Purchasing - Procurement 2324 S02 MSC M1 PUR 0001 E L PAR

Procurement Basics
Session #1 : Introduction to
buyer’s stance and procurement
processes
January 12, 2024

INTRODUCTION
Cécile MEUNIER
cecile.meunier@jicap-performance.com
+33 6 33 59 28 40
22
INTRODUCTION
EXPRESS YOURSELF, TEST YOUR

KNOWLEDGE, PLAY ...
33
AGENDA
JANUARY TIMETABLE FEBRUARY TIMETABLE
FRIDAY THE 12th 8h30 / 11h45 FRIDAY THE 2d 8h30 / 11h45
TUESDAY THE 16th 12h45 / 16h00 THURSDAY THE 8th 16h15 / 19h30
FRIDAY THE 26th 8h30 / 11h45 TUESDAY THE 20th 16h15 / 19h30
WEDNESDAY THE 21st 8h30 / 11h45
MARCH TIMETABLE
TUESDAY THE 27th 12h45 / 16h00
TUESDAY THE 5th 9h00 / 12h00
XA M
E
44
RULES
OPEN YOUR MIND BE PROACTIVE EXPERIMENT
55
LET’S PLAY
Divide into 4 teams.
Each team plays with The aim of the game
The game is played in
another team, but is to score as many
several rounds.
they don't know points as possible.
which one.
Your choice Their choice Your gain Their gain

Each turn, you must
Red Blue +5 pts -5 pts
choose to play one Blue Blue +1 pt +1 pt
Blue Red -5 pts +5 pts
color: blue or red.
Red Red -5 pts -5 pts
66
BLIND NEGOTIATION DEBRIEFING
Understanding the Build a strategy: Always seize the

objective: take a forward-looking opportunity to
Hard skills
Hard skills
maximizing points view of your own negotiate !

versus winning against strategy and analyze
the opposition the other party's
strategy
Reducing collegial
Pride, power relations,
construction to rallying
short-termism
to the opinion of the Being tactical without
Soft skills
Soft skills
Long-term vision, majority insulting the future !

focus on the objective Listen to all the team's
and not on subjugating points of view to build
the other party an accurate strategy
7
7
Our 8 sessions together will enable us to cover all 7 steps of the
sourcing process :
SOURCING PROCESS – 7 STEPS
Build the RFP template Prepare the Monitor the contract
Identify the volumes Select your go-to- Conduct the RFP
Research all possible and the frame of the procurement new to track the
spent, the specification, market approach Process and analyze
suppliers future contract solution toolkit performance metrics
current prices and & the responses
& & & &
existing suppliers Identify the best &
Define criteria to Develop awarding Manage the Pilot knowledge
& strategy sourcing Negotiate all
select them criterias and implementation of management for the
Conduct the needs according to your conditions (price,
(RFI) weightings the new conditions, next sourcing strategy
analysis needs timeline, warranties)
(RFP) suppliers and contract
PROFILE THE DEFINE THE IDENTIFY THE BUILD THE NEGOTIATE & MANAGE THE SUPPLIER
IMPLEMENT
CATEGORY STRATEGY SUPPLIERS TENDER SELECT RELATIONSHIP
Procurement Basics
Session #2 : Procurement
Processes
January 12, 2024

INTRODUCTION
10
10
THE PROCUREMENT PROCESSES IN BRIEF
6 OPERATING PROCESSES
11
THE PROCUREMENT PROCESSES IN BRIEF
The Manage the Need (MTN) process aims to meet the needs of specifiers and users by helping them structure their
MTN
requirements, guiding them towards pre-negotiated supply channels, guiding them towards automatic or manual sourcing
channels, and offering them a centralized directory.
The Source to Contract (S2C) process - from supplier sourcing to contractualization - aims to select and qualify the supplier,
S2C
negotiate, manage and implement the operational contract, and apply policies and strategies by category.
6 OPERATING PROCESSES
The aim of the Manage the Supplier Panel (MSP) process is to manage a panel of high-performance suppliers by defining
MSP
benchmarks, structuring the supplier relationship and focusing the purchasing ecosystem's efforts on the best-performing or
most promising suppliers.
The aim of the Procure to Pay (P2P) process is to meet purchasing needs, guarantee delivery of products & services, and ensure
P2P
correct payment of the corresponding invoices.
The Manage Purchasing Categories (MPC) process aims to create the optimum conditions for an entity, regions and activities,
across all purchasing requirements. It covers 4 main areas:
o Spend tracking with order analysis
MPC
o Definition and deployment of category policies

o Category management - Sourcing strategy
o Purchasing performance monitoring by category
Steering
The aim of the Steering process is to define strategy at all levels, monitor financial and operational performance, and manage
communication and change management. Overall, it enhances the efficiency of Purchasing function teams.
12
Les différents process achats
Manage the need
Manage purchase
Source to contract Manage supplier panel Procure to pay
categories
ACHATS NON STOCKÉS
Gestion des Validation &

Inscription & Consolidation Gestion des Commande Perspectives,
Sourcing Contract Canaux de Classification Canaux Demande Gestion des categories – Implémentation
qualification de la relations (Purchase analyses &
Management Management Sourcing fournisseurs d’achats d’achat reçus Stratégie de des politiques
fournisseurs performance fournisseurs Order) reporting
sourcing de catégories
Gestion des ACHATS STOCKÉS

risqués
fournisseur Commande
Demande Gestion des Gestion de
(Purchase
d’achat reçus l’inventaire
Order)
Produire
Gestion des Gestion des
rapport sur les
factures paiements
comptes
fournisseurs fournisseurs
fournisseurs
STEERING
Gestion du plan de Gestion du plan de

Gestion du tableau
performance et de decarbonation &
de bord du CPO du
l’alignement responsabilité
groupe
commercial sociétale
13
CASE STUDY
You are the new buyer in charge of the "clothing manufacturing" category. You started your
job only a few weeks ago and your priority is the SewingNet contract.
This contract, the most important in your scope both from a strategic point of view and in
terms of spending volume, was signed 4 years ago. It will expire in 2 months. The company
SewingNet is the current contract holder and has been for 10 years. The first contract signed
in 2012, following a tender duly won by SewingNet, has been extended by means of
amendments and tacit renewals.
When you took up your position you met with your colleagues and some of them informally
expressed their opinion of Sewingnet.
You also find that SewingNet works almost exclusively for you. Although SewingNet has
recruited a small sales team to diversify its customer portfolio, the results are not yet really
tangible.
Your manager wants to clarify your approach very early in the bidding process. You prepare
without waiting the first steps to secure before the launch of the call for tenders.
14
14
Processes
AGENDA Agenda
1 MPC
2 S2C
3 P2P
4 MSP
5 Steering
15
Confidentiel 15
MPC – Manage the Purchase Categories
Manage the Purchase Categories

Who’s involved?
Category Policy
Category marketing & Insight, Analytics &
validation and
strategy Reporting GLOBAL PRO.
implementation REGIONAL PROCUREMENT
& CATEGORY
M ANAGEMENT :
PROCUREMENT EXCELLENCE
Launch or review a Perform Spend/PO

Validate the category policy BUSINESS
category analysis SUPPLIERS TRANSACTIONAL
STAKEHOLDER TEAMS
Perform category Implement category

Perform savings tracking
procurement marketing strategy & policy
Which tools cover the process?

Analyze performance
levers
SEE
:
Design category strategy SLIDE 39
action plans
Confidentiel 16
16
MPC – Activities & useful links
Implement
Launch or review a Perform category proc. Analyze performance Design category strategy Validate the category Perform Spend/PO
Perform savings tracking category strategy and
category marketing levers and action plans policy analysis
policy
• Perform strategic analysis • Build the Category team • Analyse the performance • Select the applicable •Define initiatives planning • Describe the rules to follow • Build the Category Policy • Identify enriched Spend
• Agree on category • Analyze & share internal levers performance levers •Approve savings plan and the resources to put in implementation global plan Data Sources (including
relevance data (including Sourcing, Deman and opportunities •Launch savings plan place to achieve the category (tools, economic and supplier enrichement)
• Decide the group • Analyze & share external d, • Define the economic •Declare savings performance objectives operational performance • Extract, transform and
managed category data Process, Specification, Supp and operational performance • Approve actual savings (including the list of selected indicators, implementation aggregate Spend Data
• Assign to a domain • Perform & share specific liers, etc.) objectives • Steer the category suppliers and contracts for indicators, communication kits, • Analyze Spend Data Based
• Assign to proc committee focus on analyzes and • Define a methodology for c • Draft the related macro- performance the category as appendices) training of the key, on Category Structure
• Appoint Category quantities consumed and alculating economic perfor action plan • Review the category • Approve the Category Policy mplementation actors)
Management prices mance for thecategory • Approve cat proc performance • Implement the category
• Define segmentation for the • Determine the expected ec marketing, strategy and relat policy within entities (Build
category onomic performance by ed action plan the implementation action
• Analyze category risk and lever • Activate advanced plan, Communicate the
opportunity with support of levers identified in Category Policy and train on
experts (H&S, Quality etc.) the Category strategy how to apply Policy,
and defining a category Communicate a list of key
mitigation plan contacts and people to be
informed, Set up the
Information System, Keep
the CM informed
Confidentiel 17
17
MPC – Personae
Design category Implement

Launch or review a Perform category Analyze Validate the Perform Spend/PO Perform savings
strategy and action category strategy
category proc. marketing performance levers category policy analysis tracking
Personae involved plans and policy
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT X X X X X X X X
REGIONAL PROCUREMENT
X X X X X X X X
PROCUREMENT
EXCELLENCE
X X X
SUPPLIERS
X X
BUSINESS
STAKEHOLDERS
X X
TRANSACTIONAL TEAMS
X
Confidentiel 18
18
MPC – TOOLS
Spend analysis solutions
Confidentiel 19
19
Processes Agenda
AGENDA
1 MPC
S2C
3 P2P
4 MSP
5 Steering
20
Confidentiel
S2C – Source to contract
Source to Contract
Who’s involved?
Sourcing Contract
Sourcing Channels GLOBAL PRO.
Management Management & CATEGORY
MANAGEMENT :
Identify Suppliers for the Define guided portal and

Manage contract template SUPPLIERS BUSINESS STAKEHOLDER TRANSACTIONAL TEAMS
tenders sourcing channel strategy
Initiate and negotiate the Establish the sourcing

