This combination led PNC to recognize improved efficiency, reduced expenses and brought transparency through a single "procure-to-pay" strategy. Another benefit was that it provided an environment that promoted employee recruitment, development, retention and morale, resulting in strengthened capabilities of the SCM team. The bottom line: From 1999 to 2007 the cumulative expense savings exceeded $300 million, with $5 million in p-card revenue.
Evans' evolving strategy requires continued executive management endorsement of procure-to-pay strategies and business unit management support for user acceptance and system compliance. Without these, off-contract spending will most likely occur. Other strategies include adherence to enterprise vendor management, strategic sourcing, compliance reporting, monitoring and remediation of maverick spend, and engaging supply chain management as early as possible in M&A planning.
In 2007 Evans received PNC's prestigious Chairman's Circle award recognizing the highest achievements by an employee at PNC. His accomplishment was the transformation of Supply Chain Management at PNC to a strategic partner of the businesses while providing bottom line results. In addition, Evans was also recently nominated and elected by his industry peers to the position of Chairman of Board of Directors for the Pittsburgh Regional Minority Purchasing Council.
... supporting the business by generating value beyond cost savings
Jill Efford, Manager, Indirect Procurement, Cameron. As manager of indirect procurement at Cameron, Efford has led transformations that have increased supply chain's ability to make better, faster and smarter decisions and provide world-class service to its customers. As a leader in the oil and gas industry, Cameron has doubled its revenue over the past three years. Efford's vision for Cameron's 21st century supply chain is to support this rapid growth by generating value that goes beyond cost savings to include process improvements and innovations that enable the supply chain organization to operate more effectively and deliver a return on its investments.
To do this, Efford has worked with a strategic network of best-of-breed providers, enabling her organization to expand its capabilities while maintaining flexibility and to focus its internal resources on its core competencies. By leveraging providers' expertise and best practices, Efford's team not only is able to expand its influence to proactively manage more areas of spend, but has also achieved substantial process and service level improvements. As one example, Efford's team was able to improve its print services capabilities while delivering significant savings in print management costs. Through other improvements, such as reducing production time through vendor collaboration, Cameron is able to serve its customers faster and recognize revenue sooner, resulting in a direct impact to the bottom line.
Based on the autonomous culture within the Cameron organization, Efford recognized that supply chain needs to operate using a pull versus push strategy. Rather than mandate the use of processes and preferred suppliers, her team launched a formal communications program to illustrate the benefits and effect on the bottom line. As part of this plan, Efford's team holds "best practices" conferences to share process improvements and innovations that other plants can leverage. The conferences bring together stakeholders from senior management through industrial engineers and operators and provide a forum for vendors to share their knowledge and expertise. In addition, key successes and opportunities for improvement are published on the organization's Web site and in a monthly newsletter that is broadly distributed to all stakeholders. This kind of proactive education about the program, coupled with the reputation the organization has built, has enabled the supply chain organization to quadruple the amount of spend it is managing.
In order to continue to support Cameron's rapid growth, Efford recognizes that the supply chain organization will need to be nimble and adapt to the company's growing and changing needs by identifying, managing and driving greater value from its best-of-breed suppliers. To execute against this strategy, supply chain will need to continuously improve pricing, processes and service levels across all geographies and areas of spend and work to measure and demonstrate these results to the business units.