HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT MBQPM6 LUU HONG PHUONG PROCUREMENT SERVICES IMPROVEMENT AND SIMPLIFICATION PROCESS AT PEPSICO FOODS VIETNAM COMPANY MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Ho Chi Minh City (2018) HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT MBQPM6 LUU HONG PHUONG PROCUREMENT SERVICES IMPROVEMENT AND SIMPLIFICATION PROCESS AT PEPSICO FOODS VIETNAM COMPANY MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Tutor: Professor Jacques Martin Ho Chi Minh City (2018) HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT DECLARATION OF AUTHENTICITY I, the undersigned, Luu Hong Phuong, declare that this master project titled” Procurement Services Improvement and Simplification Process at PepsiCo Foods Vietnam Company” is my original work, gathered and utilized, especially to fulfil the purpose and objectives of this study, and has not been submitted to any other organization or university for assessment The materials which have been used in this project are acknowledged or referred Signatures: Name: Luu Hong Phuong Date: HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT ACKNOWLEDGEMENT This project and the final out-come have been done in an extremely effort and knowledge that I have got from the professors and lecturers with different professional and academy backgrounds, that help a lot for my career development, enrich useful knowledge so that I can contribute more added value for the business of my company I would like to take this opportunity to send my special thanks to Professor Jacques Martin, who has provided the great support and guidance which made me completed the project duly, as well as the good advice on how to have a better restructure of this project I respect and thank to all of the lecturers who have given guidance by each step of the learning progress, that helped me to formalize an overall picture and a thorough understanding of the quality and performance management of the business I heartily thank to all of my classmates, who have advised and shared the experience and knowledge from different businesses for my understanding and approach Also, I would like to extend my sincere esteems to Ms Le Thi Ngoc Hien from Solvay school for your timely and kind support for all of information during the course HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT ACADEMIC TUTOR AND PRACTICAL TUTOR’S COMMENT AND APPROVAL SIGNATURE HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT ABSTRACT From an observation and involvement on services performance deficiencies, procurement services performance is a critical importance to the business, especially in this VUCA (Volatile, Uncertain, Complex, Ambiguous) world, when there are lots of uncertainties happen every day, this has changed the way we make decisions, plan for the future, manage risks and solve problems For this project, we have been facing with the pain points on how to support the stakeholders (requesters) to meet the business’s demand, we also have internal issues related to functional process, deliver the aggressive target, build the strong team capability and build up the people development plan for talent sustainability The methodology we have applied here is to process a satisfaction survey for the stakeholders as well as the team member’s feedbacks and expectation We also have data analysis process to identify the root causes and deficiencies of procurement services performance In the result of survey, most of the root causes came from: the working environment, procurement procedure, the workflow and work load from internal procurement side; there is also lack of the understanding about the policy and process from the stakeholders, the business needs in an urgent basis which are mostly unplanned, and the issues from the product quality justification At a proposal for improvement, we have recommended some solutions to resolve the issues and for further services improvement in collaboration with the stakeholders to resolve the urgent basis, review and simplify the current procurement process and reduce the work load for the team; continue the 360 survey feedbacks from the stakeholders, also improve the working environment with a sufficient people development frame work HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT TABLE OF CONTENT Contents INTRODUCTION: 1 About PepsiCo Foods Vietnam Company: Information of the organization: 2.1 Organization chart of local business: 2.2 Operation model - In connection with