Executive Perspective on Sourcing: Henrik Larsen Vice President, AP Moller – Maersk

Executive Perspective on Sourcing: Henrik Larsen Vice President, AP Moller – Maersk

This video recorded live at CombineNet’s 1st annual user conference, @TheSource 2012.

Targeting full spend coverage with E-sourcing

Great development in rapid pace

E-sourcing provides
– Reduced process time
– Repeatability and scale
– Price compression — Savings
– Enable scenarios for comparing apples to pears

APMM E-Sourcing Strategy — Good to Great

Definition of Great
– Critical mass of spend e-sourced
– Use of E-Auction institutionalised
– High adoption of 2nd generation technology
– Online sourcing process facilitated
– Global set-up established

Where do we want to be in 2012?

– Online spend coverage of +7.5 bill USD
– +90% compliance to online process in GPRO
– Extensive use of second generation technology
– Best-in-class use of Total value E-Auctions
– Complete integration between process and technology roll-out

Closing the gap to Great in E-Sourcing — 2012 Priorities

Having taken it to the next level through use of e-auctions and adoption of 2nd Generation technology focus is now on increasing the width of our impact by supporting an online tender process globally.

E-Auctions as strategic initiative & differentiator

APMM use of 2nd Generation Sourcing Technology — CombineNet

– CombineNet implementation started 1 Jan 2011
– In year one, use of 2nd generation technology accounted for 40% of all E-Sourcing spend coverage – Positive supplier feedback on flexibility and usability
– Increases demands on buyers for strategic approach and planning
– Considered potential within all spend areas with complexity — applied on all transportation modes, global hotel program, spare parts, lube oil, mobile telephony, courier services, etc.

What are the trends within E-Sourcing

– Sourcing Technology as strategic differentiator for sourcing/procurement organisations – Focus on technology split as KPI for E-Sourcing success a long with e-coverage
– Increased sophistication — e.g., 2nd generation, total value auctions, supplier feedback via platform, etc.,
– Support of all sub-processes, beyond RFX and negotiation — internal collaboration, reporting, audits, contract negotiation, communication, etc.

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