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Mantra

Commercially Competent - Culturally Curious - Creatively Creating Change
  

In a nutshell

Supply Chain and Procurement Transformation - People, Processes, Categories and Contracts. Delivering Commercial and Operational Excellence
  

Availability

Fully Available in < 1 Month
  

Location

Manchester, United Kingdom
  

Languages

  • English
  

Top 5 Strengths

  • Natural Leader
  • Outcome Focused
  • Great Communicator
  • Positively Disruptive
  

Skills

  

Nominated By


  

HM Expert Since

Wednesday August 21, 2019
  

About Mike

Mike is a seasoned Oil and Gas Executive with over 30 years’ experience in Operations, B2B Sales/Marketing, Supply Chain and Procurement roles.

Mike spent the last 15 years of his career working to successfully transform the Royal Dutch Shell (RDS) Group Procurement function from a transactional support function to a value adding business partner. He is a natural leader, coach and mentor consistently ranked in the top 10% of the RDS Group leaders against external world class benchmarks.

His career path within a blue-chip environment, commercial competence, operational experience and transformation leadership combine to provide a unique skillset and capability that he has a passion to share to help organisations, functions, teams and individuals succeed.
  

Current Role Details

Managing Partner Supply Chain and Procurement Solutions Redtree Consult Limited - http://redtree-consult.com/
  

Mike's Valuable Contributions

(Case Studies)

CATEGORY CONTRACT PORTFOLIO OPTIMISATION - 15% FEWER CONTRACTS, SAVING 10% STAFF TIME, 5% COSTS (Reveal More  OR   View Full Page)


Situation
CPO receiving complaints from senior business leaders confused about who in Procurement to contact for support and below plan delivery of bottom line savings. Data showed expanded contract portfolios, fragmented procurement support and a time constrained procurement organisation, delaying the completion of value adding activities

Task
Lead a Portfolio review with the Category Management teams and business users to optimise the Target Operating Model (number of contracts, number of staff, cost and location of staff managing the contracts), and opportunities for increasing bottom line savings

Action

  • What did you do to help... Improve commercial awareness across business

  • What did you do to help... Enhance capabilities and capacity to meet business objectives

  • What did you do to help... Enhance reputation through increased relevance, alignment and impact with colleagues and suppliers

  • What did you do to help... Make more informed decisions, quickly, objectively and transparently


Using Opportunity Framing Methodology complete a structured review of the categories, obtaining key stakeholder support, engagement and participation of key staff across a 6 week period(2 weeks preparation - data analysis, 2 days workshop and 2 weeks to refine with the team and present findings and recommendations).

One key mindset change was to focus a smaller number of staff on the category and assign business focal points within the contract management team to a) deepen category and contract knowledge and b) increase business engagement, alignment and knowledge. The previous model had many staff managing different categories across different business units.

Re-segmentation of contracts, which determines the contract management requirements, was another key change. Existing segmentation typically placed contracts in a higher, more time intensive segment due to a lack of knowledge, benchmarks and internal politics. Through this the organisation could:
-Enhance capabilities and capacity to meet business objectives
-Enhance reputation through increased relevance, alignment and impact
-Better outcomes from supplier negotiations

Results
Value was delivered by;

  • Alignment between business requirements and budget use

  • Delivering cost savings

  • Improved reputation, relationships, confidence and value delivered across the business

  • Optimise procurement target operating model

  • Improved relationships with suppliers and partners

  • Improved project success rates and delivery times


Pains relieved included;

  • Poor reputation of procurement in the business

  • Poor or low reputation in the market

  • Unclear process and lack of governance

  • Poor business alignment and engagement

  • Lack of available skills and experience

  • Lack of market / industry knowledge


The review identified and presented a roadmap to eliminate, consolidate and re-segment the contracts greatly increase the efficiency and effectiveness of the category and contract management teams resulting in time liberation and an increase in the commercial value realised.
-Improved reputation, relationships, confidence and value delivered across the business
-Optimised procurement target operating model - smaller but more focused teams and an improved value proposition for staff
-Alignment between business requirements and budget use - improved business connectivity
-Improved relationships with suppliers and partners
-Reduced Lead Times and Working Capital; Improved Planning and Operational Performance

Pains relieved included;
-Poor reputation of procurement in the business
-Poor business alignment and engagement



HOW TO LIBERATE >10% OF THE ORGANISATION'S TIME TO FOCUS ON ADDED VALUE ACTIVITIES (Reveal More  OR   View Full Page)


Situation
CPO concerned about the organisational challenge to focus staff on strategic, value adding procurement.

"Many companies are unaware of how their staff actually spend their time and the proportion of staff time spent on value adding activities. Senior managers are often unaware of how their actions generate non-value adding work."

Task
Understand how a statistically relevant global cross-section of Procurement Staff spend their time identifying opportunities to liberate time away from non-value adding activities.