global team: Introduction of APAC Global Procurement & Indirect Procurement Department - Organization and Scope of Work 3.1 APAC Global Procurement team: 3.2 Indirect Procurement team: .3 PART ANALYSIS OF PROCUREMENT SERVICES CHAPTER CRITICAL PROBLEMS IDENTIFICATION IN VIETNAM CU INDIRECTS PROCUREMENT DEPARTMENT: Functional target and issues: Purchase request of Indirect Categories: Services delivery: 10 CHAPTER DEFINE ROOT CAUSES OF PROCUREMENT DEFICENCIES: .11 Internal procurement root causes: 11 a Working Environment: 11 b Procurement procedure: 13 c Workflows and work load: 16 External root causes from stakeholders: 25 PART IMPROVING PROCUREMENT PERFORMANCE AND SIMPLIFICATION PROCESS: 28 CHAPTER Possible solutions for improvement: 28 Resolve the urgent basis: 28 Resolve the issue of product quality and improve efficiency: 31 Partnership with stakeholders and communication improvement 33 HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT Improvement on the workload and system support: .40 Process review and improvement: 41 Policy review and alignment: 42 Improve the working environment and people development: 43 CHAPTER Performance improvement .46 Build up the collaboration and partnership with the stakeholders: 46 Process review and improvement: 46 Promote a cherish working environment and talent sustainability: 46 CONCLUSION: 48 SOURCE OF REFERENCE: 50 HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT LIST OF ABBREVIATIONS BOM: Build of Materials PR: Purchase Request PO: Purchase Order POSM: Point Of Sales Materials TOT: Tool of Trade FMCG: Fast Moving Cost of Goods sold ACE: Aspiration – Competency – Expectation ABCDEF: Agile – Bold – Cohesive – Decisive – Each accountable – Fun GP: Global Procurement MKT: Marketing MRO: Maintenance, Repair and Operation SG&A: Sales and General Administration OEM: Original Equipment Manufacturer 3PL: Third-party Logistics HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT INTRODUCTION: About PepsiCo Foods Vietnam Company: PepsiCo Foods category has been invested in Vietnam from 2005, 11 years after the penetration of PepsiCo beverage in Vietnam market, we became the “power of one” business In 2008 – 2009, the Foods manufacture was set up in Binh Duong, the company developed the local potatoes sourcing in Lam Dong In 2013, when the joined venture Suntory PepsiCo Vietnam was established between Suntory Holdings Limited and PepsiCo Inc (51% - 49%), PepsiCo Foods Vietnam was extracted and became a 100% PepsiCo investment The two entities have been established independently from 04/2013 PepsiCo Foods Vietnam is one of the leading companies in manufacturing food with the main brand ''Poca'' and a team of over 300 employees present all over Vietnam in over 10 years Currently the Foods business size is still limited at the moment but the fast growth rates of Vietnam snack market every year has bring potentials promise for good benefits Our product is Snack in Savory category (Potato chip and Non potato chip) We are currently strong in Potato chip share with strong advantage in potatoes supply chain Our mission:  Become the #1 Savory player in Vietnam market  Become the #1 Agronomy partner for farmer in Central highland, as a part of the Performance with Purpose commitments to serve as a catalyst for the development of game-changing solutions for our communities around the world  “Genzila” Talent workforce who aspire to outgrow themselves in a freestyle working environment that nurtures and develops their full potent Our Vision:  Seeking and creating positive financial outcome for our investors,  Development opportunity and many economic benefits to employees, business partners and the communities where we operate  We always strive to operate on the foundation of honesty, fairness and integrity in all our actions Dscription PROFESSIONAL SERVICE MKT SERVICES IMPORT-EXPORT WAREHOUSE RENTAL TRANSPORTATION Office Supply IT Supply TOT Customzied specification Common items/ Branded items Person In Charge >> Request Alignment including alignment specification/alignment SOW/Approve samples HR Services (Merchandising/ Car leasing Media planning/ Media buying/ Research/ Other MKT services Import/ Export formality Excluded Da Lat warehouse Finished goods/material/potatoes transportation Stationery/ Beverage/ Other facilities Laptop/ Desktop/ Motnitor Rack/Standee/Hanger/ Customzied design Applying for all items with specific requirement on design Applying for all items that have Model of Manufacturer 1-6 Renew contract