Guillaume Bu.'s Blog

THE LAST BUT NOT THE LEAST…

Yesterday, I called my coach for the last time (for the WAC program ;-)

How fast the time is going! We decided to choose the second topic: “CHALLENGES PERFORMANCE AND CONTRIBUTION”

We tried not to deal with what I’ve already written in my blog. I have already raised some issues of procurement on my blog and in the forum (with surveys).

Importance of procurement through maximizing value, EHS and continuous improvement:

First of all, let’s start with two or three sentences:

“As you know, maximizing value is a tool to help us make the most value creating decisions”

“By applying the Maximizing value approach to procurement and linking it to our management objectives, we can reap tremendous benefits”

“With a total-value approach to procurement that focuses on identifying saving opportunities and implementing value creating initiatives, we can make the of the US$ 7,5billion we spend annually on goods and services”

What can you get from it? That procurement is strategic? Yes of course! Do you know who write it? Travis Engen, Alcan’s president and CEO. You understand procurement can bring leverage to firm’s profit.

As well EHS and continuous improvement are linked with procurement.

 For example, for innovation you need to get new products (thanks to procurement, of course ;-). Jacques Barrailler (VP Corporate procurement) deals as well with the maximization of the value, “procurement is one of the easiest ways we can all contribute to achieving Alcan’s Maximizing value governing objective”.

 A better deal with a supplier can improve the all supply chain

 and as well the working capital thanks to a longer time to “pay the payables”

Challenges and objectives of the procurement functions:

Alcan spends US$7,5billion every year; you guess objectives are set in order to optimize the different purchases:

1. Objectives of synergy between Alcan and Péchiney since the merger almost two years ago (remind of the more you buy, from the best supplier, the better the purchase’s conditions are).

2. Increase the sourcing in Low Cost Countries (LCC) to 20% in 2years (less than 5% today). The sourcing in such areas are up to the products you buy: a segmentation is implemented between products according to potential leverages and opportunities of such a sourcing

3. Accelerate the utilisation of e-sourcing (e-bidding; e-auction).Quantitative and Qualitative criterion are considered as number of events done and involvement of your team in such projects.

4. Launch TCO projects (Total cost of ownership). The purchase price is not the main criteria anymore.

For example: A Product X costs 10 € and its warehouse price is 5€/ month ,A Product Y (same features) costs 12 € and its warehouse price is 4€/ month. What’s the best one?

It is up to the time you will keep the product in stock:

One month: buy the product X (TCO=15€)

Two months: buy either the X or the Y (TCO=20€) Three months: buy the product Y (TCO=24€)

Other criterion must be considered as the implications on process costs, on working capital, administrative costs…

Good Bye…

A last sentence to finish my last post that shows the requirements of networking and teams whatever the things which have to be done: “These enhancements cannot be driven solely by the procurement function. We need to work together, across business groups and functions, for it to be a success”. Guess! Travis Engen wrote this sentence as well…

some help...

To go faster, to go anywhere you want on my blog, click on the following links

welcome!!!                                                    my alcan day

my coach...                                                    about me         

TOPICS...

do you speak alcanglish?

clients & suppliers...

innovation...

MY FAVOURITE ALCAN'S BLOGS...

Kaline's blog                            davide's blog

    

Do you speak Alcanglish? International: Benefits or necessity…

Is Alcan an international company? The answer seems to be so obvious! 

Two main Estelle Mantelet’s (my coach) colleagues are English. At first sight, it may mean that you work in an international context.

But language is not the main point,the following question has to be asked:

What’s the interest of working in international context?

I will not focus on culture, open-minding activities, though that’s very interesting for himself. But I will concentrate on THE benefits and essentials for the firm:

In my opinion, there is a link between benefits and essentials:

More and more firms are international, in many industries, you need to be bigger than you competitor if you want to be effective: Developing international activities is compulsory.

On the other hand, that means you work with people from different countries and cultures with different backgrounds, I think that’s better to mix Ideas.

