Business Unit
SSPID, SECO, CIT, APP Mills
(Indonesia & China)
Team Name
Global SRM
Team Leader
Seisuke Kitaoka (Leader)
Nelly Huang (Co-Leader)
Sponsor
Anton Mailoa (Main)
Buyung Wahab
Junus Wijaya
Team Member
Hendri Saputra (SSPID - ID)
Suliani Purnama (SSPID - ID)
Yuan Pengcheng (SSPID – CN)
Fery (SSPID - ID)
Chandra Kartika (SSPID - ID)
Luo Xue Qun (SSPID - CN)
Anton Wijaya (IKPP PRW)
Sindy Kartono (TK MOJO )
Lee Hsien (LP3I JAMBI)
Hadihin Gunawan (PINDO)
Mona Chen (IKPP SRG)
Joni Honggara (HAINAN)
Liu Huanhsi (GE)
Eric L (GHY)
Hsu Chunhui (GHS)
He Weimin (NINGBO)
Hadi Cahyadi (SSPID - ID)
Catrina Kho (SSPID - ID)
Aditya Tanidi (SSPID - ID)
Yustina (SSPID - ID)
Ratna (SSPID – ID)
Januar (SSPID - ID)
Stefanie (SSPID - ID)
Yenny A (SSPID - ID)
Ike K Hermanto (SSPID - ID)
Retni Wulansari (SSPID - ID)
Roni Cen (SSPID - ID)
Irma (SSPID - ID)
Erni S (SSPID - ID)
Efendy Pither (SSPID - ID)
Darwin (CIT - ID)
Herry J Cahyono (CIT - ID)
Fendi Suyanto (CIT - ID)
Liu Ying (SSPID - CN)
Chong Haigong (SSPID - CN)
Heguan (SSPID - CN)
Liu Feng (SSPID - CN)
Dong Xueling (SSPID - CN)
Wang Ye (SSPID - CN)
Zhu Chiyun (CIT - CN)
Xie Geng Qiang (CIT - CN)
Cai Bin (CIT - CN)
Junita, Saeful, Purnomo (ICAD)
Mill SDA Teams
MIP - GLOBAL CONSOLIDATED BIDDING AND
CONTRACT (APP INDONESIA & APP CHINA)
Introduction
While material prices nowadays continue to increase significantly,
procurement teams are under constant pressure to drive down cost.
We must make our best effort to find new/ breakthrough initiatives to
overcome this situation. Purchase consolidation and contract between
APP Indonesia and APP China is the key to increase APP Group
bargaining power in overcoming the price-increase while
strengthening the partnership with the priority key suppliers to
support purchasing mission.
Project Duration: March – December 2007
Main Activities
1. Global Consolidated Bidding and Contract within APP Indonesia
and China, and between APP Group (APP Indonesia and China)
(1) Consolidated Bidding and Contract for selected priority
material, including selection, high volume analysis, cost saving
target
(2) New Process, System & PIC Leader for implementing
Global Consolidated Bidding and Contract within APP Group
(3) Implement Consolidated Bidding and Contract
(4) Implement material substitution for some materials which
is impact on the overall total cost that is initiated by Mill SDA/
Projects
(5) Full utilization of SRM system
2. Cross mill/ country sharing on the material substitution/
suppliers which is benefit APP Group (APP Indonesia &
China)
(1) Source new potential materials/ suppliers that already proven
in some mills to be implemented in other mills in APP Indonesia
& China, such as coal, spare parts, etc
(2) Site visit to the suppliers sites and location in Indonesia and
China
(3) Cross mills visit to learn some experience in successful
mills that has been implemented new materials/ suppliers
3. Key Supplier partnership program to build long mutual benefit
relationship
(1) Socialize the consolidation initiative;
(2) Request suppliers to lead their programs for extensive cost
reduction program, such as Total Chemical Management
Concept
KPI Metric Target & Achievements
KPI Item UOM Base Benchmark (*) MIP Actual
line Target Achvmt
Cost Reduction & MUSD N/A 30% in 5 years = 80.0 93.9
Cost Avoidance USD10 B (117%)
Note: *) Benchmark data is sourced from Toyota Company
Achievements (Annualized) based on verified data up to Dec 2007
Cost Reduction : 36.8 MUSD (incl. APP Indonesia & China)
Cost Avoidance : 57.1 MUSD (incl. APP Indonesia & China)
MIP Saving : 93.9 MUSD (incl. APP Indonesia & China)