Cummins and Komatsu

Part
01
of two
Part
01

Cummins - Procurement Organizational Structure

After conducting extensive research, we were unable to provide information about how the procurement spend is controlled, who makes the policy decisions, as that information is not publicly available. However, we found that Cummins' procurement organizational structure has Jim Gruwell as the highest procurement leader, as well as the person who controls the procurement strategy. All procurement spend is controlled by the company's Global Diversity Procurement Team. We have provided the search methods used to explain why some information is unavailable.


PROCUREMENT ORGANIZATIONAL STRUCTURE AT CUMMINS

OVERVIEW
  • Cummins' procurement/organizational purchasing structure is responsible for initiating the search for suppliers as the need arises, using accepted standards for fair and equitable sourcing processes.

CUMMINS' HIGHEST PROCUREMENT LEADER AND THE PERSON WHO CONTROLS THE PROCUREMENT STRATEGY

SPEND CONTROL

  • The company's Global Diversity Procurement Team controls all of Cummins' spend regarding procurement
  • Cummins' Global Diversity Procurement Team members include Helena Hutton (Director, Global Diversity Procurement), Lisa Hardin (Diversity Procurement Project Manager), Stacy Webb-Cooper (Diversity Procurement Operations Associate), and Haomiao (Holly) Zhu (Diversity Procurement Operations Specialist).

RESEARCH STRATEGY

Your research team began looking for the procurement organizational structure of Cummins by reviewing the company's official website, including the leadership section, press releases, investor relations, and official reports. From this search, the team gathered some info regarding the company's highest leader of procurement as well as its strategy control which revealed that all spends regarding procurement organization are controlled by the Cummins' Global Diversity Procurement Team. However, there was no information regarding the actual process of controlling that spend nor the person who makes policy decisions.
Next, the team looked for research, surveys, and case studies carried out on the company. The team hoped to obtain hoping relevant insights or facts regarding the duties of the higher or other officials related to the sourcing or purchasing of goods/services as it directly relates to procurement, to make conclusions about the most probable person who makes policy decisions and the actual spend control process. The team searched through research databases such as ResearchGate, Research Guides, and Pew Research Center. However, none of the sources contained any relevant information, most likely due because no previous researches or case studies seem to have been conducted on this topic.
Your research team attempted to look for statistics regarding the purchasing segment of the company with hopes of finding data regarding the spend control process of purchasing goods/services such as "who reported the spend, and to whom," etc., to triangulate the actual spend control process by integrating all achieved statistics/facts. The team also hoped to obtain statements/commentaries made by any company official regarding the Cummins' procurement policy decision. The team searched through news journals and magazine articles such as Science, Business Wire, PR Newswire, etc. Also, the team combed through private company datasets such as Statista, Crunchbase, Craft.co, ZoomInfo, Investopedia, and media outlets like Forbes. Majority of the databases didn't focus on the purchasing sector at all, the statistics obtained were mostly related to the company's net sales or funding, which were not pertinent to the request, nor helpful for any triangulation.
At this point, your research team realized that the info regarding how Cummins' procurement spend is controlled, and the policy decision maker was not available anywhere on the company's official website, reports, press releases, investor relations, and news journals, etc., most likely because the company did not disclose it. As a last resort, the team searched through the website segment of the company's Global Diversity Procurement Team because they control the company's procurement-related spend, and the team hopes to get relevant info regarding their duties and working process, which could be used to answer the question. The team also looked through various reports, press resources, and the company's global websites in different regions of the world, to obtain any statement/comment or other info relating to the overall policy decision maker at Cummins. Your research team was looking to make assumptions like "as X makes all the policy decisions of Cummins, it is assumed to be making policy decisions regarding the procurement segment of the company as well." Unfortunately, none of the datasets yielded any relevant info regarding the actual process of spend control or the policy decision maker. As for policy decisions, the only statement that occurred frequently was about the company's concern over its policies. The name or position of the person who makes/made was not provided.
Part
02
of two
Part
02

Komatsu - Procurement Organizational Structure

The titles of Komatsu's top procurement leaders are (1) President, Procurement, Production Division (for Komatsu in Japan) and (2) President, Production & Procurement Division (for Komatsu in China). Information about how spending is controlled, who makes the policy decisions, and who controls the strategy within Komatsu's procurement division was not publicly available, as is explained below. We were able to find other senior-level procurement leaders for the company though, as well as information about their job responsibilities.

