ARM - November 2020

DIGITAL REPORT 2020

Digital Transformation in Semiconductor Procurement IN ASSOCIATION WITH

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Digital Transformation in Semiconductor Procurement

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www.a r m . com

ARM

Arm’s Alisa Bornstein, Group Procurement Senior Director, on the transformation in procurement worthy of Arm’s high-tech reputation

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rm is a British multinational semiconductor and software design company headquartered in Cambridge, UK. Arm

technology touches more than 70% of the world’s population, and its processor designs have ena04

bled advanced computing in more than 180 billion chips to date, powering products from the sensor to the smartphone and the supercomputer.

One of the key functions enabling its success is the supply chain. Alisa Bornstein is Group Procurement Senior Director at the company, with over 25 years’ experience in procurement at companies including Ericsson, BT, Telia, Millicom, IHS and now Arm. “I have experience of procurement start-ups, green-field and significant transformations, as well as leading teams in multicultural, complex and fast moving environments and mature and emerging markets. At the places I’ve been I’ve professionalised and digitalised procurement and brought in innovative, agile, lean and efficient service and solutions to the business.”

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ARM

“ Strategic partnerships with suppliers are critical to supporting an organisation’s objectives” — Alisa Bornstein, Group Procurement Senior Director, Arm

and effective function supporting the business’ objectives and future plans.“ That transformation program was undertaken with the aim of digitalis-

On her decision to join Arm, Bornstein

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ing core procurement processes to

says: “Arm stood out for its unique

enable efficiencies, boost controls,

people, culture of collaboration and

minimise risks, and improve the experi-

brilliant minds. Almost two years in,

ence for end-users. “Procurement

and after 18 months of the transforma-

digitalisation has exploded across

tion program, I am proud to say that

the entire business environment, and

procurement at Arm today is recog-

its entire value proposition to the

nised as a value-creating, responsible

overall organisation has changed tremendously,” says Bornstein.

“Digitalisation influences all areas of procurement, from category management, strategic sourcing, supplier and risk management, to transactional purchase-to-pay operations.”

Arm | Architects of Possible CLICK TO WATCH

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1:33

07 Naturally, the project has resulted

configuration changes and deploy

in a ground-up overhaul. “We started

all the solutions. We set separate

our digital journey by improving the

workstreams for supplier and content

basics, standardising and redesign-

enablement, and change management.

ing the whole source-to-pay (S2P)

The plan was rigorously monitored

process and deployment of Ariba,”

by external and internal teams.

says Bornstein. “This required a

Advice and support from the imple-

significant change in our ways of

mentation partner in the design phase,

working and the company culture.”

during configuration, testing and

The project hasn’t been without

during go live was absolutely a crucial

complexities. “We were preparing

success factor.”

the rollout for 18 months before we

Having been live with Ariba for the

engaged an external implementation

past year, Bornstein is satisfied that

partner. With them, a schedule was

the digital strategy has delivered and

developed to review the design, make

continues to create significant value www.a r m . com

THE WORLD IS CHANGING. ARE YOU? Faster. More agile. More innovative. More sustainable. Lower cost. Improved EBITDA. If procurement is not accelerating your business outcomes, it’s probably time for a rethink. The world’s leading businesses trust Proxima.

ACCELERATE YOUR BUSINESS OUTCOMES

Proxima: delivering true value in procurement Clare Harris, Senior Vice President Operations, describes how Proxima has established itself as a world leader in procurement consultancy services

Over the last 25 years, Proxima has established itself as a world-leading expert on procurement consultancy services, helping a broad spectrum of customers to unlock their supply chain’s full potential, from the largest Fortune 500 entities to bespoke startups.

“Ultimately, we work with our clients’ procurement and commercial teams to help drive value from their cost base,” says Clare Harris, Senior Vice President.

As a company, Proxima helps customers optimise what they spend with suppliers and build exceptional procurement functions. “When you think that, on average, about 70% of organisational spend is with suppliers, then you can immediately understand the potential that exists for savings and innovation,” Harris states. However, it isn’t necessarily a purely ‘cost-saving’ exercise; the company specialises in maximising the value of every penny spent. “It’s about understanding what value means to our clients, whether that’s cost, speed, return, risk efficiency, or quality.”

Contributing to the company’s enduring success has been a flexible strategy focused on being adaptable to the changing supply chain environment. That evolution, Harris says, has been characterised by increased networking, collaboration and emphasis on procurement itself.

The benefits of this industry development have been keenly felt by Proxima’s clients. One in particular, Arm, shares a close working dynamic with it: “Proxima has

Clare @ Proxima

been able to bring both commercial expertise and category knowledge, while also injecting capability at a time when Arm’s existing procurement team were quite stretched,” Harris explains. Establishing a “twoway feedback” loop, the collaborators have been able to react swiftly to challenges and coordinate decisively, “We work together at pace and deliver value quickly.” Using different time zones to its advantage, Proxima’s UK team can hand over to the US team and vice versa, creating a continuous cycle of problemsolving capability.

This kind of partnership will prove vital in the postCOVID-19 world, where traditional operational patterns no longer hold true and an innovative mindset is crucial.