Define the tender strategy
contract channels
Lead the tender Approve the contract
Negotiate and select source Sign and store the contract SEE
:
SLIDE 17
Close the tender Implement the contract
Monitor execution of the

contract
Manage contract lifecycle
Confidentiel 21
21
S2C – Activities & useful links (1/2)
SOURCING MANAGEMENT CONTRACT MANAGEMENT
Identify suppliers for the Define the tender Negotiate and select Manage contract Initiate and negotiate the
Lead the tender Close the tender
tender strategy source template contract
• Pre-select Evaluate • Mobilize team for the • Create the sourcing / • Analyze answers • Communicate the • Manage Template • Fill in the contract
and classify the sourcing project tendering project • Perform award award decision to structure request
suppliers • Define the sourcing • Launch the tender scenarios analysis suppliers • Manage Clause Library • Create the contract in
• Ensure prospects strategy process • Perform additional • Report the economic • Establish Template group contract
complied with basic • Prepare RFX content • Monitor the tender rounds performance And Clause Rules repository
requirements and documentation • Select / shortlist • Close the tender • Define the negotiation
• Select suppliers to be • Align on the selection supplier(s) strategy
invited to tender criteria • Prepare supplier • Negotiation rounds
selection with supplier(s)
recommendation • Collaborate on
contract authoring
• Negotiate the contract
with the suppliers
TO GO FURTHER AND UNDERSTAND THE S2C PROCESS…
Confidentiel 22
22
S2C – Activities & useful links (2/2)
CONTRACT MANAGEMENT SOURCING CHANNELS
Define guided portal

Sign and store the Monitor execution of Establish the sourcing
Approve the contract Implement the contract Manage contract lifecycle and sourcing channel
contract the contract channels
strategy
• Perform contract • Sign contract • Communicate the • Monitor contract • Identify contract risks • Define the sourcing • Activate MTN Portal
approval • Store the contract in contract execution KPI’s with & issues channel strategy by rules based on
group contract • Coordinate the business • Mitigate Contract category (in line with sourcing
repository contract stakeholders and the Risks category strategy) channelstrategy
implementation suppliers • Resolve Contract • Assess needs for • Update MTN Portal
• Manage catalog • Share contract Issues category-specific rules based on
implementation execution KPI’s with • Manage contract sourcing channel (vs sourcing channel
based on contracts business termination Group sourcing strategy
stakeholders and the • Process and store solution)
suppliers Contract Amendments
in group contract
repository
TO GO FURTHER AND UNDERSTAND THE S2C PROCESS…
Confidentiel 23
23
S2C – Personae (1/2)
SOURCING MANAGEMENT CONTRACT MANAGEMENT
Personae involved Identify suppliers for the Define the tender Negotiate and select Manage contract Initiate and negotiate the
Lead the tender Close the tender
tender strategy source template contract
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT X X X X X X X
X X X X X X X
X X X X X X
X
SUPPLIERS
X X X X X
BUSINESS STAKEHOLDER
X X X X X X
TRANSACTIONAL TEAMS
X X X X X
Confidentiel 24
24
S2C – Personae (2/2)
CONTRACT MANAGEMENT SOURCING CHANNELS
Define guided portal

Sign and store the Monitor execution of Establish the sourcing
Personae involved Approve the contract Implement the contract Manage contract lifecycle and sourcing channel
contract the contract channels
strategy
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT
X X X X X X X
REGIONAL PROCUREMENT X X X X X X X
PROCUREMENT EXCELLENCE X X X X X X X
SUPPLIERS X X X X
X X X X X
X X X X
TRANSACTIONAL TEAMS
Confidentiel 25
25
S2C – TOOLS
Sourcing tools : Contract Management tools :
Confidentiel 26
26
ID card –
WHAT IS DOCUSIGN ? WHAT ARE THE BENEFITS FOR THE USER ?
• DocuSign is an IT company founded in 2003 that provides electronic signature and digital
transaction management technologies to facilitate the electronic exchange and validation of
contracts and documents. It is headquartered in San Francisco.
• Docusign is considered as the best in class for electronic signature, it is used around the world
with more than 180 countries and many companies.
• Thanks to using DocuSign CLM (Contract Lifecycle Management), many companies were able to
increase speed throughout the contracting process for spend portfolios that were previously not
integrated into a contract management workflow. COMPLIANCE MANAGERS
• DocuSign meets the most stringent global security certifications and offers enterprise-grade security and compliance
controls.
• It can also be used to assemble documents, secure data, and authenticate the signers.
WHAT ARE THE BENEFITS FOR THE GROUP ? SUPPLIERS

• It is possible to designate all parties who need to sign the document, and the order that they need to sign, it will then be
• Docusign will be part of the Core Model V1 as a Priority 1 for the business. sent in that order without any additional steps.
• E-signatures are used for almost any agreement across all lines of business making the whole
process more efficient. Docusign is fully integrated into Engie's needs, as it optimizes the BUYERS
approval workflows and risk management of contracts.
• Contract Owner can easily see the Workflow progress of the e-signature process
• It is easy to use for employees, it eliminates costs included in printings, sending and storing • E-signature won’t be put anywhere in the process; it is at the end. This will ensure a harmonized and a more controlled
agreements. process.
• It is possible to automate entire workflows and conduct business securely from anywhere, rather
than having to print off the document, scan it and send it back. LEGAL
• It provides an easier signing process by streamlining the paperwork & contracts and eliminating • In Ariba, when contract is sent for signature in e-signature tool, the contract name won’t change its generic name.
the need to sign and return stacks of hardcopy documents. Today, the contract name changes for a generic name when it is sent for signature.
• Docusign will help end paper clutter. The users will easily prepare and send any document in seconds and store the
completed, signed documents securely for later. 27 27
Processes
AGENDA Agenda
1 S2C
2 MSP
3 P2P
4 MPC
5 Steering
28
Confidentiel 28
P2P – Procure to Pay
Procure to pay
NON-STOCK PURCHASES STOCK PURCHASES Who’s involved?
Receipt Receipt Inventory
Buying Purchase Purchase Purchase Purchase
Managem Managem Managem
channels Request Order Request Order GLOBAL PRO.
ent ent ent REGIONAL PROCUREMENT
& CATEGORY
Establish Guided Receive and Receive and MANAGEMENT :
Create the Ensure PO evaluate Create the Ensure PO evaluate Manage inventory
portal and Buying
Purchase request acknowledgement operational Purchase request acknowledgement operational Transactions
channels
performance performance
SUPPLIERS BUSINESS STAKEHOLDER TRANSACTIONAL TEAMS
Enable Buying Manage & Manage the Manage & Manage the
channels Approve the Purchase order Approve the Purchase order
Purchase request Purchase request
Perform Help Close the

Close the
desk services Purchase order
Purchase order
Manage Manage Produce
supplier suppliers' AP SEE
invoices payments reporting :
SLIDE 33
Generate
Receive and
payment run &
capture invoice
execute payments
29
Manage
Process invoice emergency
payments
Regarding Stock & non-stock purchases
Manage down - There is a slight difference between the activities of both
payments categories of purchases– see slide 46
- The Personae analysis is the same for both, expect for inventory
management which is specific to stock purchases - see slide 47
Address vendor - The tools analysis is different – see slide 49 & 50
inquiries
Confidentiel 29
29
P2P – Activities & useful links (1/2)
Produce AP
BUYING CHANNELS MANAGE SUPPLIER INVOICES MANAGE SUPPLIER PAYMENTS
reporting
Establish guided Generate

Enable buying Perform Help desk Manage Produce AP rep
portal and buying Receive and payment run & Manage down Address vendor
channels services Process invoice emergency orting
PURCHASE TO RECEIVE
channels capture invoice execute payments inquiries
payments
payments
• Define Buying • Enable Preferred • Perform (Internal) End • Receive non • Book invoice • Generate payment • Send request to • Generate down • Receive and • Produce AP
Channel Approach vendor lists / User Help Desk electronic invoice • Perform proposal appropriate payment request Record Vendor Reporting
& Strategy Contracts Request (paper/pdf…) (automated) match • Review payment approver with reference to Inquiry
• Define Global • Enable External & • Perform Supplier Help • Receive electronic - PO-based (2/3 way proposal (if no • Create urgent PO • Review and Route
Mapping of internal Catalogs Desk Request invoice match) auto-approval) request for BP • Create down Vendor Inquiry
Categories To • Enable "internal • Perform controls • Manage exceptions • Generate payment creation (if payment request • Resolve Inquiry
Buying Channel catalogs with based on invoice (price, quantity…) run required) in accounting (if • Perform Root
• Measure Buying Configurable items" compliance • Manage credit note • Review payment • Generate payment non PO) Cause Analysis
Channel • Enable Quick Quote • Perform controls • Block/Unblock run run & execute • Pay down payment
Compliance • Enable Spot buy/Mark based on invoice invoice • Automatic payments • Post invoice
Performance etplace content • Approve invoice for transmission of the • Perform
• Establish Action • Enable Blanket/Open • Reject invoice in payment payment file for reconciliation
Plans for Buying PO with auto receipt case of validation between down
Channel • Enable WebForms noncompliance or • Transmit check file payment and
Performance • Enable Category incorrect content to provider (if invoice
Improvement Specific Applications • Perform invoice payment by check)
• Define & enable • Enable MRP ordering monitoring
MTN Portal rules • Enable ERP Buying • Manage duplicates
based on buying channels : normal PO invoice
channel and pure invoice • Archive invoice
without PO Detailed activities in
the next slide
Confidentiel 30
30
P2P – Activities & useful links (2/2)
PURCHASE TO
RECEIVE
Stock purchases Non-stock purchases
• Stock purchases are goods used in production or finished goods held by a company during its • Non-stock purchases are all items that do not need to be stocked or are not held in stock
normal course of business. It also involves purchases that are constantly kept in stock. A because they are consumed immediately. It may also concern purchases that are delivered
stock purchase has a material master record and is managed on a value basis in a material quickly.
stock account.
For both stock & non-stock purchases Specific to stock purchases
RECEIPT INVENTORY
PURCHASE REQUEST PURCHASE ORDER MANAGEMENT MANAGEMENT
Receive and
Manage & Ensure PO Manage
Create the Manage the Close the evaluate
Approve the acknowledgeme inventory
Purchase request Purchase order Purchase order operational
Purchase request nt transactions
performance
• Initiate the • Approve PR • Get PO • Edit PO (change or • Perform PO closing • For Nonstock • Review inventory
Purchase Request • Edit PR as an acknowledgement cancel) Purchases: Confirm balances
• Complete Purchase approver receipt from the • Approve PO reception of goods • Perform physical
Request • Release PO to the supplier amendment / services inventory count
• Submit Purchase supplier • Get PO conditions • Release PO • Evaluate supplier
Request for (Automatically confirmation from amendment to operational
approval generated) the supplier (qty, supplier performance
shipment, …) • For Stock
Purchases :
Validate Material r
eceipt
• Report
Good receipt
• Evaluate
supplier operationa
l performance
Confidentiel 31
31
P2P – Personae (1/2)
For both stock & non-stock purchases Specific to stock purchases
RECEIPT INVENTORY
BUYING CHANNELS PURCHASE REQUEST PURCHASE ORDER MANAGEMENT MANAGEMENT
Establish Manage & Receive &