with the same (including route, UOM, timing ) 15 20 New 10 New Renew contract with the same SOW 15 New Renew contract with the same SOW New Renew contract with the same SOW 20 Renew contract with the same SOW 10 New New New Renew contract with the same SOW Renew contract with the same SOW 5 5 2 2 3-10 3-10 3-10 3-10 1-6 1-6 3-10 1-3 1-3 1-3 1-6 1-6 1-6 1-6 1-6 New 1-6 Repeat Order 1-6 New 1-6 Repeat Order 1-6 New 1-6 Repeat Order New 1-6 1-6 1-6 1-6 Requester PR Supply Used or current available samples Buyer + Requester Buyer + Requester Request alignment/ Finalize SOW Clearify request Already recommended/ contracted SOW 1-6 Already recommended/ contracted POSM: Banner/Sticker/Topboard/Brochure/ Repeat item bunting/dangler New Item Simple Design (including paper, Argo Form, Retail sheet of I&S, printing, matt coasted, cut finished name card, letter cover, gift box goods not die-cut) Clearify request including clear specification/clear SOW The day of leadtime is working days SERVICES SERVICES SERVICES SERVICES SERVICES OFFICE SUPPLY IT SUPPLY TOT PROMOTION GIFT PRINTING Category Leadtime (working day) 19 12 10 10 10 10 19 11 11 5 3 4 3 Buyer Sourcing RFQ 25 22 30 20 20 15 25 22 35 30 8 8 6 Buyer Bidding/ Negotiation 2 2 2 2 5 2 2 2 2 2 2 2 2 Buyer/ SoA Reco & Approval 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 0-3 Buyer/ SoA 15-45 7-14 15-30 7-14 6-20 6-12 6-20 6-12 6-20 6-12 7-14 6-12 7-14 6-12 2-6 2-6 2-6 2-6 2-6 2-6 2-6 2-6 2-6 2-6 2-6 2-6 Buyer Payment term / Sole supplier PO/ Contract approval 89 66 75 49 58 41 82 49 73 57 30 23 30 23 25 12 26 13 27 13 16 11 21 14 Min Max Total lead time (days) 129 83 100 66 80 55 106 60 92 68 45 37 45 37 37 24 38 25 39 25 28 23 19 33 26 19 36 Notes: 10 No Updated: Jun-17 Complicated design (With Die-cut or manual works) LEAD TIME TO PROCESS INDIRECT PROCUREMENT HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT HO CHI MINH CITY OPEN UNIVERSITY 37 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT This lead time will need to be improved more and more until getting the best efficient for the business needs Once the lead time is established and aligned with the stakeholders, procurement can have enough time to process the sourcing with the most effectiveness  Status of the request should be updated by procurement to the stakeholders on a timely basis to avoid the confusion and to ensure the requests are followed up and have the closely tracking between both teams  Procurement can prepare a template of the requested information for the goods or services, specify the scope of services and specification so that the stakeholders can understand and prepare it before sending the request to procurement This will help to reduce the time of communication for clarification between procurement and the stakeholders Below is a sample template for the scope of work – Inland transport that procurement and stakeholders work on: HO CHI MINH CITY OPEN UNIVERSITY 38 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT YÊU CẦU CHO TUYẾN ĐƯỜNG BỘ - SCOPE OF WORK FOR INLAND TRANSPORT Mô tả cơng việc/dịch vụ - Services description Hàng hóa: Bao gồm Sản phẩm thành phẩm với nhãn hiệu Công Ty sản xuất phân phối, Hàng xì xẹp, vật phẩm quảng cáo hàng khuyến Công Ty Lộ trình vận chuyển - Route in details: 2.1 Từ Kho/Nhà máy Cơng Ty Bình Dương đến Nhà phân phối Công Ty khu vực HCMC (sau gọi “Tuyến Nhà Phân Phối khu vực HCMC”) 2.2 Từ Kho/Nhà máy Công Ty Bình Dương đến Nhà phân phối Cơng Ty khu vực Bình Dương-Đồng Nai (sau gọi “Tuyến Nhà Phân Phối khu vực Bình Dương-Đồng Nai”) 2.3 Từ Kho/Nhà máy Cơng Ty Bình Dương đến Siêu Thị Công Ty khu vực HCMC, Bình Dương-Đồng Nai (sau gọi “Tuyến Siêu Thị khu vực HCMC-Bình Dương-Đồng Nai”) Phương thức vận chuyển - Type ot transport: - Đường - Giao nhận hàng hóa có kiểm đếm xác thùng ngun đai/kiện Kế hoạch hoàn - Time of services - Thời gianthành yêu cầu giao hàng đínhdelivery: kèm - Nhà cung cấp có trách nhiệm vận chuyển, chi trả chi phí có liên quan đến vận chuyển giao Nhà Phân Phối theo yêu cầu Pepsico Thời gian lấy hàng - Time loading at manufacture -Tại kho Bình Dương (Địa chỉ: Số 3-4-5, Lơ CN2, Đường số 2, Khu cơng nghiệp Sóng Thần 3, Thành phố Thủ Dầu Một, Tỉnh Bình Dương) thời gian xe đến lấy hàng : + Xe 15CBM : yêu cầu thời gian có mặt khoảng từ 06:00 đến 20:00 + Xe 15CBM : yêu cầu thời gian có mặt khoảng từ 06:00 đến 18:00 Thời gian làm việc theo Pepsico không loại trừ ngày lễ hay chủ nhật - Trong trường hợp Nhà Thầu điều động xe đến kho Công Ty để lấy hàng không tuân thủ theo