And now… a stronger link with procurement:

On Monday morning, the 18^th, in April , my coach will take off to go to the USA and will be back for Thursday,Estelle Mantelet, will attend with her collaborator meetings with American colleagues. These two people are responsible for Tube and Make up divisions.

The objective of this meeting is to exchange about R&D, supplier portfolio, and action plan review.

Why to have a global policy for procurement?

Have you ever bought bottles of soft drinks, pasta, eggs? What’s the common point between these purchases? The more you buy, the better the conditions of buying are (cheaper for example).

If the policy is common, the buying leverage is higher. Moreover purchasers ask suppliers for having world class capabilities.(As I wrote in the page “my Alcan day”).

World class capabilities suppliers are partners who ARE ABLE to go with the company for achieving its strategic objectives.

(Nonetheless, we have to consider domestic accounts and in this case the context is limited to one country, and international or world class suppliers are not compulsory)

To finish, you will have understand, International context for Alcan collaborators is compulsory and represents an opportunity to achieve the objectives.

What do you want me to do? clients, suppliers...

I am currently doing an internship in big French Industry Company (that’s not an Alcan’s Competitor!). My mission has of course a link with procurement! Here is an example of my daily working life:My boss: “Hi Guillaume, could you please work on the supplier’s turnover of the last year?”When my boss asks me this question, he is my client (internal) and I am the supplier(internal).

In my opinion, to satisfy the internal client is not an end in itself: the objective is to satisfy the final external customer in order to make value.

What are the specificities of procurement?

First, I raised in my Alcan day summary, procurement encompasses many dimensions:

one of them is that procurement is linked with many functions in the firm: production,marketing, finance...

In every case, people from these departments can be either supplier or client. Moreover raised

the cases of the CRM (center of research of Sainte-Menehould),European Methods Office, and quality.

There are many exchanges between the stakeholders.

A link can be done with the meeting I attended about quality on Friday morning. In this case procurement department is the client who is asking the quality department (here as a supplier)

to test techincal implications of new product (resin) qualification.

That's why quality evaluation (thanks to, for example, ISO standards) are important .In conclusion, procurement is a part of all the firm activities and is as well the link between activities outside the firm and within the firm, an interface between internal and external suppliers.

Innovation...

How much has Alcan invested in Research & technology in 2003?Think about it!

I give the answer at the end of the page

What’s the common point between Sainte-Ménéhould (France), Jonqiere (Quebec) and Ulsan(Korea)?

Try to guess…

In these three places, there are R&D Alcan’s centres (there are many more around the world). But innovation is not only represented by R&D. Innovation encompasses more features.

Here is a definition of innovation I caught on the web:

Introduction of a new idea into the marketplace in the form of a new product or service, or an improvement in organization or process.www.4hb.com/glossary/25i.html

I think this definition is in tune with the reality and short enough to make it understandable easily. Regarding Alcan’s activities and with a focus on procurement, let’s deal with my coach about innovation. 

First of all, innovation generates changes. Sometimes that’s said it is quite hard for changing people’s minds (if they are too stubborn). In this case that’s much more a general problem than procurement specificity. My coach explained me communication and participative management are compulsory. When you involve people in their decisions, they are more eager to be active and efficient stakeholders. One good way is to show to the people the interests the company can have in changing the way of getting the things done.

But sometimes, when all these techniques are useless, management involvement is needed to give final decision and support implementation.

How to find the good innovation?

Are you aware of what surrounds you? If yes, that’s a good start! Much information can be found everywhere, anywhere (talks with colleagues, clients, suppliers, friends, on the internet…) If you want to get the trends on the market, you have to use the active listening. There are different kinds of information which can lead to innovation (either it is the first time you’ve caught information about a topic, or the information is repetitive, or it has already been used by colleagues).

Once the good information is found, needs have been defined, and actions can be implemented in order to fulfil these needs.

Do you know what e-procurement is?

E-procurement is a way of purchasing products through the web. There is a special web site, called marketplace, where clients and suppliers exchange information in order to sell and purchase. Thanks to such a system, buying costs are lower: To get a cheaper price and lower administrative costs are the main objective thanks to for example using economies of scale.

