2017 Global SRM Research Report - Solving the value Puzzle

ATKELLOGG SRMAIMS TOUNDERPIN GROWTH

CASE STUDY KELLOGG

Kellogg’s brands are household names across the globe, but it faces intense competition. To fully leverage supplier innovation and to be more agile in response to market opportunities, it decided to relaunch its SRM programme, as Shelly van Treeck, Chief Procurement Officer, Kellogg Company, explains.

discussions, with the right people, at the right level, in support of Kellogg’s 2020 Growth Plan. Earlier this year, we launched K Partners Advantage at our Supplier Day. K Partners Advantage is the culmination of cross- functional feedback, external benchmarking, supplier segmentation and stakeholder input into the design, planning and governance of a re-energised SRM programme. The approach moves us beyond traditional performance management and scorecards, and it was further enabled by globalising roles (and the programme) for scale, and organising work under the umbrella of ‘supplier engagement and development’ (SE&D). SE&D encompasses SRM, supplier diversity and responsible sourcing. It provides a ready way to integrate and connect suppliers to strategies, processes, goals, and activities more effectively, and with mutual benefits. In the year leading up to the launch of K Partner Advantage, supplier segmentation was completed and various pilots were conducted to validate the business case and ensure the programme would deliver value and benefits for all parties.

While Kellogg Company had had a supplier relationship management programme for more than 15 years, given marketplace changes and in the spirit of continuous improvement, we decided in 2015 that we could drive greater end-to-end value through a broader supplier engagement and development approach. We could do this by expanding category coverage and thinking bigger and beyond traditional performance management. When you’ve managed costs, innovation, and supplier service performance — and done that well for years — it was time to ask ourselves how we could increase the benefits, relevance, and impact for all players in our supply chain, internally and externally. The answer was that we needed to partner differently, change the conversation, include all spend and build the case for how better supplier relationships could achieve greater value and returns for all involved. ‘Playing to win’ is part of our culture, and that’s why it became increasingly important to pursue a different level of strategic engagement with our supply base. It underpins our new-and- improved SRM programme: improving supplier relationships by having the right

Kellogg has ambitious growth plans and we are simultaneously making significant changes to our business. We need to have suppliers who understand and are aligned to our objectives.” Shelly van Treeck Kellogg CPO

Tony the Tiger was introduced in 1952 and is a popular character in Kelloggs’ globally recognised branding.

CASE STUDY STATE OF FLUX 2017 GLOBAL SRMRESEARCHREPORT