Create the Ensure PO Manage the Close the Manage
Personae involved guided portal Enable buying Perform Help
Purchase
Approve the
acknowledgem Purchase Purchase
evaluate
inventory
and buying channels desk services Purchase operational
request ent order order transactions
channels request performance
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT
X X X X X X X X X X
X X X X X X X X X
X X X X X X X X X X
SUPPLIERS
X X X X
X X X X X X X
TRANSACTIONAL TEAMS X X X X X
Confidentiel X X X X X 32
32
P2P – Personae (2/2)
MANAGE SUPPLIER INVOICES MANAGE SUPPLIER PAYMENTS Produce AP reporting
Generate
Receive and Manage
payment run & Manage down Address vendor Produce AP
Personae involved Process invoice emergency
capture invoice execute payments inquiries reporting
payments
payments
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT
X X X
X X X
X X X X X X X
SUPPLIERS X X X X X
X X
X X X X X X X
TRANSACTIONAL TEAMS
Confidentiel 33
33
P2P – TOOLS
P2P Suites Invoice processing
Confidentiel 34
34
ID card – Legal tracker Processes covered by Legal Tracker :
P2P - Buying Channel
WWHAT
HAT LEGAL
ISISDUN TRACKER ? ?
& BRADSTREET WHAT ARE THE BENEFITS FOR THE USER ?
• Legal Tracker is an IT solution provided by Thomson Reuters. Legal Tracker software provides
billing management, analytical reporting, and cost control. Used primarily by legal departments,
Legal Tracker helps control costs, reduce legal expenses, streamline operations and provide
predictable budgets.
• According to recent surveys of major professional organizations, Legal Tracker is the top-rated
system for electronic billing and records management.
• Legal Tracker is designed to manage all the important information generated during the lifecycle
of a legal project – within Engie, it is specially used to monitor attorney's expenses.
WHAT ARE THE BENEFITS FOR THE GROUP ?
• Today Legal tracker is used by the Legal Line of ENGIE to track the attorneys' fees managed, • Legal Tracker's cloud-based managed system allows the users to organize, analyze and use data to increase
solely, by the Legal Line. efficiency and reduce expenses. It helps legal departments implement tighter cost controls, reduce expenses and
foster effective collaboration, both internally and with outside stakeholders (attorneys...)
• Any attorneys' expenses that is outside the legal department or any legal expense not related to
attorneys is out of scope (bailiff expenses, auditor of accounts, etc.) • Legal Tracker also allows the users to manage all documents and contracts online in a collaborative system managed
in the cloud.
• Therefore, Legal Tracker facilitates the digital monitoring of legal expenses that the Legal Line is
not able, as we stand, to monitor through the existing tools within ENGIE (accounting & • Additionally, because it is offered as a SaaS system, Legal Tracker does all of this without the need to purchase and
purchasing tools combined.) update software, saving the organization's IT staff time and money.
• Therefore, it completes what the other tools do, it has a finer granularity in terms of monitoring • Main benefits :
and reporting than those present within the accounting and purchasing departments.
o Integration of project management, electronic billing and performance analysis
• In addition, Legal tracker allows to identify specific expenses within an accounting system which o Connects with all external lawyers (Law Firms)
simplifies their monitoring - not all sector expenses, but only those incurred with lawyers that are o Ease of use
subject to a particular follow-up. o International features
o Fast implementation
3535
Processes
AGENDA Agenda
1 MPC
2 S2C
3 P2P
4 MSP
5 Steering
36
Confidentiel 36
MSP – Manage Supplier Panel
Manage Supplier Panel

Who’s involved?
GLOBAL PRO. PROCUREMENT

REGIONAL
& CATEGORY
Supplier registration Supplier performance Manage supplier
Supplier risk MANAGEMENT :
Supplier Classification management &
& qualification management relationships
sustainability
SUPPLIERS BUSINESS STAKEHOLDER TRANSACTIONAL TEAMS

Define KPIs and
Perform supplier Develop & manage
Define classification approach for Manage supplier
onboarding & supplier sustainability
governance & approach performance Relationships
qualification strategy
assessment
Perform supplier
Consolidate supplier per Develop and collaborate Develop & manage Which tools cover the process?
data registration Classify suppliers supplier diversity &
formance with suppliers
& maintenance inclusion strategy
Perform supplier Perform supplier Meet supplier and Manage supplier Define risk & resilience SEE
qualification updates declassification strategy & governance
define actions plans innovation SLIDE 2
Manage risk
Perform supplier Implement & steer the segmentation &
disqualification action plans assessment
Confidentiel 37
37
MSP – Activities & useful links (1/2)
Supplier registration & qualification Supplier Classification Supplier performance management
Perform supplier Perform supplier Define KPIs and approach

Perform supplier Perform supplier Define classification Perform supplier Consolidate supplier perf Meet supplier and define
onboarding & data registration Classify suppliers for performance
qualification updates disqualification governance & approach declassification ormance actions plans
qualification & maintenance assessment
• Assign the right • Perform supplier • Manage supplier • Validate the supplier • Manage • Agree and share • Formalize • Define / adapt • Identify the • Set-up business
category to the data registration in qualification updates disqualification classification's supplier classification declassification if Supplier stakeholders review with the
prospect and send data referential (scope & component decision definition and KPI's based on supplier is not kept in Performance involved in the supplier
invitation • Activate supplier inc. certificates) • Communicate to • Define Preferred classification supplier panel dimensions & criteria supplier orders & • Align on
• Assess master Data in • Check compliance to stakeholders SRM governance approach • Validate the supplier to categories & deliveries performance results
onboarding/qualificati transactional systems relevant/ applicable • Implement supplier • Define Major SRM • Assign the Supplier declassification business • Collect and and co-define action
on needs for the • Maintain the supplier Group rules disqualification in the governance & SAM Account Manager decision • Optionnally define consolidate internal plan with the
prospect master data in Data • Review the supplier systems selection procedure • Define mitigation • Communicate to sub-KPI's & scales information supplier
• Define qualification referential qualification status • Define classification plan for critical stakeholders • Analyze the results of
criteria based on maintenance rules suppliers • Implement supplier the performance
• Collect and analyze qualifcations • Store and share declassification in the evaluations
qualification outcomes mitigation plan for systems
questionnaire & data critical suppliers
• Enrich supplier data • Implement the
with 3rd Party supplier classification
provider in procurement
• Validate the supplier systems
qualification • Set-up the mitigation
• Manage emergencies plan in procurement
and deviations system
TO GO FURTHER AND UNDERSTAND THE MSP PROCESS…
Confidentiel 38
38
MSP – Activities & useful links (2/2)
Supplier performance
Manage supplier relationships Supplier risk management & sustainability
management
Develop & manage supplier

Implement & steer the Manage supplier Develop and collaborate Develop & manage supplier Define risk & resilience Manage risk segmentation
Manage supplier innovation diversity & inclusion
action plans Relationships with suppliers sustainability strategy strategy & governance & assessment
strategy
• Share and cascade the • Define SRM Strategy & • Identify Suppliers & • Define Supplier • Align with the global • Define Supplier • Define Supplier Risk & • Collect risk data
action plan to Entity / Approach Create Relationship Innovation Strategy & sustainability Strategy Diversity & Inclusion resilience strategy • Assess risk data and
regional hub CPO • Define SRM Charter Objectives • Decline the strategy into strategy • Define Supplier Risk & perform risk assessment
• Assign people to actions Organizational Model & • Identify and manage • Identify Partners for Goals & Objectives for • Define Supplier Resilience Goals & • Assess gaps vs goals and
• Organize the timelines Stakeholders Supplier Collaboration Innovation the suppliers Diversity & Inclusion Objectives objectives
and the information • Execute SRM & Development • Identify & Manage • Define Supplier Goals & Objectives • Define Supplier Risk & • Define risk mitigation
feedback governance model Initiatives Innovation Initiatives Sustainability • Define Supplier Resilience plan
• Execute at the entity Measurement Approach Diversity & Inclusion Measurement Approach • Communicate and
level appropriate Measurement Approach implement the
actions (incl. risk mitigation action plan
mitigation actions) • Monitor mitigation
within the scope action plan execution
• Steer the
implementation of
actions
• Decide to keep the
supplier in panel
TO GO FURTHER AND UNDERSTAND THE MSP PROCESS…
Confidentiel 39
39
MSP – Personae (1/2)
Supplier registration & qualification Supplier Classification Supplier performance management
Perform supplier Perform supplier Define KPIs and approach

Personae involved onboarding & data registration
Perform supplier Perform supplier Define classification
Classify suppliers
Perform supplier
for performance
Consolidate supplier perf
qualification updates disqualification governance & approach declassification ormance
qualification & maintenance assessment
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT
X X X X X X X X
X X X X X X X X
X
SUPPLIERS
X X X
X X X X X
TRANSACTIONAL TEAMS
X X X X X 40
Confidentiel 40
40
MSP – Personae (2/2)
Supplier performance management Manage supplier relationships Supplier risk management & sustainability
Develop & manage Develop & manage Manage risk

Personae involved Meet supplier and define Implement & steer the Manage supplier Develop and collaborate Manage supplier Define risk & resilience
supplier sustainability supplier diversity & segmentation &
action plans action plans Relationships with suppliers innovation strategy & governance
strategy inclusion strategy assessment
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT X X X X X X X X X
X X X X X X X X
PROCUREMENT
EXCELLENCE
SUPPLIERS X X X X X X
X X X X
TRANSACTIONAL TEAMS
X X X X X
Confidentiel 41
41
MSP – TOOLS
Suivi fournisseur/SRM SIGR
Confidentiel 42
42
ID card – Processes covered by Ecovadis :
MSP - Supplier Registration & Qualification
WHAT IS ECOVADIS ? WHAT ARE THE BENEFITS FOR THE USER ?
• Ecovadis offers a comprehensive Corporate Social Responsibility (CSR) assessment service, via a global
SaaS platform. Ecovadis rating covers a wide spectrum of non-financial management systems, including
impacts in the following areas: Environment, Social & Human Rights, Ethics and Responsible Purchasing
• The assessment is available to all companies and is used as a tool to ensure transparency across the
supply chain. Companies (or ‘buyers’) can request their suppliers to undergo the Ecovadis assessment by
sending them an invitation, after which they will receive notifications on the process and results
• Ecovadis is the global leader & the best-in-class when it comes to CSR analytics. It has more +100 000
clients around the world.
• Ecovadis methodology is built - and continuously updated - on international sustainability standards COMPLIANCE MANAGER
(UNGC, GRI, ISO, and more). It allows to identify 21 indicators across four main pillars: Environment,
Labour and Human Rights, Ethics and Sustainable Procurement..
• Ecovadis Ratings integrate holistic sustainability management and further enablement to meet compliance standards.
• It allows to easily know the ratio (%) of suppliers which are assessed or not assessed.
• It allows to easily capture/download the list of preferred, major & other suppliers.
• Its database offers +180,000 in-depth, analyst-validated assessments over 15+ years across 200+ industries.
• It addresses the transparency requirements of various supply chain laws such as LkSG, French Duty of Care, the upcoming EU
Directive on Due Diligence, and more. Prioritization and mitigation recommendations guide actions toward compliance.
WHAT ARE THE BENEFITS FOR THE GROUP ?
Ecovadis will be part of the Core Model V1 as a Priority 1 for the business. BUYER & CATEGORY MANAGER
It offers Evidence-based risk assessment and will help Engie’s stakeholder to have results in a matter of hours
to days without having to contact the suppliers thanks to AI-based sustainability data mining (SDM). • Supplier CSR compliance can be easily assessed with Ecovadis ratings.
• Ecovadis allows to easily have the list of Preferred and Major suppliers assessed by period of assessment along with the
Ecovadis will provide : percentage of bad Ecovadis scores with a mitigation/action plan.
• Performance action plan facilitation (risk management, H&S, Carbon, finance…) • It offers detailed supplier profiles based on country, industry and company-related risks, enriched with the procurement data.
• A risk matrix by category • Ecovadis provides grounds for the global category policies along with other databases.
• Setting up and configuring alerts according to certain criteria • It allows to select suppliers and monitor them.
• Have supplier risk elements in all modules/screens where it is possible to interact • It also allows to receive alerts if a supplier is sanctioned or is the subject of a controversy, which contributes to greater
• Have a customizable score card based on Engie’s needs monitoring.
• Management with world wild coverage of country risks, corruption, due diligence, OFAC… • It is a major source of data for conducting due diligence on CSR aspects. 43
43
Processes Agenda
AGENDA
1 S2C
2 MSP
3 P2P
4 MPC
5 Steering
44
Confidentiel
STEERING
Who’s involved?
Steering GLOBAL PRO.