"Insights into the non-value adding work being performed enables leaders to focus on how to release staff time, increase efficiencies, reduce costs and deliver additional value and $"

Action

  • What did you do to help... Identify cost, quality and innovation improvements through development and delivery of an aligned sourcing strategy

  • What did you do to help... Enhance capabilities and capacity to meet business objectives

  • What did you do to help... Enhance reputation through increased relevance, alignment and impact with colleagues and suppliers

  • What did you do to help... Better outcomes from supplier negotiations


Investigated and selected tools and methodology for conducting a global survey across all businesses. Led design workshop, staff engagement, communication strategy and roll-out of survey. Directed analysts to interpret results and deliver visualisation of Business Insights utilising Power BI. Engaged senior stakeholders on progress and reviewed results and interpretation ahead of senior leader and sponsor presentation

One significant factor was ensuring an open, honest, transparent engagement with the participants on the reasons for the survey and the approach to ensure unbiased responses. This required significant engagement and testing ahead of the launch.

Driving completion of the survey required C-Level engagement and involvement.

Results
Value was delivered by;

  • Alignment between business requirements and budget use

  • Drive innovation for competitive advantage

  • Improved reputation, relationships, confidence and value delivered across the business

  • Optimise procurement target operating model

  • Improved project success rates and delivery times

  • Improved relationships with suppliers and partners

  • Delivering cost savings


Pains relieved included;

  • Poor reputation of procurement in the business

  • Poor or low reputation in the market

  • Unclear process and lack of governance

  • Lack of business clarity and priorities

  • Poor business alignment and engagement

  • Lack of clarity on ownership

  • Lack of available skills and experience

  • Lack of market / industry knowledge


The survey confirmed that at least 22% of time is spent on non-added value activities and 10% of staff time is spent in passive(no participation or value add for the participants) meetings

Key recommendations:

Focus on eliminating identified non-added value activities - process improvements or automate/digitalise
When unable to eliminate or automate/digitalise - transition activity to lower cost staff or consider outsourcing
Review meeting culture – empower staff to determine when to attend and when to leave



IMPROVED RELATIONSHIPS WITH YOUR SUPPLIERS AND BUSINESS PARTNERS (Reveal More  OR   View Full Page)


Situation
Blue Chip Company Category and Procurement Team failing to deliver expected cost savings.

Poor internal reputation amongst key stakeholders and business partners due to poorly structured contracts and failure to drive improvements and deliver innovative solutions with 3rd Party Suppliers, resulting in risk of undermining company's competitive advantage.

Low moral and motivation of staff within the teams leading to staff retention challenges.

Task
Review the Target Operating Model and Sourcing Categories to:

Improve End to End alignment with internal and external business partners

Drive improvements in performance

Deliver the innovative solutions to restore competitive advantage.

Action
Obtained Senior Leaders endorsement, sponsorship and commitment of Business Partner resources to support the review

Reviewed "as-is" situation with internal Business Partners
- Contracts, Contract Performance, Organisation Design, Ways of Working, Transactional Processes

Reviewed updated Business Strategy and Plan and updated Business Needs

Completed a Supply Market Update
- Updated Risk Analysis, Competitive Positioning, Procurement Targeting, Strategic Supplier and Value Opportunity Identification

Updated Sourcing Strategy

Proposed organisational revision to ensure Procurement teams align with Business Partners organisation

Provided Sponsors with Roadmap and detailed plan to deliver improvements

Results
Cost savings, improved contract performance. Mitigation of competitive advantage risk.

Improved relationship and reputation with internal business partners

Increased perception as a partner of choice within supply market

Revitalised value proposition for staff, improved retention and build of category and business expertise




THAILAND MARKET GROWTH INITIATIVE - INCREASING SUPPLY CHAIN SECURITY AND COMPETITIVENESS (Reveal More  OR   View Full Page)


Situation
A leading Thai Metalworking coolants manufacturer and supplier of Motorcycle oils and Brake fluids was looking to expand market share and wanted to explore alternative supply chains for raw materials, to increase supply security and ensure competitive pricing.

The fragmented supply market and the dominance of local OEM distributors made it difficult for the company to access alternatives and check costs

Task
Conduct market research and determine alternative supply chains, leverage existing relationships to enable sourcing directly from OEM's where possible, increase supply chain security and reduce supply chain costs.

Action

  • What did you do to help... Improve commercial awareness across business

  • What did you do to help... Enhance capabilities and capacity to meet business objectives

  • What did you do to help... Objectively find and engage with the right partners quicker and easier

  • What did you do to help... Make more informed decisions, quickly, objectively and transparently


Define scope and specification for:
a) Components required to manufacture the Motorcycle oils and the Metalworking coolants
b) Traded materials - Brake Fluids and Coolants

Check alternative supply chains:
a) In country
b) Regional supply
c) OEM supply

Determine cost of alternative supply chains and complete benchmarking against current supply chain. Quantify opportunity including cost and timeline of change.

