Supply Management International

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PowerPoint presentation for SMI

Arvid Karl Pedersen - Supply Management Expertise :

Arvid Pedersen, the founder of SMI, has more then 15 years experience as an Executive of Supply Management for Fortune 100 companies building upon an earlier career within Manufacturing and R&D Engineering. Having spent 7 years in Asia as Director, Asia-Pacific Supply Management and having had prior responsibilities for European cost reduction sourcing ventures, Mr. Pedersen is a recognized authority on low cost country sourcing. In his supply management leadership capacity, Mr. Pedersen has a diverse range of strategic and operations experience which includes commercial aviation, military aerospace, HVAC, building systems, industrial controls, and automotive industries.

Asia Business Expertise :

As Director for the Asia-Pacific region with United Technologies Corporation, Mr. Pedersen developed the regional Supply Management organization while opening the Singapore regional corporate office. Having to develop the strategy, sell the concept to divisional leadership, recruit an organization, and implement targeted savings have provided unique business experiences that can only be obtained by working on the ground in Asia. Results were documented by the $ 10 million in savings on a $ 42 million spend in the second year of operation, and earned the Asia-Pacific council the UTC “Council of the Year “ award. Having developed suppliers across the entire region, including China’s interior provinces, Mr. Pedersen has a broad knowledge base of suppliers, customs, and business practices. In addition, organizing a number of high profile purchasing conferences in the region have resulted in strong relationships with the various trade ministries, opening doors for favorable industrial cooperation.

Strategic &Operational Supply Management experience :

Upon returning to the USA, Mr. Pedersen immersed himself in a number of challenging Supply Management executive positions in charge of Military Aircraft Engines, Space Propulsion, Commercial Aviation, Electro-Mechanical systems, and Industrial Controls for both US and UK based corporations. Brought in to lead these groups through successful challenges of organizational, geographical, or business system transitions, it was recognized that most organizations struggle with execution of both production and strategic task simultaneously. It was also recognized that most organizations lack the depth of global skills and knowledge to manage their international sourcing activities effectively within current staffing and resource constraints.

Recognizing the Business Need :

Supply Management International LLC (SMI) was developed in 2003 in response to the needs of mid-size companies striving to develop international supply management capabilities. Squeezed between customers demands for price deflation, and limited capital for making necessary investments in international purchasing organizations, many companies have attained limited success through purchasing materials or components through low cost country brokers or modest attempts at sending their own staff on purchasing expeditions.

Coupling the strategic challenges with the operational responsibilities all supply management organizations face, Mr. Pedersen recognized that US and EMEA suppliers are extremely challenged to deliver highest quality product on time, but also deliver year over year cost reductions. The only avenue available to deliver equally on cost, quality, and delivery objectives were to source materials from low cost country sources, but to execute these transitions flawlessly.

Need for a Strategic Approach to Global Sourcing :

Unfortunately the expertise and knowledge required to plan, manage, and execute seamless transitions to foreign sources were not available to them as in multinational Fortune 100 companies with a centralized Corporate Purchasing organization or global International Purchasing Offices (IPO’s). Although major consulting firms could provide strategic global supply management services, few if any had the hands-on experience required to walk their clients through the process. In addition the fees charged by these firms place this beyond the financial means for many mid–sized companies.

Many Businesses lack the necessary expertise :

Although many companies have attained some success through these means, many others have encountered less then satisfactory cost reductions, higher costs of implementation, or poor product quality. With an ever expanding global economy and rapidly changing local business environments and regulations, many companies recognize the need for a more strategic approach to their low cost country sourcing activities. However faced with either creating their own team of international sourcing specialists or retaining expensive consulting firms, companies have been at a difficult crossroad on how to proceed.

SMI is created to provide Global Supply Management services :

SMI was created to meet that need by providing Fortune 100 company experience in leading and managing low cost country sourcing activities in Asia and Eastern Europe at affordable rates. By minimizing overhead, and through employment of local talent in Asia, SMI can provide the highest value, hands on, strategic development and execution of a well structured low cost country sourcing plan. As product quality is equally as important as cost reduction in effective global sourcing, the investments SMI make in training their overseas staff provide the security necessary to deliver quality product, on time, and at cost, to your manufacturing operations.

SMI provides high value, hands-on, services :

Recognizing the need for affordable, hands on, global supply management services, Mr. Pedersen has developed a business plan which provides Fortune 100 level opportunity analysis, commodity level strategic planning, and support to implement and execute. Through retention of subject matter experts in the US, China, India, and Southeast Asia, SMI can provide low cost country sourcing solutions to manufacturing companies with either insufficient experience or international staff to develop and manage the process on their own. Working in conjunction with your current staff and procurement systems, SMI will create practical, economical solutions to mange your global sourcing requirements. It is the intent to leave clients with fully trained and knowledgeable staff to continue the cost reduction journey, providing additional staff or services only as needed.

Next Step - A coordinated Supply Management, Manufacturing & Business Development Strategic Plan :

In addition, as a founding member of the Senior Asia Business Advisory Group (SEABAG), a more comprehensive strategy can be developed that will integrate supply management, manufacturing, and business/market development strategies into one, fully integrated strategic plan. Co-founder, Steve Young, is an international attorney with considerable experience in joint venture negotiations and business development initiatives in Asia as an executive with Carrier Corporation. Steve has also taken on senior executive positions such as General Manager for Carrier India in Delhi. Steve's extensive Asia-Pacific business experience provides hands on knowledge and lessons learned in managing businesses across the Asia-Pacific region.