The DCT GSQ Remit for 2004: Procurement, Offshoring, and Quality

DCT procures over $1bn in third party products and services each year. 
As part of our journey to functional excellence and world-class operations, the way we procure is evolving.  For 2004, DCT procurement has been centralised under Global Sourcing and Quality, led by Farley Blackman, Vice President - Global Sourcing and Quality.

The new procurement organization is a merger of the procurement organizations that were previosuly spread across DCT.  The new GSQ is accountable for the strategy and management of all central and decentral DCT procurement spend, the development of common systems and processes and the overall performance management of the supplier base.

Specific goals and targets for 2004 and beyond are focused on the following:

• Reduced Spend - Achieve Lowest Per Unit Cost for Each Commodity
• Supplier Rationalization - Preferred Suppliers by Commodity
• Productivity - Common Processes, Standards and Compliance
• Quality - Minimum Requirements and Certification
• Performance - Metrics, Reporting and Benchmarking

Procurement

• Establish processes and standards to drive consistency in DCT procurement activities
• Deliver Continuous Reduction in Normalized Spend
• Drive Reduction in Supplier Count (Until Optimal)
• Establish ‘two in a box’ point of contact for supplier relationships
• Implement global procurement system
• Provide Measurement Tools to drive Supplier Effectiveness 

Offshoring

• Develop & implement a global market place strategy
• Deliver DCT offshoring targets
• Extend focus beyond I4 to all suppliers delivering DCT services from offshore
• Portfolio management for all segments and functions
• Supplier performance accountability
• Accountability for GSQ India operations and overall quality delivery out of India

Quality

• Serve as the Centre of Expertise for Quality
• Increase process productivity through Six Sigma and other quality methodologies and tools
• Return bottom line savings and top line growth opportunities via the facilitation of six sigma
• Establish minimum supplier requirements and certifications
• Exemplary performance metrics, reporting and benchmarking

In 2004, GSQ will continue to sponsor a series of Six Sigma courses designed to help key leaders and managers identify, baseline, improve and sustain the effectiveness and efficiency of key business processes using a well-scoped project-based approach. Over one hundred people from across the business - representing DCT, HR, and Process Fitness - have already completed Green Belt Sessions. GSQ aims to apply Six Sigma rigor to all of our processes, and we aim to Green Belt certify all GSQ staff by year end.To learn more about Six Sigma, including 1Q2004 training dates, visit the Six Sigma page.

If you have questions about the Six Sigma program, please contact Sharon Flynn, sharon.flynn@bp.com or +1 281 366 3448.