& CATEGORY
REGIONAL
PROCUREMENT
EXCELLENCE
M ANAGEMENT :
PROCUREMENT
BUSINESS TRANSACTIONAL
Manage Group CPO STAKEHOLDERS TEAMS
Dashboard
Manage Performance
plan & Business
aligment Which tools cover the process?
Manage Sustainability SEE

& Carbon performance
:
SLIDE 38
plan
Confidentiel 45
45
Steering – Activities & useful links
Manage Group CPO Manage Performance Manage Sustainability

Dashboard plan & Business & Carbon performance
alignment plan
• Validate Multiyear • Set and implement carbon

• Define dashboard KPI Performance Plan with Strategy & framework
• Define objectives Business • Identify and measure
• Analyse KPI's • Co-Plan With Business carbon
• Activate corrective actions Stakeholders • Set objectives per category
in line with procurment • Integrate With Company- • Implement and follow
governance Wide Initiatives carbon performance plan
• Measure & Report strategy per category
Procurement Performance • Identify/review
• Execute Corrective Action compliance requirements
Plans and standards
• Identify and capture
Innovation on Carbon
• Identify/review
compliance sanctions &
exceptions
• Reports & Communicate
on Carbon performance
Confidentiel 46
46
Steering – Personae
Manage Group CPO Manage Performance Manage Sustainability

Personae involved Dashboard plan & Business & Carbon performance
alignment plan
GLOBAL PROCUREMENT
CATEGORY MANAGEMENT X X X
X X X
PROCUREMENT
EXCELLENCE
X X X
X X
SUPPLIERS
X X
TRANSACTIONAL TEAMS X X
2247
Steering – TOOLS
Functional performance solutions
Confidentiel 48
48
Procurement Basics
Session #3 : Procurement Strategy
January 25, 2024
49
& & & &
IMPLEMENT
PROCUREMENT STRATEGY IS THE MOST APPROPRIATE RESPONSE TO A COMPANY'S NEED FOR
EXTERNAL RESOURCES, BASED ON MARKET REALITIES.
INTRODUCTION
PURCHASING TACTICS
PLANNING STRATEGY
NEEDS ANALYSIS
PROCUREMENT
STRATEGY
MARKET ECOSYSTEMSUPPLIERS
EXTERNAL RESOURCE REQUIREMENTS
MARKET SUPPLIERS ANALYSIS
LIFE CYCLE ASSESSMENT
CONTRACTUAL AND
INSURANCE STRATEGY
JICAP Performance – Confidentiel 51

51
PROCUREMENT STRATEGY
6 KEY STEPS
1. Needs Analysis 2. Market Analysis 3. Life cycle analysis
L’ANALYSE
PARTIE 1.
1.1 Customer benefits 3.1 Cost structure

2.1 The sector at a glance
1.2 Expected benefits 3.2 Identification of potential impacts of
2.2 Identifying eligible suppliers
1.3 Specifications identified market risks
1.4 Volumes by target 3.3 Environmental and social footprint at
1.5 Temporality of needs each stage of the life cycle
4. Purchasing Tactics 5. Contract Strategy 6. Planning Strategy

LA STRATÉGIE
4.1 Allotment strategy

PARTIE 2.
4.2 Consultation strategy

6.1 Definition phase6.2
4.3 Planning strategy 5.1 Contractuals levers
Consultation phase6.3
4.4 Deployment strategy 5.2 Insurance levers
Contractualization phase6.4
4.5 Technical and financial
Deployment phase
objectives
4.6 Selection criteria
52
52
SWOT :HOW CAN I QUALIFY MY POSITION IN THE SUPPLIER MARKET?
2. Market Analysis
SWOT
2.1 The sector at a glance
2.2 Identifying eligible
Strengths Weaknesses
suppliers
My need
Internal
Our equipment is ageing, and

Our brand is well known and
we have little investment
enjoys a good reputation.
capacity to renew it.
Opportunities Threats
Market supplier
Our deliveries are highly
optimized: our average weights
External
are higher than those of other Our supplier payment terms are
customers in the sector, and we very bad.
have a high degree of visibility
on our volumes.
53
53
JICAP Performance – Confidentiel
THE 5 FORCES OF PORTER: WHAT ARE THE RISKS AND OPPORTUNITIES IN MY MARKET?
NEWCOMERS
PORTER
• Are there any new suppliers on the market, current or • What is the market typology?
future? • How intense is the competition?
• Who are they? • Erosion of products sold • Who are the players?
• What is their strategy? • Brand diversification at point of sale • Profile, market share?
• Do they represent a threat to the market? • Many followers • What are the market trends? Price volatility?Capacity levels?
• Are they an opportunity for our organization? For our • Economy of scale for leaders • What are the risks for our organization?
competitors?
UPSTREAM CLIENTS
• Who are the market
players' suppliers?
MARKET MARKET • Who are the buyers?
• What bargaining power do • What is the balance
they have in the • Large retailers who negotiate prices between Supply and
marketplace? • Many important suppliers in terms • Low cost of switching suppliers Demand?
• What is their level of of size and financial capacity • PURE AND PERFECT COMPETITION • Low bargaining power of suppliers • What bargaining power
integration? • ack of brand awareness • High bargaining power due to do customers have?
• What are the specific market saturation • Are they our (purchasing)
features of these competitors?
upstream markets? • Do they represent a
• Are there any risks for the threat?
market and our
organization?
Barriers
• Are there any substitutes or Are there
alternatives? barriers (PESTEL)
• Do they pose a threat to the market? • Multitude of brands
to entry or exit?
• Are they an opportunity for our • Product substitution
How do they
organization? For our competitors? impact the
market?
SUBSTITUTES
54
KRALJIC
Criticity
Stimulating price-based competition Strengthening supplier relations
Procurement levers Strategical Procurement
Minimiser ou éliminer le temps passé Limiter l’exposition au risque et renforcer les

achats
Simple purchases Critical purchases
Market
Complexity 55
55
PROCUREMENT STRATEGY
2. Market Analysis
1 2.1 The sector at a glance

2.2 Identifying eligible suppliers
TRADE EVENTS
7
SPEND ANALYSIS 2
MARKET STUDIES
6
INTERNAL CUSTOMERS
NETWORK MONITORING OF COMPETITOR’S
SOURCING
3
5
COLD CALL FROM SUPPLIERS
SPECIALIZED PRESS
56
TCO HOW CAN I BREAK DOWN MY PURCHASE PRICE INTO TOTAL COSTS?
Purchase price :
TCO
Equipment, shipping Taxes,
customs
Cost of use :
Installation, labor,
training, maintenance,
Hidden costs :
supplies, consumables,
Tooling, R&D Testing, HDS
updating.
certification, migration.
Life cycle costs

:Maintenance, after-sales Indirect costs :
service, warranty, Quality control, energy
obsolescence, recycling, consumption, hosting costs,
disposal. licenses, cybersecurity.

57
TCO TCO HOW CAN I BREAK DOWN MY PURCHASE PRICE INTO TOTAL COSTS?

58
LET’s BE A STRATEGIST
IT Hardware Construction Laundry services

Equipment Equipment
Food and Beverage Vehicle fleet Bikes

Products
59
59
Procurement Basics
Session #4 & #5 : RFX
February 2d and 5th, 2024
60
& & & &
IMPLEMENT
IDENTIFY SUPPLIERS
Sourcing is a buyer routine !
The challenge at this stage is to consider all suppliers and solutions, even the most disruptive and far
from the idea of the final solution or the existing one in the company.
International trade events, specialized trade shows, assiduous reading of the specialized press, keeping
an eye on suppliers and solutions of the competitors, regular reading of sectoral market studies are
valuable tools.
Constantly analysing "unlisted" solutions used by certain internal customers, locally or for specific
purchases, is also an avenue to explore.
Pay attention to cold calls from new suppliers, even if it’s not tender time. Your future partners may
have called or written to you
Sourcing new suppliers is an ongoing activity for the buyer. It should not be confined to the
preparation of the call for tenders, but should be anticipated and conducted on an ongoing basis. It is
a routine !
62
62
IDENTIFY SUPPLIERS
1
TRADE EVENTS
7
SPEND ANALYSIS 2
MARKET STUDIES
6
INTERNAL CUSTOMERS
NETWORK MONITORING OF COMPETITOR’S
SOURCING
3
5
COLD CALL FROM SUPPLIERS
SPECIALIZED PRESS
63
RFX
REQUEST FOR REQUEST FOR REQUEST FOR

INFORMATION PROPOSAL QUOTATION
To summarize, the identification of suppliers must be exhaustive, notably with the help
of the RFI, and the selection of the supplier must be based on the most specific
approach possible with the support of the RFP.
64
64
RFI THE RFI IS AN EFFECTIVE BUT NOT MANDATORY METHOD
Now that you have exhaustively explored the ocean of suppliers, be specific in pre-selecting them.
Defining a list of criteria can help reduce the number of suppliers invited to participate in the bidding process.
But be careful, your goal is to maximise competition by enhancing your attractiveness!
Sending the RFI is not mandatory, but could be a good way to start explaining your project, your expectations, and
the risks you wish to manage with your future partner.
Keep in mind that during the sourcing phase, you are the one who adopts a commercial approach to convince the
best suppliers for your company, your needs, your contract to want to work with you!
To support your RFI submission, you can send your long list of suppliers some initial information to explain your
project and your strategy:
• Your company presentation with positive messages (we are a leader …, our expansion is …, our strategy focus
on …, etc)
• Your Project Brief
Before sending any RFI documents to suppliers, or any documents at all, never forget to obtain a signed NDA
from them.
65
65
THE RFP IS THE TOOL USED TO OBTAIN OFFERS IN RESPONSE TO A NEED EXPRESSED TO THE SUPPLIER
RFP MARKET.
GENERAL DOCUMENTS MAKE YOUR STRATEGY ET YOUR PROJECT

Let’s focus now on the RFP steps. UNDERSTANDABLE TO SUPPLIERS.
LIST OF RFP ITEMS - Company presentation and Project Brief