Results
Value was delivered by;

  • Delivering cost savings

  • Improved project success rates and delivery times


Pains relieved included;

  • Unclear process and lack of governance

  • Lack of business clarity and priorities

  • Lack of available skills and experience


Outcomes:

a) Components

1. Supply Chain Security

Alternative and sustainable Supply Chains identified providing the required supply chain security to support growth

2. Supply Chain Cost

30% of the components identified at a lower cost(one component with a 70% cost reduction) compared to benchmarks
35% of the components identified at similar cost compared to benchmarks
35% of the components identified at a higher cost compared to benchmarks i.e. current supply chain is competitively priced

The manufacturer was then able to adapt market growth plans to ensure cost competitive and sustainable growth based on the information provided

b) Traded Materials

The cost of supply and repacking did not support expansion into this market segment and growth plans were put on hold



  

Roles & Results

KARACHAGNAK PETROLEUM OIL - Operating Partner Project Lead

(Show / Hide Details)

Requirements / Actions
Review End to End Procure to Pay Processes and re-align Governance to deliver SAP Automation and Digitalisation of Processes
Delivery and Achievements
Board approved recommendations and delivery roadmap to deliver: significant reduction in cycle times and operational costs; increased business alignment; risk mitigation and environmental benefits


ROYAL DUTCH SHELL - Commercial and Operational Excellence Lead Operational Procurement

(Show / Hide Details)

Requirements / Actions
Develop and Deliver Group Purchasing Channel Management Strategy including Guided Buying and refreshed Procurement Card Programme and Polices. Led Category Contract Optimisation Reviews.
Delivery and Achievements
Delivered Channel Management Strategy - 50% reduction in Purchase Order Cost. Global Launch Guided Buying Tool; Refreshed Procurement Card Programme aligned with SAP Concur. Reviews substantially reduced contracts, realigned organisation and delivered 5%+ cost savings


ROYAL DUTCH SHELL - Senior Procurement Manager Global Operational Sourcing

(Show / Hide Details)

Requirements / Actions
Development of Global Operational Sourcing Organisation(200 FTE) Develop Group Strategy for 3rd Party Outsourcing of Low Value Spend. Review and realign Category and Contract Management Procedure.
Delivery and Achievements
New global Organisation to manage Operational Spend. Implemented Global Low Value Spend Outsourcing Strategy. Launched refreshed procedure, Led development and delivery of training.


SHELL INTERNATIONAL - Senior Procurement Manager Lubricants Europe and Africa

(Show / Hide Details)

Requirements / Actions
Develop and Lead Regional Team(13) to manage all 3rd Party Spend for Lubricants and B2B spend in EUAF including Additives, Packaging, Marketing, Logistic, 3rd Party Tolling, Opex and Capex Categories
Delivery and Achievements
Business aligned organisation. Substantially year on year 3rd Party spend budget reductions via innovation in specification, demand and supply chain redesign.


SHELL CHEMICALS EUROPE - Commercial Manager EUAF

(Show / Hide Details)

Requirements / Actions
Develop Strategy and Manage EUAF P&L Delivery for Brand Portfolio. Optimise Sales Margins and Operations across EUAF and US assets.
Delivery and Achievements
Delivered volume, margin, NIABT and ROACE targets


  

Services Mike Manages

CATEGORY AND CONTRACT OPTIMISATION AND ORGANISATIONAL REVIEW
(Show Summary
  OR   View Full Page)

Service Summary: In depth review of the Spend Categories, Contracts and Organisation against worldclass benchmarks to provide recommendations to optimise, align end to end and deliver greater value to the business



  

Services Mike Delivers

CATEGORY AND CONTRACT OPTIMISATION AND ORGANISATIONAL REVIEW
(Show Summary
  OR   View Full Page)

Service Summary: In depth review of the Spend Categories, Contracts and Organisation against worldclass benchmarks to provide recommendations to optimise, align end to end and deliver greater value to the business



HIVEEXEC FOR EFFECTIVE SOURCING STRATEGY & DELIVERY
(Show Summary
  OR   View Full Page)

Service Summary: For anyone responsible for sourcing at a strategic level, this on-demand service focuses on providing customised, flexible access to procurement expertise for continuous improvement of an organisations procurement capability.



SUPPLY CHAIN ORGANISATION OPTIMISATION
(Show Summary
  OR   View Full Page)

Service Summary: Review and Redesign the E2E Supply Chain Operating Model From Procurement to Supplier Management



SCALING CUSTOMER SUCESS IN YOUR ORGANIZATION THROUGH HIGHLY ENHANCED SERVICE PARTNERS OPERATIONS
(Show Summary
  OR   View Full Page)

Service Summary: Define and establish strategy and organizational basis to ensure a consistent end-to-end customer service experience and value delivered by your external partners network.



  

Industry Experience

  • Chemicals
  • Oil and Gas
  • Transport and Logistics
  • Manufacturing
  

Regional Experience

  • Asia
  • North America
  • Europe
  

Articles

Procurement Transformation - It's the People not the Technology
After many years working in Supply Chain and Procurement in the corporate world I stepped outside to start my own...




Mike Hammond

Profile picture of Mike Hammond

@mike-r-hammond

active 26 minutes ago