I SPEND MANAGEMENT SUMMIT DAY 1

I “SPEND MANAGEMENT SUMMIT”

How procurement can accelerate the innovation process and support the

organization post financial crisis

Milano, 25th-26th March 2010

Draft Agenda

DAY 1

8.45

Registration & Welcome Coffee

9.15 Introduction to the summit: how procurement can accelerate the innovation

process and support the organization post financial crisis

Gianluca

Filacchione,

Global Head of Procurement, Novartis Vaccines and

Diagnostics

I Round Table

POST-CRISIS PROCUREMENT, GLOBAL COMPETITIVENESS AND 2010 FORECASTS

9.30 The role of Procurement after the crisis: from spend optimization to growth

accelerator

ƒ How much the 2010 is perceived as a time of economic recovery? 

ƒ How  Procurement  can  impact  on  company  results  in  the  current  market 

situation? 

ƒ Which lessons learnt from the last financial crisis? 

ƒ Which key indicators should be tracked in the future to forecast new crisis? 

ƒ How supplier’s relationship has changed (risk management, business continuity, 

supplier relationship management, ecc.)? 

ƒ Which  areas  should  we  focus  on  to  foster  growth  (eg.  supply  chain,  quality, 

production, finance)? 

ƒ How to approach these areas/functions? 

ƒ How Procurement can be a good indicator of economic trend? 

ƒ How much excess supply is a real competitive advantage for the company? 

ƒ How much hard is facing global competitive markets? 

ƒ How  much  can  low‐cost  sourcing  support  and  improve  companies’ 

competitiveness in 2010? 

Speakers

Gianluca

Filacchione,

Global Head of Procurement, Novartis Vaccines and

Diagnostics

Gianni Coda, CEO, Fiat

10.30 Coffee Break

Focus on I Round Table

SPEND MANAGEMENT,POST-CRISIS INVESTMENT MANAGEMENT AND BUYERS’ NEGOTIATION EFFECTIVENESS

11.00 How spend optimization can contribute to accelerate company growth

• How can we improve spend management efficiency and efficacy in the current 

market conditions? 

• What’s the best approach in market with demand and supply still un‐balanced? 

• How can we turn current uncertainties in opportunities? 

• How  can  we  turn  the  supply  excess  in  real  competitive  advantage  for  our 

company? 

ƒ Can Procurement became an innovation asset, supporting pro‐actively company 

growth? 

ƒ Which are the value engineering and cost modeling best practices to face next 12‐

18 months challenges? 

ƒ Which tools are today available in the market place to improve the quality of our 

spend data ? 

ƒ

Which tools are available today to read hidden or maverick spend?

ƒ

Customer portal: how the ‘on-boarding’ solutions can improve the quality of our

data?

ƒ

Which benefits and which costs of implementation?

ƒ

Can other functions contribute to improve the quality of our data and

information (eg. Finance, Production, Supply Chain, etc.)?

ƒ Sector best practices 

o

I Sector Focus: Pharma 

o

II Sector Focus: Automotive 

o

III Sector Focus: Energy 

Speakers

Chairman of the Round Table: Gianluca Filacchione

Ezio Melzi, Direttore Generale, BravoSolution

Phillip Duncan, CPO, Novartis Group

Gianni Coda, CEO, Fiat

Alessandro Santucci,

Responsabile Servizi e Sistemi di Procurement

, ENI

12.00 Q&A

13.00 Business Lunch

II Round Table

COST REDUCTION AND PRICING OF KEY RAW MATERIALS

14.30 The current financial situation forces to focus on the basics of our economy.

How Procurement can influence and optimize costs and volumes of key raw

materials in 2010?

ƒ Which  pricing  trend  on  key  raw  materials  we  should  expect  in  the  next  12‐18 

months? 

ƒ Which cost impacts on manufacturing and availability of finished products? 

ƒ Expectations, risks and opportunity of key raw materials prices and volumes: 

ƒ  ‘price forecastability’ best practices  

o

I Sector Focus: Iron or Steel 

o

II Sector Focus: Oil  

o

III Sector Focus: Wheat 

ƒ Which negotiations lever to use? 

ƒ Which strategies to adopt in order to minimize volume risk? 

ƒ Which are the best practices currently adopted to get accurate price forecast? 

ƒ How  can  we  balance  the  short  term  need  of  relevant  cost  reductions  with 

supplier relationship long term sustainability? 

ƒ How our cash flow strategy is impacted and which role Procurement can play? 

Speakers

Chairman of the Round Table: Gianluca Filacchione

Leonardo Mirone, Raw Materials Purchasing Manager, Barilla G&R F.lli S.p.A.

Adriano Pasquinelli, DIA Italy Multi-Sites Purchasing Manager, Gruppo Solvay

Emiliano Maianti, Business Development Manager, Petroltecnica Group

Christopher Game, Global Head Direct Procurement, Novartis Pharma

15.30 Q&A

III Round Table

RISK & CONTRACT MANAGEMENT

16.00 How optimize risk management and implement a contract strategy with the

right balance between clear process and operational flexibility

ƒ Is a contract always necessary? 

