Peter O’Neill, the head of State Street Global Markets and State Street Global Services in the Asia-Pacific region, offers his view on the region’s rising interest in CR.
Since stepping into my role in mid-2011, I’ve had the opportunity to evaluate the state of the procurement function, clarify the expectations from our company’s leadership, define our value proposition and devise tangible strategies for Global Procurement Services (GPS) as we continue to support State Street’s strategy. In this challenging yet exciting time, the GPS team is focused on being a business partner that continues to add value by setting procurement standards, identifying suitable suppliers, and negotiating price and contract terms favorable to the corporation. This transition is facilitated by best-in-class processes, technology and tools.
With the introduction of new industry-leading technology, we can deliver on our spend management and asset governance goals. Specifically, we are working with the Enterprise Risk Management and Compliance teams to launch the Risk Assessment Management Program (RAMP), which will help us to better identify and assess potential risks from using third-party suppliers and service providers. During the first half of 2012, we deployed an eProcurement (ePass) suite of tools to enable consistent, transparent purchasing practices across our US-controlled spend base. Once this program is fully tested, it will be rolled out globally.
To optimize savings opportunities, we have analyzed expense categories and, in conjunction with business partners, are refining strategies to identify supplier spends that can be reduced across the globe. We will shape cost through demand management and competitive bidding. Our plan going forward includes establishing deeper partnerships with suppliers and negotiating appropriate price and contract terms, leveraging our scale and global volume, and consolidating contracts across business groups.
During 2011, the procurement team played a key role in various transformation and cost efficiency projects across the corporation, where we helped business partners' negotiate and select critical suppliers. The focus on execution demonstrated in these projects and the use of best-in-class processes and tools will be the hallmark of our organization as we continue to support our business partners' strategies in 2012 and beyond.