Under the umbrella of Philips Supply Management, Philips General Purchasing (PGP) manages the supply base for (indirect) Non-Product Related (NPR) goods and services for Philips. PGP acts on behalf of the Philips businesses, handling every step in the purchasing process, from demand analysis to final invoicing and payment (through Finance & Accounting Shared Services).
Our NPR suppliers provide a wide range of indirect products and services, which we group into seven supply market clusters, each containing a number of commodities.
- Professional & Personnel learning / training, relocation, fleet, temporary labor, recruitment, outplacement, consultancy, professional services, insurance.
- Marcom above the line (ATL), below the line (BTL), print, market research, sponsorship and Public Relations, exhibitions, merchandising, Point of Sale displays.
- Travel & Entertainment travel agencies, air travel, hotels, conferences and meetings, corporate credit cards.
- Information Technology hardware and office machinery, software, IT services, telecom.
- Facility Management & Energy real estate, environmental and waste disposal, industrial utilities and energy, facility services, furnishing, catering.
- Forwarding & Distribution transport warehousing, logistics, customs (government).
- Industrial mechanical, electrical and electronic articles, industrial supplies, hand and equipment services, Printed Circuit Board equipment (in- and onsertion), office supplies.
Each commodity has a dedicated Commodity Manager, who is responsible for the strategy and management of the commodity for the whole Philips Group.
PGP’s aim is to create an ideal portfolio of global, regional and local suppliers for every Philips site in the world. This involves developing the best buying strategies together with the individual businesses and supporting them with a fully transparent transactional system.
Over 200 buyers from this organization, operating in their own specific segment of the supply market, are located at sites in the US, Asia and Europe. There they participate in networks of user communities and purchasing teams to meet demand needs at site level and ensure optimum leverage of Philips’ buying power. This results in the selection and contracting of high-performance suppliers. The goods and services they offer are clearly specified in (e-) catalogs, contracts and other means that can be used by individual users within Philips.
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