st<strong>and</strong>ards<br />
Sharing drawings with suppliers who may<br />
use different technical st<strong>and</strong>ards can result<br />
in delays while the situation is evaluated<br />
<strong>and</strong> the differences clarified. Once again,<br />
misunderst<strong>and</strong>ings may filter into the<br />
scenario. It may take low-cost country<br />
suppliers an inordinate amount of time to<br />
underst<strong>and</strong> written text explanations of<br />
required industry st<strong>and</strong>ards that may be<br />
self-explanatory in the West. Industry<br />
st<strong>and</strong>ards that are not synchronized with<br />
international st<strong>and</strong>ards—or with your<br />
expectations—can cause costly delays.<br />
Risk management on<br />
delivery continuity<br />
Longer lead times that result when sourcing<br />
from countries such as China <strong>and</strong> India<br />
require companies to adopt new approaches<br />
to risk assessment <strong>and</strong> mitigation. Many<br />
Chinese suppliers lack international trade<br />
or export experience, are unfamiliar with<br />
Western terms <strong>and</strong> conditions that offer<br />
the best pricing, <strong>and</strong> are not experienced<br />
with export requirements. Few export<br />
under the Delivery Duties Paid (DDP)<br />
formula, preferring Ex-Works instead. 5<br />
Western companies have to pick up the<br />
transportation costs <strong>and</strong> work with thirdparty<br />
logistics operators to secure the<br />
best terms.<br />
Western companies must also address the<br />
issue of payment terms. Asian suppliers<br />
rarely agree to 60 or 90 day terms with a<br />
new customer or early in a new relationship.<br />
Their initial offer is typically 30-days<br />
prepayment. The negotiation gap is therefore<br />
considerable <strong>and</strong> can heavily impact<br />
budgeting <strong>and</strong> revenue.<br />
Underestimating the true<br />
total cost<br />
Business cases may suffer if total cost<br />
models do not have all cost elements<br />
within their scope. Time-to-benefit<br />
statements can often be overly optimistic.<br />
The time <strong>and</strong> effort necessary to build<br />
relations with suppliers, conduct product<br />
<strong>and</strong> production testing, integrate suppliers<br />
in the supply chain, <strong>and</strong> accelerate the<br />
physical material flow can seriously impact<br />
the overall picture. Total cost of ownership<br />
models do not take into account the<br />
potential for quality problems during the<br />
production phase, or the risk of increased<br />
warranty costs.<br />
Lack of a holistic supply<br />
chain view<br />
In recent years, supply chains have<br />
systematically improved in the Western<br />
world. Low-cost country suppliers, on the<br />
other h<strong>and</strong>, lack experience with the most<br />
modern processes <strong>and</strong> are often unfamiliar<br />
with the high st<strong>and</strong>ards required, such<br />
as sequence deliveries combined with<br />
just-in-time, vendor-managed inventory<br />
solutions or electronic data interchange<br />
communications. These supply chain<br />
aspects are important when determining<br />
which categories can be appropriately<br />
sourced from suppliers based in<br />
low-cost countries.<br />
Limited high-quality research<br />
<strong>and</strong> development capabilities<br />
While research <strong>and</strong> development<br />
capabilities at low-cost country suppliers<br />
are improving, they are still below Western<br />
st<strong>and</strong>ards. Building a relationship with a<br />
strategic partner who will be fully<br />
integrated within the development process<br />
is a challenge. It can take time to secure<br />
underst<strong>and</strong>ing <strong>and</strong> trust. Collaborative<br />
information technology supporting the<br />
product development process may not be<br />
optimal due to failure to rapidly meet the<br />
dem<strong>and</strong>s of innovation.<br />
Internal organizational barriers<br />
When sourcing in low-cost countries, there<br />
is a clear need to ensure that the internal<br />
organization has been adapted to suit new<br />
circumstances. For example, sourcing in<br />
low-cost countries creates a number of<br />
change management issues. Internal buyers<br />
who have spent time <strong>and</strong> effort fostering<br />
their existing supplier base are often<br />
reluctant to begin the relationship-building<br />
process again, especially since they will<br />
need to accommodate often considerable<br />
differences in cultures <strong>and</strong> time zones.<br />
Accenture is increasing its<br />
commitment to the Chinese<br />
market, with seven offices, <strong>and</strong><br />
50 classes from the Supply Chain<br />
Academy translated into<br />
M<strong>and</strong>arin Chinese. Accenture<br />
should be on the shortlist of<br />
consultancies when looking for<br />
business consulting expertise in<br />
Chinese procurement, sourcing of<br />
local suppliers <strong>and</strong> setting up<br />
offices in China.<br />
AMR Research 2005, ‘R<strong>and</strong>om Notes for November<br />
11, 2005,’ November 2005<br />
4 Source: European Leaders in Procurement by<br />
Steve Wilson <strong>and</strong> Jamie Bolton, Fall 2005<br />
5 Source: http://www.iccwbo.org/incoterms/<br />
7
Guiding principles<br />
Accenture's approach – During the opportunity assessment phase of<br />
every global sourcing <strong>and</strong> logistics project, Accenture applies five<br />
principles to drive success.<br />
Principle 1<br />
Rapidly identify potential categories <strong>and</strong><br />
low-cost country locations<br />
By capitalizing on Accenture's in-depth<br />
knowledge <strong>and</strong> proven experience in category<br />
assessment, your organization can kick off<br />
a global sourcing <strong>and</strong> logistics project with a<br />
tailored set of best low-cost country supplier<br />
options. Furthermore, by applying our lowcost<br />
