executive briefing business case- saudi electricity

Academy Business &

Commercial Case

1. Cost Management & Reduction

1 Dollar SavedIs

1 Dollar Earned

1 Dollar SavedIs

1 Dollar Earned

So, How Much Worth Then is $1 Saved?

https://youtu.be/A3Y717zsFcI?t=9s

Another Example of 1 Euro Saved!

2. Operational Supply Chain & Supplier Efficiencies

• Sourcing Process• On time deliveries/minimizing contract

changes & delays• Inventory & Warehouse Efficiency• Stronger Supplier Relationships

3. People Effectiveness

• The major problem is the confusion between effectiveness & efficiency that stands between doing the right things and doing things right.

• There is surely nothing quite so useless as doing with great efficiency what should not be done at all.

• Peter Drucker – The Effective Executive

How Much Can We Genuinely Save/Reduce Costs?

Savings For Companies That Start a Strategic Cost Reduction Initiative

As reported by McKinsey & Company

70% of Organisations

Achieve 5% to 20%

Savings

Potential Cost Savings With a Fully Effective & Well Trained Team?

Total Cost

30 Billions*

5% Savings

1.5 Billion

3% Savings

900 Mil

1% Savings

300 Mil

How To Building a Fully Competent Supply Chain Team?

14

Competence Maps

15

Step 2 Do a Gap Analysis

16

PDP - Senior Buyers Module No.

Jan-14 Specifications + Stakeholder Mgt 2

Apr-14 Strategic Sourcing 9

May -14 MRO, Inventory & Warehouse Mgt 16 hours

Jun-14 Implementing Strategic Sourcing 16 hrs

Jul-14 Winning Negotiations 6

Sep-14 Negotiation Preparations 16 hrs

Oct-14 Contract Termss + NDA + Incoterms 3

Jan-15 Ll Issues in Purchasing 5

Mar-15 Commercial Contract Terms 16 hrs

Apr-15 E-Sourcing 1

Jul-15 Contract Management 6

Jul-15 Materials Management 16 Hours

Sep-15 Contract Admin & Management 16 hrs

Oct-15 E-Procurement 1

Jan-16 Finance for Non-Finance 5

Apr-16 Total Cost Management 5

Jun-16 Cost, Price & TCO 21 hrs

Sep-16 Intro to Category Management 2

Nov-16 Final Assessment 1

3. Build Individual Development Blended Learning Program Based on Job Roles To Fill the Gap

17Operational Buyer/Procurement Support

Buyer/ProcurementExec/Asst Manager

Senior Buyer/Procurementor Contracts Manager

Category Manager

Procurement Sr. Manager/Director

Building A Pipeline of Existing& New Incoming Talents Clear Learning & Career Development Path

Pilot Project:

Show the Full Approach to Build Team Skills & Competences WITHOUT

any financial commitment:

MODULES Name Job TitleTelephon

e Number

Mobile Numbe

rEmail

PROCUREMENT

Abdulaziz Mohammed

Al saeed

General Materials Purchasing Division

Manager8079548 505407

909 AMAlSaeed@se.com.sa

SUPPLY CHAIN

Bader Fahd Al-Dossary

Distribution Inventory Planning Division 8079167 503019

111 BFDosari@se.com.sa

SUPPLY CHAIN

Suhail Yosef Al ali

Eastern Province Warehouse Division

Manager3858613

4504983

144 syALI@se.com.sa

Pilot Project:

Role Group - Role Group A - Inventory Planning Group B - Warehousing

Example of Related Functions Inventory Planning Division Manager Warehouse Division Manager01. Inventory Control Level 4 : Expert Level 3 : Practitioner02. Supply Planning Level 4 : Expert Level 3 : Practitioner

