Company:INEOS Olefins & Polymers USA
Interested in joining a winning team? A team whose employees are empowered to make a difference?
Organizational context and job purpose
The O&P USA business includes the product lines Ethylene, Propylene, Butadiene, Polypropylene, Polyethylene, and Polyethylene Pipe. Manufacturing sites include Chocolate Bayou Works (Alvin, TX), Battleground Manufacturing Complex (LaPorte, TX), Carson (Carson, CA), and several WL Plastic division plants, with a division office in League City, TX. Overall O&P USA has ~ 1,900 employees, 1,100 contractors, and annual revenue of over $5 billion. The O&P USA business purchases significant quantities of Natural Gas Liquid feeds, naphtha, and energy commodities for the production of the above-mentioned product lines.
How the Role Fits In:
The O & P USA procurement team is chartered to significantly improve the way third-party spend is managed, thereby establishing procurement as a major strategic lever and equal contributor to the success of the business. In support of this charter, the primary role of the Commodity Manager, Trucking and Packing is to set and lead the strategic approach to the market, develop creative sourcing strategies, rigorously negotiate for the requirement, and decide upon low-cost sourcing solutions from detailed end use and market expertise/knowledge, rigorous performance-based supplier relationship management and the effective application of common tools and processes. The Commodity Manager works closely with the O&P businesses as well as the Supply Chain Operations group to achieve world-class delivery and maximize value to the business. The Commodity Manager makes the strategic decisions on the acquisition of truck freight and packaging materials across the O & P businesses. The position has a broader impact across the INEOS North American Logistics Network by leveraging increased volume into lower contract rates and prices.
The Main Purpose of the Role:
The Commodity Manager is required to analyze supply options that have alignment with the Procurement strategy along with the requirements of the business in order to determine the truly lowest-cost supply option. The evaluation process is complex because the business needs and what the supplier offers are not always well matched. The Commodity Manager must be able to critically evaluate all of the options converting those options to a common baseline and deciding on the low-cost option from that common baseline.
Job performance and delivery in this role are defined by the successful negotiation of major bulk trucking contracts ($30 million), terminal & warehousing agreements ($5-$10m), third-party logistics service providers, and packaging material supply contracts. Measurement is not only by the lowest total overall cost but includes the successful negotiation of favorable contract terms and conditions that provide more than adequate protection for the assets of INEOS and its stakeholders.
Responsibilities AND Accountabilities
Deliver low-cost truck freight, packaging, and third-party logistics services to the O&P businesses and North American Network businesses through:
- Robust interaction and communication with the three O&P business teams (Olefins, PE, and PP) and the North American Logistics Network procurement teams as it pertains to the procurement of Truck Freight, Terminal, Warehousing, Third Party Logistics Supply and Packaging Materials
- Development/implementation/management of strategic, tactical, and innovative procurement and supply chain proposals/plans that add measurable value to the business
- Maintain deep knowledge of the specific markets – trucking capacity, labor, commodities, energy
- Use knowledge of the market dynamics in other industries to help shape procurement strategies for O&P ultimately delivering low-cost services to the business through the use of that knowledge.
- Understand cost and value at all points in the supply chain to determine where the procurement leverage resides and capture that value for INEOS
- Lead and manage the integrated, multi-functional strategic sourcing process for the acquisition of Truck Freight, Terminal, Warehousing, Third Party Logistics Supply, and Packaging Materials driving the evaluation of and decision on the low-cost sourcing opportunity
- Define sourcing channels (sole source, strategic alliance, RFP) as it pertains to the lowest cost source of supply
- Work closely with Supply Chain Operations to determine the specifications or the scope of work for the low-cost procurement of stated goods and services
- Lead performance management for the assigned commodity portfolio evaluating and deciding upon the lowest-cost options
- Participate in the INEOS North American Logistics Procurement Network leveraging the aggregated demand into low-cost supply
- Work closely with the China Procurement office to expand access to low-cost country sources of packaging materials.
