8 July 2010 | David Kemp
David Kemp says the future for procurement professionals is strategic – so they’d better get working on their SRM
Working together
I joined Goodrich ECEPS last October with the idea of getting all the engine control and electrical power systems (ECEPS) plants working together on purchasing and supply chain strategies. I direct a spend of $250 million (£166 million) in the division across sites in Europe and the US.
The ECEPS division is a recent consolidation of business units, each of which has a proud history, but I plan to encourage further growth of networks between our plants. The future is greater if we integrate our efforts.
Engaging suppliers
I have about 70 direct reports and together we will spend about $200 million (£133 million) in 2010 on materials, using more than 700 suppliers. The division has grown from corporate acquisitions over a number of years, and as a result we have this over-sized supplier base with a need for rationalisation and focus.
We are developing a structured engagement plan with strategic suppliers but have a lot to do to help our suppliers compete effectively, starting with standardising metrics and the approach.
Know your market
After my graduate engineering training programme at Rolls-Royce in the 1980s I had the chance to take a leading role in annual price negotiations with their suppliers in Derby
My engineering background enables me to be a more effective buyer because I appreciate and understand the product and its requirements. Successful buyers know their product. They concentrate their attention on a manageable number of relationships and work to benefit their business, customer and supplier.
Moving ahead
Procurement needs to focus on supplier performance, cost reduction and building an increasingly strategic agenda for the whole business so we can win in the marketplace.
As supply chain professionals we have the privilege of looking into other companies daily – the opportunities to gain business acumen about firms and the way they work are legion.
CV: DAVID KEMP
Job history:
2009-present: vice-president – supply chain, Goodrich ECEPS Division
2007-2009: Head of commodity purchasing – combustion, Rolls-Royce
2002-2007: Purchasing executive – transmissions, Rolls-Royce
Education:
Engineering and economics BSc/BCom from Birmingham University
Favourite film: The Godfather
Favourite word: Pragmatic
A song that sums up procurement: Proud by M People
Greatest fear: Losing my wallet
Favourite author: John Le Carré
Hobbies: Anything to do with boats