• In many industries prices decrease, consumer behaviour changes and margins fall
• Boosting product profitability can only be achieved through a paradigm shift: from product cost to Integrated Value Management (IVM) of products
• Purchasing has the ideal prerequisites to lead an IVM initiative and to further strengthen its position as a leading function
• IVM pursues two basic margin optimization routes to satisfy consumers and maximize the product margin
• IVM holistically evaluates alternatives regarding their value contribution
• It is not a rocket science – five characteristics, three effects, one result

• Definition of the value creation for the Business Enterprise
• How to capture Value?
• What are the value drivers for Supply Chain?
• Examples of Purchasing Value Creation
• Purchasing Contribution to Value Creation by a Client

• gaining Turnover points
• gaining market share
• being part of the brand image

• strategic position of the Procurement within the company
• increased attractiveness of the profession for Talent  through new responsibilities

• Implementing process and governance
• AXA procurement strategy that drives value creation
• Partnering and selling through CRM and SRM
• Transformation plan and KPI s
• Measuring the results and achievements of value

What do we mean by Value and Value Creation? Purchasing, via the traditional cost reduction activities, does contribute to the value increase of the final product. It also supports value creationvia the actions initiated to boost supplier quality and supplier delivery performance. But is that all? How can Purchasing be a contributor to the final product enhancement? How can Purchasing be a catalyst for the supplier innovation to boost the final product perceived Value?

“ROSMA^TM – the new standard for measuring procurement value
contribution” Jules Goffre

• CFO-proof performance measurement: “funny money” or P&L impact
• Setting up a commonly accepted procurement value contribution framework
• The ROSMATM initiative: progress update
• The three levels of ROSMATM: qualitative, initiative-based and automated
• Value beyond cost – how to capture

“Value Creation through activities in Procurement”, Dr HeinrichBerger, Head of Global Procurement Direct Spend
Often Procurement has been reduced to the department of ordering material and reducing purchasing price. The presentation will show the importance of active procurement involvement in

• Forecasting, Price Management and Market Intelligence
• The importance of Procurement in Net Working Capital Management
• Value Creation through Key Supplier Management

Mr Jean-François Baril, Senior Vice President Sourcing,  NOKIA,
Ms Kim Smit, SHELL, Mr Jochen Weyandt, Head of Corporate Purchasing and Strategic Sourcing, SCHINDLER

• “Harmonised Objectives and Procedures creating Added Value!” SCHINDLER
  1. Background to Schindler & CP
  2. Vital Few Objectives & Synchronised Agenda
  3. Purchasing handbook
  4. Recent Value Add Initiatives
  5. Purchasing Excellence 2011

Mr Dieter Lott, Vice President M&A, AVNET

• Value Creation: define it in order to measure it
• How to identify the value items in a project and determine their initial value
• How to measure the value increase or decrease
• How to manage decisions to make the best value trade offs (investment vs value creation)

"Sustainability/CSR role in Purchasing Value Creation",
Pierre-François Thaler , Eco Vadis, Isabelle Lauzon, CPO, Accor

• What are the main drivers of Value Creation associated to Sustainable Procurement?
• Can we quantify the impact of Sustainable Procurement on Shareholder value?
• Which metrics available to rate suppliers CSR performance?
• Case study on impact of Sustainable Procurement to drive Value Creation.                      

“Measuring Purchasing  Performance – a blessing in disguise?”,
Dr Nicolas Reinecke.

CPOs are increasingly asked to tackle challenges that go beyond cost savings and simple delivery like for example buying innovation and services as well as other new categories.
As a result, in order to show success, CPOs need to develop measurement KPIs that sufficiently cover these new terrains. As the community embarks on finding solutions to this question, we often forget that we haven't solved the basics yet. Measurement KPIs for savings or simple one time purchases are heavily debated and often times lead to results that are poorly accepted in the organization. The question therefore is, if in order to be successful in measuring the newer trends, would one also need to revisit fixing the basics first. McKinsey's experience shows that CPOs who have their basic measurement around savings in place tend to create a credibility in the function that gives them some leeway in finding creative ways of measuring newer challenges.

“Sourcing driven rationalization as a journey to value”, Ms Aurore
Tournadre, Mr Kai Nowosel

• As companies grow, they create unnecessary complexity as the number of products and component inputs proliferates
• Targeting complexity reduction helps both customers and shareholders
• It is possible to sell fewer products, use fewer components, reduce cost and ignite growth
• A fact-based collaboration between Marketing, R&D, Sourcing, and Manufacturing is the only path to success.
• Strategic sourcing is the optimal internal broker to align these groups and deliver the promised results
• Supplier involvement in the process creates the most impact, and sets the stage for long-term collaboration