thời hạn quy định nêu Nhà Thầu phải thông báo trước phải đồng ý Cơng Ty Thể tích thùng xe đơn hàng tối thiểu - MOQ and truck container Trọng tải 1.25T 2.5T 3.5T 5.0T 8.0T 10T Thể ch Khối lượng thùng đơn hàng tối (M3) thiểu (M3) 15 23 30 44 55 6.3 13.5 20.7 27.0 39.6 49.5 Điều kiện áp dụng - Terms and Condition: - Yêu cầu đại diện đơn vị vận tải phải có mặt nhà máy để trực tiếp nhận/giao chứng từ phối hợp giải cố với điều vận nhà máy - Tất giá nêu bao gồm chi phí bốc xếp Nhà Phân Phối/Siêu Thị, bao gồm khoản thuế, phí lệ phí mà Cơng Ty phải trả cho Nhà Thầu giao kết Hợp Đồng chưa bao gồm thuế giá trị gia tăng (VAT) - Giá áp dụng trường hợp vận chuyển riêng lẻ đơn hàng Pepsico chuyến xe, không chuyên chở phương tiện vận chuyển hàng hóa khác ngồi hàng hóa Cơng ty - Thời gian gửi Đơn Hàng hàng ngày: Công Ty gửi cho Nhà Thầu trước 5:00 chiều hàng ngày, Nhà Thầu cam kết giao hàng theo thời gian giao hàng liệt kê Bảng Báo Giá đính kèm Hợp Đồng - Nhà Thầu gửi báo cáo kết KPI nh trạng giao hàng cho Công Ty lần/tuần (vào sáng thứ 02 sáng thứ 05) - Tất vấn đề phát sinh Nhà Thầu giải vòng 1-5 làm việc từ thời điểm nhận email từ Công Ty - Chỉ sử dụng phương ện vận chuyển để giao hàng từ nhận hàng Kho Công Ty định đến địa điểm giao hàng Công Ty định, ngoại trừ trường hợp tuyến đường phép sang xe mà có đồng ý trước Công Ty Các trường hợp sang xe, Nhà Thầu phải thông báo trước cho Công Ty thông tin xe sử dụng Giá vận chuyển cho hàng xì xẹp - Specific requirement for Stale Đối với hàng xì xẹp chuyển từ Nhà phân phối/Siêu thị Nhà Máy Bình Dương: Chi phí vận chuyển cho hàng xì xẹp tính dựa chi phí vận chuyển cho thành phẩm Về khối lượng cách tính sau: gói hàng xì xẹp = gói thành phẩm Sau chuyển đổi thành m3 theo kích thước sản phẩm PepsiCo qui định áp dụng theo đơn giá vận chuyển hàng thành phẩm để nh chi phí vận chuyển HO CHI MINH CITY OPEN UNIVERSITY 39 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT Điều chỉnh giá cước - Price adjustment - Giá cước điều chỉnh có thay đổi giá nhiên liệu sử dụng mức giá điều chỉnh tương ứng với mức thay đổi giá nhiên liệu - Vào cuối tháng, giá cước vận chuyển hai bên điều chỉnh giá dầu Diesel (Điêzen) 0,05S (dầu DO) Vùng 01 Petrolimex (tại website http://www.petrolimex.com.vn) thay đổi (tăng giảm) từ 5% trở lên so với giá dầu sở thời điểm ký hợp đồng lần điều chỉnh gần Đơn giá sau điều chỉnh áp dụng vào ngày 01 tháng sau Giá dầu để áp dụng điều chỉnh giảm giá dầu ngày cuối tháng • Giá dầu DO TP.HCM thời điểm ngày 03/11/2017 13.510 đồng/ lít (đã bao gồm Thuế giá trị gia tăng 10%) làm sở điều chỉnh giá cước • Biến động giá cước vận chuyển giá dầu thay đổi: % giá cước tăng/giảm = % giá dầu tăng/giảm * 35% - Mức giá áp dụng từ ngày đầu tháng Trong trường hợp có điều chỉnh giá, Cơng Ty Nhà Thầu ký Phụ Lục với nội dung ghi % điều chỉnh giá cước ngày áp dụng điều chỉnh giá cước, quy định giá cước sau điều chỉnh làm tròn số, không lấy chữ số thập phân 10 Điều khoản toán - payment term: - Thanh toán chuyển khoản tiền đồng Việt Nam vào tài khoản Nhà Thầu vòng 60 ngày sau hai bên ký xác nhận “Biên đối chiếu” hàng vận chuyển, khối lượng hàng hóa bốc dỡ PepsiCo nhận Hóa đơn VAT hợp lệ từ Nhà Thầu - Thời gian lập Biên đối chiếu quy định sau: • Từ ngày 01 đến ngày 10 tháng, Nhà Thầu gửi Biên Bản đối chiếu dịch vụ vận chuyển tháng liền trước đến Cơng ty • Từ ngày 11 đến ngày 20 tháng, Công ty thực đối chiếu thông báo Nhà Thầu xuất hóa đơn -Do sách tốn Cơng Ty toán đợt vào ngày 10 ngày 25 hàng tháng nên Cơng Ty tốn cho Nhà Thầu theo Điều Khoản Thanh Toán kể theo đợt toán hàng tháng Cơng Ty dựa thời hạn tốn tính từ ngày Cơng Ty nhận hồ sơ tốn hợp lệ Nhà Thầu 11 Mức phạt Hợp đồng - Penalty: 7.1 Phạt hợp đồng giao hàng trễ Nhà Thầu chịu phạt mức phạt 1% đơn giá vận chuyển (đã bao gồm thuế GTGT) cho ngày giao hàng chậm theo quy định Hợp đồng Cơng Ty có quyền u cầu Đơn vị vận tải khác (“Bên Thứ Ba”) thực việc vận chuyển Nhà Thầu phải chịu trách nhiệm chi trả khoản tiền Công ty trả cho Bên Thứ Ba để thực công việc Nhà Thầu theo quy định Hợp đồng 7.2 Phạt hợp đồng không thực dịch vụ vận chuyển Trong trường hợp Nhà Thầu không thực dịch vụ vận chuyển phạm vi hợp đồng theo yêu cầu Công Ty Nhà Thầu chịu phạt mức phạt 8% đơn giá vận chuyển (đã bao gồm thuế GTGT) Cơng Ty có quyền yêu cầu Bên Thứ Ba thực hiện, Nhà Thầu phải gánh chịu khoản tiền Công ty trả cho Bên Thứ Ba để thực công việc Nhà Thầu theo quy định hợp đồng Các khoản toán Công Ty trừ vào tiền dịch vụ nợ Nhà Thầu theo hợp đồng hợp đồng khác đã, ký hai bên Cơng Ty phải có trách nhiệm cung cấp chứng