country prioritization <strong>and</strong> "should cost"<br />
modeling tool, we can help you identify<br />
the right categories to pilot.<br />
Principle 2<br />
Leverage the category expertise built by<br />
Accenture's global network<br />
Early involvement with Accenture's global<br />
sourcing <strong>and</strong> logistics network ensures that<br />
fixed resources from each region impacted<br />
are deployed to your project team.<br />
Accenture's category experts <strong>and</strong> skilled<br />
sourcing professionals worldwide assure rapid<br />
scalability <strong>and</strong> constant focus on results.<br />
8<br />
Principle 3<br />
Guarantee a business case for moving<br />
forward <strong>and</strong> an appropriate implementation<br />
plan<br />
Accenture coordinates the activities of<br />
engineering <strong>and</strong> quality management,<br />
together with procurement, to agree total<br />
cost <strong>and</strong> identify risks for each category with<br />
its certified best suppliers in each region.<br />
Accenture's global sourcing <strong>and</strong> logistics<br />
methodology helps companies develop a<br />
robust plan for global sourcing <strong>and</strong> logistics<br />
that includes taking selected suppliers onboard<br />
for pilot categories.<br />
By taking a holistic view of the global supply<br />
chain <strong>and</strong> leveraging our international trade<br />
assets <strong>and</strong> capabilities, Accenture will include<br />
in the plan logistics solutions uniquely suited<br />
to each of our client’s sourcing circumstances<br />
<strong>and</strong> strategic goals.<br />
Principle 4<br />
M<strong>and</strong>ate in-house procurement professionals<br />
to secure data <strong>and</strong> transfer knowledge<br />
Accenture works with integrated, crossfunctional<br />
teams from your company to<br />
conduct workshops for each major project<br />
milestone. All project activities <strong>and</strong> outcomes<br />
must be accurately communicated <strong>and</strong><br />
documented.<br />
Principle 5<br />
Integrate new suppliers into the supply chain<br />
<strong>and</strong> optimize the flow of physical materials<br />
Accenture minimizes disruption <strong>and</strong><br />
optimizes the supply chain by fully<br />
integrating new suppliers <strong>and</strong> managing<br />
logistics <strong>and</strong> distribution requirements, from<br />
the moment the goods leave a supplier's yard<br />
until they arrive at your gate. Using<br />
Accenture’s structured approach, testing <strong>and</strong><br />
homologation can be accelerated <strong>and</strong> greater<br />
visibility achieved.
How to achieve success<br />
The success of a global sourcing<br />
<strong>and</strong> logistics project is strongly<br />
influenced by the dedicated<br />
central <strong>and</strong> low-cost country<br />
project resources. These<br />
resources, with their focused<br />
efforts <strong>and</strong> strong drive for<br />
results, can provide<br />
measurements of clear bottomline<br />
key performance indicators<br />
<strong>and</strong> help your organization<br />
reap rewards. To achieve<br />
success in global sourcing <strong>and</strong><br />
logistics, Accenture has<br />
identified four crucial areas.<br />
Sponsorship from senior management <strong>and</strong><br />
strong program management<br />
Active commitment <strong>and</strong> direct involvement<br />
by senior decision makers fosters swift<br />
decision-making <strong>and</strong> ensures a "top down"<br />
approach to communicating results <strong>and</strong><br />
deliverables throughout the organization.<br />
A structured global sourcing <strong>and</strong> logistics<br />
methodology should be employed using<br />
strong program management that utilizes<br />
cross-functional teams with specific<br />
project-oriented targets to achieve<br />
implementation plans.<br />
Categories should be addressed broadly <strong>and</strong><br />
strategically<br />
Project resources must be dedicated <strong>and</strong><br />
skilled with expert knowledge of the<br />
category. The global sourcing <strong>and</strong> logistics<br />
approach should be broad enough in scope to<br />
truly make a difference but also impact the<br />
bottom line. Category purchasing strategy<br />
<strong>and</strong> cost modeling should be built into the<br />
equation with an eye for all possible cost<br />
reduction opportunities (st<strong>and</strong>ardization,<br />
volume consolidation, change to<br />
specifications <strong>and</strong> so on). Companies must<br />
make decisions based on all aspects of the<br />
categories, conduct fact-based <strong>and</strong> crossfunctional<br />
negotiations, <strong>and</strong> dedicate<br />
resources in engineering to anticipate <strong>and</strong><br />
focus on selected actions.<br />
Local presence <strong>and</strong> expertise<br />
Dedicated resources in local markets are<br />
required to build effective sourcing<br />
relationships with potential suppliers.<br />
Expertise in local markets <strong>and</strong> business<br />
practices will ensure the implementation<br />
phase is successfully managed <strong>and</strong><br />
continues to integrate <strong>and</strong> strengthen<br />
the supplier relationship.<br />
Change management to build structural<br />
capability<br />
Identifying local suppliers is only one aspect<br />
of a successful global sourcing <strong>and</strong> logistics<br />
strategy. Often, companies experience<br />
internal resistance to h<strong>and</strong>ling the issues that<br />
may arise with low-cost country sourcing<br />
suppliers. A strong change management<br />
program that focuses on aligning the hearts<br />
<strong>and</strong> minds of your operational team can help<br />
to build confidence in the low-cost country<br />
sourcing journey <strong>and</strong> creates further dem<strong>and</strong><br />
that continues to improve relationships.<br />
9
Figure 1: From strategy to execution<br />
