It was a pleasure to welcome Michel Darrieus as part of our conference dedicated to the Procurement function in large international companies. This event provided an opportunity to explore the strategic and operational dimensions of procurement, as well as its impact on performance and value creation within an organization.
The session began with a pitch presented by students, summarizing key initiatives aimed at improving the performance of the procurement function. Their presentation highlighted its strategic role and its ability to create value for a company. This introduction set the stage for Michel Darrieus’s detailed presentation, based on his 41 years of experience at Air Liquide, a global leader in industrial and medical gases.
Michel Darrieus first introduced the procurement function at Air Liquide, a company operating across diverse sectors such as steel, chemicals, electronics, and healthcare. He emphasized the importance of Procurement, which accounts for an average of 70% of basic costs in the European industry (excluding salaries and investments). This function extends far beyond transactional activities, such as placing orders or paying suppliers. It plays a key role in cost optimization and supply reliability, directly contributing to the overall performance of the company.
He went on to describe the organization of procurement at Air Liquide, focusing on category management, which concentrates resources on strategic segments identified through spend analysis. By mastering data and processes, Air Liquide ensures effective and sustainable sourcing. Key Procurement KPIs include transactional efficiency, cost savings (ECCO), and supplier relationship and risk management (SRM).
A particularly striking part of his presentation was his discussion on supplier risk management, which encompasses seven dimensions, including cybersecurity, sustainability, and business continuity. Michel Darrieus illustrated these challenges with real-life anecdotes, such as issues with counterfeit deliveries or security incidents caused by poor subcontractor qualifications. These examples highlighted the potential consequences of negligence within this value chain.
Finally, Michel Darrieus addressed Air Liquide's CSR commitments through its procurement function. The company aims for carbon neutrality by 2035 and is actively working to reduce its environmental footprint by limiting transportation and signing Power Purchase Agreements (PPAs) for greener energy production. Air Liquide also strives to improve access to medical oxygen and enhance patients' quality of life while fostering trust-based partnerships with its stakeholders.
We extend our heartfelt thanks to Michel Darrieus for his insightful presentation on the Procurement function and its strategic role within a company like Air Liquide.
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