- Tender Rules. They are mandatory : planning of the call for
Your RFP is composed of 4 categories tenders, selection criterias, required presentation of bids
of documents:
TECHNICAL DOCUMENTS MAKE YOUR NEED UNDERSTANDABLE TO
• General Documents SUPPLIERS.
• Technical Documents - Detailed specifications
• Financial Dcuments - Volumes explanations

- Logistics constraints
• Draft contract
- Implementation rules and schedule
Those elements will be a part of the future contract (appendix or
core contract).
66
66
RFP MARKET.
FINANCIAL DOCUMENTS WILL ALLOW YOU TO COMPARE OFFERS
EFFICIENTLY :
- price list to complete
Let’s focus now on the RFP steps.
- price sub-detail frame
You must build your price list with 2 objectives in mind:
LIST OF RFP ITEMS
1- anticipate a level of cost breakdown that is sufficiently detailed to
analyse the offers in depth and develop your negotiating arguments
Your RFP is composed of 4 categories 2- to match with the reality of the supplier’s internal quotation
exercise in order to ease this quotation to make them want to
of documents:
respond at the best price.
• General Documents THE DRAFT CONTRACT ALLOWS BOTH PARTIES TO PLAN THE
FUTURE RELATIONSHIP :
• Technical Documents
-payment terms
• Financial Dcuments -SLA/KPI’s
• Draft contract -Penalties
-duration of the contract
-interim deadlines
-warranties
-implementation rules 67
67
RFP MARKET.
• Consider building your RFP to be able to analyse

all the offers on a TCO approach which means
being able to assess the offers by analyzing all the
costs (of usage, due to life cycle, indirects and
hidden), beyond just the face price.
• The RFP (as the RFI) could be support by an

efficient e-sourcing tools.
It will help you to structure the RFP/RFI
documents and capitalize on standard formats
that can be reused from one tender to another.
These e-sourcing tools also allow to observe the
rules concerning the equal treatment of
candidates and to facilitate the comparison of
offers.
68
68
RFX
REQUEST FOR REQUEST FOR REQUEST FOR

INFORMATION PROPOSAL QUOTATION
To summarize, the identification of suppliers must be exhaustive, notably with the help
of the RFI, and the selection of the supplier must be based on the most specific
approach possible with the support of the RFP.
69
69
RFX COMMUNICATION WITH UNSUCCESSFUL BIDDERS
Re: Information on the results of the call for tenders XXXX
Dear Mr./Mrs. XXX,
Thank you for your interest in our company and the XXXX tender.
In spite of the strong points of your offer, namely the quality of your technical memorandum and your CSR
commitments, our choice fell on an alternative solution, judged to be better value.
I suggest that we have a face-to-face debriefing on XX/XX/2023. This meeting will be an opportunity for us to
answer your questions and to deepdive with you the improvement for a future partnership.
We hope to be able to count on your commitment to work on a partnership with D. in a future call for tenders.
Very truly yours, 70

70
Procurement Basics
Session #6 : Negotiation
February 8th, 2024
71
NEGOTIATION MEANS OVERCOMING CONFLICTING INTERESTS THROUGH CONCERTED
ACTION.
NEGOTIATION
Conflict
Relationship Tension
Negotiation
By-pass
Persuasion
Renunciation
72
72
NEGOTIATION MEANS OVERCOMING CONFLICTING INTERESTS THROUGH CONCERTED
ACTION.
NEGOTIATION
TIME PRESSURE
Plausibility of obtaining an agreement

Optimize
plausibility and
agreement level
PRESSURE ON
Level of agreement achieved compared with targets set
STAKES
73
73
NEGOTIATION THE 4 FIELDS OF PROFESSIONAL NEGOTIATION
Preparation Implementation
Strategy & Tactics & Negotiation Arguments &

Ambitions Technique process Content
Establish the Analyze the balance

negotiating ground power and Optimize the
Overcome resistance
most favorable to dependence, and negotiation context
and reinforce your
your interests, and choose appropriate and manage the
own positions
bring the negotiation methods negotiation process.
counterpart along. and tools.
74
74
TO MAKE AN OBJECTIVE ATTAINABLE IN NEGOTIATION, WE NEED TO INTRODUCE
ELASTICITY INTO THE LEVEL OF ATTAINMENT
NEGOTIATION STEP 1
The concession interval
The Announcement Point The Target The Breaking Point

“The level below which I prefer to
“What I dream of obtaining” “What I can reasonably obtain”
break off negotiations”
RESISTANCE
75
75
NEGOTIATION STEP 2 ANTICIPATE HOW TO MOVE FORWARD BY EVALUATING CONCESSION SCALES
To concede is to exchange an
advantage for the other for an
advantage for oneself.
Any unrequited
THE CONCESSION concession THE COUNTERPART
It is an advantage granted to increases the It's a benefit I'm very
the other to which he is other's resistance, attached to.
attached. not reduces it!
76
76
NEGOTIATION STEP 3 USE THE OPTIMIZATION OF THE 5 CONCESSIONAL FIELDS
Nature
Concession
Level
Concession
Structure
Concession
Information
Concession
Organization
Concession
77
77
A TACTIC IS A NEGOTIATION METHOD TO BE USED WITH THE SUPPLIER, DETERMINED
BY 2 PARAMETERS
NEGOTIATION TACTICS
PARTNERSHIP
POWER AND DEPENDENCY
Against my
DEFENSIVE MERCHANDISE
interests
Innovative agreement
Minimize losses or Preserve the balance
RELATIONSHIPS
transcending existing
risks in the agreement of the agreement
disagreements
ARBITRATION
In my best
interests
OFFENSIVE
OPENING
Agreement
Maximize the level of
optimization with a Long term gains
the agreement
possible third party
making concerted action easing concerted action

unsure
more difficult for now and the future
RELATIONSHIP STATUS
78
78
NEGOTIATION TACTICS CONSEQUENCE ON PREPARATION
OFFENSIVE ARBITRATION DEFENSIVE MERCHANDISE

Level Scale Tight (short Breaking Normal Large (reduction of Normal
Point) and offensive the announcement
target Neutral target and large breaking Neutral target
point)
Trajectory Few concession Few concession Large concession Concession (Lure)
(braking) (braking) (Lure)
Nature concession None Limited Numerous Limited
Structure Global Global Graduated Graduated
79
79
NEGOTIATION IS ORGANIZED INTO 4 PHASES, DURING WHICH THE NEGOTIATORS
ALTERNATE TO REDUCE THE TENSION EXPERIENCED BY EACH OF THEM
TEAM NEGOTIATION
Total negotiation time
Relational tension
Welcoming Exploration tactical developments adjustments
80
80
NEGOTIATION EXERCISE
• Preparation of negotiation : 30’
• 4 groups of 4+2 people of “Buyers” (4 negotiators and 4
observers)
• 4 groups of 4+2 people of “Vendors” (4 negotiators and
4 observers)
• Negotiation : 60’
• 4 buyers and 4 vendors negotiate
• 2 observers are focused on buyers and 2 observers are
focused on vendors
• 4 x 10’ negotiation + 4 x 10’ of observers feedback
81
81
EXERCISE ON POSITIVE SENTENCES
MODIFY THE FOLLOWING SENTENCESc
• What you're saying isn't clear

• Your offer sucks It's very ugly
• You're getting on my nerves
• You'll have to hurry up and make a decent offer, I've got other things to do!
• Stop short-circuiting the purchasing department, the only thing you'll gain is a
delisting
• I have to get your proposal approved by my superiors
• Take it or leave it
• You're not that well placed, your competitors are better than you
• Hello, I'd like to tell you that we've consulted other suppliers, and ...
82
Procurement Basics
Session #7 : Procurement Risk
Assessment
February 20th, 2024
84
INTRODUCTION

85
THE HOLISTIC VISION OF PURCHASING RISKS LEADS US TO ADDRESS 3 PERIMETERS
What are the exogenous risks for
suppliers (linked to markets)?
RISK PERIMETER
▪ Negative social and demographic context

What are the risks inherent in MARKET ▪ Technological failure
▪ Failure to respect ethics
the Purchasing function? ▪ Negative economic and financial context
SUPPLIERS ▪ Poor environmental conditions
▪ Lack of strategy and governance
▪ Negative political context
▪ Lack of quality and compliance
▪ Non-continuity of operations
COMPANY
▪ Poor business relationships
▪ Non-compliance with contract performance
What are the risks endogenous
▪ Failure to respect the environment and biodiversity
to suppliers ?
▪ Non-compliance with ethics
▪ Financial unsustainability PROCURE ▪ Poor supply management
▪ Harmful digitization MENT ▪ Harmful digitization
▪ Financial insecurity
▪ Non-quality and non-compliance
▪ Non-respect of ethics
▪ Poor human resources management
▪ Negative impact on the environment and
biodiversity
▪ Lack of strategy and governance
▪ Non-continuity of operations
▪ Poor investment and non-compliant sites
Confidentiel 86
86
FROM THE RISK-MAPPING PROCESS TO REVISITING PURCHASING STRATEGIES AND INTEGRATING RISK
MANAGEMENT
Measure Mitigate Monitore
PROCESS END TO END
(Processing and noise (Strategy, arbitration and evaluation) (Planning and realization)
reduction)
1 2 3 4 5
IDENTIFY EVALUATE PRIORITIZE MANAGE MONITORE
Identify the families of Evaluate and rate Prioritize risks common to Define an action plan by Revisit purchasing
risks linked to contracts, identified risks by all purchasing areas purchasing area and nature strategies to take risk
endogenous to your assessing their probability of impact management into
suppliers and inherent to and impact account
your Purchasing function Accept, avoid, transfer,
mitigate, monitor
MAPPING OF RISKS SOURCES SCORING GRID AND CRITICALITY RISK DIAL RISK MANAGEMENT ACTION PROCUREMENT STRATEGY
MATRIX BY RISK SOURCE PLANS
Confidentiel 87
87
BUTTERFLY TIE TWO POSSIBLE APPROACHES, ONE COMMON METHODOLOGY: THE BOW-TIE APPROACH
Non-conformité
Risques exogènes aux
fournisseurs Non-continuité
des opérations
Risques endogènes CENTRAL
Causes aux fournisseurs Non-pérennité Impacts
EVENT financière
Risques inhérents à la
fonction Achats Non respect des
engagements RSE
MEASURES TO REDUCE PROBABILITY MEASURES TO REDUCE GRAVITY

88
RISKS ASSESSMENT RISKS BY TYPE OF IMPACT
Types
COMPLIANCE OPERATIONS CSR
Types
FINANCE
DOCUMENTARY ENVIRONMENT
COMPLIANCE STRATEGY AND QUALITY
GOVERNANCE
SOCIAL
INDUSTRY-SPECIFIC OPERATIONAL
Sources of risks
Sources of risks
REGULATORY FINANCIAL EXCELLENCE

COMPLIANCE
ETHICS
ECONOMICS PROCUREMENT/
COUNTRY-SPECIFIC SUPPLY
REGULATORY
COMPLIANCE
TECHNOLOGY
89
89
IDENTIFICATION IDENTIFY SOURCES OF EXOGENOUS (MARKET-RELATED) RISK
Where do I buy and what do I buy?

