Procurement Director: Ingredients at PepsiCo

Main Purpose:

This role will be responsible for the procurement of Ingredients across South Africa Operating Unit.

Highly complex and scattered portfolio for supplier management, stakeholder management and materials management. This leader manages 60% of total materials with high risk of out of stock. Responsible to cover all 38 sites as well as JV's, requiring High caliber profile to strategically manage supplier relationship and cost reduction. This individual to handle Monopoly, Govt. owned, local & several international suppliers. Accountable to contract >200 suppliers, >30 crops and sourcing from more than 20 origin countries. Category include (but not limited to):

• Beverages, Concentrate, pastes, fruits and future life ingredients
• Foods, Sugar, Vinegar, Chemicals, Vitamins
• Grains & Bakeries: Premixes, Yeast
• Snacks: Oils, Nut, Seeds
• Botswana: Sorghum, Sugar, Others
• Future life: All Ingredients for bars & cereals

Responsibilities

Responsibilities:

• Responsible to build and/or align category strategies across businesses for high impact categories for SA business, individually and directly managing 60% of Ingredients spend/size/scale, while empowering and supporting category team to execute those strategies across sites.
• Single owner of keeping track of commodity movements with “so what” approach, monitor crop cycles, parity modelling & arbitrage options across key ingredients (Sugar, Molasses, Oils, Concentrates, Premixes, Vinegar etc.), enabling business for weekly / monthly mandates, category teams for booking & execution actions, finance teams to optimally build in bi-weekly/monthly PFX and annual AOP assumption to reflect in P&L correctly
• Lead supply dispute resolution and litigation actions to resolve and realize due benefit for the organization. This individual plays critical role in complex business environment, to ensure ethical and timely decision with all cross-functional engagement/alignment. Present PepsiCo in several South Africa associations, organizations and forums to gather necessary insights across ingredients commodities (regulations, bans, court cases, duties, exemptions, quotas, concessions, parity etc.).
• Transformational leadership, with tough business discussions to explore and persuade alternate suppliers & materials, to systematically prioritize and reduce risk in highly single-sourced ingredients categories (>60% materials single sourced).
• Key enabler of transformation for profitability, productivity and cash-flow delivery; Create, design & lead “Deep dive forums with stakeholders”, “roadshows with suppliers”, “Value engineering with R&D” and/or “leverage and benchmark connects with COE’s”
• Analyse & understand supply market dynamics to drive next-gen negotiation levers in Ingredients: Be it Should-cost, TCO, eAuctions, Supply Chain Financing & Tolling models
• 100% end-to-end ownership of Seasonings and Flavors category directly
• Lead and drive Pep+ glidepath and scope 2 & 3 deliverables across all ingredients categories, including oils & seasonings
• Ownership of strategic top-to-top supplier connects; 1) to leverage new supply models 2) realize productivity proactively 3) Elevate relationship to proactively understand challenges/solutions, to pre-empt day-to-day issues at site level
• Key procurement lead to join PepsiCo South Africa Growth journey (Different workstreams) and actively participating in transformational initiatives (e.g. M&A, manufacturing footprint, path-to-profitability, BCG and divestures) to ensure 1) early resolve for write-offs 2) supply security through supplier investments 3) sustainable access to upstream commodities 4) establish alternates 

Accountabilities:

• Support in designing and implementing of specific global technical platforms and supplier competitive Tension tools that will deliver further competitive advantage for the PepsiCo OU’s and bring programs to Sector benchmarks.
• Review and sign-off evaluation of all all ingredients RFP’s and cover letters, by assessing ingredients team using smart bidding options and utilize category levers for lowest total cost to business (TCO)
• Lead at all business forums Value Engineering / Productivity ingredients initiatives for South Africa – aligning and utilizing Regional & Global leverage and scale, to deliver minimum run rate productivity and P&L savings
• Establish & Govern CVA / Commodity  splits & pricing mechanism for all Ingredients materials – isolate commodity pricing in order to create a cost strategy that provides effective risk management.
• Provide technical leadership to the SA supplier base and be a driver of change and performance improvement for the business in line with Commercial and financial priorities. This includes providing capability to respond to the business need for niche & new products, Regional sourcing requirements and the need to comply with regulatory and environmental demands for .
• Key enabler to Legal Department to ensure the most beneficial contract terms for PepsiCo, preparation of the contracts and coordinate signing contracts are met.
• Manage and develop timelines for transformational projects and be key gate-keeper (Act as owner) in all the critical Purchasing tasks to ensure on-time plan launch.