My coach participated to the implementation of this innovating project: JUMPI. In this case innovation is total as that’s a new way of buying. Alcan’s employees had to think about a new purchasing process. What strikes on me is the number of people involved in this project. Each of them brings his own capacity for helping the group to implement the project.

That’s the conclusion I get about Innovation:

In order to implement innovation in a good way, you can not be alone: you need to be in a network of people acting in the same way for the same objectives.

Procurement is my favourite topic but I thought about another innovation we (the bloggers) are all using: the WEALLCAN program.

My objective now is to show how Alcan innovates with this program.

How to innovate?

It is quite easy for us to deal with the weallcan program, but let us go back in November 2004. The idea is quite simple:

Students are not aware of Alcan as potential recruiters.

What kind of actions can interest the students?

The students nowadays need and are looking for more contact with more professionals. (e.g. the time of internship has risen the last years).

What is the Best way for Alcan to achieve this goal?

Ok, students can meet Alcan’s dynamic employees and get experience from them. This concept is nice but there is still a problem: do you find what the problem is?

I remind you of the objective of Alcan: to be more well-known. That’s why this program needs communication. Here is the second step: Students have just to communicate about and share their experiences.

For that, we use a new concept becoming more and more famous: the blogs. This concept has the advantage not to be old-fashioned, and through the web everyone can get information about this program.

This program represents definitely “innovation”:

*new way of promoting Alcan’s way of thinking and values

*In a short-run, students are speaking with friends of them about Alcan and thus increase the identification of Alcan

*in a long-run, we may guess students from this program will apply for a job in Alcan

My weallcan program and innovation:

This program is new. Hence, it is the first time as well for the users they’ve used such a way of communicating. When you launch innovating products, Ideas or process…the main objective is to improve the current situation or way of doing things.

Many NEW products are nice but fail and do not break into the market: Never! Why?

They do not satisfy any needs (I know, It’s basic marketing!).

But that could have been the same problems with the weallcan program: for example, involved students might have participated just for winning a trip and are not interested in meeting a professional and blogging.

In conclusion, I am experiencing a new way of learning from the professional life, and I just like it!(even if it is hard sometimes ;-).

Do you remember the first question?

How much has Alcan invested in Research & technology in 2003?

And the answer is: $140 million.

about me

                                                                                                                  To present myself:

                                                            

I like to laugh! Oh yeah… First of all, I like sport. I am currently practicing volley ball and badminton. Moreover I like cooking! Whereas I am French, I am good at cooking lasagna!

We are thirty students who are going to speak about themselves. There will be a lot of words to read!

That’s why I decided write less with more pictures:

one ounce of image is worth a pound of performance

I like to be active! Here is a picture when I was responsible for a professional association in my former university.

I have different values (the more important are for me, the respect and the honesty). And I try to be in such groups where my values are accepted. With this condition I am serene and quiet and I can express myself without any problems.

I spent one year in Liverpool (

UK

). This experience helped me for meeting people from different cultures. I was sharing a flat with three other students (one Greek , one Syrian, one English).

 

My friends and me… That’s a very long story. I met them when I went into in the university almost 4 years ago. That’s the part of the magic. Now one of them is in

Sweden

, one is in

Paris

, the third one in

London

, the one who took the picture is in

Hong Kong

. Now I am in

Lyon

, Am I alone? not of course, not! I met different students this year in

Lyon

. I am currently involved in the school volley ball team and in an association. I like international context, which is one of the reason why I applied for the weallcan program.

My wonderful volley ball t

eam! From September to January, we lost all our matches L but the atmosphere was good! We won the last two matches 3-0, you can not imagine how good the feeling was.

And my brand…

Since the last day, I’ve changed my brand: this brand is still about objectives I achieve, communication and teamwork but it’s more a “catchphrase”.
”My target? To achieve my objectives. My arrows? a focus on solutions, communication and you” It sounds better, doesn’t it?