8<br />
Local procurement office<br />
Organization design & “3P IPO”<br />
Staffing, recruiting, training<br />
Integration to global organization<br />
Established procurement office<br />
7<br />
Strategy &<br />
planning<br />
Supplier development<br />
Assessment of capability gaps<br />
Lean management program “6 Sigma”<br />
Workshops <strong>and</strong> training<br />
Capable suppliers<br />
Excellence in execution<br />
Throughout the process of determining a<br />
successful sourcing strategy for your<br />
organization, Accenture asks relevant<br />
questions that drive the process forward <strong>and</strong><br />
tailor the solution to your organization's<br />
unique objectives. We ask questions like:<br />
What can your company do to realize value<br />
from global sourcing <strong>and</strong> logistics? How are<br />
you currently managing global sourcing <strong>and</strong><br />
logistics across various divisions <strong>and</strong> plants? If<br />
your organization fully exploited global<br />
sourcing <strong>and</strong> logistics, then how much could<br />
you potentially save?<br />
We work with companies to determine the<br />
actions they need to take to realize those<br />
potential savings. Furthermore, we help<br />
organizations define an implementation<br />
plan to assure excellence in execution.<br />
Accenture's global sourcing <strong>and</strong> logistics<br />
program is based on our extensive experience<br />
with companies in diverse industries. The<br />
program is structured in four key phases, each<br />
of which contains two subphases (Figure 1).<br />
Strategy <strong>and</strong> planning<br />
We help you define which categories are<br />
suitable for global sourcing <strong>and</strong> logistics,<br />
identify risks, estimate potential savings,<br />
build a business case <strong>and</strong> develop a<br />
roadmap to competitive advantage.<br />
10<br />
Long-term<br />
capability<br />
development<br />
1<br />
Category assessment<br />
Review of total spend profile<br />
Country profiling<br />
Total cost of ownership modeling<br />
Plan of what to source where<br />
6<br />
Low-cost<br />
countries<br />
Fulfillment<br />
Optimized logistics solution<br />
Inventory locations<br />
<strong>Global</strong> trade management<br />
Products delivered to<br />
own sites<br />
2<br />
Risk assessment<br />
Country risk assessment<br />
Industry risk assessment<br />
Supplier risk assessment<br />
Migration strategy<br />
5<br />
Supplier integration<br />
Production process qualification<br />
Quality & delivery assured<br />
Order-to-delivery process defined<br />
Supplier integrated in<br />
supply chain<br />
Category assessment: As part of a spend<br />
analysis, we use an Accenture framework<br />
to assess the suitability of each category<br />
for low-cost country sourcing. Complex<br />
manufacturing components, for instance,<br />
generally require research <strong>and</strong> development<br />
capabilities nearby, as well as exhaustive<br />
testing <strong>and</strong> approval processes. These<br />
features alone virtually disqualify them<br />
as the starting point for a new sourcing<br />
program. Simpler components, on the<br />
other h<strong>and</strong>, are easier to source, both<br />
from technical <strong>and</strong> risk st<strong>and</strong>points. Our<br />
category assessment process also includes<br />
a "should cost" model (see page 19) that<br />
helps evaluate the potential savings by<br />
country <strong>and</strong> highlights indicators such as<br />
the cost of transportation from China,<br />
which may significantly subtract from<br />
the initial attractiveness of a sourcing<br />
proposition. By applying our proven<br />
methodologies, Accenture can identify<br />
which region is appropriate for certain<br />
categories <strong>and</strong> recommend relevant actions<br />
to companies that partner with us.<br />
Risk assessment: There are many different<br />
types of risk: country-specific risks, political<br />
instability, spiraling inflation rates <strong>and</strong><br />
supply chain risks. What happens when you<br />
3<br />
Supplier identification<br />
Supplier market intelligence<br />
Supplier search<br />
Qualification/on-site audits<br />
Shortlist of qualified suppliers<br />
4<br />
<strong>Sourcing</strong><br />
execution<br />
<strong>Sourcing</strong><br />
Differentiated bid strategies<br />
Fact-based negotiation<br />
Contracting<br />
Selected suppliers<br />
Supply chain<br />
optimization<br />
Copyright © 2006 Accenture<br />
leave a well-functioning supply chain<br />
with your habitual suppliers to select new<br />
suppliers from different, distant cultures?<br />
Accenture will help you assess the risk<br />
elements, including delivery precision<br />
<strong>and</strong> punctuality, to position you to<br />
determine your priorities <strong>and</strong> avoid<br />
the pitfalls.<br />
<strong>Sourcing</strong> <strong>and</strong> execution<br />
We help drive the complete strategic<br />
sourcing program for one or multiple<br />
categories. Our traditional strategic<br />
sourcing process is now fully adapted for<br />
low-cost country sourcing.<br />
Supplier identification: Using our tried <strong>and</strong><br />
tested proven tools, Accenture can analyze<br />
the entire range of supply options for a<br />
specific category <strong>and</strong> identify new suppliers<br />
in the context of the competitive dynamic<br />
of the supply market. We are able to advise<br />
companies on market players <strong>and</strong> rapidly<br />
identify industry leaders. We utilize our<br />
supplier databases to quickly locate <strong>and</strong><br />
screen appropriate suppliers. Using questions<br />
tailored to company-specific realities, we<br />
drive the request for information (RFI)<br />
process <strong>and</strong> shortlist the "best option"<br />
suppliers. We then utilize our quality<br />
assurance (QA) auditing capabilities to<br />
qualify these suppliers.
