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Zalando - How to introduce Procurement into an Agile Company?

Zalando - How to introduce Procurement into an Agile Company?

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Zalando - How to introduce Procurement into an Agile Company?

  1. 1. Agile In Procurement – Just Talk Or Reality Monday, 25 January 2021 - WEBINAR Please do not share without author consent
  2. 2. Introduction Alejandro Basterrechea • +15 years experience in procurement across various industries and roles • Winner of the 2020 Amazon Business Procurement Hero Award for digital transformation • Agile certification Zalando • Founded in 2008 in the middle of financial crisis • Leading online platform for fashion and lifestyle and Germany‘s first start up unicorn • ~6.5bn€ revenue, 15.000 employees, 17 countries, 32m customers
  3. 3. Agile in Procurement: Use Case 1 of 2 Digitization: P2P implementation • Run deployment in Sprints • Iterate: Design -> Build -> Test -> Review -> Launch • Daily Stand-ups • Kanban to track issues and resolutions Results: • Design to Go Live: ~9 months instead of >12 months • User Satisfaction: 65 NPS from 45 NPS • Maverick Spend: 100% to less than 20% in 12 months • eInvoicing: >50% in 6 months Picture by: https://amsterdamstandard.com/nl/post/the-benefits-of-working-with-an-agile-development-team
  4. 4. Agile in Procurement: Use Cases 2 of 2 Negotiations • Swarm team of Buyers • Maximize result in a very short period of time • Kanban to organize input and output of each Ask • Daily Standup to align negotiation rounds • Pre-qualified suppliers and comparable goods/services Result: • Reduce Tender to contract time by 4 months • Savings of ~15% vs 9% expected Picture by https://www.dailymail.co.uk/sport/formulaone/article-4401632/Formula-One-pit-stop-does- crew-work.html
  5. 5. Lessons Learned • Agile is a mindset • Agile is possible in Procurement • Start small • Agile increases customer satisfaction faster Picture by https://www.thoughtco.com/how-fast-can-a-cheetah-run-4587031

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