Brad Holcomb, CPSM, CPSDSVP & CPO, Dean Foods

Every CEO should demand the highest level of

performance and contribution that the Procurement

and Supply Management profession can deliver.

The Leadership Opportunity

The Portrait of an Effective Leader

Applications for Supply Management

Professionals to be Leaders

Leadership Skills:

What they are and How to Obtain Them

Traditional Procurement is viewed as:• Back room activity

• Operating outside view of the CEO

Modern Procurement is viewed as:• Innovative and forward thinking

• Working with suppliers to create value for the company

• Sharing expertise

• Reducing costs

• Creating true supply advantage

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Most companies view Procurement as somewhere in between Traditional and Modern.

Procurement’s full potential has yet to be realized.

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How can we unlock the value that Procurement can bring to the Organization?

Change how the Organization views

Procurement through Leadership.

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$1 Savings = $1 EBIT Impact

Investment Drives Cost Reduction

$1 Sales = $.05-$.10 EBIT Impact

Investment Drives Sales

Customers

Best of the best

Buying/Selling

TCS*

* TCS = Total Customer

Satisfaction

Buying/Selling

Best of the best

TCS*

SuppliersMy

Company

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It is our duty as Supply Management professionals to elevate awareness of the value that Procurement can bring through effective Leadership.

To

da

y

To

mo

rro

w

Leadership

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Effective Leadership is about:

• Getting out in front

• Demonstrating what needs to be done and why

• Commanding a voluntarily following

Effective Leadership is grounded in Personal Values:

• Integrity

• Character

• Trustworthiness

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I know that my company

needs effective leadership to

help Procurement realize its

full potential.

What does this effective leader look

like?

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The Leadership Opportunity

The Portrait of an Effective Leader

Applications for Supply Management

Professionals to be Leaders

Leadership Skills:

What they are and How to Obtain Them

A Leader is customer focused

Companies are in business to

serve customers.

It is our duty to serve them better

than any competitor can or will.

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A Leader is Proactive

A Leader takes charge of the situation

+

Develop solutions to problems

=

Positive Results

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A Leader has Vision and is Goal Oriented

Every activity should be

geared towards reaching the

set goals and vision.

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A Leader is Current

In this ever changing world,

a Leader must be able to

adapt quickly.

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A Leader is Open and Flexible

“Even if you are right, you are

wrong” when you don’t involve

others.

It is important that a Leader be

open and actively seek other’s

ideas and be flexible to changes in

the environment.

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A Leader is a Change Agent

Today’s right may not be right

for tomorrow.

A Leader must continuously

define what is right.

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A Leader is Broad-Based

Supply Management affects every

part of the organization.

A Leader must be able to consider

this when making decisions.

Ops R&D

SalesMarketing

Supply Management

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A Leader is Approachable

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A Leader must be approachable

and open at all times.

This creates a stronger bond

between the Team and its Leader.

A Leader applies Positive Force

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Positive Force is used by a Leader

to help lift people up and

encourage them to do great things.

Most importantly, it allows people

the opportunity to succeed.

A Leader is an Effective Communicator.

Effective communication is key to

creating a vision and setting broad

strategic direction.

A Leader must be an effective

communicator to relay the

message to internal and external

customers.

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A Leader can adapt to the New Economy Requirements

Today’s business environment is

changing due to technology,

increased competition, and

various trends.

A Leader must be equipped with

e-Leadership skills to deal with

these changes.

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A Leader must be Well-Rounded

Leadership is not grounded in

specific education or a specific

professional background.

A Leader must be well-rounded as

they will need to bring value to the

entire organization.

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To become an Effective Leader, one must make a personal commitment to develop these attributes

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Put your goals in writing.

Draft a personal development plan

to learn and strengthen your skills.

Test them in real world situations.

Leadership is not a destination

but a lifelong process.

There will be many

opportunities to develop these

attributes along the way.

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The Leadership Opportunity

The Portrait of an Effective Leader

Applications for Supply Management Professionals to be Leaders

Leadership Skills:

What they are and How to Obtain Them

The sphere of influence for

Supply Managers is growing

larger throughout the

organization.

This allows a greater

opportunity to show leadership

through many different facets.

Influence

Cross-Functional Teams

“Destination” Job

Building “Key Supplier” Relationships

Working with Internal Customers

Communicating with the CEO

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Cross-Functional Teams

Procurement professionals can use these teams to demonstrate leadership that will directly impact the bottom line.

This is done through:– Ability to sell vision throughout corporation.

– Constructing buy-in from other departments.

– Getting Management support for committed resources dedicated to project.

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Communicating with the CEO

In order to achieve the highest potential for value creation, it is necessary to gain the support and trust of the CEO.

This can be done by effectively answering the CEO’s question “How can you help me?”

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Creating a “Destination” Job

Elevating the stature and reputation of Supply Management is a great way of demonstrating leadership.

As Upper Management focuses on the successes of Procurement, people will naturally want to become part of the “Winning” team.

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Building “Key Supplier” Relationships

Creating a “Win-Win” relationship with key suppliers is one of the most enjoyable leadership roles a Procurement professional can have.

This type of approach generates an environment that creates synergies for both parties and a win-win scenario for both organizations.

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There are many opportunities

to apply Leadership.

Now we need to fill-up our

“basket” with these

Leadership skills.

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The Leadership Opportunity

The Portrait of an Effective Leader

Applications for Supply Management Professionals to be Leaders

Leadership Skills:

What they are and How to Obtain Them

The skill set list for becoming a World Class Supply Manager

1. Interpersonal Communication Skills

2. Team and Facilitation Skills

3. Analytical Problem-Solving Skills

4. Technical Knowledge

5. Computer Literacy

6. Negotiation Skills

7. Education and Professionalism

8. Continual Learning

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20%

10%

10%10%

10%

15%

15%

15%

Interpersonal Communication skills

Supply Management

Professionals must be able to

communicate well internally

and externally.

Communication is like a bridge.

Traffic must flow smoothly in

and out for it to work.

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Team and Facilitation skills

Cross-functional teams are a way

of life in the business world.

Supply Management professionals

must learn to play different roles

on different teams - from member

to advisor.

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Analytical Problem-Solving Skills

Supplier selection criteria has to

be precise as business relationships

become closer.

Supply management professionals

must know the industry and

translate that knowledge into total

cost evaluation.

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Technical Knowledge

A technical understanding of the organization’s

business is required.

As contracts become longer, supply management

must understand the supplier’s processes and

scheduling systems to make improvements.

IMPROVED OUTCOMES FOR ORGANIZATIONS

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Computer Literacy

The use of computers, software, and

e-tools can help eliminate

redundant and non-value activities.

The ability to use computers,

various software, and e-tools allows

managers to organize and analyze

data more quickly and efficiently.

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Negotiation Skills

Supply management professionals

must be able to be strong

negotiators for their company.

Strategic negotiations strategies

can lead to a satisfying win-win

relationship for both the supplier

and the organization.

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Education and Professionalism

Self-improvement as well as a

formal education is a necessity for

a supply management position.

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Continual Learning

Learning should always be on the

agenda as requirements are

constantly shifting.

Supply Management professionals

should be in a constant state of

learning to prepare for the ever

changing business environment.

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The best way to become an effective leader is to seek opportunities

to practice these leadership skills.

So go create a vision and plan and then get out front and Lead!

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Now is the time to experience even

greater enjoyment and achievement in

your career as you create new

momentum and results!

• A powerful personal brand

• Unrivaled achievement

• Extraordinary relationships

• Unstoppable vitality

• Outstanding fulfillment

• A game plan for your career

and…….your life!