hoá đơn Bên Thứ Ba giá thực dịch vụ để làm sở mức phạt 7.3 Phạt hợp đồng không đạt Chỉ số đánh giá mức độ hiệu công việc (KPI) Trong trường hợp Nhà Thầu không đạt Chỉ số đánh giá mức độ hiệu công việc (KPI) nêu, vòng tháng kể từ ngày Công Ty gửi thông báo việc Nhà Thầu không đạt số KPI Nhà Thầu phải tiến hành điều chỉnh cách thực Công Việc/Dịch Vụ để đạt số KPI Nếu lần liên ếp Nhà Thầu khơng đạt số KPI, Cơng Ty có quyền HO CHI MINH CITY OPEN UNIVERSITY 40 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT 12 Trách nhiệm Nhà Vận Tải - Responsibility of transporter: - Đảm bảo phương tiện để vận chuyển hàng hóa Cơng Ty hợp pháp, an tồn, sạch, khơng mùi, sàn xe phải có lót bạt - Trường hợp phương tiện vận chuyển bị hư hỏng, Nhà Thầu có nghĩa vụ điều xe khác Nhà Thầu thuê xe bên thứ ba để đảm bảo Hàng hóa đến đích Cơng Ty u cầu - Lái xe phụ xe/ bốc xếp đảm bảo tôn trọng khách hàng Công Ty Chịu trách nhiệm bồi thường cho Công Ty khách hàng Công Ty tổn thất lỗi Lái xe /phụ xe /bốc xếp gây - Đảm bảo vận chuyển hàng hóa ổn định cho Cơng Ty - Các khoản tốn cho nhiên liệu, chi phí sửa chữa, lương tài xế, bảo hiểm vật chất xe tài sản xe khoản toán khác có liên quan Nhà Thầu chịu trách nhiệm chi trả - Nhà Thầu bắt buộc phải mua bảo hiểm có liên quan đến người xe theo pháp luật Việt Nam quy định Nhà Thầu chịu trách nhiệm hoàn toàn người xe Bên Thứ Ba trường hợp xảy tai nạn - Nhà Thầu phải có Giấy ủy quyền cho Tài xế & Xe vào kho nhận hàng gửi cho Bộ phận điều phối Công Ty (Dispatcher) để quản lý theo dõi Trên giấy ủy quyền phải có chữ ký Tài xế Số Xe để PepsiCo kiểm tra Tài xế ký nhận hàng - Nhà Thầu phải chịu trách nhiệm nhận hàng giao hàng theo thời gian thỏa thuận khu vực theo thơng tin Hóa đơn giá trị gia tăng (gọi tắt “Hóa đơn VAT”) Load Out Sheet (phiếu giao hàng) (gọi tắt LOS) kể từ Tài Xế ký nhận kho PepsiCo định - Hàng ngày Nhà Thầu phải gửi kế hoạch giao hàng cho đại diện PepsiCo Trường hợp không giao hàng thời gian thỏa thuận, Nhà Thầu phải thông báo cho đại diện PepsiCo biết - Ngay sau giao hàng cho khách hàng PepsiCo Nhà Thầu phải chuyển LOS cho khách hàng PepsiCo ký xác nhận gửi trả lại cho PepsiCo liên vàng LOS có chữ ký khách hàng PepsiCo Thời gian gửi trả lại LOS cho PepsiCo: theo KPI (PDO Return) - Trong trường hợp vận chuyển hàng xì xẹp cho Cơng Ty, Nhà Thầu thu hàng xì xẹp có u cầu từ Cơng Ty theo bao gói / hình dáng quy định.Thời gian thu hồi xì xẹp trả lại công ty phải theo thời giian quy định KPI (Damaged Good Return) Trong trường hợp Nhà Thầu không tn thủ quy định này, Cơng Ty có quyền khơng tốn phí dịch vụ vận chuyển cho Nhà Thầu - Nhà Thầu cử nhân viên chuyên trách, làm đại diện cho Nhà Thầu để giải tất vấn đề, bao gồm không giới hạn, liên quan đến việc điều động xe, thu thập, cung cấp chứng từ vận chuyển cho Công Ty, giải đáp vấn đề liên quan đến chất lượng dịch vụ cho Công Ty 13 Chỉ số đánh giá mức độ hiệu công việc (KPI) Nhà Thầu - KPI for transporter: Xem chi ết shee tên "KPI" 14 Thời gian cung cấp dịch vụ: Trong vòng ….ngày kể từ ngày nhận hợp đồng từ Pepsico - Time to start service 15 Hiệu lực báo giá - Quotation effectiveness Báo giá có hiệu lực từ ngày ký kéo dài năm kể từ thời điểm ký hợp đồng Improvement on the workload and system support: As review from the data analysis, most of the transactions that procurement team processing is manual and without system support Provide administrative support for Indirect procurement: PO transaction and getting approvals and signatures Contract preparation and getting approvals/ signatures Assist for internal/ external stake holders' alignment Follow up and assist on import/ export activities: tax settlement, payment monthly checked, customs clearance hard copies check, receive and send to finance Bidding data and documents consolidation HO CHI MINH CITY OPEN UNIVERSITY 41 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT Provide administrative support for Indirect procurement: Ensure documents are sent to suppliers and getting thorough signatures, Ensure documents are recorded, filed, in line with P2P policy and process and support for the audit trails/ self-test Follow up on product delivery schedule with stake holders and suppliers Assist for monthly report (PO tracking, Productivity, Selectica upload) and other ad-hoc requests needed  A suggestion for Oracle system upgrade to reduce the manual transaction and promote the work efficiency for procurement team: All of PRs are uploaded automatically generate into system: PR -> RFQ process -> Negotiation -> Supplier selection -> PO/ contract -> Goods receiving -> Payment -> Final reports  Once we can generate all into system, a numbers of administration works will be reduced Procurement will have more time to focus on the functional principles that can contribute more value added to the business on sourcing, negotiation, supplier management, supplier partnership, and especially bring more productivity initiatives Process review and improvement: From process review, we have seen that there are some duplicated steps and need to be adjust and improve As mentioned on the catalog items, the process will be revised for each kind of catalog and non-catalog items: HO CHI MINH CITY OPEN UNIVERSITY 42 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT This process revision will help to classify the catalog/ non-catalog items and simplify the process from PR – PO Policy review and alignment: As currently policy, there is not threshold on the amount or purchasing that can be proceeded at stakeholders’ site, this will create many efforts from the procurement team for the small amount of order, and no added value In order to make it more efficient, here are some suggestion on the PRs’ requirements and the responsibility of the requesters: A Purchase Requisition (PR) is a document requesting the central procurement team to procure the items requested in the document a) The user/requester issues Purchase Requisition (PR) to initiate Purchase procedure No purchasing action should be taken without properly executed Request for Purchase b) All departments should carefully plan their purchases and send yearly usage forecast to Procurement c) The requester is responsible for providing all information necessary for purchasing actions in a clear and complete manner to avoid any confusion that may lead to the purchase of wrong good / service HO CHI MINH CITY OPEN UNIVERSITY 43 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT The requester is also responsible for ensuring the availability of funds for the purchase, sufficient time for purchaser to take purchase actions and also to seek the approval from authorized personnel d) Notice of change: If there is any change (of quantity, value, specification, delivery etc.) or cancellation of PR, the Requester has to amend the PR by issuing a Notice of Change e) PR tolerance: It is normally acceptable if the purchased quantity/value exceeds less than: 5% of the quantity, 5% in value stated in the PR, for inventory items 5% of the quantity, 5% or 10,000,000 VND in value which is less, for noninventory items In the case the purchased quantity/ value is required to be exactly the same as the requested quantity/value, this request should be clearly mentioned on the PR The Notice of change must be approved by authorized personnel as per approval matrix However, Department Head’s approval is acceptable if the change does not exceed the approved quantity/value f) Minimum Order: to avoid spot purchase, user/requestor should plan and adjust the quantity of order to meet the minimum quantity x estimated price >VND million for each item User/ requester can process the purchasing for PR amount less than million for each item Improve the working environment and people development: Suggestion for OHS improvement with areas defined: Agility, Alignment, Commitment (ABCDEF) and Job & Career Set up the OHS team kick off to promote the effective action plan for improvement:  Agility: deep dive into the feedback and identify ways to drive improvement on the AGILITY front that will enable all of us to work more efficiently, understand change, succeed with change, and even propose solutions to foster an environment where we can work better in this new VUCA world  Team brand storming on what is actually making the changes necessary to compete effectively and anticipates changes taking place in the business environment before they happen HO CHI MINH CITY OPEN UNIVERSITY 44 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT Expect a lot of engagement and questions from the team on this topic  All people managers and site leaders will also participate in a specially tailored training course on how to take their teams through change  Alignment:  Identify Non-Value Added Tasks to Streamline  Commitment (promote Fun and Cohesive areas):  Improve satisfaction on Cohesive and Fun Behaviors  Team to pull an action plan for activities around the following themes:  Job & Career: Job & Career is one of the keys actions that we want to address in our team  Promote a mentoring program to