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2	Agenda Delivering Value - A Reality Approach
3	DIAGEO Corporation Making Great Brands Better United Distillers and Vinters (UDV) Johnnie Walker, Smirnoff, Jose Cuervo, Balileys... Burger King 2nd largest hamburger restaurant chain Pillsbury Pillsbury brands, Haagen-Daaz, Green Giant, and Old El Paso Guinness Guinness Stout, Harp Lager, Kilkenny Irish Beer...
4	Integrated Strategies Core Capabilities and Strengths
5	Indirect Purchase Opportunities Definition and Examples
6	Business Realities What DIAGEO Wanted to Achieve Significant, sustainable, bottom-line price/cost reductions in shared service purchase items and services Maintain or improve service levels Maximize the purchasing leverage and coordination within DIAGEO Transfer capabilities to internal staff to sustain improvements Take concept to reality given the realities of DIAGEO
7	Business Realities Realities Impacting Traditional Indirect Purchase Success Independent business units/divisions Multiple locations - global reach Aggressive product build focus Limited staff availability to support indirect initiative Wide variability in purchase activities Major/competing initiatives Limited or nonexistent purchasing data Wide variability in purchasing agreements and enforcement Examples of best practices already in place High senior management expectations to deliver
8	Business Realities Meeting Expectations?
9	Business Realities Team Stats and Facts
10	Organizing for Success Taking Concept to Reality
11	Organizing for Success Indirect Sourcing Initiative Process
12	Organizing for Success Initiative Infrastructure
13	Organizing for Success Price/Cost Reduction Measurement Matrix
14	Organizing for Success Price/Cost Reduction Measurement Matrix
15	Organizing for Success Web Integration and Use
16	Compliance and Measurements Compliance Check Points Communicate benefits and education Educate on business practice change, guidelines, and practices (to automate tool support) Establish automated tools support Establish infrastructure consistent with culture Train to transition Ensure ratified measurement reporting Use web technology as communications key stone
17	Global Expansion Building on Success Shared services initiative process and techniques are being replicated in other parts of DIAGEO Primary focus is on the European basin
18	Business Realities Achieving and Sustaining Results
19	Compliance and Measurement Rate of Savings and Compliance Reporting
20	Compliance and Measurement Rate of Savings and Compliance Curve
21	Conclusions What Worked... Cross business unit philosophy: “We are DIAGEO” Knowledge sharing and communications Participation of DIAGEO business unit commodity leads Established processes and procedures Established opportunity targets Utilized existing supply base Visible compliance and measurement reporting
22	Conclusions Issues Along the Way... Lack of agreement on baseline spend volumes and saving projections Resistance to taking dollars out of actual budget Resistance to process changes Loss of corporate leverage in instances where business units made decisions to maintain existing suppliers Going outside the system to use preferred suppliers Availability of dedicated resources to ensure compliance
23	Conclusions Getting There…Why Firms Fail Simple leverage vision Kum ba yah approach There’s still a boss Real jobs take precedence Flow chart mania Comfort zones are shallow Limited use of automated tools Success is optional
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25	DIAGEO Jenny Beament - Global E-Procurement Director E-Procurement: leading initiative to implement e-business technologies across all of DIAGEO Corporate Services Sourcing: leading initiative to leverage shared services sourcing in international DIAGEO business Phone: 011-44-207-212-4643 Email: Jennie.Beament@udv.com
26	Integrated Strategies Team Steve Trecha - President and CEO Sourcing Strategy Development: lowest total cost functional, supply-base, and commodity strategies integrated with core business strategies. Supply Base Management Initiatives: performance based, continuous improvement supply relationship and development processes and programs. Sourcing Effectiveness Teams: utilization of cross-functional teams leading to total sourcing related cost reductions and process improvements Sourcing Organization Design: identification and development of sourcing organizational structures and infrastructures to support strategic and operational roles and responsibilities