Raj Bhalla
Global Transformation Executive
  • Strategic Planning
  • Directly led or supported strategy development at corporate and functional levels:
    • Developed overall procurement strategy to support corporate strategy and business unit strategy. Relied on to deliver savings used for reinvestment to grow top line
    • Partnered with functional and business unit leaders (e.g. in Manufacturing, Logistics, IT, Marketing, Finance, HR, Legal) to contribute market insights, opportunity assessment and performance target alignment to support their functional or business unit strategy
    • Part of leadership team that developed highly successful growth strategy for a consulting practice in the Asia-Pacific region
    • Contributed to strategy team developing new products/services for a procurement services firm
    • Coordinated initiatives to revamp product strategies for my clients
  • Procurement Transformations and Turnarounds
  • Hitachi Global Storage Technologies:
    • Hitachi was losing money as the #3 company in the highly competitive hard disk drive market. I was recruited by the COO and CIO to be part of the turnaround leadership team
    • I refocused and energized the organization to a “turnaround mentality” by instituting a sense of urgency, facilitating more aggressive opportunity identification and applying more sophisticated, cross-functional, cost savings approaches
    • This resulted in 2008 operating expense savings of $130M (13%) relative to ‘07 levels, contributing to Hitachi’s first-ever profitable year. This savings performance was 2X better than any prior year
    Nortek Holdings:
    • Nortek Holdings desired greater profits from it’s 27 portfolio companies. I was recruited by the COO to deliver aggressive profit targets through cross-portfolio initiatives
    • I developed and implemented strategies to realize sourcing excellence.This included shifting Procurement focus from transactional to strategic activities, performing cross-functional opportunity assessments and instituting disciplined processes, Global Commodity Councils and commensurate performance metrics
    • This resulted in savings of $106M (~12%) under a market environment where similar commodity and energy price indexes increased over 150% during the same period
  • Savings Delivered
    • For Harsco, on track to exceed 2 year savings target by >24%
    • For a $5B fast moving consumer goods company, tracked to >13% above target within first two years from start of program
    • For Hitachi, exceeded stretch target by 30%, saving $130M in one year
    • For Nortek, reduced total cost structure by >12% ($106M) from 2002-2006, under a market environment where commodity and energy price indexes increased over 150% during the same period
    • For Telstra, an $18B global telco, identified potential for $200M+ savings and negotiated savings of $54M within 14 months
    • For Rio Tinto, a $9B mining company, identified potential for $90M+ savings and negotiated savings of $18M within 7 months
    • For Sears, a $40B retailer, negotiated savings of $53M within 16 months
    • For ACI Packaging, a $1.2B global packaging company, identified potential for $60M+ savings and negotiated savings of $25M within 12 months
  • Technology Selection and Implementation
  • Performed selection and implementation of eSourcing technology suite
    • Technology objective was to improve process discipline, cycle time and savings. Performed evaluation of latest market offerings for on-line auctions, eRFx’s, spend analysis, process workflow and contract management. Selected and implemented both the Ariba and Iasta suite (for different companies)
    • Institutionalized use of eSourcing technology through a formal change management program, including extensive training, Super User forums, templates and performance tracking.New eSourcing tools/processes captured much greater savings, earlier, relative to previous processes. Projects using e-Sourcing had ~30% reduced cycle time and ~4% additional saving, on average
  • Performance Management
    • Developed and instituted disciplined performance management processes, aligned with corporate and functional goals. These served to incentivize the right behavior, track progress and communicate to different stakeholders. Scorecards and processes were created to measure procurement as well as supplier performance.
    • Balanced scorecards for procurement function included metrics such as total cost savings, customer satisfaction, innovation and sustainability (includes risk management)
    • Scorecards for supplier performance designed to drive increases in delivered value and provide quantitative snapshot for weekly, monthly and quarterly business reviews
  • People Development
  • Strong commitment to recruiting, developing and retaining high caliber professionals
    • For Harsco, redefined roles to be more strategic and developed a high caliber team to fill roles. Trained and coached staff on both hard and soft skills
    • For Hitachi, built a globally coordinated organization of 115 professionals across 6 major regions. Defined clear roles and accountability for site procurement leadership, global category management, process and eSourcing center of excellence, and transaction management. Provided development plans and mentoring for direct reports and ensured cascading to other levels
    • For Nortek Holdings, built a center-led organization of 92 professionals, including 2 international buying offices. Developed several high performing leaders, many of whom have been promoted to VP level
    • For A.T. Kearney, management consultants, developed and mentored a high caliber team of 35 strategic sourcing consulting professionals
  • Change Management & Stakeholder Collaboration
    • Worked closely with C-Level, division presidents, VPs and sourcing directors to develop a shared vision of and transformation path to sourcing excellence
    • Implemented governance structure which provides clear transparency on progress to plan, process for issues management, and risk identification/mitigation process
    • Strengthened collaborative stakeholder relationships based on effective change management, quarterly strategy sessions, delivered savings, and sharing of insights about competitors, suppliers and practices
    • Partnered with stakeholders on projects to align goals, challenge status quo and select suppliers, objectively
    • Formally documented category strategies, including alignment of business and sourcing strategies, supply market insights, stakeholder mapping, supplier development plans, and short and long term strategies
  • Mergers & Acquisition Support
    • Supported evaluation of acquisition targets to identify high value, near-term and medium-term opportunities
    • For a building products company: Managed a hostile takeover defense. Worked closely with senior management to identify/quantify cost savings and revenue enhancements, establishing a more realistic value for the company. Our evidence resulted in a 15% higher acquisition price from the suitor.
    • Developed and applied a process to accelerate integration of new acquisitions, which included intense planning/assessment before acquisition, with accelerated sourcing and benchmarking for high potential opportunity areas post acquisition. The process resulted in sourcing synergies (savings) being realized 3 months earlier than previous integration methods
  • Risk Management
    • Developed proactive mechanisms for risk management of commodity price volatility and supply continuity. Gave Commodity Councils the accountability to routinely identify, assess and address risks, using strategies such as forward buys, risk-sharing, partnerships, dual sourcing and catastrophe planning
    • Built in a formal module for risk management within a strategic sourcing project. Module required identifying, quantifying, developing mitigation strategies and communicating significant risks
    • Instituted and managed to code of conduct for suppliers, reducing corporate liability and supporting social responsibility
  • Spend Category Experience
  • Experience in managing the following spend areas:
    • Direct Materials and Services:
      metals (Copper, Steel, Aluminum), motors, compressors, plastics, packaging, chemicals, finished goods, raw materials, precious metals, components as well as assemblies, scrap metal, electrical/electronics
    • Indirect Materials & Services:
      logistics (air, ocean, truck, small parcel), marketing and associated services, IT (H/W, S/W, services), corporate professional services (HR, finance, legal, consulting, etc), travel, MRO, capital, material handling equipment, facilities, telecom, MRO, facilities management, real estate, utilities, safety equipment, packaging, chemicals, print
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    Cell: 650-799-4308
    Email: raj@raj-bhalla.com