Business plan for pindirect purchasing

Business plan for indirect purchasing

Wärtsilä's new Director of Indirect Purchasing, Jarno Tunturi, talks about his big plans to make the function stronger and even more competitive in the coming years.

Text: Lakshmi Sivadas Photo: Wärtsilä

“Value creation, innovation and spend ownership are the key focus areas in our strategy,” says Jarno Tunturi, Wärtsilä’s new Director of Indirect Purchasing, on what he envisions for his function.

Tunturi, who has had over two decades of experience in Services operations under his belt, will now be in charge of Indirect Purchasing that has operations in 78 countries. A strong supporter of innovation culture and continuous improvement, he is now collaborating with his team to create a strategy that emulates this mindset.

“Our focus needs to be on smart buying. We should be able to use the tools we have available to make the indirect purchasing process easy, efficient and fun. We are working on a strategy roll-out and an action plan in line with this,” he says.

Prior to this, Tunturi was the General Manager for Parts Supply at Wärtsilä Global Logistics Services. He has had a long history with Wärtsilä, having worked in various roles for the company including as the General Manager for Warehousing and Supply Management.

“Working with such a wide network of people from different countries and cultures is not new to me, yet it is quite a change. Now, Wärtsilä’s global footprint is my playground. Indirect Purchasing has done well in the past couple of years, and the understanding of managing Indirect Purchasing smartly has increased globally in Wärtsilä.  I intend to focus on improving the professional way of managing the indirect purchasing supplier base as well as the sourcing and purchasing process,” explains Tunturi. 

  

Switching gears

The Indirect Purchasing function has been putting in place the tools and processes for a strong, strategic sourcing approach for over a year now.  A majority of this has had to do with automated sourcing and buying globally in Wärtsilä. It’s an area that Tunturi believes will be crucial to the evolution of indirect purchasing at Wärtsilä. While there are certain parts of the process that are robotised already, he sees potential to increase this even further.

“There are a lot of commodities where we could robotise the sourcing and purchasing processes to get the best price for Wärtsilä at the time of purchasing. In fact, quality-wise, machines can collect a big amount of data with accuracy and speed,” he says, “They only help us become faster. We must not live in the fear that the machines will take our jobs. Instead, we must understand that it’s just a tool to tackle repetitive jobs with reliability so we can focus more on value creating activities that improve our service towards internal stakeholders,” he explains.

   

WeBuy to open new doors

Indirect Purchasing is currently rolling out the WeBuy digital purchasing platform. WeBuy is an internal Wärtsilä web-shop that eases searching, requesting, approving and ordering Indirect Purchasing goods and services in a compliant way by using Wärtsilä’s preferred suppliers.

“By introducing WeBuy we have created a unified and easy way of working to purchase goods and services. One big benefit of WeBuy is its process visibility that enables more automated invoice processing at the Wärtsilä Shared Service Center. All Wärtsilä employees can search for goods and services from catalogues which makes purchasing easy for them. The more purchases we get through WeBuy, the more we can learn and enhance the offering in the tool. We simply aim for smart purchasing,” says Tunturi.

WeBuy has today been implemented by about 50 companies in 27 countries.

   

Bringing the team together

A crucial part of his strategy has to do with improving the way in which the Indirect Purchasing organisation works. Introspection and continuous development, he says, will pave the way forward.

“We should conduct competence assessment to go forward in the operation game. We need to assess where we are currently and how we benchmark ourselves when compared with our peer groups globally,” says Tunturi, “We need to focus on continuous development practices and make sure that our strategy for indirect purchasing is always connected to it.”

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