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25 April 2017 1
Tryg Procurement
- Releasing the full potential of Tryg’s cost base
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Tryg Procurement - Releasing the full potential of Trygs cost base - - PowerPoint PPT Presentation
Tryg Procurement - Releasing the full potential of Trygs cost base - - PowerPoint PPT Presentation
Tryg Procurement - Releasing the full potential of Trygs cost base Morten Ochsner Hald, CPO 1 25 April 2017 Background NLS Methodology Supplier strategy Claim systems, Scalepoint, In4mo and E-Auction 2 Background CV for CPO/VP Morten
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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
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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
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- 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
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Next Level Sourcing initiatives
700 500 2011 2014 2017
mDKK
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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 1a 1b 1c 2 Sourcing Initiative Delivery Execute Strategy e.g. RFP or
- ther
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
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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
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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
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– amount of suppliers / (amount of supplier within 80% of the spend)
Uncategorised Marketing Professional Services HR/Travel Logistics IT & 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
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