Alsea

Gustav Schindler

Procurement Impact Authority

Creating Value Beyond Cost Savings

Procurement is a fundamental function to any company’s competitiveness in any sector. But it cannot be managed as a function on its own with siloed objectives and selfish agenda. It needs to understand, build the bridges and be fully connected to the business agenda and requirements and to its wider Supply Chain.

It creates value by ensuring its KPIs, initiatives and priorities are building and delivering what is needed by the business to thrive in the market and not to promote the function itself or drive agendas that sound good, progressive or leading edge, but do not really move the needle for the company. Balance the short term and the longer-term value creation, be connected to trends and anticipate the changes is fundamental too.

Navigating Procurement's Triple Challenge

I find the key challenge is how to allow the Procurement team members to have enough head space to plan and execute strategic and transformative initiatives while at the same time not disconnect themselves from the day-to-day supply or quality aspects of the role. To create separate teams for Procurement operations and for strategic sourcing or category management can be a solution, but to a certain extent creates more interfaces and less speed of response.

At Alsea we try to simplify processes and reduce transactional activities to minimize the time spent at less value-adding activities and allow the same category manager to also deal with the service and quality aspects of their portfolios.

Building Partnerships That Fuel Growth

Sourcing is not a lesser role of Procurement, it is fundamental that goods and services are available for the needs of internal and external customers when and where required. But indeed, Procurement can deliver much more for the company’s bottom line and also top line.

  ​Deliver the day-to-day job, but have relevant projects to drive, think big and bold to transform for better the parts of the spend that are under your control.  

Not just in the usual way which is through the establishment of close partnerships with its suppliers to bring innovation and competitiveness, but also by being involved in categories that drive sales. In Alsea, Procurement leads the relationship with payment method companies, merchandise, media, loyalty program partners, etc. that seek to expand customer base, brand equity and ultimately drive growth.

Alsea is a company that started small over 35 years ago and had to count on some important alliances with key suppliers to grow and expand. As Procurement, we drive competitiveness and resilience while not underestimating the importance key partnerships play in our success. We engage in long term contracts, foster top-to-top relationships and work very close with our partners, but this doesn’t mean we are complacent or will accept poor performance. We also try to prioritize local suppliers over overseas sources, not only for supply security, but also to foster the local economies.

Thinking Big, Delivering Bigger

I believe a career in Procurement (as in any other career) will be successful when the professional can make things happen. It’s important to be able to elaborate and clearly communicate a plan, structure initiatives, engage other parts of the organization and external parties, but ultimately execute it and reach the results that are aligned with the objectives of the organization. Deliver the day-to-day job, but have relevant projects to drive, think big and bold to transform for better the parts of the spend that are under your control.