Suppliers operate in different markets, and in different countries. By analyzing the PESTEL structure
(Political, Economic, Social, Technological, Environmental and Legal), we can identify the exogenous risks
to suppliers that are linked to these markets.
6 possible risk families :
Cluster technologique Accès à l’énergie verte / Croissance économique Étape du cycle économique
Accès à de la main d’œuvre innovant et ouvert durable
qualifiée Stabilitésmonétaires
Stabilité monétaires Protection contre les faillites
Partenariat entreprise Qualité des infrastructures
Respect des droits humains universités Taux de change
Respect des libertés : Dépenses publiques de Barrières douanières
association, religieuses … recherche et effort du privé
Protection sociale Adverse
Contexteeconomic andet
économique financial
environment
financier néfaste
Negative social and demographic Technological failure
Défaillance technologique
context Réglementation Stabilité politique
environnementale Droit du travail
Politiques commerciales Normes de sécurité
Niveau de Corruption Transparence et protection Impact sur les ressources Menaces de catastrophes Réglementation du Changements de parti
Droit sur la propriété des contrats/accords naturelles naturelles commerce international politique
intellectuelle Impact sur le Accès à un air et une eau de Attitude du gouvernement Ouverture aux IDE
Niveau de l’éthique des Réchauffement climatique qualité ou de l'organisation
affaires Pratiques de paiement du
Enjeu de l’élimination des Réglementation de la
Confidentialité des clients déchets, recyclage gouvernement
concurrence
Non-compliance with ethics

Non-respect de l’éthique Mauvaises conditions
Bad environmental conditions
environnementales Negative
Contexte political
politiquecontext
négatif

90
IDENTIFICATION IDENTIFY SOURCES OF RISK ENDOGENOUS TO SUPPLIERS
From whom are goods and services purchased?
10 possible risk families :
Gestion des Dépendance du Intégrité des données Développement Niveau d’endettement Système de Amélioration continue
approvisionnements fournisseur vis-à-vis des Management de la Certification, Prévention
Disponibilité des Déploiement Structure actionnariale Qualité
Suivi de la qualité dans rangs 2 & 3 données et des Satisfaction client
les achats Maintenance Respect des sanctions Documentation et
systèmes internationales & Analyse des risques
Tenue des stocks, Cybersécurité communication des
Choix des systèmes embargos process
inventaires, étiquetages process
Bad supply management Harmful digitization Financial sustainability Non-quality and non-compliance
Rôles et responsabilités Gestion du temps de
travail et système de Initiatives pour lutter Promotion de la
Bonne conduite sociale Revue de Direction contre le changement biodiversité
rémunération
Blanchiment Condition de travail et climatique Initiatives sur la
structure d’accueil Recrutement
Diversité Respect de revalorisation des
QVT, Diversité, Evaluation l’environnement déchets
Handicap
Failure to respect ethics Poor human resources Negative impact on the

management environment
Gouvernance et Changement Propreté et entretien Plan de prévention
Plan de performance
organes de contrôle d’actionnaire Conditions de travail Plan de continuité
Amélioration continue
Portefeuille client Niveau de sous- Sécurité des biens et Suivi des actions
diversifié (dépendance) traitance Innovation
des personnes correctives
Lack of strategy and governance Non-continuity of operations Poor investment and non-
compliant sites

91
RISKS ASSESSMENT THE FARMER MATRIX
Criticality: Corresponds to the degree of importance it represents for the organization.
➢ Determine which sources of risk will trigger upheavals, based on internal and external feedback.
CRITICITY FORMULA CRITICITY MATRIX

Frequence Very critical
Allows criticality to be categorized into several
degrees 4 8 12 16
3 6 9 12
FREQUENCE X GRAVIY
Criticity = F x G 2 4 6 8
1 2 3 4
Non-critical
Gravity

92
EXERCISE ON RISKS
• You are the buyer in charge of data center for hospitals.

• Identify the market suppliers risks by sources
• Evaluate their criticity
93
RISKS EVALUATION DEFINING THE RISK QUADRANT
To map the sources of risk identified, a classification will be made by type of impact, as proposed below:

94
CSR RISKS ASSESSMENT ENVIRONMENT IS A MAJOR SOURCE OF RISKS FROM FACILITY MANAGEMENT SUPPLIERS
Top 3 CSR risks Workshop outputs

1 2 3
PRODUCTION
INFORMATION
TECHNOLOGY TRAVEL
FM
TECHNOLOGY
R&D
1.ENVIRONMENT
PROFESIONAL HUMAN
FM SERVICES RESOURCES
2.SOCIAL
PROFESIONAL R&D
FM
SERVICES
3.ETHICS
Most likely Most impactful
✓ Whatever the cluster, the first nature of risk is the environment (1), and the way suppliers deal with their carbon footprint is
the major KPI to monitor (supply chain, waste, energy consumption)
✓ Concerning social risks (2), it is the diversity aspect that was underlined by the buyers
✓ Ethical risks (3) are very important even if mitigated by the legal function (who has developed anti-corruption chart and led
internal audit to assess the respect of the duty of care)
95
95
FINANCE RISKS ASSESSMENT FINANCIAL IS A MAJOR SOURCE OF RISKS FROM MANUFACTURING SUPPLIERS
Top 3 Finance risks Workshop outputs

1 2 3
HUMAN
LOGISTICS R&D
RESOURCES
1.STRATEGY & GOVERNANCE
MANUFACTUR HUMAN
ING RESOURCES LOGISTICS
2.FINANCIAL
R&D LOGISTICS HUMAN

RESOURCES
3.ECONOMICS
✓ In general, the likelihood of financial risks is low ( possible to unlikely) for all clusters. However, their impact will be high in case of
occurrence, that’s why it is important to monitor the financial and strategic & governance risks for the HR, manufacturing, R&D and
logistics clusters from a supplier dependency and bankruptcy point of view
96
96
Average score = x
REGULATORY COMPLIANCE IS A MAJOR SOURCE OF RISKS FROM FACILITY MANAGEMENT
SUPPLIERS
COMPLIANCE RISKS ASSESSMENT
Top 3 Compliance risks Workshop outputs

1 2 3
INFORMATION HUMAN
LOGISTICS PRODUCTION
TECHNOLOGY MANUFACTUR
RESOURCES
TECHNOLOGY ING
1.DOCUMENTARY COMPLIANCE
HUMAN
FM LOGISTICS MANUFACTUR
RESOURCES
ING
2.INDUSTRY/ INTL/COUNTRY
SPECIFIC RGL. COMPLIANCE
✓ Documentary compliance is a key issue for Technicolor as the likelihood and the impact is significant in average. It is necessary to monitor
and mitigate the risks, especially for logistics, IT and Production Technology.
✓ For all clusters, Industry/international/country specific regulatory compliance is even more important. It is key to check if Technicolor
suppliers are compliant with the law, regulation and policies. Need a special attention on all suppliers with a lot of manpower ( HR,
Manufacturing, Logistics, FM)
97
Average score = x
OPERATIONAL RISKS ASSESSMENT SUPPLY IS A MAJOR SOURCE OF RISKS FROM IT & TECHNOLOGY SUPPLIERS
Top 3 Operational risks Workshop outputs

1 2 3
HUMAN INFORMATION
LOGISTICS PRODUCTION
RESOURCES TECHNOLOGY
TECHNOLOGY
1. QUALITY
HUMAN
FM LOGISTICS
RESOURCES
2. OPERATIONAL
EXCELLENCE
INFORMATION HUMAN
LOGISTICS RESOURCES
TECHNOLOGY
PRODUCTION
TECHNOLOGY
3.SUPPPLY
INFORMATION HUMAN
PRODUCTION
TECHNOLOGY LOGISTICS
RESOURCES
TECHNOLOGY
4. TECHNOLOGY

✓ The assessment of operational risks is varying from a cluster to another. Operational risks are different by nature. The likelihood assessment
was based on occurrence of actions taken during QBR. Underperformance and supply disruption are the two main risks.
✓ The likelihood of technological risks is rated low by all clusters except for IT, Production technology and Logistics. Technicolor controls this risk
thanks to powerful security policy.
98
98
Average score = x
THE TOP 3 NATURE OF RISK PER CLUSTER
1 2 3
SCORE & PRIORITIZE
PROFESIONAL
SERVICES
MARKETING
✓ Each category scored the 12 sources of risks

TRAVEL
✓ The TOP 3 varies from a category to another however we can
note that 6 categories out of 10 assessed Social, Environment
and Compliance as high priority. R&D
LOGISTICS
HUMAN
RESOURCES
MANUFACTURING
INFORMATION
TECHNOLOGY
POST PRODUCTION
FACILITY
MANAGEMENT
99
JICAP Performance – Document Confidential Average score =
MONITOR & PREVENT ACTIVATE LEVERS ACCORDING TO THE ASSESSMENT RISK PROFILE
RISK RISK RISK RISK
Accept Avoid Transfer Mitigate
Tolerate Terminate Share Reduce

Accept the risk and Completely eliminate Have a third party to Reduce the
make provisions for the cause of risk from take the risk probability or impact
contingency plans the business responsibilities of the risk by putting
(Insurance) control measures
JICAP Performance – Document Confidential 100

100
MONITOR & PREVENT ACTIVATE LEVERS ACCORDING TO THE ASSESSMENT RISK PROFILE
Frequence/Likelihood
1 Accept
Avoidance and Contrôle and Contrôle and Denial of the situation
> The cost of reducing risk is monitoring monitoring monitoring Emergency control and
monitoring measures
greater than the impact
2 5 3 5 3 5 3 5
2 Avoid
> If low impact and high Avoidance and Avoidance and Contrôle and monitoring Contrôle and monitoring
monitoring monitoring
probability
2 5 2 5 3 5 3/4 5
3 Mitigate
Monitoring and possible Transfer and monitoring Transfer and monitoring Contrôle and monitoring
> If high impact and avoidance measures or Transfer
probability 3/4 5
2 5 4 5 4 5
4 Transfer Acceptance Monitoring and possible Transfer and monitoring Transfer and monitoring
avoidance measures
> If high impact and low
probability 1 2 5 4 5 4 5
5 Monitor
> In all cases
Impact
JICAP Performance – Document Confidential 101

101
MONITOR & PREVENT INSURANCE STRATEGY : TO TRANSFER THE RISKS TO THE SUPPLIERS
COMPLIANCE FINANCE OPERATIONS CSR
RISK RISK RISK RISK RISK

RISK RISK RISK RISK RISK RISK
Accept Transfer Mitigate Accept Transfer Mitigate Accept

Transfer Mitigate Transfer Mitigate
Transfer Accept
Accept Accept
Have a third party to take the
Accept the risk on Social
Tolerate the risk on Financial Accept the risk and make
risk responsibilities on provisions for contingency
Documentary Compliance plans on Procurement,
Operation excellence
Transfer Transfer
Mitigate Have a third party to take the Have a third party to take the
risk responsibilities on Strategy Transfer risk responsibilities on Ethics
Reduce the probability or & Governance
impact of the risk by putting Have a third party to take the
control measures on risk responsibilities on
Technology
Mitigate
Industry/Country Compliance
Mitigate Reduce the probability or
Mitigate impact of the risk by putting
Reduce the probability or
control measures on
impact of the risk by putting Reduce the probability or Environment 102
102
control measures on Economic impact on Quality
MONITOR & PREVENT RECOMMENDED LEVERS TO MANAGE SUPPLIERS RISKS PER NATURE OF RISK AND PER STRATEGY
COMPLIANCE FINANCE OPERATIONS CSR
Share Tolerate Tolerate Tolerate

