Archamps, 27^th March 2024.

The 14^th edition of the EIPM-Peter Kraljic Awards was celebrated on 27^th March 2024, as a face-to-face event in Paris.

Since 2010 the EIPM-Peter Kraljic Awards recognise procurement organisations around the world for their exceptional practices and for their exemplary nature.

The winners have been selected by a Jury which includes industry leaders. This was the culmination of a very objective and comprehensive selection process. The first step for the companies was to complete a questionnaire based on the EFQM/EIPM Excellence model. Their answers helped the Jury to determine the finalists. Then they went through a validation interview during which their practices were discussed and challenged against the best in class and most advanced ones by a team of experts.

2023 EIPM Peter Kraljic Awards for Excellence recognise procurement organisations around the world that have demonstrated outstanding practices and results in the way they have managed the current context and delivered value to their company, stakeholders and society.

In this 2023 edition, the winners were awarded in the following categories:

• Client Centric Procurement
• Continuous Improvement Culture
• Local Ecosystem Development Driver
• Value Creation: Business and Sustainability
• Value Creation: Internal Change Leader
• Organisation of the Year

Mr. Hervé LEGENVRE, EIPM Research Director, announced the winners.

In alphabetical order, the 6 winners of the EIPM Peter Kraljic Awards 2023 are:

• Bondalti (Portugal): Organisation of the Year
  

Bondalti, a chemical company based in Portugal. It is specialised in the production of both inorganic (chloralkalis) and organic (aniline) products.

Integral to Bondalti’s operations, the Procurement Department forms a critical component of the company’s supply chain organisation. This department plays a pivotal role in not only maintaining the efficiency and effectiveness of the supply chain but also in ensuring that the procurement strategies are in line with Bondalti’s vision of sustainable chemistry. The department is actively involved in sourcing materials and services that align with the company’s needs, innovation aspirations and sustainability goals. The procurement team is instrumental in supporting Bondalti’s foray into new and innovative business sectors, including hydrogen, carbon capture, and lithium refining. The procurement team has adopted a wealth of best practices and has developed strong relationships across the company and with stakeholders.

• Kalekim Chemicals Co. INC (Turkey): Continuous Improvement Culture

Kale Group established Kalekim A.Ş. in 1973 to manufacture tile adhesives and grouting mortars for the first time in Turkey, which now continues on its path providing all kinds of construction chemicals for the industry as a leader especially for tile adhesives.

They have less than 50 people in Purchasing for a yearly spend under 100M€. The company is exporting to 80 countries, has 8 facilities in Turkey and operates in five countries.

We have seen clear evidence of cross-company collaboration and a strong focus on driving improvement. The procurement team uses a very effective platform for fostering collaboration and spearheading cross-functional projects. This initiative integrates professionals from various departments such as HR, Finance, R&D, and Operations. To ensure consistent progress and collaboration, members convene on a weekly basis. Each project is centred around a specific focus, aiming to address challenges and facilitate new development.

• NHC: National Housing Company (Saudi Arabia): Local Ecosystem Development Driver

 NHC is in the real estate activities business. They have more than 50 employees in Procurement for a yearly spend over 20 000 M€.

At the heart of NHC procurement lies a strong commitment to continuous improvement. This dedication is evident in the robust feedback mechanisms the procurement team has put in place. These mechanisms ensure that the team remains consistently informed about potential areas of enhancement, enabling them to fine-tune their strategies effectively.

Moreover, NHC procurement stands at the forefront of industry modernisation, playing a crucial role in shaping the Saudi Arabia Kingdom’s construction ecosystem. While the procurement team is instrumental in achieving NHC’s localisation objectives, its influence extends far beyond. By steering suppliers towards the adoption of cutting-edge methods and technologies, NHC procurement paves the way for a more advanced and efficient construction landscape. This proactive approach not only ensures that suppliers’ operations remain contemporary but also significantly reduces construction costs. Finally, NHC procurement eases the localisation of state-of-the-art construction technologies within the Kingdom.

• Rovensa SA (Portugal): Value Creation: Internal Change Leader

 Rovensa works in the sector of crop production and related service activities. The organisation has a global presence, employing 2,300 individuals worldwide.

Rovensa’s procurement team consists of 11 members located in Spain and Portugal. They are organised in categories covering Indirect Materials and services as Logistics, Studies, Marketing, IT and Fleet. The development of the procurement function began four years ago. Despite being a relatively new function, procurement plays a significant role in the company’s expansion.

Company’s procurement operational model is highly effective, with an excellent process approach and the use of digital tools that foster transparency across the organisation. This approach has been instrumental in unifying working methods throughout the company.

• Savills Property Management (UK): Client Centric Procurement

Savills the company manages properties across all areas of real estate, at every stage of the development life cycle. 

The dedication and commitment of Savills’ service partner team combined with ongoing teamwork with other departments delivers value to Savills’ clients. A client centric procurement team is closely collaborating with other Savills’ team to respond to clients’ needs rapidly and effectively.

The company and the service partner team foster an environment where individuals are given opportunities for development and career growth. Savills’ procurement puts human value at the centre of the relationships it orchestrates. At Savills’ procurement, business realities and human values clearly go hand-in-hand.

• Valmet Corporation (Finland): Value Creation: Business and Sustainability

Valmet is in the business of manufacture of machinery and equipment n.e.c. They have less than 1 000 people in Purchasing for a yearly spend under 5 000 M€.

Valmet’s supply chain team has been instrumental in driving significant value to the business, with a keen focus on three core areas: flexibility, cost savings and sustainability.

This approach has not only enhanced the operational efficiency of the company but has also aligned with broader environmental and economic objectives. Over the past four years, Valmet has undergone a transformative journey, shifting from a decentralised framework to a centrally led organisation. This strategic move has yielded solid results, streamlined processes, and fostered a more cohesive and efficient supply chain management system.

Furthermore, Valmet has demonstrated a clear commitment to innovation. Valmet’s innovation projects are diverse, encompassing product and process innovation, design-to-cost initiatives and sustainability efforts. A notable project is the ‘Beyond Circularity’ initiative, which adopts an ecosystem approach. This project underscores Valmet’s dedication to not just incremental improvements but also to groundbreaking changes that redefine industry standards. Valmet has taken pragmatic steps towards sustainability, by involving over 100 suppliers in carbon reduction initiatives and providing them with targeted training.

Overall, these award-winning organisations have enabled their businesses to navigate the current economic climate, while continuing to transform their processes and tools, improving their internal and external relationships. Whether they build on exceptional internal collaboration, innovation or strong supplier relationships, these procurement teams have been able to meet and exceed the needs of their stakeholders and helps their companies move towards a more sustainable future.