• Responsibility of productivity project identification and implementation in cooperation with sector Procurement and XFP team;

Supplier management:

• Supplier selection in line with purchasing strategy for the scope: Participation in the local and regional supplier evaluation process and negotiation with suppliers
• Participation in preparing the sourcing plans
• Value engineering and productivity projects management and execution
• New Supplier development
• Maintaining the SQA & Sustainability requirements
• Co-operation with Legal Department to ensure the most beneficial contract terms for PepsiCo, preparation of the contracts and coordinate signing contracts
• Manage supplier relationship through scorecard reviews on quarterly basis with key stakeholders.
• Lead dispute resolution regarding material supply, quality issues, invoice and payment issues.
• Drive and lead supplier diversity program, build strategy, prioritizing category and supply base, participate in supplier diversity roadshows for awareness, and due diligence and vetting process for sustainable supply solutions
• Manage and roll-out commodity risk management buy plan and playbook across ingredients portfolio where applicable.

Qualifications

Key Skills/Experience Required:

• 15 years of relevant strategic sourcing experience of ingredients with global organization, involving complex multi-geographic and diverse crop knowledge, assessed through category relevant questions (to manage >30 crops, >100 ingredient commodities, >20 countries of origin).;
  • At least 6 years in a senior manager or director role, with high spend accountability
  • Verifiable BCP build capability specific to ingredients, authentic functional champion to establish alternate and substitutes
  • 5% productivity delivery of ingredients category Year-on-Year.
  • Established leader to steer and persuade accelerated value engineering (without compromising quality and brand image) both for foods and beverages ingredients, pipeline value exceeding $15MM annually.  
  • Hands-on expertise to sourcing models and levers, specific for unique ingredients, for cost optimization  (Yeast, Seasoning, Sugar, Premixes, Fruit Concentrates, Oils etc.). Able to demonstrate capability through real life examples
• Ability to coordinate multiple cross functional teams to achieve objectives.
• Proactive and able to manage ambiguity effectively. 
• Evolvement within international environment and multicultural understanding.
• Excellent communication skills and ability to work within multi-functional teams -– networking, influencing & presenting ideas/programs, demonstrably powerful influencer.
• Effective relationship building, development and maintenance with internal stakeholders and external suppliers.
• Excellent analytical skills, ability to clearly communicate with all levels of the PepsiCo Organization's and suppliers
• Ability to work alone and take initiative. Identify potential roadblocks and profile them to Management for clarification and resolution.
• Manage and execute projects in a timely manner. Ability to prioritize.
• Self-starter, ability to work remotely from line manager.
• Desire to become Long term Procurement professional.
• Develop category strategy and successfully execute the strategy.
• Ability to execute end to end category sourcing strategy.
• Fluent in English, high level of computer literacy, strong MS office knowledge & ERP system (Oracle, SAP etc.
• Literate with e-procurement tools knowledge is an advantage.
• Ability to collaborate with cross functional stakeholders. Ability to adapt and be flexible and agile in a changing business environment.

Differentiating Competencies Required:

• Deep functional experience, analytical thinking, proven success in supplier negotiation, utilization of procurement systems and metrics.
• Proven ability to develop and implement innovative purchasing solutions and exhibit excellent analytical skills.
• Significant experience in strategic sourcing management.
• Strong negotiation and contract management skills.
• Methodical approach of problems solving.
• International sourcing experience.
• Grasp of operations economics & cost drivers.
• Commercial awareness.
• Knowledge of market analysis tools and benchmarking methods.