9 April 2014 | Gurjit Degun
Food brand Kellogg’s aims to create a “world-class” purchasing function, according to Paul Jones, the company's director of indirect procurement in Europe.
Jones told delegates at the ProcureCon Indirect conference in London last week that he wanted to “create some noise around procurement” so that it was no longer perceived as the “little department in the corner”.
Jones said the team’s tagline was to get “the right product, the best service, the right price, developed by the best people”.
Kellogg’s began to transform the function by analysing what the team was good at and the areas they needed to improve on. After this, it set up 35 project 'charters' - departmental objectives - under three categories – performance management, talent development and supporting systems and tools. Examples of these included creating a procurement awards ceremony, setting up a buddy system for new starters and catalogue purchasing.
“This was a bit of a journey over the last six months for us,” Jones told the audience. "We came up with about 150 charters but that was just too many so we put some of them together and everyone in procurement went through them. We got all of procurement signed up to it. We reckon that if we do this over the few years, we’ll be heading towards world-class territory.”
Jones said he took a similar approach when analysing indirect procurement, but working with a different consultant came up with five areas to focus on – strategy, effectiveness, sourcing, supplier management and contract management. “We scored ourselves out of five on them, so again we’ve got charters around all these things,” he said.
Delegates also heard Kellogg’s has implemented a global procurement transformation initiative, which included introducing a group to handle “tactical transactional work”, leaving Jones’ team to be “truly strategic”.
“We’ve got about 20 per cent extra time back because we created the separate group. We’re spending time with suppliers, all that work we didn’t have time to do before.”