Organizational Structures

Part
01
of two
Part
01

Procurement Organizational Structures - CNH Industrial

While there is no publicly available information to fully answer your question, we've used the available data to pull together key findings, such as the fact that CNH Industrial globally has 522 current employees who have experience working as a buyer, 38 who have experience working as a procurement specialist, 114 with experience as a purchasing manager. Additionally, we were able to learn that CNH Industrial is currently undergoing a massive reorganization of their company's organizational structure. Below you'll find an outline of our research methodology to better understand why the information you've requested is publicly unavailable, as well as a deep dive into our findings.

Research strategy

In order to tackle this project, we first began by looking for any precompiled organizational structures or charts for CNH Industrial overall or their procurement department specifically. In doing so, we looked at databases that commonly house organizational structure charts, the company's website and annual reports, as well as trusted media sources. However, after exhaustive research, we were unable to locate any existing organizational structures for this company. One reason why this data may be lacking is due to the fact that it appears many companies do not make this type of detailed information about their employee structures public, especially when it comes down to more nuanced levels, such as the structures of individual departments. Another potential reason this data is not available is due to the fact that the company is currently undergoing an in-depth process of reorganizing their structure. Therefore, we assume it's likely the company may provide more details about the results of this reorganization down the line.

Because our attempts to locate a direct answer to this request failed, we next attempted to triangulate an answer using the two methods presented below:

1) First, we attempted to use LinkedIn to locate a list of individuals working in procurement at CNH Industrial. At first, this strategy proved useful as LinkedIn's search feature was able to bring up a list of over 700 individuals currently working at CNH Industrial that have job titles related to 'procurement'. We then attempted to go through and sort these individuals into groups based on their job titles in order to illustrate the organizational structure. However, this attempt to triangulate an answer failed due to the fact that we discovered doing so would require a significant amount of time and attention to detail than is allotted for a single Wonder request, especially when we considered the fact that many individuals had non-standard job titles, which made it quite challenging to determine how to categorize them effectively.

2) Since our first triangulation attempt failed, we attempted to broaden the scope of the research a bit and, rather than focusing on the organizational structure at such a detailed and nuanced level, we attempted to gain a more high-level perspective of the structure. To do so, we first conducted research to understand some commonly used job titles and roles under the procurement umbrella. To begin, we were able to locate this list of common job titles in this arena:
  • Purchasing Agent
  • Buyer
  • Procurement Specialist
  • Purchasing manager
  • Purchasing administrator
  • Materials Manager
  • Director of Purchasing
  • Commodity Manager
  • Director of Materials
  • Director of Strategic Sourcing
  • Procurement Manager
  • Procurement Officer
  • Purchasing Supervisor
Using this list as a jumping-off point, we then began using LinkedIn's search filters to isolate individuals who currently work at CNH Industrial and have the job titles noted above. Initially, this strategy seemed to produce great results, as we were able to find swaths of individuals who hold these titles at CNH Industrial. However, this research strategy ultimately ended-up failing due to the fact that the search results on LinkedIn would also pull up individuals who currently work at CNH Industrial but may have held the job role in the past and no longer do, and may have even had the job role at a different company in the past. Although we attempted to work with LinkedIn's search filters to isolate people who only currently hold those job titles at CNH Industrial, the filters did not allow for this (they only allowed us to isolate people who currently work at CNH Industrial). Because of this, we determined that we could not progress with this strategy due to the fact that 1) due to the number of employees at this company and in the procurement department specifically, which is into high hundreds, it is not feasible for us to go through and manually weed-out the people do don't have the current job titles specified and, 2) the overall number of employee results presented is then skewed because of this.

Despite this, we have provided a spreadsheet of data we collected during our research on LinkedIn which, although the data is imperfect due to the aforementioned reasons, we think may still be insightful for you to consider. Additionally, we have provided some other information related to CNH Industrial's procurement department that may be of interest. Aside from a few high-level pieces of information, details concerning this topic were found to be severely lacking overall.

