AECOM - Brochure 2019

AECOM MANAGEMENT SERVICES: DEVELOPING AND OPTIMIZING PROCUREMENT P R O J E C T PA R T N E R S

AECOM MANAGEMENT SERVICES: DEVELOPING AND OPTIMIZING PROCUREMENT WRITTEN BY D a l e B e n to n PRODUCED BY H ey ke l O u n i 2

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JOSEPH LEE, VICE PRESIDENT OF PROCUREMENT AND SUBCONTRACTS, EXPLORES HOW AECOM OPTIMIZES ITS PROCUREMENT TO BECOME A STRATEGIC SOURCING ORGANIZATION

found that procurement was still viewed as something of a cost centre.

“They received requirements and executed them. That was it,” he explains. “There was little value-add; no metric, performance or accountability to the team. After assessing, I recommended we stand up a strategic

W

hether it’s building iconic

organization; one more forward-lean-

skyscrapers, planning new

ing that could negotiate long-term

cities, delivering clean water

agreements in order to create efficien-

and energy, securing nations or building economic infrastructure, AECOM is a company that delivers projects and programs to improve people’s lives in more than 120 countries worldwide.

Naturally, given the scope of its portfolio, AECOM requires a procurement and supply chain function that goes above and beyond the traditional procurement role - one that is often passive and reactive. This is where Joseph Lee, Vice President of Procurement and Subcontracts for AECOM’s Management Services Group, comes into the fold. The Management Services Group is responsible for providing services for federal governments around the globe. Joining the business in early 2017, Lee was tasked with creating a plan to transform the procurement organization and to assess it in its existing format. Here, he 4

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cies in our transactions. The idea was

to create a strategic sourcing organ-

from PR requisitioning to the buying:

ization that manages multiple cate-

a process that would normally take

gories and, from there, a procurement

around 10 days. Lee looked at reduc-

organization drawing from strategic

ing that to one or two days and pushing

agreements in place.”

it even further to around 30 minutes.

Once this plan was approved, Lee

“Another element we looked at is tech-

turned his attention to other efficien-

nology as a tool to manage our end-to-

cies, and he brought in Lean Six Sigma

end supply chain, because we only had

Black Belt to look at the company’s

a single, transactional tool in place,”

processes and develop ways in which

says Lee. “What we have done is reach

they could be improved. This would

out to Amazon Business, which gives

include building greater cycle times

you more tools and visibility, allowing

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FOR MODERN SUPPLY CHAIN AND PROCUREMENT IT,

AECOM CHOSE IFS

AECOM’s Management Services Group is transforming their supply chain and procurement processes with IFS Applications, helping them become more agile, flexible and responsive to the dynamic mission priorities of their federal and commercial customers. #forthechallengers

you to have more sourcing capabilities

an operational perspective to buy

and be able to bucket and source with

through the company’s contracted

limited suppliers.”

suppliers. On paper, these transform-

Following the implementation of

ative steps sound simple, but they

Amazon Business, AECOM can better

allowed AECOM Management Services

control its tail spend allowing Lee to

to see clear successes as part of this

look at generating even more effi-

journey. However, Lee is quick to high-

ciency in the company’s purchas-

light that there is always challenge in

ing. Lee increased the dollar thresh-

transformation, particularly when it

old for micro-purchases from $3,500

comes to procurement.

to $10,000 allowed by the Federal

Lee approached the challenges in

Acquisition Regulation (FAR). What

three key areas: people, processes,

this did was give the ability back

and tools. Given the new tools that Lee

to AECOM’s internal customers,

had implemented, he needed to ensure

giving them what they need from

that he had the right people with the w w w. cp o stra te g y. co m

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right capabilities in order to deliver on the promise of these new processes.

“There’s two parts of what we are planning to do with our people,” explains Lee. We’re actually making the investment.

We’re training them, and we’re helping them understand what customer service is. We’re helping them improve on their visibility, transparency to our customer, and we’re providing them with the tools to be more successful. Likewise, we’re bringing in more seasoned strategic sourcing folks to run and execute our strategic sourcing plan.”

Lee is a firm believer in developing people. He highlights that in the three areas - people, processes, and tools, no single area should fail, but he places people at the very top of the list with regards to importance. “When you’re making investment into viewing your process, into automating your process, and putting in the tools, you also need to make that investment to your people.

You need to go back and look at their capabilities and identify the gaps,” he says. “You just don’t hire someone because they have the background, the education, and the skills, to be able to execute then put them to work and that’s it for the next maybe five or 10 years. You continue to develop them, 8

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just like you’re continuing to enhance your process.”

The goal for AECOM Management Services was to become a forward leaning, strategic sourcing organization. But what does strategic sourcing mean to AECOM? Lee admits that it can mean many things to procurement professionals and organisations around the world, but for him, it’s simple: “It’s about aggregating your spend to optimise your buy,” he says. “What this means is that you can look at your spend category and go back to your business customer, then start understanding the

“ WHEN YOU’RE MAKING INVESTMENT INTO VIEWING YOUR PROCESS, INTO AUTOMATING YOUR PROCESS, AND PUTTING IN THE TOOLS YOU ALSO NEED TO MAKE THAT INVESTMENT TO YOUR PEOPLE. YOU NEED TO GO BACK AND LOOK AT THEIR CAPABILITIES AND IDENTIFY THE GAPS” — JOE LEE VICE PRESIDENT, PROCUREMENT AND SUBCONTRACTS AECOM

forecasts to be able to leverage your spend and then go back to the suppliers.