Documentary Compliance Financial Procurement, Operation Social, Environment
excellence
• Involve the supplier in providing the • Monitor the supplier's failure score • Set up business reviews with suppliers • Occasionally monitor the supplier's
necessary documents for registration from time to time at risk Ecovadis score on the Community &
• Have the supplier sign a charter • Monitor during business reviews the Employee and Environment indicators
• Add a contractual clause to the supplier's dependence on tier 2 & 3, • Monitoring of the riskiest suppliers
contract on the provision of documents procurement and inventory (adverse media on the social and
(insurance, KBIS, etc.) management, environmental indicator)
• ... Share
Strategy & Governance,
Economic Share Share
Reduce
• Add a clause to the contract to commit Technology, Quality Ethics, Environment
Industry /Country Compliance the supplier on the control of its
subcontractors and require prior • Add a clause to the contract committing • Engage the supplier on the ethical
validation by Technicolor in case of the supplier to insure against aspects by making him sign a code of
range 2 subcontracting technology risk /Check that the conduct and a due diligence
• Insurance to cover property and supplier's contract includes the • Strongly recommended that Supplier
persons • Fix the price on the entire contract
duration customer's liability requirements. provides a Pollution liability insurance
• Add a clause to the contract on • Check the supplier's product liability policy
compliance with laws and regulations insurance certificate annually
• Set up an alert system in case of
sanctions against the supplier by a third Reduce Reduce
party Reduce
Economic Ethics, Environment
Quality
• Subscribe to the intellectual property
• Exchange rate hedging • Adjusting the responsibility of the TCH cover
product insurance • Subscribe to the pollution liability
insurance policy 103
103
MONITOR & PREVENT TO DEFINE THE RISK GOVERNANCE : THREE LINES OF CONTROL
Supervisory Board / Board of Directors

(Audit Committee - Risk Committee)
Shareholders / Customers / Suppliers / NGOs

Executive Management
(Compliance Department, Risk Department, Legal Department, etc.)
Regulators / Legislators
1st line of control 2nd line of control 3rd line of control
Other Financial Control, Safety, Risk

Internal control
management-led Management, Quality, Internal Audit
systems
controls Inspection, Compliance
Day-to-day Risk Management and Control Ensure frontline risk management Provides independent assurance to the
Responsible for the implementation and controls and processes are operating as Board of Directors and senior
development of risk management and intended. management on the effectiveness of risk
control processes that are integrated into Continuously monitors control systems management and controls
routine operations (e.g., risk assessment, Works closely with the first line of defense
recording, secure data collection Independence is critical
systems).
JICAP Performance – Confidential Document 104

104
MONITOR & PREVENT TO MONITOR THE ACTION PLAN, S&P WILL PUT IN PLACE 5 RITUALS
Frequency Target
Line of
Rituals Ritual ID Description Stakeholder(s) implementation Dashboard
control
time
(A : Annual, S : Semester, Q :
Quarterly, M : Monthly)
Supplier onboarding Verify compatibility of each new at every supplier

1st risk assessment
TCH_Risk_001 supplier with Technicolor’s risk matrix creation
GBS + BGM + Security officer + DPO S1 2022
Evaluate the criticality level of

1st GCM Risk Evaluation TCH_Risk_002 supplier risks on my commodity Q GCM S1 2022
S&P staff meeting –

2nd Risk monitoring
TCH_Risk_003 Monitor action plan execution W All S&P VP N-1 + S&P VP S2 2022
To communicate to the Board

S&P CxO– risk the highest third-party risks for
Exec committee
TCH_Risk_004 Technicolor and to monitor gross risk vs S S&P VP + CxO S1 2023
net risk
S&P - Risk feedback Perf & Digital transformation leader +

3rd loop
TCH_Risk_005 Risk assessment process A
GCM
S2 2023

105
MONITOR & PREVENT TO MONITOR THE ACTION PLAN, S&P WILL PUT IN PLACE 5 RITUALS
Frequency
Line of
Rituals Ritual ID Description Stakeholder(s)
control
(A : Annual, S : Semester, Q :
Quarterly, M : Monthly)
Supplier onboarding Verify compatibility of each new at every supplier

1st risk assessment
TCH_Risk_001 supplier with Technicolor’s risk matrix creation
GBS + BGM + Security officer + DPO
Evaluate the criticality level of

1st GCM Risk Evaluation TCH_Risk_002 supplier risks on my commodity Q GCM
S&P staff meeting –

2nd Risk monitoring
TCH_Risk_003 Monitor action plan execution W All S&P VP N-1 + S&P VP
To communicate to the Board

S&P CxO– risk the highest third-party risks for
Exec committee
TCH_Risk_004 Technicolor and to monitor gross risk vs S S&P VP + CxO
net risk
S&P - Risk feedback Perf & Digital transformation leader +

3rd loop
TCH_Risk_005 Risk assessment process A
GCM

106
NEXT STEPS CONTINUE TO BUILD YOUR RISK OPERATING MODEL FOCUSING ON TOOLS & RESOURCES
Risk Operating Model

Component #1: Process Component #2: Governance
Common Approach to Governance based on the 3 lines of control :
Managing Risk: Process Governance - Risk culture / Risk appetite
- Identify, Characterize - Rituals / Commitology
- Measure, Prioritize - Roles & responsibilities →
- Manage, Control → 1 2
- Detect, Mitigate →
4 3
Tools Resources
Component #4: Tools Component #3: Resources
- Data enrichment ( internal,

- Category management / purchasing
external , supplier data) →
→
strategy expertise →
- Predictive solution
- Regulatory, normative and compliance
- Scoring tool →
monitoring →
- Action plan management
- Training / coaching of teams →
tool →
- Data factory (data analysis, market
- Control tower → research, monitoring, etc.) →
- Reactive loop
→
✓ Completed → To do 107 107

NEXT STEPS RISK ROADMAP
Procurement Basics
Session #8 : Supplier Relationship
Management
February 20th, 2024
109
CATEGORY TEAM MANAGEMENT STREAM VALUE
FROM VALUE CREATION TO VALUE DELIVERY
End-User Experience,
Pain Points, Supplier Supplier SUPPLIER
Category Risk Qualification &
Management & Requirements Ecosystem**,
Classification ONBOARDING
& Specifications Sustainability & Risk
Market Dynamics
Management
Make
Category Supplier Supplier
or Buy Strategic sourcing Supplier Relationship
Performance Performance Development &
or Lease
or Alliance cycle monitoring CATEGORY TEAM Monitoring cycle Improvement
QCDIMS* QCDIMS* Plan
Strategy MANAGEMENT
Value creation Value delivery
Rituals
Category Strategy Supplier with supplier
Category Strategy rituals deployment Knowledge (Supplier Day,
CATEGORY and documents (TCO model / levers / RFx / Management
Business Review, I
nnovation day, …)
SEGMENTATION (develop, validate, communicate) Contracts …)
* Quality Cost Delay Innovation Management Sustainability

110
** Tier X layering, Technology convergency
SUPPLIER RELATIONSHIP CYCLE : VALUE DELIVERY
SUB-STREAM DETAIL
Supplier Onboarding The systematic procedure of evaluating, selecting, and integrating new
suppliers into the supply chain to ensure their compliance, capability,
and alignment with business requirements.
Supplier Supplier SUPPLIER Supplier Qualification & The methodical assessment and categorization of suppliers based on
Qualification &
Ecosystem**,
Classification ONBOARDING Classification predetermined criteria to determine their suitability and assign them to
Sustainability & Risk
Management
1 appropriate supplier categories.
Supplier Ecosystem, The strategic approach of managing and nurturing a network of
Sustainability & Risk suppliers while considering environmental, social, and economic
Management sustainability factors, as well as proactively identifying and mitigating
potential risks associated with the supplier relationships.
Supplier Supplier
Performance Supplier Relationship Development & Supplier Performance All QCDIMS (Quality, Cost, Delay, Innovation, Management, Sustainability)
Monitoring cycle Improvement monitoring QCDIMS KPIs dashboard related to the supplier relationship
QCDIMS* Plan
Supplier Knowledge All structured or non-structured data about supplier and its ecosystem ;
Value delivery Management CQDIMS performance, S2C data included contracts, P2P data, ID card,
supplier overview, market share, technological roadmap
Rituals with supplier All rituals where Procurement and/or Business can work/meet/report with
Rituals 3
with suppliers
suppliers like Global Supplier Day, Local Supplier Day, Executive Business
Supplier
Knowledge (Supplier Day, Review, Business Review, Innovation day, Performance review, Exhibition,
Business Review, I
Management nnovation day, …) Workshops, Strategic project, Co-development
2
Supplier Development & Creation and implementation of structured initiatives and actions to
Improvement Plan enhance the capabilities, performance, and overall effectiveness of
suppliers, aiming to foster continuous improvement and meet specific
business objectives.
SRM STREAM
SUPPLIER QUALIFICATION & CLASSIFICATION

DRIVERS FOR SUPPLIER CLASSIFICATION
High
Tier I
Value Creation
Supplier Spend / Category Total Spend Strategic Suppliers
Contribution to sourcing performance (savings)

Ability / Potential of collaboration & partnership
Value Creation
Contribution to innovation capture
Business Risk
Key Suppliers
Impact on Business & Operations

Non-critical
Tier II
Dependency on Supplier (Difficulty / cost of switching) Suppliers
Supply market complexity

Low Tier III
High risk Low risk

Business Risk
113
Strategic suppliers
Value Creation
These suppliers are essential for your operations. They provide critical
products or services that are difficult to replace. Their performance and
partnership are strategically important for your business.
Supplier Spend / Category Total Spend
Key suppliers
These suppliers provide important products or services for your operations

Contribution to sourcing performance (savings) but can be more easily substituted. They have a certain level of importance,
but their impact on your business is less critical compared to strategic
suppliers.
Ability / Potential of collaboration & partnership
Non-critical suppliers
These suppliers offer standardized products or services that are easier to

Contribution to innovation capture replace. They do not play a crucial role in your operations and can be more
readily substituted if needed.
114
Business Risk Low risk suppliers

These suppliers have a solid reputation and have been assessed to pose
minimal risk to your business. They have good financial stability and meet
required quality standards.
Medium risk suppliers

