SCA has sales of approximately SEK 109 billion (around £10.5 billion) through its worldwide operations. With over 45,000 employees, it operates globally and embraces a wide range of business cultures. As part of a cost cutting programme, ADR was asked to implement a Supply Management Excellence Programme throughout the organisation.
The aim of the programme was to support SCA's drive to reduce the costs of purchased goods and services by 15% over a three-year period.
The approach used consisted of five major elements:
- A structured process for defining sourcing strategy and delivering incremented value from suppliers, this was named Source Planning.
- Providing professional supply managers with a wide range of purchasing tools and techniques delivered through workshops and action learning reviews. Over 120 people went through this training.
- Increasing awareness of the benefits from improved supply management to those (non-purchasing) people who influence supplier selection and regularly interface with vendors. More than 500 SCA staff attended these workshops.
- A series of local workshops at individual plants to show how better purchasing can lead to improved business performance.
- Management awareness briefings (2-4 hours) for a wide cross section of senior and plant management.
Responsibility for the continuation of the Supply Management Excellence Programme has now been devolved back from the centre at SCA into each of the four major business areas.
The programme enabled SCA to achieve the necessary cost reductions and subsequent business goals. Furthermore, as testament to the success of the programme, SCA and ADR were selected to make a presentation entitled "Learning Influence and Persuasion – Key Features of Leading Supply Management Organisation" at the 85th Annual International Purchasing Conference held in New Orleans on 30th April to 3rd May 2000.
The presentation by Vic Van Hul Vice President, Supply Management for SCA and Peter Evans, Managing Partner, ADR, described the key features of the Supply Management Excellence Programme.
|Client||Svenska Cellulosa Aktiebolaget (SCA)|
|Objectives||To reduce the costs of goods and services by 15%|
Achieved the cost reductions needed and subsequent business goals