As other companies strive to build an operating model for procurement that matches today’s challenges, Harris believes that Proxima’s breadth of expertise will become even more valuable. “I think a lot of companies are now asking, ‘How can we transform ourselves to make decisions quicker?’, and that theme will continue into 2021.” Proxima’s aim, then, will be to guide that development and continue its ongoing mission of delivering real value to its customers.

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“ Our procurement team recognises the challenge that COVID-19 poses to our organisation and is working hard to continuously assess and mitigate these risks” — Alisa Bornstein, Group Procurement Senior Director, Arm

is looking into the future trends of the procurement digitalisation . “We’re in the time of technology disruption,” she

for the company, for instance by offer-

says. “Why not combine best-of-breed

ing a one-stop shop, with everything

systems and integrate them to work

you need in one place, and standard

together to deliver a great experience

source-to-contract process that

to internal customers and suppliers?”

ensures that purchase-to-pay works seamlessly. Nevertheless, Bornstein

To this end, she emphasises that procurement is about much more

Arm AI Processors Making Smartphones Smarter CLICK TO WATCH

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1:04

www.a r m . com

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ARM

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than buying. “There are many other

The ongoing transformation of Arm’s

areas where procurement adds value

procurement is built on the strategy to

and where technology enables data-

deploy leading procurement practices

driven intelligence and efficiencies.

and processes, supported by tech-

Innovation in Procurement is crucial

nology solutions, to deliver financial

for professional and forward thinking

benefits and added value, compre-

procurement functions.�

hensive corporate social responsibility

E X E C U T I V E P R O FILE :

Alisa Bornstein Title: Group Procurement Senior Director Industry: Semiconductors

Location: United Kingdom

Alisa Bornstein leads Arm’s global Group Procurement organisation responsible for reshaping procurement while driving positive financial outcomes for the company. Her functional accountabilities include category management, strategic sourcing, supplier management, contracts and transactional purchase operations supported by enabling technologies. Her senior experience covers a broad spectrum of the function including procurement business partnering, strategy, processes, policies, data analytics, planning and execution of strategic and transactional operations, communication and training.

Prior to Arm, Alisa held senior leadership roles at large enterprises including Ericsson, BT, Telia and Millicom where she focused on transformation and digitalisation of the procurement, and serving as the procurement subject matter expert for the business. Alisa is passionate about people and talent development, building collaborative business partnerships and teams. She is a progressive and highly respected procurement leader, and is a frequent speaker at Procurement and Supply Chain industry global conferences and forums.

Alisa holds a Master’s degree in Finance from St Petersburg State University of Economics, Russia.

She is Russian by origin, a Swedish citizen for over two decades and resides in the UK since 2014.

Alisa is true international leader with experience operating around the world, facilitated by her multicultural and inclusive leadership style, with a warm, direct and consensus approach, and fluency in three languages. www.a r m . com

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ARM

“ Group Procurement will continue to be a value-creating, responsible and effective procurement function, supporting Arm’s business and mission to architect a smarter world” — Alisa Bornstein, Group Procurement Senior Director, Arm

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www.a r m . com

“ Digitalisation influences all areas of procurement” — Alisa Bornstein, Group Procurement Senior Director, Arm

products,” says Bornstein. “That’s achieved through building collaborative, mutually beneficial relationships, a proactive development of leading practice strategies to maximise the value of these relationships, driving innovation programmes, reducing supplier-related risk, leveraging

(CSR), supplier risk management and

purchasing power and shared values

stakeholder engagement & collabora-

around sustainability and diversity.”

tion. It has required a shift in, among

As with essentially all of the world’s

other things, the way of working

companies, the COVID-19 outbreak

with key suppliers and partners, with

has impacted operations, particularly

Bornstein identifying seven key quali-

when it comes to the supply chain.

ties she looks for, namely being:

“Reports on how the COVID-19 outbreak is affecting supply chains and

• An expert in service type and market • Accountable • A Strategic Advisor • An Innovator • Easy to communicate with • A Cultural fit • Ethics and Compliance-minded

disrupting manufacturing and service operations around the world are increasing daily,” says Bornstein. “The

“Strategic partnerships with suppliers are critical to supporting an organisation’s objectives in maximising the value it obtains from its external partners, providers of outsourced solutions and third-party services and www.a r m . com

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ARM

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prediction is that the impact of COVID-

also bears in mind the impact on its

19 on global supply chains is to remain

suppliers, hence the action Arm has

for many months. Our procurement

taken. “We’ve sent communications

team recognises the challenge that

to key suppliers encouraging them

COVID-19 poses to our organisation

to share with us their business conti-

and is working hard to continuously

nuity measures. Arm’s top 20 suppliers

assess and mitigate these risks.”

were contacted, and follow-up is

Bornstein emphasises that it is not

ongoing to understand their plans

only focused on the well-being of its

and any impact this will have on Arm.

own organisation and employees but

We are also working with, for

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example, IT equipment suppliers to

to be a value-creating, responsible

monitor and maintain our stock levels

and effective Procurement function,

on a regular basis.”

supporting Arm’s business and mis-

It’s no surprise then that Bornstein

sion to architect a smarter world.”

is confident that Arm’s procurement function will continue to live up to the company’s reputation as a hightech leader. “The world is changing.

Industries are changing. But our focus in Group Procurement will continue www.a r m . com

ARM 110 FULBOURN ROAD CAMBRIDGE, UK CB1 9NJ T +44 (1223) 400 400 www.arm.com

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