Guest: Sylvain Thiboutot, Associate Consultant (BT Consulting Management)
Written by: Claudine Fyfe, President of Fynlam

When Sylvain Thiboutot joined Fives Group, an international industrial company, he encountered a fragmented organization where each site operated with its own methods. He implemented several key actions to improve procurement management in a multisite context, including:

• Identifying stakeholders: “Knowing who does what, where, and how” requires a thorough analysis of each site’s processes, along with identifying potential synergies and commonalities to maximize efficiency.
• Organizational strategy: Following this evaluation, an organizational strategy is defined—centralized, decentralized, or hybrid. At Fives Group, this process led to a strategic grouping of products, creating product families and fostering partnerships with specific suppliers.

The Importance of Allies Within the Organization

Procurement management in a multisite environment requires building strong relationships with allies within the organization to overcome challenges in unifying site activities. Key challenges include:

• Adopting a unified strategy: Developing a multisite approach that respects the uniqueness of each site while maintaining a unified vision.
• Promoting shared interests: Encouraging inter-site collaboration to maximize collective efficiency while valuing each site’s strengths.

Synergy: The Core of Multisite Management

Whether through acquisitions of existing companies or the addition of new operational sites—both recognized growth drivers—synergy is at the heart of effective multisite management. Synergy is gradually built through consolidation and centralization efforts.

Consolidation involves grouping purchasing volumes, harmonizing supplier relationships, contractual terms, and purchasing processes. Standardizing products and centralizing data are crucial for achieving full visibility across all sites.

While the strategy may be centralized, each site retains operational autonomy for certain aspects, such as order placement and supplier follow-ups. Sites can also propose local solutions while keeping the collective objective in focus.

Success Factors for Multisite Management

Certain key conditions are essential for success in a multisite environment. These include:

• Proximity and communication: Building strong connections with teams to maintain their motivation and foster a sense of belonging.
• Strategic vision: Maintaining an overarching perspective while allowing local teams to manage daily operations.
• Adaptability: Tailoring strategies to each site’s resources and providing the necessary tools for success.

Recommendations for a New Multisite Manager

To succeed as a new multisite manager, Sylvain Thiboutot recommends first getting to know the resources, including team strengths and weaknesses, as well as product needs and specifications.

Strategic planning is also essential—developing a clear action plan and assigning responsibilities strategically to maximize efficiency.

Conducting thorough cost analyses is critical, distinguishing between unit price and total acquisition cost.

Finally, surrounding yourself with the right people and building a solid network of contacts is vital.

Key Success Factors

In conclusion, here are the key factors for successful multisite management:

• Building strong relationships with suppliers: Establishing long-term, mutually beneficial partnerships.
• Carefully selecting products and suppliers: Choosing those that best meet the company’s needs and objectives.
• Ensuring rigorous follow-ups: Implementing diligent monitoring, especially during project launches, with the patience needed to ensure success.

Personal notes
I met Sylvain many years ago when he worked as Procurement Director for the French group FIVES, a major industrial equipment manufacturer facing numerous exciting challenges. At that time, he expressed his desire to start his own business and leverage his experience to support companies. He made that vision a reality, and we’ve stayed in touch ever since.

Given the wealth of information he shared during our preparatory discussions, we decided to divide the content into two parts: procurement in Mexico (french version only) and procurement in a multisite context (french version only). Don’t miss these two highly relevant episodes!