03. Demand Planning Level 3 : Practitioner Level 3 : Practitioner

04. Transportation Level 1 : Awareness Level 2 : Understanding

05. Order Management Level 2 : Understanding Level 3 : Practitioner

06. Warehousing Level 2 : Understanding Level 4 : Expert

07. Manufacturing Level 1 : Awareness Level 2 : Understanding

08. Procurement Level 2 : Understanding Level 2 : Understanding

09. Legal Level 1 : Awareness Level 1 : Awareness

10.Foundation Level 1 : Awareness Level 1 : Awareness

11. Project Management Level 1 : Awareness Level 1 : Awareness

01. Inventory Control90 75

01. Inventory Control02. Supply Planning

03. Demand Planning

04. Transportation

05. Order Management

06. Warehousing07. Manufacturing

08. Procurement

09. Legal

10.Foundation

11. Project Management

01. Inventory Control

02. Supply Planning

03. Demand Planning

04. Transportation

05. Order Management

06. Warehousing07. Manufacturing

08. Procurement

09. Legal

10.Foundation

11. Project Management

22

They Took the Online Assessment & Sample E-Learning Plans

FeedbackIt gives me wide information about main activities in supply

chain which help in discussing work improvement with others

Simple way of learning, - [good] Diversity of examples & Q & A for each course

easy to understand the content by examples and charts - doing quick check questions during the course

The support handout are can be kept as reference

23

Why Blended Learning?(Cutting Edge E-learning, simulations,

application based tasks, class trainings)

24

25

What’s Wrong with Using Traditional Trainings As The Only Method?

Traditional Training

26

Application

Retention

27

7 Steps To Applying Learning & Making it Stick

Consistent Follow Up TrainingIncreasingly Application & Learner Focused

1. High Impact E-Learning

2. Built In Notes/Summary in PDF

3. Online Exercises & Quizzes

4. Refresher Courses

5. Simulations

6. Application Based Tasks

7. Classroom/Face to Face Trainings

28

High Impact & Effortless E-Learning• Strong Visuals• Superior Scripting• Same Character

same face, same color of shirt…• Scenario based – learners observe and apply• Limited info/text on screen• Simultaneously Target Audio & Visual Brain• Over 90% of learners highly satisfied

E-Learning

Built In Notes/Summary

29

Built In Notes/Summary

30

31

Online Exercises & Quizzes

32

Refresher Courses

From 5 Hours & 15 Mins to

25 Mins

33

Refresher Courses

From 5 Hours & 15 Mins to

25 Mins

Refresher Courses

34

Simulations

35

Simulations

36

Simulations

37

• In the online Assignments, we are building on what people have learned in their previous High Impact eLearning courses and Simulations.

• Learners have to complete a task, like “shadow a negotiation event and write an essay analyzing the negotiation”.

• Learners upload their essay document directly on LMS. • The direct line manager is requested to give feedback and to evaluate / validate.• Like High-Impact E-learning and Simulations, Assignments are a unique product.

Online Assignments/Tasks

38

• In the online Assignments, we are building on what people have learned in their previous High Impact eLearning courses and Simulations.

• Learners have to complete a task, like “shadow a negotiation event and write an essay analyzing the negotiation”.

• Learners upload their essay document directly on LMS. • The direct line manager is requested to give feedback and to evaluate / validate.• Like High-Impact E-learning and Simulations, Assignments are a unique product.

Designed to match the 70-20-10 approach.

Increasing Retention & Application

Application Based Task

39

Classroom Trainings

Questions & Answers

Participative

Exercise Focused

40

Making Learning Stick

Questions & Answers

Classroom Trainings

41

Why Continuous Program?2 to 3 years

42

Why Continuous Program?2 to 3 years

1. Continuous Learning provides with the knowledge, skills, attitudes and values that an employee need to have to perform effectively and competently in his/her role and to meet the expectations placed on by the company/organization.

2. Methodical and structured approach to learning leading to a planned approach to skills development tend to move up the career ladder more quickly and in a direction of their choosing.