build insight and perspective from leaders  Provide opportunities to build multiple relationships, create broader connectivity, and gain a deeper understanding of the organization and the business  As we are having a global frame work to identify the key elements of self-development and long-term career growth: HO CHI MINH CITY OPEN UNIVERSITY 45 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT First, identify the “ACE” framework, including: - Aspiration: ask yourself a question – “ what are my career aspiration?” - Capability: “What are my strengths and where I need to focus to grow?” - Engagement: “What motivates and energizes me?” Second, employee processes capability self-assessment with level identification guidelines for each element that require for the level of banded management and non-banded (operations), then there will be an interview/ discussion – face to face with line manager for final verification to ensure the result is justified The capabilities include: - Category knowledge and Strategy development - Commercial contracting - Legal application and control - Commodity playbook - Complex business resolution - Productivity management - Supplier Negotiation - Supplier relationship management Based on the ACE frame work and the capability assessment, the GP management team will build up a plan for people development HO CHI MINH CITY OPEN UNIVERSITY CHAPTER 46 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT Performance improvement After implementation, we need to review the process and the team performance, getting feedbacks from stake holders and have plan for sustainability and further improvement Build up the collaboration and partnership with the stakeholders: Stakeholders are very important partners, they are the internal customers in the business  Building up the good relationship with the stakeholders will help procurement understand the circumstances that they are facing with so that procurement can provide the sufficient support This is to perform a professional partnership based on the value “Respect each other” and success together  Set up a quarterly meeting with stakeholders and deep dive into the category in charge to understand the business needs for further support and efficient actions  Continue the internal customers survey to improve the services level  Review the suppliers’ performance together with feedbacks from the stakeholders to improve the suppliers quality and management Process review and improvement:  Yearly review the process for the risk control assessment and management Build up the mitigation plans for the risk control and continue improve on the process simplification  Continue review and tracking the performance on the Oracle upgrade system to ensure smoothly configuration  Team review on the workflows by monthly to ensure all of unnecessary steps are removed and simplified  Continue improvement on the lead time of services delivery, based on the sufficient resources Promote a cherish working environment and talent sustainability: HO CHI MINH CITY OPEN UNIVERSITY 47 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT A talented and skilled workforce is the lifeblood of every organization As the war for talent escalates, companies are quickly learning the importance of having the right people One of the concerns as observed from my point of view, as an employee of PepsiCo is that: we are having many sufficient tools for performance management system which are aligned with the business strategy We also have many data analysis from the survey of these tools, however the action plans still need more improvement to provide sufficient resolutions for the matters That will help the employee to believe and trust that their feedbacks are listened and that the company is willing to change for a better environment Here are some suggestions:  360 feedbacks from stake holders on the individual team performance and lunch time with the team to understand the needs of the employees, how to support them efficiently  Provide daily coaching, on the job training  GP team also have a GP College includes all of the online training courses that can help the employee improved their capabilities All of GP Associates are required at least 10 hours online training per year, and this is recorded in system as a KPI in their Personal Development Review annually  The team should know that each person is responsible of their career development followed the ACE framework So it is better to prepare everything in advance, once the opportunity comes, which person have the most prepared advantage will take the chance  All of the writing in plans should be converted into real action and have the tracking to follow up, to ensure that we will meet the objectives in a time frame  Understand what the PepsiCo GP Career Framework is!  