Accenture approaches global sourcing <strong>and</strong> logistics<br />
holistically, taking an integrated view that seeks total<br />
value—not simply reducing today's prices. We cut<br />
through the barriers to set up collaboration. We map<br />
cultures <strong>and</strong> skills with clear roles <strong>and</strong> responsibilities<br />
to integrate information <strong>and</strong> practices.<br />
<strong>Sourcing</strong> <strong>and</strong> execution<br />
<strong>Sourcing</strong>: Taking sourcing one step further<br />
we can help define the sourcing strategy,<br />
bid strategy, h<strong>and</strong>le the request for<br />
quotation (RFQ), analyze the responses <strong>and</strong><br />
build supplier structure scenarios, calculate<br />
savings by scenario, <strong>and</strong> evaluate pros <strong>and</strong><br />
cons. We then assist with the final supplier<br />
selection. We can also help define the<br />
negotiation strategy <strong>and</strong> conduct<br />
negotiations when needed. Our local<br />
procurement teams can easily adapt<br />
negotiations to suit the local culture.<br />
Supply chain optimization<br />
We help integrate new suppliers into the<br />
supply chain <strong>and</strong> to optimize the flow of<br />
physical materials.<br />
Supplier integration: A newly contracted<br />
supplier needs to be integrated into the<br />
existing supply chain framework in a manner<br />
that assures alignment with the order-todelivery<br />
process. A structured plan must be<br />
put in place to address testing <strong>and</strong> production<br />
ramp-ups. Accenture can manage the<br />
process through to completion, from the<br />
initial sample tests, to pre-production tests<br />
<strong>and</strong> through full-production tests. We can<br />
help accelerate testing <strong>and</strong> homologation<br />
12<br />
by involving our alliance partners in lowcost<br />
countries. To help suppliers build a<br />
clear vision on order placement <strong>and</strong> the<br />
delivery process, Accenture can make use<br />
of preconfigured enterprise resource<br />
planning systems to make available "plug<br />
<strong>and</strong> play" systems for remote suppliers.<br />
We can even manage the complete order<br />
flow using Accenture Supply Chain Services.<br />
Fulfillment: An important part of effective<br />
supply chain management is the ability to<br />
analyze <strong>and</strong> make recommendations that<br />
center on the optimal <strong>and</strong> physical logistical<br />
flow. Defining how goods will be moved or<br />
where a consignment warehouse should be<br />
localized, Accenture is able to optimize the<br />
flow from the moment the goods leave a<br />
supplier's yard until they arrive at your gate.<br />
Long-term capability development<br />
Accenture can help develop suppliers'<br />
production efficiency <strong>and</strong> quality levels.<br />
We have the expertise to help you set up<br />
a local procurement office in China, India<br />
or in any other low-cost country.<br />
Supplier development: Our collaborative<br />
approach to relationships with suppliers<br />
enables us to close the manufacturing<br />
efficiency <strong>and</strong> quality gaps in no more<br />
than six to 18 months, which we follow<br />
up by applying Six Sigma principles <strong>and</strong><br />
Accenture's lean management methodology.<br />
Furthermore, we are able to draw on our<br />
broad skills <strong>and</strong> experience in areas like<br />
e-learning, provided by the Accenture<br />
Supply Chain Academy, or our versatile lean<br />
manufacturing techniques, which<br />
are translated into many languages such<br />
as M<strong>and</strong>arin.<br />
Local procurement office: Accenture offers<br />
companies targeted help in deciding where<br />
to establish an international procurement<br />
office, how to structure the international<br />
procurement office, <strong>and</strong> the optimal way to<br />
run it. We also help companies recruit <strong>and</strong><br />
train appropriate resources <strong>and</strong> fully<br />
integrate the new procurement office into<br />
the global procurement organization.
Procurement outsourcing<br />
In addition to being able to manage <strong>and</strong><br />
run international procurement offices for<br />
companies across diverse industries, we<br />
offer a full outsourcing capability. We help<br />
organizations improve their performance<br />
across all aspects of outsourcing, whether<br />
that involves running international<br />
procurement offices on behalf of clients or<br />
providing back-office management. We<br />
h<strong>and</strong>le outsourcing activities in the<br />
following ways:<br />
● Third-party international procurement<br />
offices: Accenture can manage your<br />
international procurement offices <strong>and</strong> all<br />
sourcing activities from that particular<br />
country or region.<br />
● Off-shoring procurement back-office<br />
processes: Using the Accenture <strong>Global</strong><br />
Delivery Network, we can reduce<br />
operational costs. For example, the costs<br />
can be reduced by transferring the<br />
administrative procurement processes to<br />
our center in Bangalore, India.<br />
Accenture also provides companies <strong>and</strong><br />
governments with a broad range of<br />
outsourced procurement services, including<br />
category management; supplier<br />
management; requisitioning-to-pay<br />
processing; <strong>and</strong> application development,<br />
maintenance <strong>and</strong> hosting. These services<br />
can be contracted in several combinations,<br />
making it possible for you to select the<br />
optimal mix to meet your specific needs.<br />
<strong>Global</strong> sourcing <strong>and</strong> logistics is driving a<br />
need for much tighter customer-supplier<br />
integration <strong>and</strong> collaboration along the<br />
supply chain as supply lead times become<br />
longer <strong>and</strong> less predictable. To assure<br />
reliable supplies <strong>and</strong> inbound-flow<br />
visibility, stronger links need to be<br />
established between supply chain partners.<br />
Accenture offers advanced supply chain cosourced<br />
services under value-based,<br />
multiyear agreements in areas such as<br />
supply chain collaboration (including<br />
supplier-customer integration, collaborative<br />
planning, vendor-managed inventory, order<br />
management <strong>and</strong> e-invoicing); supply chain<br />
