Read case # 14-2, Marc Biron. After reading, in at least 500 words answer the following questions: 1. What do you think Marc's plan should be considering his lack of experience? 2. Where does he begin and what should his goal(s) be? 3. Who would you put onto your team if you were Marc? the brand. For the first two years, there was no supply involvement in any country on the media spend as local and regional marketing managers had free reign on how to spend their budgets. MARC BIRON'S ASSIGNMENT Pierre Jardin had made reasonable progress in improving BCI's spend with suppliers for certain categories. In ad- dition to the IT spend on hardware, software, and IT ser- vices, he had made progress in increasing supply involve- ment in corporate travel, furniture, and paper purchases. In each category, resistance from local managers with strong preference for local and, in many cases, multiple suppliers had been strong. Aware that marketing's spend was large, although Pierre did not know the exact amount, he decided that this category might represent an opportunity for the supply function. Not only might BCI achieve considerable sav- ings, but here was a category spend where, even in those business units that had a local supply manager, there had been no supply involvement at all historically. Therefore, working with and through local supply managers was not even an option. Although Pierre was reluctant to pull Marc Biron out of his IT assignment, he felt that Marc had the internation- al experience, skills, and personality to tackle marketing's spend as a category. He, therefore, called Mare into his office and explained why he wanted Marc to drop his IT work and take on the marketing spend challenge. He gave Marc two months to come up with a plan THE MARKETING SPEND Mare Biron had no marketing spend experience. He agreed with Pierre that this category was one of BCI's largest spends and if IT experience was any indicator, potentially an area of major savings opportunities. He knew that this was a major test for him and that success in this task would impact favorably on his future career. On the other hand, finding a successful way of gaining meaningful involvement for sup- ply in this category would be difficult. He wondered how he should use the next two months that Pierre had granted him to come up with a plan and what that plan would be. Case 14-2 Marc Biron MARC BIRON tion of BCI requirements. For example, the consultants pointed out that in their estimate IT expenditures with "I want you to see how supply can add value to our global suppliers might exceed $6 billion per year and that major marketing spend. You've got a couple of months to come improvements in process and spend should be possible. back to me with a plan." Mare Biron, supply manager at BCI, BCI's senior management board followed the consul- one of the world's largest financial institutions, headquartered tant's advice and hired Pierre Jardin, who had managed in Paris, France, pondered the new assignment just given to the supply function at one of BCI's competitors, to estab. him by Pierre Jardin, the vice president of supply at BCI. lish a central procurement organization. Pierre had per sonally started on the IT spend in Europe, while build BCI ing up a group of supply professionals at head office. In BCI, started as a small commercial bank over a hundred the first two years, Pierre had succeeded in saving about years earlier, had grown over the years to offer a large va- $1 billion on Europe's IT spend with suppliers, and he then hired Mare Biron to take over IT acquisition. Hay. riety of financial services, including commercial and retail banking, asset management, and retail and wholesale in ing spent three years in IT supply worldwide, Marc had surance. Over the past two decades BCI had expanded its learned how each of the international business units oper- international presence significantly by acquisition of re- ated. He was also well aware that business unit managers gional financial institutions in all major countries around office involvement in their units. Nevertheless, Marc was prized their local independence and were wary of head the world. With revenues in excess of $200 billion a year. successful in negotiating IT supply contracts that provid- BCI was considered a major global giant in the industry ed an additional $1 billion in annual savings. SUPPLY AT BCI Until five years ago, supply at BCI had been decentral THE NEW BCI PRESIDENT ized with each local or regional business unit responsible Two years ago, a new president took over at BCI. With a for managing its own supply requirements. A review of strong marketing background, the new president insisted supply by a major consulting firm pointed out that a cen. on worldwide brand recognition for BCI, with all business tralized supply function might be able to achieve con- units displaying the corporate logo in all of their com- siderable savings by consolidating world requirements munications, promotion, and advertising. In addition, a and bringing professional supply expertise to the acquisi- major increase in marketing spend was initiated to grow