tryg procurement · 4/25/2017 · professional marketing uncategorised services it & logistics...
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25 April 20171
Tryg Procurement- Releasing the full potential of Tryg’s cost base
Morten Ochsner Hald, CPO
2
Background
NLS
Methodology
Supplier strategy
Claim systems, Scalepoint, In4mo and E-Auction
3
NLS activated in 2011
- Efficio consultants onsite the first 1 ½ year
- Total reconstruction of the Procurement organization and The
winner of the CIPS, Supply Management Awards 2013
- 25 % fewer suppliers
- All targets have been reached every year
- IT procurement are added to team in FEB 2016 and Efficio
consultants are onsite again between SEP 2016 – DEC 2017
- The team consists of 40 FTE
CV for CPO/VP Morten Ochsner Hald
- 4 years in Tryg
- 7 years in Scalepoint as Head of Procurement and Data
management + the office in Luzern and Dublin. Working with
+ 30 Insurance companies in Europe
Background
Annual spend (Claim ~ DKK13 bn + Indirect ~DKK1.3 bn )
Motor
28%
Building
19%
Content
15%
Other Claims 4%
Health & Travel
22%
Indirect
12%
Spend by categories
Motor Building Content Other Claims Health and Travel Indirect
4
• E-auctioning/RFQ of major reconstruction tasks
• Consolidated network of craftsmen and damage control
• Fixed prices on subtasks (incl. hourly wage and materials)
• In4mo claims handling system
• Scalepoint Content
• Stricter control of documentation
• Consolidated network of workshops and increased referral rates
• Consolidated network of glass repair suppliers
• Nordic roadside assistance supplier
• Outsourcing/new supplier of Tryg’s emergency centre
• Consolidated network of clinics and increased referral rates
• Concept development e.g. health support team
• Outsourcing of Tryg’s health team
• Sourcing of contracts: cleaning, marketing, IT consulting, legal etc. (EFFICIO)
• Enhanced fraud detection
5
Next Level Sourcing initiatives
Text slide
700
500
2011
2014
2017
mDKK
6
Implementation & Supplier Mgt
Implement
contracts /
services &
handover
into BAU
Supplier
Manage-
ment
6 7
Sourcing Strategy
Baseline cost
analysis
Supply market
analysis
Business
specifications
Set up
sourcing
initiative
Develop
sourcing
strategy
0 1a
1b
1c
2
Sourcing Initiative Delivery
Execute
Strategy
e.g. RFP or
other
Evaluate
RFP &
develop
clarification
/
negotiation
strategy
Conduct
supplier
clarifi-
cations /
negotia-
tions &
select
3 4 5
Gate 3
Approve final
selection of suppliers
Sign off savings
Gate 2
Approve RFP
supplier shortlist
Approve negotiation
strategy
Gate 1
Approve scope and
strategy
Gate 4
Review progress
against
implementation plan
Gate 0
Submit Project
Definition Report
Process comments
• The sourcing process secures commercial efficiency and operational/deliverable quality
• A proper governance structure is required to fully maximize potential
• Gates secures accountability among stakeholders
Methodology – 7 step sourcing & procurement process
Successful sourcing initiatives, Supplier strategy
• 10 - 20% saving on cost after outsourcing
• Improved service levels
• Increased customer satisfaction
• Customer complaints dropped
Tryg Alarm – A successful outsourcing case
Outsourcing of the health team to Falck
Benefits realised
Motor repair – Tryg is + 7 % under the market
Tryg
IC/DK
7
Claim system overview
Scalepoint – Private Content Solution
In4mo – Building Solution
Scanmarket – e-Auction
Online Settlement Tool
Matching Engine
Online Replacement Shop
Electronic Voucher (SMS)
Reduced pay outs
Reduced cycle time
Optimized use of business rules
Procurement volume utilized
Core features Value Proposition
Online Settlement Tool
Documentation
Online Customer site
Supplier responsibilities
Online Settlement Tool
Documentation
Unlimited supplier
High level of competition
Reduced pay outs
Reduced cycle time
High level of control
Use of ICC (fix prices)
Reduced pay outs
Reduced cycle time
High level of control
Transparency
8
– amount of suppliers / (amount of supplier within 80% of the spend)
UncategorisedMarketingProfessional
Services
HR/TravelLogisticsIT &
Telecoms
Facilities
Management
Total
Spend
>3,282 / (92) 214 (12)
431 (34)
67 (4)
405 (59)
154 (30)
234 (26)
Uncategorised
Non-IT IT & Telecoms
Fairly high consolidation of spend, however still a challenge in terms of number of suppliers
Annual indirect expenditure is DKK1.3bn
Potential simplification and savings
9
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