ƒ How can we balance operational flexibility with strong contracted processes? 

ƒ Which KPIs should be always included in a contract and how to track them? 

ƒ Which sectors need to be supported by strong contracts? 

ƒ And which sectors require more operational flexibility? 

ƒ Global  vs  Local  contracts:  how  can  we  optimize  market  globalization  with 

country regulations? 

ƒ Which tools are today available for contract management? 

ƒ How much can risks be reduced through the outsourcing of industrial medicine? 

Key Speakers

Chairman of the Round Table: Gianluca Filacchione

Stefano Nava, Studio Legale Nava

Henry Varetto, Direttore Sanitario, C.S.E.H.

Mauro Frattini, Direttore Unità Acquisti, Anas

17.00 Q&A

17.30 Day 1 close

DAY 2

8.45 Welcome

Coffee

9.15

Wrap up day 1 and introduction to day 2

Gianluca

Filacchione,

Global Head of Procurement, Novartis Vaccines and

Diagnostics

I Round Table

CONTRACT MANAGEMENT & ANALYTICAL TOOLS

9.30

Which are the most innovative technologies and tools currently available to

support and optimize contract management and purchase?

ƒ Which the most innovative and effective solutions? 

ƒ Which benefits? 

ƒ Which costs of implementation (financial, resources, etc.)? 

ƒ Which  KPIs  should  be  monitored  and  how  they  increment  the  supplier 

relationship? 

ƒ Quali  KPIs  possono  essere  monitorati  e  come  incrementano  la  qualità  del 

rapporto cliente‐fornitore? 

ƒ Can  we  automate  contract  clauses  within  the  most  adopted  ERP  and  ePRO 

systems? 

ƒ Which  personnel  skills  (both  internally  and  on  supplier  side)  are  requested  to 

manage successfully contract dynamics? 

ƒ How can we increase contract terms transparency and share with all key players 

within our organization (eg. Finance, Supply Chain, Marketing, etc.)? 

Sector Focus: 

o

Bank ‐ Insurance 

o

Chemical 

o

Automotive 

Key Speakers

Chairman of the Round Table: Gianluca Filacchione

Federico Turco, CPO, Assicurazioni Generali

Fabio Innocenti, Mfg Sourcing & Vendor mgmt Sr Mgr, Eli Lilly

10.30

Q&A

11.00 Coffee

Break

II Round Table

NETWORKING CAPITAL (NWC) OPTIMIZATION

11.30

Can Procurement own and influence NetWorking Capital

ƒ Why Procurement can manage successfully the NWC and become its owner 

ƒ Which  implications  coming  from  a  direct  ownership  of  NWC  (both  internally 

and externally)? 

ƒ How  can  we  integrate  Procurement  and  Supply  Chain/Production  processes  to 

optimize productivity? 

ƒ Which  role  can  Procurement  play  in  capital  investment  projects  from  a  NWC 

perspective? 

ƒ Which are the best practices ? 

ƒ Sector best practice: 

o

I sector focus: Manufacture 

o

II sector focus: Mechanical 

Key Speakers

Chairman of the Round Table: Gianluca Filacchione

Massimo Paratore, Sourcing Manager Tyco Flow Control, Biffi Italia srl

Stefano Fraccaroli, Purchasing Manager, Marelli Motori S.p.A.

12.30

Q&A

13.00 Business Lunch

III Round Table

CHANGE MANAGEMENT IN POST-CRISIS MARKETS

14.30 How Procurement should re-positioning with its internal customers playing a

strategic role, which areas to innovate, how optimize cost allocation among its

internal

stakeholders?

ƒ How to get and manage successfully our internal clients buy‐in? 

ƒ Which areas should we focus to get the proper buy in from our stakeholders? 

ƒ Which areas should we quickly innovate to improve procurement effectiveness 

in the current market conditions? 

ƒ Quali le aree da cambiare per incrementare velocemente l’efficacia degli acquisti 

in un anno di ripresa? 

ƒ Are our internal resources always in line with our stakeholders expectations? 

ƒ How  can  we  balance  between  the  need  of  external  strategic  support  and  our 

internal resources? 

ƒ How  to  get  additional  funding  from  our  internal  stakeholders  to  support  

additional  saving initiatives? 

ƒ Which are the cost allocation best practices to maximize benefits? 

ƒ Can  procurement  play  a  more  strategic  role  within  the  company  with  clear  up 

front costs and benefits to generate? 

Key Speakers

Chairman of the Round Table: Gianluca Filacchione

Roberto

Peroni, CPO, Manuli Rubber Industries

Pierluigi

Berlucchi, Direttore Acquisti, UBI Banca

Stefano Mazzola,

Purchasing Director,

Ideal Standard

15.30 Q&A

17.00 Day 2 close