43

Other Potential Providers

Bottom Line

*For In-House Training Flight (USD 3,000 per training), accommodation (USD 1,500 per training) of expert instructor not included. Also not included are miscellaneous expenses (USD 1,500 per training) - Visa, out of pocket, course materials printing & shipment.** Overall total includes the whole E-Learning Suite, plus 6 in-house training sessions of 3 days each and 1 public training program (4 or 5 days) for 90 people. Excluding USD 9,990 set up LMS & CMC Personalised & Branded Portals

COMMERCIAL PROPOSAL:FOR SETTING UP, DESIGNING & FULLY IMPLEMENTING SUPPLY CHAIN & PROCUREMENT ACADEMY FOR SAUDI ELECTRICITY

INVESTMENT FEES IN USD - UNITED STATES DOLLARS

PART 1 - PRODUCTS & SERVICES THAT REQUIRE INVESTMENTS PER LEARNER

   PART 1-1A. E-Learning Suite LicensePer Learner Per Year Including Built In Exercises & Assessments for Each Competence

  Total Number of Learners 15 30 50 90 150 250  

PART1-1A-1 E-Learning License per Year Including Built In Exercises & Assessments for Each Competence 1,895 1,825 1,750 1,625 1,445 1,245  

PART1-1A-2 Simulations 295 285 275 265 250 Free  

PART1-1A-3 Short Application Based Task/Assignment 195 185 175 165 Free 125  

Regular Investment Total per Learner Per Year - Normal Price 2,385 2,295 2,200 2,055 1,695 1,370  

Total Investment Per Group 35,775 68,850 110,000 184,950 254,250 342,500  

PART 1-1B. Full Program Management Per Learner Per Year  Total Number of Learners 15 30 50 90 150 250  

Full Program Management Including Monthly & Quarterly Reporting, Learner Follow Up & Ensuring 99% Completion Rate 295 295 295 295 295 295  

Investment Per Group 4,425 8,850 14,750 26,550 44,250 73,750  

PART 1-1C. Assessment & Gap Analysis - One Time Fee Per Learner

  Total Number of Learners 15 30 50 90 150 250  

Online Assessment, Gap Analysis Report & Tailored learning plan per role. 295 265 225 195 155 Free  

   Investment Per Group 4,425 7,950 11,250 17,550 23,250 Free  

PART 2 -SERVICES & PRODUCTS THAT REQUIRE ONE TIME FIXED INVESTMENTS FEE

Item Product / Service Regular Investment

PART2-A Competence Management Center (CMC) Portal - Personalised Assessment, Logo, Message 4,995

PART2-B Learning Management System (LMS)/Branded Portal - Logo, Welcome Message etc. 4,995

PART2-C1 Design of Competence Based Job Maps, Descriptions & Job Role Definitions Up to 5 job roles 7,995

PART2-C2 Design of Job Maps, Descriptions & Job Role Definitions 6 to 10 job roles at USD 9,995  

PART2-C3 Design of Job Maps, Descriptions & Job Role Definitions 10 to 20 job roles at USD 14,995  

PART2-D Kick Off Meeting Webinar/Conference Call - Up to 5 Calls/Meetings 1,995

TOTAL 19,980

PART 3 - FACE TO FACE TRAINING

PART 3A In-House Training   Daily Fee in USD No of Days No of

Sessions* Total in USDAverage Savings

Based on Regular Fee

  In-House Training - 1 Session Per Year 5,800 3 1 17,400 0

  In-House Training - 5 Sessions Per Year 5,400 3 5 81,000 6,000

  In House Training - 10 Sessions Per Year 4,900 3 10 147,000 15,000

3B.

Public Trainings (Saudi, UAE, Malaysia)The Discounted Fee in USD Per Person    

   2 days 4 days 5 days Discount in %      

 Regular Fee 2,495 4,990 5,995 0%      

  For 1 person attending 1 training 1,871 3,743 4,496 25%        For 2 to 5 People Attending the Same Training 1,672 3,343 4,017 33%        For 6 to 8 People Attending the Same Training 1,422 2,844 3,417 43%      

Remember Potential Cost Savings?Total Cost

5 Billions*

5% Savings

250 Million

3% Savings

150 Mil

1% Savings

50 Mil

Effect on Profit of These Cost Savings

2014/2015 Profit = 20% Margin

1 Billion

Total Potential Savings 1%

50 Million

Potential Profit Increase

5%

Questions?

Thank You!