If you have any further question about me (how I cook lasagna, if I play well badminton, or what are the best places to go in

Liverpool

…)

I will finish with this sentence a teacher told me and I think it is such a truth:

“Tomorrow it’s mystery, yesterday it’s history, today is a gift, that’s why it is called the present”. Have fun and enjoy your time!

PS: Do you know what this bird represents? One clue: There is a link between this bird and one of my experiences…If you find, you will never walk alone… anymore.

 

Welcome...

"TAKE CARE TO GET WHAT YOU WANT OR YOU WILL BE FORCED TO LIKE WHAT YOU GET"

Today I launch my blog! It is amazing. Who knew 2 months ago, I will share information with many European and non European students thanks to Alcan.

Together, we caught the opportunity to meet professionnals and now everybody can read us at anytime, anywhere around the world.

Let us go on the great job we started last week in Paris. You will know more about me before Wednesday (16th) in the part " about me ".

I am waiting for your questions and commentaries.

William(can).

For all the Alcan bloggers, there is a poll where a question is waiting for you!

Please welcome Estelle MANTELET

Thursday, March, 3^rd, 7.25am

The train left the Lyon ’s station 25 minutes ago. I was in the train to go the Alcan day briefing. The sun was rising. And a plane has just flown in front of the sun (you know like T.E in front of the moon with the bike in Spielberg’s movie). Right at that time, I was just feeling good, the spring is born and a new adventure is launched!

One week later, I met my coach, I did not know at that time she would be my wonderful coach. It is 1:50pm, I meet her in ten minutes, I am quite stressful!

Please, welcome Estelle Mantelet !After one day and half, we spent together, I realised we spoke a lot about her job and surrounding activities.

What could I write about "us"?

I met her at the headquarters in Paris. I arrived before her. When she got into the building, I knew she was my coach. Why? I do not know. I tried to imagine my coach before meeting her.

Here is a picture of her when I gave her t-shirt. As you see a purchaser is able to smile ;-)

Her job: She was student in a high French Business School and after specialized in Procurement. That’s why she is very competent. Often, there is a stereotype behind purchasers: they are not trained to be efficient (that’s still the case in many, many companies…) All people, I met or spoke about working for Alcan are trained and experienced. Therefore, I rely on her and what she told and learned me.

Our common point?

First of all, of course we are both interested in procurement! That’s so obvious, I should even not written it!

Her pleasure

Horse riding ( I got a very bad experience with the horses, that’s not one of our common point!!!). Every week, once week, she rides horses. We spoke about it and we agreed we need an outside job activity. You can not be focused all your times on your job. You need to think about other things.

She comes from a mountain area, I come from the country side, we both work (or study ) in the two French biggest towns. That’s why ,we both need sometimes to spend sometimes in the nature and to breath fresh air, it changes from Paris pollution, doesn’t it?

And now…

I would like to thank Estelle for her enthusiasm, her patience: I spent my time asking questions (for example on Friday, from 6.30 in the morning to 7pm when I left her). I am really eager to see her again in May at the final event, or maybe before, as I will be in Paris for an internship: who knows?

Thanks again.

And now she is getting into the building...

 

my william(can) day

Can you see what it is? It is just an empty railway station in Lyon.

Sometimes, I feel unlucky! every times I go to Paris for Alcan (twice), there is either snow either strikes! Welcome in France...

Anyway, I got my train and he was on time: great!

I started this day at the headquarters in Paris where I met my coach.Before meeting her (yes, she is a woman). I saw again the shooting machine (as said by mum's program),the photographer . That's great to be with him, because you feel like a star.He takes pictures of you all the times! that's quite strange!

I spent my Alcan day with Estelle Mantelet, who is resin procurement manager(global beauty, pharma Europe & blown film Dax ) for the packaging business group.

My Alcan day was divided in three main parts:

• Thursday afternoon, market review with a supplier in Paris
• Friday morning, technical meeting to assess the impact of the change of a resin on the cap characteristics and optical aspects, colours and decoration
• Friday afternoon, visit of research and development center and conference call with  an English colleague of my coach in order to plan the next resin team meeting and update market information

  What to do with a supplier?

