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Details

  • Service: Advisory, Management Consulting, Business Performance Services
  • Industry: Financial Services, Investment Management, Capital Markets, Banking, Chemicals & Performance Technologies, Life Sciences
  • Type: Video
  • Date: 1/8/2014
  • Length: 3:22 Minutes

Knowledge as an Asset: Driving Value and Managing Risks 

Fredrick Spalcke, Philips:

KPMG
Cutting through complexity


Executive Talks


KNOWLEDGE AS AN ASSET
Driving value and managing risks


FREDRICK SPALCKE
Executive Vice President
Chief Purchasing Officer
Philips


in conversation with


JOHN TROS
Advisory Partner
KMPG in The Netherlands


KNOWLEDGE AS AN ASSET
Driving value and managing risks


Procurement organizations can build or buy their knowledge assets


FREDRICK SPALCKE: There are different ways to get transparency on the facts. So one is, you have people who have been in the industry for a long time, who naturally move from company to company, maybe from industry to industry, so they get different angles on the same topic, best practices, so that means you can get knowledge by getting the right people, and that is one very important thing. Secondly, you can buy a lot of high end research that gives you good ideas what to look for. Then you have the news channels, and you have conventions, you also have people who are very engaged in the industry who get their fingers on the pulse, so that’s one way of getting the facts straight. Then you need a good analytical head to look at, what are the priorities, what are the priority drivers that will change the business? So that is very entrepreneurial. So you need clever people who can do that.


[00:01:00]


KNOWLEDGE AS AN ASSET
Driving value and managing risks


Procurement organizations can leverage internal expertise for supplier analysis


FREDRICK SPALCKE: Now there’s another thing that you can think about, so if you’re buying a finished good, for example, so an ODM product, now that product may be made out of PCBAs, there may be some chips inside, there may be plastics, etc, now what you can do is, you can analyze it based on your plastic experts. So you may have finished good ODM buyers in your company, but you may also have people who buy PCBAs and chips and plastics. So now you can take those commodity management peers, you can take them to analyze your ODM suppliers because they have plastics and they have PCBAs and they have electronics in there. So that means sometimes, by looking across commodities for their competence, you can actually do a very good second and third tier supplier analysis.


[00:02:00]


KNOWLEDGE AS AN ASSET
Driving value and managing risks


Retention of people is key to protecting knowledge


FREDRICK SPALCKE: You have a big problem with intellectual property rights, because also in procurement, what do you do, for example, if you had a commodity buyer who knows all your prices, all your supplier strategies, and then comes along another job offer, you get €10,000 more, and the guy just switches company with all the information you have. This other company, maybe they had a gap like this, now the gap is closed. Instantly, you closed the gap because you have the knowledge of the prices. You need to know exactly what type of people you’re hiring so you keep them happy, and they don’t leave.


KNOWLEDGE AS AN ASSET
Driving value and managing risks


  • Have the right people
  • Buy the right research, get the right facts
  • Analyse the information
  • Utilize your internal commodity management knowledge base
  • Combine cost leadership with innovation leadership

KPMG
cutting through complexity


[00:03:00]


© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of te KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bond any member firm. All rights reserved.


The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, the can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Procurement organizations have the capability to build or buy their knowledge assets based on resources and research needed for the overall organization. Fredrick Spalcke, Chief Procurement Officer of Philips, discusses how procurement organizations can, and ultimately should, leverage internal expertise for supplier analysis to promote knowledge transfer and build competencies internally. Spalcke discusses retention of people as the leading solution to the growing risk of intellectual property rights. Ensuring key resources are satisfied and fulfilled will forever be paramount to procurement organizations and businesses alike.

Fredrick Spalcke, Philips

Fredrick Spalcke is the Executive Vice President and Chief Procurement Officer of Royal Philips. Before joining Philips, in 2012, Mr. Spalcke worked for several multinational companies in executive leadership roles, building a successful international career with a strong track record of restructuring and delivering results, based on a broad experience in Corporate Strategy, M&A, Logistics and Procurement.

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