planning business process outsourcing; <strong>and</strong><br />
supply chain intelligence (for example,<br />
advanced supply chain performance<br />
reporting services). From our multilingual,<br />
24x7 global user support centers, we not<br />
only offer IT-enabled one-to-many st<strong>and</strong>ard<br />
integration capability but also supplier<br />
recruitment <strong>and</strong> integration services, as<br />
well as supply chain workflow monitoring.<br />
Accenture approaches global sourcing <strong>and</strong><br />
logistics holistically, taking an integrated<br />
view that seeks total value—not simply<br />
reducing today's prices. We cut through the<br />
barriers to set up collaboration. We map<br />
cultures <strong>and</strong> skills with clear roles <strong>and</strong><br />
responsibilities to integrate information<br />
<strong>and</strong> practices. For Accenture, global<br />
sourcing <strong>and</strong> logistics is more<br />
than improving procurement: It is a key<br />
component in establishing a global<br />
footprint. By mastering execution in a<br />
sustainable manner, global sourcing <strong>and</strong><br />
logistics impacts the very core of a<br />
company's operating model.<br />
Our global reach from bases in 48 countries<br />
means worldwide consistency. We have<br />
a network of high-caliber, dedicated<br />
professionals ready to collaborate with<br />
you to help join the dots between high<strong>and</strong><br />
low-cost countries. Our experience<br />
<strong>and</strong> scale mean we can offer tools <strong>and</strong><br />
solutions that enable high performance.<br />
13
Just started out or already fully operational?<br />
Accenture can not only support your program,<br />
regardless of where your company is positioned in<br />
the global sourcing <strong>and</strong> logistics arena, but we<br />
can also take you further. We can grow with you<br />
<strong>and</strong> blur the lines between your team <strong>and</strong> ours,<br />
share our skills with your resources, <strong>and</strong> pool<br />
knowledge <strong>and</strong> experience to ensure you<br />
maximize the potential value from your global<br />
sourcing <strong>and</strong> logistics strategy.<br />
14
Reference the following chart to consider where your company is in the maturity cycle today:<br />
Phase<br />
Strategy <strong>and</strong> planning<br />
<strong>Sourcing</strong> execution<br />
Supply chain optimization<br />
Long-term capability<br />
building<br />
You might ask:<br />
What can I source in low-cost<br />
countries?<br />
How do I accelerate my global<br />
sourcing <strong>and</strong> logistics plan?<br />
How do I integrate the new<br />
suppliers into my supply chain<br />
<strong>and</strong> ensure optimal logistics?<br />
How can I enhance my<br />
presence in low-cost country<br />
markets?<br />
Your current situation may be:<br />
Aware of the potential but<br />
little or no experience. Not<br />
organized or equipped for<br />
low-cost country sourcing<br />
Disappointing returns with<br />
sourcing activities to date.<br />
Speed is too low. Need to<br />
improve knowledge of the<br />
low-cost country market.<br />
Difficulties with supplier<br />
implementation <strong>and</strong><br />
performance mean the<br />
relationship is<br />
underdeveloped. Delivery<br />
precision is poor. Effects on<br />
flexibility of production <strong>and</strong><br />
capacity planning.<br />
Need to develop local<br />
presence by defining a<br />
strategy for each country.<br />
Consider setting up an<br />
international procurement<br />
office.<br />
The solution is to:<br />
Undertake the category<br />
assessment phase <strong>and</strong><br />
determine the most suitable<br />
categories for low-cost<br />
country sourcing. Define pilot<br />
project <strong>and</strong> execute sourcing<br />
plan.<br />
Accelerate results by<br />
strengthening the project<br />
organization <strong>and</strong> get help in<br />
driving the sourcing activities<br />
by using a mixed team of<br />
central <strong>and</strong> local resources in<br />
low-cost countries.<br />
Integrate the existing lowcost<br />
country supply base<br />
according to a structured<br />
program with clear check<br />
points. Team up with experts<br />
to design overall logistics<br />
flow.<br />
Adjust organizational design<br />
to build local presence in<br />
major supply markets. Align<br />
procurement organization<br />
structure with global<br />
operations strategy.<br />
Collaboration without complexity<br />
<strong>Global</strong> sourcing <strong>and</strong> logistics carries its own complexities. There<br />
are many reasons why companies may hesitate before initiating<br />
projects, or why they might be reluctant or unable to take their<br />
existing sourcing strategy to the next level. Supply chain<br />
discrepancies can be costly. Supplier relationships entail their own<br />
sensitivities, but attitudes of resistance are not conducive to rapid<br />
progress. At Accenture, our practical skills <strong>and</strong> proven expertise<br />
mean that your company can begin to work differently. Instead of<br />
advancing opportunistically when resources allow, we can help<br />
you accelerate in an organized <strong>and</strong> scheduled manner, <strong>and</strong> bring<br />
fresh scope <strong>and</strong> diversity to your sourcing <strong>and</strong> logistics scenario to<br />
enable high performance.<br />
How Accenture helped:<br />
A construction equipment<br />
company: Defined which<br />
component groups are<br />
suitable for low-cost country<br />
sourcing. Defined complete<br />
sourcing program, total cost<br />
of ownership-based savings<br />
estimations, business case,<br />
<strong>and</strong> execution plan.<br />
An industrial equipment<br />
manufacturer: Achieved 30<br />
percent total potential<br />
savings (on l<strong>and</strong>ed price),<br />
equating to $7.2 million on<br />
quoted parts.<br />
A global retail br<strong>and</strong>: Worked<br />
with client to redesign overall<br />
logistics network. Defined<br />
program for each supplier to<br />
synchronize production<br />
scheduling with customers.<br />
A consumer goods company:<br />
Helped set up a local<br />
procurement office in<br />
Shanghai; defined how to<br />
integrate office with global<br />
procurement organization.<br />
15
Accenture’s global network<br />
Because we are a global organization with more than 140,000<br />
experienced professionals worldwide, Accenture is able to design<br />