You are optimizing your buy because you understand the volume better to be able to drive your cost down.”

Procurement is built in equal parts by its internal operations and its external robust supplier network. As AECOM transforms its procurement process for its government clients, this has an impact on the supplier relationships that are in place. As Lee notes, strategic sourcing doesn’t stop at the internal level. “It’s a 360-degree cycle,” he says.

“We have supplier meetings on a quarterly basis to understand the spends and understand the forecasts. Only then w w w.a e com.com

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can you adjust your forecast.”

“Your supplier is not only working with

of continuous evolution and following the successful implementation of

you as part of your relationship. They

Amazon Business and Lean Six Sigma,

understand your requirements and we

Lee is already working on the next form

encourage them to be more of an inno-

of evolution. AECOM is currently testing

vative contributor to our business. What

Robotic Process Automation (RPA) and

I mean by that is, we have a strategic

improving supply chain technology and

long-term agreement with the suppli-

execution. Here, the company is working

ers, and they see our requirements and

closely with global software company

our patterns over time. I want them

UiPath and global enterprise applica-

to be able to come to me and identify

tions company IFS, respectively.

ways in which we could do something

AECOM is working with IFS to imple-

cheaper, or more efficiently. They have

ment a full-suite ERP system that

a license to do that and that’s what I call

is robust and modular and allows for

supplier engagement.”

sourcing and contract management

The journey of transformation is one

while also providing greater control over w w w. cp o stra te g y. co m

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“ Y OU JUST DON’T HIRE SOMEONE BECAUSE THEY HAVE THE BACKGROUND, THE EDUCATION, THE SKILLS, TO BE ABLE TO EXECUTE, AND PUT THEM TO WORK, AND THAT’S IT FOR THE NEXT MAYBE FIVE OR 10 YEARS. YOU CONTINUE TO DEVELOP THEM, JUST LIKE YOU’RE CONTINUING TO ENHANCE YOUR PROCESS” — JOE LEE VICE PRESIDENT, PROCUREMENT AND SUBCONTRACTS AECOM

risk mitigation, property management and logistics. With IFS Applications, AECOM will be able to automate and streamline numerous front and back office processes, enabling the company to tighten the procurement cycle, regardless of whether inventory is received at an AECOM warehouse, a customer location or a construction site.

The technology will allow AECOM to be more agile, flexible and responsive to the dynamic mission priorities of their federal and commercial customers.

“They also have a ‘lobby platform’ that is a dashboard in which we can access everything,” says Lee. “With IFS, we realised that with what we need today, and what we need in the future, they are the ideal partner to help us get there on both fronts. We work side by side with IFS.” With UiPath, AECOM has proven out the use of Robotic Process Automation (RPA) where software “robots” act as digital workers to automate common and repetitive tasks. Any process that is manual, time consuming, fairly structured and data collection are all candidates for Robotic Process Automation (RPA). AECOM is testing the implementation of bots into their repetitive processes, again covering 14

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“ YOUR SUPPLIER IS NOT ONLY WORKING WITH YOU AS PART OF YOUR RELATIONSHIP, THEY UNDERSTAND YOUR REQUIREMENTS AND WE ENCOURAGE THEM TO BE MORE OF AN INNOVATIVE CONTRIBUTOR TO OUR BUSINESS” — JOE LEE VICE PRESIDENT, PROCUREMENT AND SUBCONTRACTS AECOM

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Joe Lee Vice President, Procurement and Subcontracts AECOM Joe Lee is the Vice President of Procurement and Subcontracts for AECOM Management Services. Joe joined Management Services in 2017, leading a geographical and diverse group of procurement and subcontracts professionals. His organization is responsible for overseeing the acquisition, planning and execution, performance management, and risk mitigation of Management Services suppliers across all programs both domestic and international.

Prior to AECOM Management Services, Joe worked at Raytheon as Director of Supply Chain leading the Subcontracts group responsible for the acquisition of various raw materials, products and services for a successful end-to-end supply chain for all manufacturing requirements.

Before Raytheon, Joe worked at Deloitte and TouchÊ where he has held various leadership positions. He served as Practice Leader in Subcontracts and Procurement leading his team in support of the Federal System and Grant Management. Under his leadership, the team transformed from a passive to a strategic organization contributing in Deloitte’s business growth in the MENA region. He also held a position in Risk Management and Corporate Compliance Joe earned his undergraduate degree in Business Administration from the University of the East, and completed his Masters Certificate in Government Contracts at George Washington University

the areas of risk mitigation with their

responsibility to continue to improve and

supplier’s source selection and due

optimise the organization every day.

diligence. “The source selection and

Where will the company be in a year’s

due diligence process entail accessing

time? “Probably with more tools that

and collecting data from a variety of

I have implemented and will be imple-

sources in order to determine suppli-

menting as part of the process improve-

ers financial, corporate integrity, and

ment and optimisation,” he says. “It

operational capabilities and capacities

never ends. Whether that’s from a

to meet AECOM’s business objectives

people, process or tools perspective.

and minimize risks in our supply chain,”

You don’t stop. Continue to develop and

explains Lee.

optimise your organization in order to

In a few short years, AECOM has

keep you on top of your game.”

already come a long way along this transformation journey, but Lee is quick to recognise that no transformation ever really ends. In fact, he believes it is his

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