The Siemens entry was very much focused on bringing sustainability to its supplier base, integrating a “green ethos” into its strategic procurement by developing a new portal. The new web portal not only allows the procurement function to understand sustainability within its supply base but also significantly increases the efficiency of the central purchasing activities across the group. Nearly half the total purchasing volume of Siemens is now managed centrally – a major improvement. All in all, the judges felt this was an impressive entry with a highly appealing green angle.
(From left: Stewart Bundock, managing director, The Awareness Group; Alan March, customer operations procurement director, BSkyB; Rufus Hound)
However, the other front-runner had a lot going for it too. BSkyB’s approach to sourcing and procurement is focused on supporting the company’s drive for consistent, quarter-on-quarter
growth and customer satisfaction in a highly competitive market. At the heart of BSkyB’s sourcing model is the total cost of ownership for equipment that can expect to remain in a customer’s home for over ten years.
BSkyB relied on a number of OEM suppliers for nearly twenty years, but it all changed when the company decided to purchase one of its suppliers, Amstrad’s STB division. Since that time the supply chain team has worked to consolidate all purchased volume into a single, new set of products. The judges liked the Siemens entry, but “BSkyB has taken a radical approach to its supply chain and now truly uses it for competitive advantage… the company demonstrates its understanding of the value that can be achieved through vertical integration. This unusual approach has saved a large amount of money and has improved the quality of the product in the process. So the winner is… BSkyB.