projects that seamlessly link concept to implementation. Our local<br />
country procurement teams position us to offer you cost-effective<br />
methods to manage supplier relationships <strong>and</strong> transcend barriers of<br />
language <strong>and</strong> culture.<br />
We share our databases <strong>and</strong> repositories of constantly updated<br />
information on products <strong>and</strong> suppliers. Companies that partner with<br />
Accenture save valuable time by utilizing our tools <strong>and</strong> know-how<br />
to screen <strong>and</strong> qualify local suppliers.<br />
16
Accenture's main low-cost country procurement hubs<br />
collaborate with procurement teams in more than 48<br />
countries around the world.<br />
1<br />
China<br />
Our China organization supports the full<br />
range of our capabilities to achieve<br />
superior outcomes for companies. Founded<br />
in 1992, Accenture Greater China has 2,400<br />
employees, of whom 1,200 are deployed to<br />
consulting. All are based at offices in<br />
Beijing, Dalian, Guangzhou, Shanghai, Hong<br />
Kong <strong>and</strong> Taipei.<br />
2<br />
5<br />
India<br />
Even the most conservative growth<br />
forecasts rank India among the world's top<br />
five economies by 2025. 7 Now approaching<br />
our twentieth year in the country <strong>and</strong> with<br />
more than 20,000 employees (including<br />
some 500 in consulting), Accenture is<br />
well-positioned to serve diverse requirements<br />
from a wide variety of industries.<br />
6<br />
4<br />
3<br />
Eastern Europe<br />
Our offices in Pol<strong>and</strong>, Hungary, Slovakia,<br />
The Czech Republic, Turkey <strong>and</strong> Russia offer<br />
the scope that European companies need<br />
to serve their sourcing requirements. In<br />
this region, Accenture has 850 dedicated<br />
professionals in consulting <strong>and</strong> outsourcing<br />
services who are helping clients reach<br />
their goals as they strive to achieve<br />
high performance.<br />
4<br />
3<br />
Brazil<br />
Based in a region with a collective<br />
population of nearly 400 million, our<br />
Brazilian offices are located in São Paulo,<br />
Rio de Janeiro, Brasília, Belo Horizonte.<br />
We also house Technology Solutions <strong>and</strong><br />
Service Centers in Alphaville, Curitiba <strong>and</strong><br />
Vitória. Accenture serves 14 of the 20<br />
largest corporations in Brazil. We have<br />
6,000 regional people who can provide the<br />
full breadth of capabilities to develop <strong>and</strong><br />
enhance these global organizations.<br />
2<br />
1<br />
5<br />
Mexico<br />
Accenture Mexico has more than 1,000<br />
professionals based in offices in Mexico City<br />
<strong>and</strong> Monterrey, as well as a Technology<br />
Solutions Center in the country's capital<br />
that has more than 300 professionals.<br />
6<br />
Argentina & Chile<br />
Our reach extends to the very south, where<br />
Accenture has 3,000 professionals in<br />
Argentina <strong>and</strong> Chile, <strong>and</strong> offices in Buenos<br />
Aires <strong>and</strong> Santiago. Seven out of the<br />
10 major companies in Argentina are<br />
Accenture clients.<br />
7 . Source: Goldman Sachs. Excerpt from "Signposts",<br />
Accenture 2005<br />
17
18<br />
Tools <strong>and</strong> assets<br />
Accenture professionals work with you, leveraging<br />
our tailored sourcing <strong>and</strong> logistics assets.
Capabilities assessment tool<br />
A structured way to better underst<strong>and</strong> a<br />
company's operational model, the<br />
capabilities assessment tool helps prioritize<br />
the actions required to develop efficient<br />
low-cost country sourcing activities. Based<br />
on a short questionnaire, the tool<br />
evaluates important sourcing capability<br />
aspects <strong>and</strong> provides insight into areas<br />
such as maturity level placement, actual<br />
barriers to low-cost country sourcing<br />
versus actual capabilities, a benchmark<br />
against Accenture's cross industry survey<br />
<strong>and</strong> recommendations for the prioritization<br />
of actions.<br />
Low-cost country<br />
suitability model<br />
We built our suitability model as a tool to<br />
help assess the suitability of individual<br />
product or component categories for lowcost<br />
country sourcing. Key assessment<br />
criteria include lead-time requirements,<br />
technical complexity, "switch over"<br />
complexity, tooling cost, transportability,<br />
intellectual property rights <strong>and</strong> br<strong>and</strong><br />
image risk.<br />
Total cost of ownership model:<br />
The "should cost" model<br />
Underst<strong>and</strong>ing what the total cost for a<br />
certain category or product should be by<br />
sourcing it from various countries is one of<br />
the primary inputs to a strategic sourcing<br />
plan. Accenture has developed a modeling<br />
tool that breaks down the total cost <strong>and</strong><br />
evaluates the base line—including the<br />
percentage of raw materials, labor,<br />
transportation, energy cost, customs<br />
duties, taxes <strong>and</strong> profit that was used—to<br />
arrive at a total cost of ownership amount.<br />
This cost structure can then be projected<br />
into several different countries using the<br />
Accenture tool, showing how each cost<br />
element might increase or decrease,<br />
depending on the chosen sourcing country.<br />
The statistics contained in this single,<br />
powerful information resource enable<br />
clients to clearly see what savings can be<br />
achieved across several low-cost countries,<br />
helping them to better target their<br />
sourcing regions. With the ability to<br />
compare a range of savings, as well as<br />
categories of sourcing, clients can more<br />
easily prioritize <strong>and</strong> define the content of a<br />
clear sourcing program.<br />
Country profiles<br />
Accenture teams in each low-cost country<br />
have also developed a country-specific<br />
profile that includes such details as<br />
macroeconomic data, geographic specifics,<br />
infrastructural maturity, core import or<br />
export data, key local industries, logistics<br />
costs, government policy, <strong>and</strong> so forth. We<br />
utilize our country profiles asset to help<br />
clients map out the most suitable country<br />
for required categories <strong>and</strong> achieve speed<br />
to benefit.<br />
Risk assessment tool<br />