Build a robust external supply base of critical service contractors and material suppliers across the portfolio of required services and materials which provides competitive options for low-cost sourcing
- Expand the pool of potential suppliers who meet our safety and environmental requirements
- Interact with senior management and owners of the contractor supply base to understand critical drivers and needs of those service providers that ultimately lead to lower-cost procurement
- Participate in Industry Trade Associations and Meetings to represent INEOS interests and influence policy making
- Follow industry trends in truck freight to position INEOS for lower-cost procurement opportunities
- Follow changes in the regulatory environment as they may impact the cost of freight and packaging materials
- Collect external data on market trends in capacity, cost, demand, and availability
Ensure the assets of O&P are adequately protected via robust contract development and negotiation
- Understand the value of a robust set of contract terms and conditions to the business
- Aggressively negotiate protections in form of indemnifications and limitations of liability
- Capture additional value in the contracting process by negotiating extended warranties and well-defined final acceptance of work criteria
Be a source of positive cash delivery to O&P, especially at bottom of the cycle
- Develop and implement complex sourcing strategies and superior service and material acquisition processes to create price transparency
- Use Contract compliance, performance management, and relationship management as a means of adjusting contractor compensation
- Require contractor productivity improvement and effective outsourcing of non-core activities including the use of Third Party Logistics suppliers
- Leverage aggregated Network spending across the INEOS businesses in North America
- Expand sourcing options for packaging materials to China through routine interaction with the China Procurement Office
- Analyze inefficiencies in contractor spending looking for potential large dollar value capture
- Streamline existing procurement processes
- Develop vendor-managed inventory scenarios thereby reducing working capital and releasing cash to the business
- Explore non-cash payment options (i.e., barter) on a case-by-case basis
- Work with site logistics service contractors and INEOS operating personnel to lower fixed costs through improvements in productivity and quality of services
Deliver measurable financial performance improvements to the business
- Negotiate favorable pricing for freight and services and achieve the lowest total cost of ownership within the portfolio of commodities managed
- Make measurable savings initiatives a requirement of contractor compensation
- Develop a superior Procurement strategy for purchased packaging materials that will add value
- Use leverage to gain favorable economics on bulk truck freight and packaging materials for other INEOS businesses in the North American Network
- Use external industry benchmarks where available to measure performance and take action to improve as required
- Structure agreements in such a way that fuel surcharges can be risk managed
Skills & Knowledge Required
Level of education & Experience in general
- Bachelor’s degree minimum
- Technical degree preferred
- 10 – 15 years of Logistics / Procurement Experience
- Experience in Logistics supply chain management
- Experience in procuring Logistics services
- CPM accreditation is recommended but not required
Skills and Competencies
- Strong negotiation
- Strong analytical
- Critical thinking
- Change management skills
- Performance management skills
- Procurement and supply chain management skills
- Procurement practices
- Knowledge and understanding of the value of contract terms & conditions
- Industry knowledge & expertise
- Knowledge of external labor and commodity market dynamics
- Knowledge of international markets and economic conditions
- Strategic and tactical planning skills
- Budget development and management skills
- Performance Metric development
- Effectively and easily communicates with individuals at all organizational levels.
- Strong external networking and interpersonal skills
- Identifies new opportunities for providing goods or services.
- Makes sound decisions based on an analysis of available information and alternatives.
- Provides accurate and well-organized verbal and written information.
- Sets realistic long-term and short-term goals aligned with the company’s strategic plans, and manages activities efficiently.
- Makes realistic commitments to the team members for achieving results, and meet those commitments.
- Is familiar with the key functions and responsibilities of team members and suppliers.
- Respects cultural diversity and diversity of thought
Our culture is one of honesty and integrity with an emphasis on safety, health and environmental performance.On our team, people are acknowledged for embracing new practices that help create real value for customers.