HELPFUL FINDINGS

  • According to data collected from LinkedIn, CNH Industrial globally has 522 current employees who have experience working as a buyer, 38 who have experience working as a procurement specialist, 114 with experience as a purchasing manager, 32 with experience as a materials manager, 242 with experience as a director of purchasing, 257 with experience as a commodity manager, one person with experience as a director of materials, 315 with experience related to strategic sourcing, 17 with experience as procurement managers, one person with experience as a chief of purchasing officer, and 15 with experience as a purchasing supervisor.
  • A January 2019 press release notes that CNH Industrial had announced plans to change its organizational structure at the global level. In doing so, the company notes that they would be reducing the size of their corporate functions and refocus the corporate functions across several key areas, one of which is the company's supply chain, which the press release notes will be in charge of coordinating the company's procurement processes. Along with this, the company's former Chief Manufacturing Officer, Tom Verbaeten, will become the new Chief Supply Chain Officer.

Part
02
of two
Part
02

Procurement Organizational Structures - John Deere

John Deere rolled out e-procurement processes in 2000 and chose GEP's source-to-pay procurement software in 2017, which is a software platform that handles an organization's entire procurement processes. Also, the John Deere Supplier Network (JDSN) is the company's directory that manages its robust strategic sourcing process and allows prospective suppliers to apply to join John Deere's database of suppliers. Unfortunately, the company's leadership or organizational chart do not have publicly available information revealing its procurement organizational structure; hence, we provided the company's executive profiles responsible for sourcing and supplier management, as a proxy.

Procurement at John Deere

  • According to a report by Supply & Demand Chain Executive, John Deere started rolling out e-procurement processes in the year 2000 through the use of the Ariba Buyer software to enable its employees to directly purchase indirect services and materials for the company's worldwide factories, engineering centers, as well as its global sales and marketing offices using their desktop computers.
  • In 2017, John Deere chose GEP's source-to-pay procurement software to manage the company's "Global Indirect Materials and Services Supply Management organization," as per a report by GEP, which is a significant procurement software provider.
  • As per a report by GEP, source-to-pay (S2P) is the overall end-to-end process involved in procurement. Source-to-pay spans the entire procurement process of an organization, such as spend management, strategic sourcing, vendor management and purchasing, performance management, and accounts payable.
  • The John Deere Supplier Network (JDSN) is John Deere database for the company's strategic sourcing process, which allows prospective suppliers to list their company profiles to stand the chance of benefiting from procurement opportunities.
  • According to the John Deere Supplier Network (JDSN), the company has long-term contracts with significant suppliers and occasionally add new suppliers to its database as their business need evolves.

John Deere's Executives Likely In Charge of Procurement Processes

Research Strategy

To provide the procurement organizational structure and process of John Deere, we started by researching the company's website, press releases, and annual reports. Unfortunately, there was no report by John Deere in the public domain with insights into the company's procurement process or organizational structure. Instead, we located the John Deere Supplier Network (JDSN), which is a database for managing the company's suppliers. Also, we examined John Deere's leadership page with the hope of identifying a hierarchy of executives responsible for procurement. Still, this research did not produce any information revealing the company's employees or management in charge of procurement. However, we found that the company's Senior Vice President, Marc A. Howze, was the top executive responsible for John Deere's supply management, parts services, and logistics. Hence, we took it that this position would have some relation to the company's procurement processes and provided the same in this research.

Next, we proceeded to examine reports on external domains with the hope of identifying info regarding John Deere's procurement organizational structure and processes. This time, we located the organizational chart of John Deere in a report by Creately, but there was info specific to its procurement department. Furthermore, we discovered a report by Supply & Demand Chain Executives in the year 2000, which revealed that John Deere began rolling out e-procurement processes in 2000 to enable its employees to purchase materials and services directly from their desktop computers. Another report we located from this investigation showed that as of 2017, John Deere chose GEP's source-to-pay procurement software platform to manage its "Global Indirect Materials and Services Supply Management organization." Unfortunately, there was info by these reports with insights into the procurement organizational structure or details of the entire procurement process at John Deere. Therefore, based on the 2017 report that John Deere chose GEP source-to-pay procurement software, we researched the details of the source-to-pay procurement software process in search of info revealing the organizational structure that powers it. Still, this research only revealed that the source-to-pay software procurement entailed an organization's entire procurement process, but there was no info in the public domain with insights into the organizational structure that enabled it.