Managing risk is a critical aspect of a<br />
successful sourcing <strong>and</strong> logistics strategy.<br />
A longer supply chain implies additional<br />
risks that have to be taken into account to<br />
build adequate contingency plans.<br />
Accenture has developed a complete risk<br />
assessment methodology that allows the<br />
identification, the monitoring <strong>and</strong> control<br />
of the risks.<br />
Category workbooks<br />
Our category workbooks contain key supply<br />
market information, total cost models,<br />
value drivers <strong>and</strong> successful sourcing<br />
strategies, enabling our sourcing teams to<br />
rapidly drive sourcing projects. Our<br />
category workbooks are developed <strong>and</strong><br />
updated by subject-matter experts who<br />
have successfully sourced the categories,<br />
so that the information is relevant <strong>and</strong><br />
ready to use.<br />
China <strong>and</strong> India supplier<br />
databases<br />
Our databases give you access to more<br />
than 50,000 qualified suppliers in all<br />
industries. Accenture has invested<br />
considerable time <strong>and</strong> effort in locating,<br />
contacting <strong>and</strong> interviewing companies to<br />
ascertain core information about their<br />
organization—including their parent<br />
company, key customers, profile of their<br />
customers, quality assurance certifications,<br />
<strong>and</strong> so forth—as well as ensuring we have<br />
an up-to-date contact name to ensure<br />
speedy access to these suppliers.<br />
e<strong>Sourcing</strong> platforms<br />
Accenture works with a number of key<br />
suppliers in the e<strong>Sourcing</strong> market in order<br />
to enable the sourcing process. The global<br />
sourcing process involves many different<br />
parties in different places of the world so<br />
the value of the e<strong>Sourcing</strong> tools is bigger<br />
in this environment than in others as it<br />
enables collaboration between engineering,<br />
purchasing (corporate <strong>and</strong> offshore)<br />
<strong>and</strong> suppliers.<br />
Supplier audit profiles<br />
Accenture is able to conduct a quality audit<br />
with any supplier, anywhere. We have<br />
conducted numerous audits <strong>and</strong><br />
constructed a database to house the details<br />
of all audited suppliers. We are fully<br />
conversant in the quality st<strong>and</strong>ards<br />
required when undertaking the audit,<br />
taking into account the diverse industries<br />
<strong>and</strong> appropriate versions of<br />
ISO 9000 required.<br />
Testing <strong>and</strong> homologation<br />
We have the capability to manage product<br />
testing, including initial sample tests, <strong>and</strong><br />
homologation processes by involving our<br />
alliance partners in low-cost countries.<br />
<strong>Global</strong> logistics assets<br />
Accenture leverages our supply chain<br />
practice <strong>and</strong> strategic relationships with<br />
global trade management vendors to offer<br />
our clients l<strong>and</strong>ed cost modeling solutions,<br />
supply chain event management<br />
capabilities, customs <strong>and</strong> governmental<br />
compliance <strong>and</strong> documentation programs,<br />
network optimization modeling, as well as<br />
order management <strong>and</strong> customer<br />
relationship management competencies.<br />
Supplier development<br />
methodology<br />
Local suppliers usually need to improve<br />
their quality, productivity or reliability so<br />
there is a need for companies to develop<br />
their suppliers to world-class capabilities.<br />
Accenture has extensive experience in lean<br />
manufacturing <strong>and</strong> performance<br />
improvement <strong>and</strong> has developed a<br />
complete set of methods that enable<br />
companies to work with suppliers to get<br />
sustainable improvement.<br />
Accenture Supply Chain Academy<br />
To ensure rapid capability development, we<br />
can also leverage the Accenture Supply<br />
Chain Academy, a complete online supply<br />
chain university. The Accenture Supply<br />
Chain Academy is aligned with<br />
procurement roles <strong>and</strong> responsibilities <strong>and</strong><br />
can accurately address companies' supply<br />
chain needs. Accenture's Supply Chain<br />
Academy delivers better procurement<br />
training in less time <strong>and</strong> at lower costs<br />
than traditional training. The academy's<br />
mission is to empower procurement <strong>and</strong><br />
supply chain professionals by equipping<br />
them with targeted education <strong>and</strong> training.<br />
19
Successful sourcing <strong>and</strong> logistics requires companies to gain insight<br />
into local markets <strong>and</strong> strong relationships that focus on delivery. The<br />
best solution will be supported by flexible partners with broad<br />
capabilities that meet your changing dem<strong>and</strong>s across the full sourcing<br />
<strong>and</strong> logistics scenario. The ideal partner should provide you with<br />
expertise in supplier identification <strong>and</strong> qualification, as well as in the<br />
radio frequency identification process.<br />
20
<strong>Global</strong> gains<br />
<strong>Sourcing</strong> is not risk-free, <strong>and</strong> low-cost<br />
country sourcing can bring additional risks<br />
to companies that are not familiar with<br />
business norms in overseas territories or<br />
with the complexities of commerce<br />
outside traditional trade blocks. When<br />
sourcing products or components in China,<br />
you will be confronted with challenges<br />
such as tariffs <strong>and</strong> customs duties, or the<br />
problem of assuring sufficient storage<br />
space on suitably scheduled cargo ships.<br />
International logistics, impacted by<br />
distance <strong>and</strong> shipping considerations,<br />
means provisioning from such countries<br />
must be carefully planned <strong>and</strong> executed.<br />
Cost is not the only driver to better<br />
sourcing practices. Often a broader supply<br />
chain perspective is required, one that<br />
encompasses integrated program<br />
management <strong>and</strong> a clear underst<strong>and</strong>ing<br />
of all the issues involved across a broad<br />
spectrum of supply chain processes.<br />
Companies should take a holistic approach<br />
to sourcing, working with experienced<br />
partners that help to scale fast.<br />