Impact on Business & Operations
These suppliers may have some level of risk for your business, but they are
still considered viable. They may have a mixed reputation or past issues that
require increased monitoring.
Dependency on Supplier (Difficulty / cost of switching)
High risk suppliers
These suppliers carry a high level of risk for your business. They may have
Supply market complexity financial problems, a poor reputation, or a history of non-compliance. Extra
due diligence is necessary to assess and manage these suppliers.
115
SUPPLIER CLASSIFICATION STATUS DEFINITION
Tier Status Definition Illustration
• These are crucial suppliers for your company, providing

critical products or services with minimal risk. Their
performance and partnership are strategically important for
your business.Delivering significant value by impacting High
Strategic bottom-line. Tier I
Tier I • Supplier with either a long-term proven relationship or with Low-risk strategic
Suppliers suppliers
a greater potential value thanks to new techno or an
alternative sourcing Medium-risk
• Able to adapt to Business requirements to optimize costs strategic
suppliers
and improve efficiency.
Value Creation
• These suppliers are important for your company but
can be more easily substituted. They deliver
significant products or services with
Key
Tier II Suppliers
minimal/moderate risk to your business.
• Most inclusive status, reporting focus for increased
control & compliance. Medium-risk key Low-risk
suppliers
• Recurring spend with one or more BU key
suppliers
Tier II
High-risk non-critical
suppliers
• These suppliers have a high level of risk but are not
critical to your business. They provide standardized
products or services and require close management Low Tier III
Tier III Non-critical
due to their risk level. High risk Low risk
• Some of them could be on black list if the level of risk Business Risk
Suppliers is too high. In that case, you downsize the business and
you gradually remove it from the panel.
NOTE SUPPLIER SEGMENTATION ON A CATEGORY IS DETERMINED BY THE CATEGORY TEAM 116

SUPPLIER INTERACTION MODEL
Segment High level engagement approach & objectives SRM ownership Engagement
High
FOCUS ON INNOVATION, BR, PARTNERING OPPORTUNITIES Sourcing VP
• Specific governance model defined for each partner - inc "top-to-top" meetings and regular business VP sourcing staff
reviews
• Joint development / continuous improvement project roadmaps
BU Business stakeholders
• Documented and mutually agreed partnership charter and objectives
Strategic
Supplier Sourcing VP
FOCUS ON PERFORMANCE MONITORING & DEPLOYMENT
• Regular business reviews to monitor progress against objectives and contractual commitments (at least Category Lead
once a year)
Category Lead
FOCUS ON REPORTING ALIGNMENT & PROCESS STANDARDIZATION
Key
• Supplier Performance review to be scheduled when needed or requested (in case of escalation) to fit to Sourcing regional buyer
Supplier daily business operations and processes
DAY-TO-DAY TRANSACTIONAL FOCUS WITH MINIMAL SUPPLIER MANAGEMENT
• Managed primarily through tactical sourcing efforts & deemed to be lower value or are not crucial to
Non-critical operations
Sourcing regional buyer
Supplier SUPPLIER AT RISK IN THE PROCESS OF TERMINATING RELATIONSHIP
• Business downsizing management task. Low

117
AS IS ENGIE SUPPLIER CLASSIFICATION
AS IS ENGIE Limits of current classification
1/ Drivers :
The 2 priority drivers, which are the value creation (strategic

for the business) and the business risk ( criticality level),
should help to segment not just to qualify the panel.
Today, the “supplier spend” and the “footprint” seem to be
the only 2 drivers to segment the panel.
2/Panel purpose:
The segmentation need to be valid for all kind of suppliers.

You cannot exclude part of the suppliers. There is a need to
monitor all suppliers even if the approach won’t be different
from strategic or key supplier.
SRM STREAM
SUPPLIER KNOWLEDGE MANAGEMENT

SUPPLIER KNOWLEDGE MANAGEMENT
SEE EXCEL FILE
120
SRM STREAM
RITUALS WITH SUPPLIERS (Supplier Day, Business

Review, Innovation day, …)
SRM RITUALS
Supplier Day
Per BU sector
1 International & 1 per BU
Innovation Day Leading suppliers on the market
Strategic Management
Strategic Suppliers
Partnership Review
Performance
Strategic & key suppliers
Review
Local activity Local key suppliers & non

Review critical suppliers
122
STRATEGIC AND KEY SUPPLIERS REVIEW
Benefits of the approach :

+ Exchange strong messages with suppliers (economic trajectory, innovations, corporate strategies, …)
+ Ensure a unified communication with suppliers
+ Involve suppliers in implementing the performance plan
Reviews Location Decisions Owner Contributors Participants
• Sponsor VP specifier
• Category team
Management Supplier Group (incl. • Sponsor VP
Partnership relations members
Review subsidiaries) procurement
Innovation Category manager • Supply
• Category manager
(Strategic Suppliers) Shared Action plan • CSR
Cross BUs • Top supplier
• Operations
management
• Category team
members
Performance • Category team
• Operations
Review Representative of the members
Company, by BU, by • Supply
Action plan category team at BU • Supply
(strategic and key sub-category • CSR
and/or country level • CSR
suppliers) • Key suppliers
• Operations
commercial
representative
ZOOM 1 - MANAGEMENT REVIEW - OBJECTIVES
+ Optimize relationships with strategic suppliers

+ Develop cooperative, value-creating relationships
+ Provide visibility on Company’s challenges and positioning for 2030
+ Evaluate relationships and coordinate strategies
+ Stimulate innovation and the development of solutions
+ Obtain feedback on areas of improvement for Engie as to become a « Preferred Customer»
+ Help suppliers better meet Company’s expectations (win/win strategy)
+ Improve economic performance over the long term
Management reviews are part of a continuous improvement process.
Target companies : Top suppliers representing 80% of category expenditure

ZOOM 1 - MANAGEMENT REVIEW - PROCESSES
1. Construction of various media

Data collection Preparatory reviews
supports
PROCUREMENT 1. Business review
Supplier File 2. Supplier review
SUPPLY 3. Sponsor Comex review
Preparation Support
phase BU TECHNICAL of review
DATA FACTORY/
SHARED SERVICES
SUPPLIER
2.
Conducting Management reviews Action plan & deployment
Conducting + Construction of an action

Note de Review support +
synthèse A4 integrated action plan
reviews + Assessment of relationship, plan with the supplier,
& + Sharing of Company, Network + Communication and
and supplier strategies, sharing of media
Follow-up + Projection ➔ partnership support,
relationship. + Deployment and monitoring
of action plan.
ZOOM 1 - MANAGEMENT REVIEW - PROCESSES
Fournisseur X
Fournisseur X
Madame X
Madame X
Madame X
ZOOM 2 - PERFORMANCE REVIEW - TARGET
+ Performance reviews are carried out by the business lines

+ Performance review target group:
• A panel of around 60 companies
• Strategic & Key suppliers
*Some suppliers are common to several BUs and therefore have common reviews
ZOOM 2 - PERFORMANCE REVIEW - CONTENT & PROCESSES
Conducting performance Action plan

Data collection Creation of media
reviews follow-up
PROCUREMENT
Action Plan
Supplier document
SUPPLY
BU TECHNICAL Review media

support*
DATA FACTORY/
SHARED SERVICES
+ Relationship review
SUPPLIER
Preparation phase Conducting reviews & monitoring
*Content of media + Presentation of supplier

support + Perspectives of the industry
+ Procurement Review
+ Business Review
+ Quality Review
+ CSR Review
1
ZOOM 3 - ACTIVITY REVIEW - TARGET, CONTENT & PROCESSES
+ Process example:
+ The activity review is supported by the countries
S-5 S-3 S-1 RA
+ Activity review target :

• A panel of around ten recurring and local
suppliers
• Themes & objectives are : + Receive data from supplier
- Review of current contracts (planned + Comparison with data collected
internally
modifications – type of revision formula, etc.) + Finalization of support and
/ procurement assessment, organization of review
+ Collect commercial and
(speeches, preparation of
- Logistics (service rate), operational data on the
action plan)
supplier internally
- In-depth quality/safety review, + Creation of
- Technical points, support/media
- Exchange of resources,
+ Appointment with supplier
- CSR + Invite participants
+ Sending tool « Collect supplier
data» to supplier
1
Thank you for
your attention
and see you next
week !

Purchasing - Procurement 2324 S02 MSC M1 PUR 0001 E L PAR

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Purchasing - Procurement 2324 S02 MSC M1 PUR 0001 E L PAR

Uploaded by

Copyright:

Available Formats

Procurement Basics

January 12, 2024

EXPRESS YOURSELF, TEST YOUR

JANUARY TIMETABLE FEBRUARY TIMETABLE

FRIDAY THE 12th 8h30 / 11h45 FRIDAY THE 2d 8h30 / 11h45

WEDNESDAY THE 21st 8h30 / 11h45

TUESDAY THE 5th 9h00 / 12h00

OPEN YOUR MIND BE PROACTIVE EXPERIMENT

Your choice Their choice Your gain Their gain

Understanding the Build a strategy: Always seize the

maximizing points view of your own negotiate !

Long-term vision, majority insulting the future !

January 12, 2024

o Definition and deployment of category policies

Manage the need

Gestion des Validation &

Gestion des ACHATS STOCKÉS

Gestion du plan de Gestion du plan de

Manage the Purchase Categories

Launch or review a Perform Spend/PO

Perform category Implement category

Which tools cover the process?

Design category Implement

Spend analysis solutions

Identify Suppliers for the Define guided portal and

Initiate and negotiate the Establish the sourcing

Monitor execution of the

Manage contract lifecycle

SOURCING MANAGEMENT CONTRACT MANAGEMENT

TO GO FURTHER AND UNDERSTAND THE S2C PROCESS…

CONTRACT MANAGEMENT SOURCING CHANNELS

Define guided portal

TO GO FURTHER AND UNDERSTAND THE S2C PROCESS…

SOURCING MANAGEMENT CONTRACT MANAGEMENT

CONTRACT MANAGEMENT SOURCING CHANNELS

Define guided portal

REGIONAL PROCUREMENT ​X​ ​X X​​ X X​​ X​​ X​​

PROCUREMENT EXCELLENCE ​X ​X​ ​X X ​X ​X ​X

Sourcing tools : Contract Management tools :

WHAT IS DOCUSIGN ? WHAT ARE THE BENEFITS FOR THE USER ?

WHAT ARE THE BENEFITS FOR THE GROUP ? SUPPLIERS

Perform Help Close the

Establish guided Generate

For both stock & non-stock purchases Specific to stock purchases

Establish Manage & Receive &

P2P Suites Invoice processing

P2P - Buying Channel

WHAT ARE THE BENEFITS FOR THE GROUP ?

Manage Supplier Panel

GLOBAL PRO. PROCUREMENT

SUPPLIERS BUSINESS STAKEHOLDER TRANSACTIONAL TEAMS

Supplier registration & qualification Supplier Classification Supplier performance management

Perform supplier Perform supplier Define KPIs and approach

TO GO FURTHER AND UNDERSTAND THE MSP PROCESS…

Develop & manage supplier

TO GO FURTHER AND UNDERSTAND THE MSP PROCESS…

Supplier registration & qualification Supplier Classification Supplier performance management

Perform supplier Perform supplier Define KPIs and approach

Develop & manage Develop & manage Manage risk

Suivi fournisseur/SRM SIGR

MSP - Supplier Registration & Qualification

WHAT IS ECOVADIS ? WHAT ARE THE BENEFITS FOR THE USER ?

Steering GLOBAL PRO.

REGIONAL PROCUREMENT X X X X X X X

PROCUREMENT EXCELLENCE X X X X X X X