Understand what roles you want to Aspire to! HO CHI MINH CITY OPEN UNIVERSITY 48 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT CONCLUSION: The pace of change around us is unprecedented and accelerating so fast that requires all of us to move purposefully, and with agility To address these challenges, capture these opportunities, and deliver on our growth and business plans we must continue to invest in the new capabilities which will drive our portfolio and business transformation The business environment in which we now operate is; Volatile, Uncertain, Complex, Ambiguous (VUCA) this has changed the way we make decisions, plan for the future, manage risks and solve problems All of us will need the collaboration for sustainability The responsibility for the collaborative relationship is not just limited to the procurement, they adopt a pyramid approach that requires the support of other functions In this VUCA world, we need to develop the Agility and Adaptiveness, as the supply chain and procurement tend to get more rigid and inflexible with time HO CHI MINH CITY OPEN UNIVERSITY 49 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT Successful organizations are those in which everyone pulls in the same direction The way in which they achieve this is to link corporate objectives with departmental objectives and then with individuals’ objectives This is commonly called goal alignment Here are some suggestions for further Indirect procurement improvement:  To review the whole process in its totality  Understand the business environment, internal and external stakeholders  Deep dive to understand the root causes of procurement issues  Know what are the bottlenecks and use them wisely  Communicate face to face:  “Only when parties are physically together are they able to have the most effective communications And face to face communications enable the parties to have a sense of body language, facial expressions, and vocal tone, more than any other type of communication Thus, face to face communications give the parties the fullest and most complete understanding of what other parties are trying to communicate and how they are responding to communications”  Developing an Effective Procurement Strategy:  “A carefully planned strategy answers questions about what we are going to do, who we are doing it for, why we are doing it, and how and when we are going to it This means that a good procurement strategy needs to link not only to procurement objectives but also to corporate objectives  Know how to set our overall procurement objectives and link them to organizational objectives so that we understand what our strategy needs to achieve in order to be effective  Gather the business requirements for our procurement strategy to achieve balance between the user’s technical goals and procurement’s commercial goals The course then moves on to analyzing supply markets to understand what they can offer, so we most effectively match to our business requirements before finally showing we how to generate sourcing strategies that maximize the benefits and help to choose the one that best fits our requirements.” HO CHI MINH CITY OPEN UNIVERSITY 50 UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMIC AND MANAGEMENT SOURCE OF REFERENCE:  Learning lesson from Services Quality Management – Satisfaction survey procedure – Professor Le Quang  Developing an Effective Procurement Strategy (Copyright © 2011 Accenture  Collaborating Procurement Operating contract at Manufacturing (Copyright © 2014 Accenture)  Other internal data collection from PepsiCo Foods Company ... ECONOMIC AND MANAGEMENT MBQPM6 LUU HONG PHUONG PROCUREMENT SERVICES IMPROVEMENT AND SIMPLIFICATION PROCESS AT PEPSICO FOODS VIETNAM COMPANY MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE... ECONOMIC AND MANAGEMENT DECLARATION OF AUTHENTICITY I, the undersigned, Luu Hong Phuong, declare that this master project titled” Procurement Services Improvement and Simplification Process at PepsiCo. .. MANAGEMENT INTRODUCTION: About PepsiCo Foods Vietnam Company: PepsiCo Foods category has been invested in Vietnam from 2005, 11 years after the penetration of PepsiCo beverage in Vietnam market, we became