From strategy through to implementation,<br />
Accenture has the global scale, proven<br />
experience <strong>and</strong> cumulative learnings from<br />
hundreds of projects to help you realize<br />
the potential of global sourcing <strong>and</strong><br />
logistics. We underst<strong>and</strong> the needs of each<br />
<strong>and</strong> every industry, the requirements of<br />
effective supply chain management, <strong>and</strong><br />
the markets <strong>and</strong> products our clients need<br />
to buy.<br />
With Accenture's help, sourcing<br />
opportunities have never been greater.<br />
By collaborating with Accenture, you can<br />
revitalize your sourcing approach <strong>and</strong> step<br />
confidently toward achieving the status of<br />
a high-performance business.<br />
21
Procurement contacts<br />
Head of Europe<br />
Kris Timmermans<br />
Rue Royale 145<br />
1000 Brussels<br />
Belgium<br />
Phone: +32 2 22 67 211<br />
kris.timmermans@accenture.com<br />
Austria, Switzerl<strong>and</strong> <strong>and</strong> Germany<br />
Kai Nowosel<br />
Campus Kronberg 1<br />
D-61476 Kronberg im Taunus Frankfurt<br />
Germany<br />
Phone: +49 6173 94 99<br />
kai.nowosel@accenture.com<br />
Belgium, Luxembourg <strong>and</strong><br />
Netherl<strong>and</strong>s<br />
Dimitri Huyghe<br />
Rue Royale 145<br />
1000 Brussels<br />
Belgium<br />
Phone : +32 2 22 67 211<br />
dimitri.huyghe@accenture.com<br />
Denmark, Finl<strong>and</strong>, Norway <strong>and</strong><br />
Sweden<br />
Per Segerberg<br />
Õstra Hamngatan 41-43<br />
P.O. Box 2186<br />
SE-403 13 Gothenburg<br />
Sweden<br />
Phone: +46 31 339 4000<br />
per.segerberg@accenture.com<br />
Eastern/Central Europe<br />
Malgorzata Szulc<br />
Sienna 3900-121 Warsaw<br />
Pol<strong>and</strong><br />
Phone: +48 22 528 80 00<br />
malgorzata.szulc@accenture.com<br />
22<br />
France<br />
Pierre François Kaltenbach<br />
118 Avenue de France<br />
75013 Paris<br />
France<br />
Phone: +33 1 53 23 5555<br />
pierre.f.kaltenbach@accenture.com<br />
Italy <strong>and</strong> Greece<br />
Paolo Rangoni<br />
Largo Donegani, 2<br />
20121 Milano<br />
Italy<br />
Phone: +39 02 777 51111<br />
paolo.rangoni@accenture.com<br />
Spain, Portugal, Africa <strong>and</strong> Israel<br />
Manuel Chaure<br />
c/ Ramìrez de Arellano, 35<br />
28043 Madrid<br />
Spain<br />
Phone: +34 91 596 6000<br />
manuel.chaure@accenture.com<br />
United Kingdom <strong>and</strong> Irel<strong>and</strong><br />
Rob Woodstock<br />
20 Old Bailey<br />
London EC4M 7AN<br />
United Kingdom<br />
Phone: +44 20 7844 4000<br />
rob.woodstock@accenture.com<br />
United States<br />
Head of North America<br />
Harlen Pyle<br />
One Freedom Square<br />
11951 Freedom Drive<br />
Reston, Virginia 20190-5651<br />
United States of America<br />
Phone: +1 703 947 1545<br />
n.harlen.pyle@accenture.com<br />
Jose Morales<br />
5221 North O'Connor Boulevard<br />
Suite 1400 Irving, TX 75039<br />
United States of America<br />
Phone: +1 469 665 0000<br />
jose.t.morales@accenture.com<br />
Head of Asia Pacific<br />
Jeffrey S. Russell<br />
250 North Bridge Road<br />
#33-00 Raffles City Tower<br />
Singapore 179101<br />
Phone: +65 6410 8000<br />
jeffrey.s.russell@accenture.com<br />
Australia<br />
Ming Tang<br />
Elizabeth Street<br />
Melbourne Victoria 3000<br />
Australia<br />
Phone +61 3 9839 7000<br />
ming.tang@accenture.com<br />
Greater China<br />
Jamie M. Bolton<br />
30/F, Shanghai Central Plaza<br />
381 Huai Hai Zhong Road<br />
Shanghai, 200020<br />
Phone: +86 21 63915588<br />
jamie.m.bolton@accenture.com<br />
India<br />
Sanjay Dawar<br />
New Delhi 6th Floor DLF Center Sansad<br />
Marg, New Delhi 110 001<br />
Phone: +91 11 23355000<br />
sanjay.dawar@accenture.com<br />
Japan<br />
Masahisa Inagaki<br />
Akasaka Inter City<br />
1-11-44 Akasaka Minato-ku,<br />
Tokyo 107-8672<br />
Phone: +81 3 3588 3000<br />
masahisa.inagaki@accenture.com<br />
Latin America <strong>and</strong><br />
South America<br />
Fern<strong>and</strong>o Cesar<br />
R Alex<strong>and</strong>re Dumas 2051<br />
04717-004 Sao Paulo, SP<br />
Brazil<br />
Phone: +55 11 5188 5810<br />
fern<strong>and</strong>o.cesar@accenture.com<br />
Marketing<br />
Sergio Clerici<br />
Largo Donegani, 2<br />
20121 Milan<br />
Italy<br />
Phone: +39 02 777 51111<br />
sergio.clerici@accenture.com
About Accenture Supply Chain<br />
Management<br />
The Accenture Supply Chain Management<br />
service line works with clients across a<br />
broad range of industries to develop <strong>and</strong><br />
execute operational strategies that enable<br />
profitable growth in new <strong>and</strong> existing<br />
markets. Committed to helping clients<br />
achieve high performance through supply<br />
chain mastery, we combine global industry<br />
expertise <strong>and</strong> skills in supply chain strategy,<br />
sourcing <strong>and</strong> procurement, supply chain<br />
planning, manufacturing <strong>and</strong> design,<br />
fulfillment, <strong>and</strong> service management to help<br />
organizations transform their supply chain<br />
capabilities. We collaborate with clients to<br />
implement innovative consulting <strong>and</strong><br />
outsourcing solutions that align operating<br />
models to support business strategies,<br />
optimize global operations, enable profitable<br />
product launches, <strong>and</strong> enhance the skills<br />
<strong>and</strong> capabilities of the supply chain<br />
workforce. For more information, visit<br />
www.accenture.com/supplychain.<br />
Copyright © 2007 Accenture<br />
All rights reserved.<br />
Accenture, its logo, <strong>and</strong><br />
High Performance Delivered<br />
are trademarks of Accenture.<br />
About Accenture<br />
Accenture is a global management<br />
consulting, technology services <strong>and</strong><br />
outsourcing company. Committed to<br />
delivering innovation, Accenture<br />
collaborates with its clients to help them<br />
become high-performance businesses <strong>and</strong><br />
governments. With deep industry <strong>and</strong><br />
business process expertise, broad global<br />
resources <strong>and</strong> a proven track record,<br />
Accenture can mobilize the right people,<br />
skills <strong>and</strong> technologies to help clients<br />
improve their performance. With<br />
approximately 146,000 people in 49<br />
countries, the company generated net<br />
revenues of US$16.65 billion for the fiscal<br />
year ended Aug. 31, 2006. Its home page is<br />
www.accenture.com.