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Transforming the Sourcing and Procurement Organization to a Global Category Management Model will Enable FMC to Drive ou

Transforming the Sourcing and Procurement Organization to a Global Category Management Model will Enable FMC to Drive out and Sustain Cost Reductions . Global Sourcing and Procurement Organization Model. 1. Procurement Council.

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Transforming the Sourcing and Procurement Organization to a Global Category Management Model will Enable FMC to Drive ou

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  1. Transforming the Sourcing and Procurement Organization to a Global Category Management Model will Enable FMC to Drive out and Sustain Cost Reductions Global Sourcing and Procurement Organization Model 1 Procurement Council Procurement Council - key functional and BU stakeholders who provide strategy and direction 1 VPShared Services VP Global Services CIO VP HR Legal APG SCG ICG Procurement Leader Global Procurement COE- provides center of excellence, process, tools and technology 2 2 4 3 Global Procurement COE Category Management Procurement Operations Category Management – performs strategic sourcing and spend under management for centralized, centrally- coordinated, and decentralized categories 3 • Centralized Categories • Centrally-Coordinated Categories • Decentralized Categories (embedded in businesses) • System /Process • Supplier Management Support • Policies/ Procedures: Tracking and Measurement • Contracting Process • Other COE • Implement company-wide purchasing initiatives • Regional Supplier Issue Resolution • Compliance tracking • Site procurement operations Procurement Operations – oversee purchasing activities and compliance of site purchasing operations; resolve regional supplier issues; implement company-wide purchasing initiatives; perform site procurement operations 4

  2. High-level Future State Organization Structure Global Procurement Leader Manage Region Purchasing Activities • Ensure compliance of negotiated contracts (e.g., packaging contracts with Cimplast) • Resolve regional supplier issues • Implement region-wide purchasing initiatives to facilitate purchasing activities • Communicate regional requirements and escalate major supplier issues to Global Category Managers • Provide oversight to the site operations, and communicate approved vendors, pricing and contracts requirements Global Procurement COE Global Category Manager RegionalProcurementManager Procurement Support • Conduct market analyses to support category management (e.g., packaging market in Brazil) • Provide supplier management support • Track and measure adherence to policies/ procedures • Develop systems and tools and provide analyses and policy updates for the category and regional managers to support their sourcing and procurement activities Category Management • Manage sourcing activities for category • Develop and execute RFI/RFP’s for category • Perform negotiations and contract development • Maintain cross-BU, cross-regional perspective on spend • Interface with Regional Procurement Manager to understand regional requirements and major supplier issues • Perform as a key business partner to BUs (1 category manager per BU) • Act as key sourcing and procurement contact for the business • Understand and communicate changes that will impact the business (e.g., supply disruptions, cost fluctuations) • Execute Against Supplier Contracts • Perform tactical purchasing activities • Follow site purchasing processes to ensure compliance with global procurement initiatives • Report any supplier related issues SiteOperations Global Positions Procurement Operations

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