  I will not explain all the ways a purchaser can behave with a supplier. Nevertheless we guess, a bigger supplier has more power. On the other hand, such a firm as Alcan has as well leverage as the size of the firm.

  Different criteria must be considered in order to choose the supplier. One of them is the world-class capabilities.

  The context :

  Alcan’s manager meets a world class supplier (which is already an Alcan’s supplier) in order to compare the view about the resin market and the opportunity for them to develop their relationships. It has to be said the business between both of the firms has been dropping for the last years

  The goal of the meeting: identify growth opportunities between the two companies and determine requirements for such growth to happen

  Information was shared about perspectives, market dynamics, and supplier strategy and product portofolio. Some potential projects to develop business between the companies were also pointed out. .. The resin market price history showed severe price hikes over 2004 : this might have been a tough period for my coach ! Talks were done as well about the continuity of supply given the tight supply situation.. No price negotiation has been undertaken since that was not the topic of the day and also it is highly confidential.

  Everyone had his own idea, but I would have never thought that the relationship between a buyer and a supplier could be so broad and would encompass so many dimensions !

  

  FRIDAY MORNING... The meeting point is the station at 6.15 am: When the alarm o'clock has rung... I can say it was quite a nighmare! but hopefully I enjoyed the day...

  The stakes of choosing a new resin:

  On the following pictures you have different packages, each of them is composed of a:

  * Tube body

  * Tube head

  * Caps

  The context:

  . Few month ago, the qualification of a new resin was launched for the cap business of Cebal. This new resin allows better mechanical and optical properties, at a more competitive price t han the current materials. Moreover, (on the left, the engineer) this new resin would replace 2 existing references which is also a saving from a Total Cost of Ownership point of view (logistic, inventory optimisation etc…). The qualification of this new resin implied a lot of coordination between the Purchasing, the R&D and the production departments..

  The goal of this (Friday)  meeting was to assess the impact of the change of the resin on the (on the left,the buyer) colouring. Will Cebal need to adjust colour formula while using the new resin to get the same finished cap ? For which applications, which customers are these adjustments required ?

  

  To progress on these questions, a quality manager, colouring specialists and the Masterbatch buyer also joined the R&D coordinator and my coach.  (on the right, the colouring specialists)

  Confidential information has been shared, that’s why I will not develop this part too much. But I will emphasize on what surprises me.

  I knew that a purchaser has to be in relationship with the entire firm’s departments and promote change; here I attended a concrete example! A change in the specification of a key component requires a lot of internal coordination and communication to align all people with the same goal. All the details counts to improve the company competitiveness but also secure the final customer satisfaction..

  My conclusion is the following one:

  Procurement manager must be empathic and understand all points of view in order to choose the best products. Moreover, I consider after the meeting, internal negotiation (with collaborators) is as much hard as or harder than with suppliers (external suppliers).

  The phone meeting (conf call):

  Estelle Mantelet works in team with two other controllers (that’s the name they have). They work in UK, my coach works in France: they need to share information in order to behave in a consistent way in front of their suppliers.

  The production line, the CRM ( research center from sainte-menehould):

  I visited these two places. There is no direct link between procurement and these visits. But I saw how the resin was transformed into a tube or a cap. It is always interesting to see how things are getting done.

  Earlier I raised the issues of communication and links of procurement with other functions  During these visits, my coach took the opportunity to get informal feed back from the production manager and the operators about the resins newly approved and used at plant level, the logistic reliability of the suppliers etc… .

  To finish:

  Much information in one day and half!

  Of course it was too short! But my coach gives me the willing to go on in procurement. Moreover I start an internship in procurement on Monday (the 4^th) but not at Alcan. From Monday I will have the opportunity to see and APPLY what I learn, that was the best what my coach could have brought to me.

  PS: I hope you did not forget the papers for the copyrights...

  

  last ps: I do not forget the quality manager!!!