Findings

  • Kazuya Kuriyama is one of the two top procurement leaders at Komatsu. Kazuya Kuriyama's position title is President, Procurement, Production Division for Komatsu in Japan.
  • Takashi Yasukawa is one of the two top procurement leaders at Komatsu. Takashi Yasukawa's position title is President, Production & Procurement Division, Komatsu (China) Ltd. Takashi Yasukawa reports to the CFO of Komatsu global, Takeshi Horikoshi.
  • Hiroshi Shirato is the Manager, Procurement for Komatsu and works out of Columbia, South Carolina.
  • Isamu Hamai is Director of Global Procurement for Komatsu's North America Division and has strategy responsibilities. Isamu Hamai's Linkedin profile states the that his responsibilities include the following: "Develop, direct and manage strategies to optimize and control the Total Cost of Ownership in accordance with SLQDC principles. Align cross-functional activities within Komatsu Manufacturing Plants, Product Marketing, Supply Chain and Design Engineering to implement Kaizen activities concurrent within budget guidelines to increase business units’ profitability and performance."
  • Najib Nasri is the Purchasing & Procurement Manager for Komatsu Australia. He has been with the company since June 2006.
  • Najib's Linkedin profile states the following about his responsibilities: "As the Procurement and Purchasing Manager my key areas of responsibility and accountability are: Safety — Zero Harm, ensuring Komatsu and our Suppliers comply with all laws and procedures. Quality — Ensuring all purchased items that are fitted to a Komatsu machine meet the Komatsu quality standards before delivery to the customers."
  • Najib continues describing his responsibilities in stating the following: "Cost — Ensuring that each item purchased has been negotiated by the procurement team with the appropriate suppliers ensuring Komatsu Policy compliance, and reduce overall cost to the business. Delivery — Ensuring any delivery is delivered to our sites are in full and on time to meet our workshop and customer schedules. Contracts — Negotiation of National contracts."

Your research team applied the following strategy:

We identified Komatsu's top procurement leaders by looking at the company's leadership team list published on its website. We determined that the two President positions listed above are the top procurement leaders for Komatsu because there was no more-senior procurement position included in the company's leadership team list compared to those positions. Since Komatsu is a global company, it has both global and regional leaders. For example, the company's CFO has global responsibilities, while the company's procurement managers/directors have regional responsibilities. That structure made it difficult to find clear-cut information about the company's procurement organizational structure.

The one position that we were able to find clear information about with regard to organizational structure is that the President, Production & Procurement Division for Komatsu in China reports to the CFO. We determined that from this organizational structure chart that we found. No other procurement positions were included in that organizational structure chart though. We included the above-mentioned regional procurement leaders for Komatsu because they are senior-level procurement leaders across the company's departments/regions, as it was requested that we provide that information if available.

We were only able to find job-responsibility information for two of the above procurement leaders, which we found on their Linkedin profiles. Since both of those procurement leaders have regional roles, it's reasonable to assume that they don't control company-wide spending, policy, or strategy (the information we were looking for). For the other procurement leaders, we looked for information about their job responsibilities in three different ways, in an effort to determine the individual(s) who control spending, policy, and strategy for Komatu's procurement division company-wide.

First, we looked directly on the company's website and checked both the leadership team list and conducted a search for each individual within the search box on the homepage. The leadership team list only stated their names and titles, as no biographies were included. The general searches we conducted on the company's website either directed us to that leadership team list or to non-applicable information. Second, we looked up each individual on Linkedin because we were able to find information about two of the company's procurement leaders by doing so.

We didn't find a Linkedin profile for Kazuya Kuriyama nor Takashi Yasukawa. Hiroshi Shirato has a Linkedin profile, but we couldn't view any information about that individual's job responsibilities. Third, we conducted a series of general searches for any articles about these individuals, in hopes that information about their roles at the company might be discussed. However, we didn't find any articles whatsoever about those individuals, outside of mere listings of their names and position titles in company profile sites such as Reuters and Bloomberg. Accordingly, the information provided above and the sources included herein constitute the full extent of the available information that we could find about Komatsu's procurement organizational structure.
Sources
Sources