Thus, due to the lack of information showing the procurement organizational structure and process at John Deere, we proceeded to research executives and other employees of John Deere with the hope of identifying those in charge of its procurement department and process. For this, we examined the company's executive profiles on CrunchBase, Bloomberg, and LinkedIn. Again, this investigation produced executives in charge of material sourcing and supply management such as Robert Fixen, Brian Culberson, and Ciara Haenke. The only employee related to procurement found from this investigation was Mike Hiler, who joined the company in 2018 as Manufacturing & Procurement Engineer, according to his profile on LinkedIn. Therefore, we provided details of these executives in this research as the people likely in charge of procurement division and the procurement process at John Deere.

Please, note that the report by Supply & Demand Chain Executives used in this research was in 2000, which is far beyond Wonder's standard 2-year research timeline. However, we included it in this report because it revealed the time when John Deere began started using e-procurement processes and indicated that John Deere had started using e-procurement processes a long time ago in place of a procurement organization or department. Also, the use of GEP's source-to-pay procurement software platform, which John Deere began starting from 2017 that handles an organization's entire procurement process and the John Deere Supplier Network (JDSN) that manages all of its suppliers indicates that employees in charge of procurement likely use GEP procurement software to purchase materials directly from the company's database of suppliers.
Sources
Sources

From Part 02
Quotes
  • "Since 1980, the John Deere supplier diversity program has established and nurtured relationships with diverse suppliers."
  • "To qualify as a diverse supplier, your business must meet a Supplier Diversity Classification as defined by Small Business Association (SBA), National Minority Supplier Development Council (NMSDC), or Women's Business Enterprise National Council (WBENC). Independent third–party certification may be required."
Quotes
  • "Our company has a robust strategic sourcing process. We maintain a short list of preferred suppliers for each of the categories of goods and services we purchase. We have long term contracts in place with our significant suppliers."
  • "After you understand and ensure that your company meets our criteria, you are invited to submit a company profile. Completion of this form does not make you a John Deere supplier, your company profile will be stored in a database that is searchable by John Deere Supply Management as well as other employees as they need to locate potential new suppliers."
  • "There is no process in place for you to contact buyers directly, your company profile will be kept in our database for one year. It is your responsibility to resubmit your profile after that."
Quotes
  • "Deere, which has an annual spend of about $7 billion, will roll out its e-procurement program in stages, beginning with the purchase of indirect materials and services for the companys factories, engineering centers and sales and marketing offices worldwide. Deere employees will use Ariba Buyer to order goods directly from their desktops, and the system will direct the spending to preferred suppliers and B2B marketplaces."
Quotes
  • "GEP has been chosen to supply source-to-pay procurement software to John Deere’s Global Indirect Materials and Services Supply Management organization"
Quotes
  • "In January 2019, Howze assumed additional responsibility for supply management, logistics, and parts services."
Quotes
  • "Leading supply base commodity strategy development and supplier commercial relationships for the Agriculture & Turf division of John Deere."
Quotes
  • "Global sourcing for John Deere Power Systems (Engines & Drivetrain)"
Quotes
  • "Support Division Strategic Sourcing in all aspects of cost-reduction activity, utilizing cost management techniques and tools to give accurate and timely cost evaluations of design cost and supplier pricing in the Enterprise Product Delivery Process (EPDP) and Enterprise Order Fulfillment Process (EOFP) and facilitating/supporting the Value Improvement (VI) and John Deere Crop (JDCROP) processes."
Quotes
  • "Source-to-pay or S2P is the entire end-to-end process involved in procurement. It spans every process, right from spend management, strategic sourcing and vendor management to purchasing, performance management and accounts payable."