Lennox International (LII)

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Director, Sourcing

at Lennox International (LII)

Posted: 4/21/2019
Job Reference #: 18888
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Job Description

  • Job LocationsUS-TX-Richardson
    Requisition #
    2019-18888
    Category
    Logistics / Supply Chain / Distribution
    Shift / Hours
    Regular
  • Company Overview

    Lennox International (LII) is a leading global provider of innovative climate control solutions for heating, ventilation, air conditioning, and refrigeration (HVACR) markets.

    Beginning over a century ago, Lennox International has built a strong heritage of Innovation and Responsibility. Our position as an innovation leader continually inspires us to promote more efficient energy use and a healthier environment through our product operations. Our engaged and diverse workforce is committed to providing climate control solutions that provide the most value and comfort for our customers.

    We are proud to have instilled a shared sense of responsibility and commitment among our approximately 10,000 employees located throughout North America, South America, Europe, Asia, and Australia.

    Job Description

    Leads purchasing and supply chain management activities for the Commercial HVAC Business Segment with identifying year-over-year price reductions and productivity improvements while maintaining or improving product quality and vendor service levels. Works closely with key stakeholders in Commercial HVAC Business Segment and in World Wide Supply Chain Organization to develop effective cost reduction strategies and implementation plans. This position will be responsible for delivering demonstrated 3-5% Total Cost of Ownership (TCO) reductions to a $700M Annual Revenue business that primarily services HVAC Markets in North America and Latin America. The position will report directly to the Vice President World Wide Supply Chain with dotted line to the LII Commercial Business Segment President.

    Responsibilities

    • The Business Segment Sourcing leader’s primary responsibility is to champion and secure TCO reductions across all commodities delivering demonstrated P&L impact for his/her assigned business segment. As process leader responsible for all business segment material cost reduction and freight cost reduction projects, the Sourcing Leader has the following specific responsibilities.
    • Owns/develops MGSP (Multi-Generation Sourcing Plan) roadmap by working with Operations, Product Development, and commodity managers to drive a multi-year approach to material cost reduction. This roadmap will provide prioritization of key projects within business units.
    • Ensures that the business is not sole sourced on any part. Works with the component managers to ensure that businesses have development partners and value suppliers. Works with Strategic Sourcing Managers to determine optimal volume levels between dual sourced partners to get lower cost from value supplier while leaving enough business with development partners to keep components on leading edge of technology.
    • Responsible for delivering LII sourcing team projects timelines and appropriately scheduling with each local/regional sourcing team. Develop process and consistent template for all projects working with local/regional business unit teams on a weekly basis to track savings progress
    • Manage all material alerts for the business units proactively communicating issues to LII Executive Leadership team and working with commodity managers to mitigate issues before they disrupt Business Unit operations.
    • Represents World Wide Supply Chain on the Commercial Leadership Team participating in monthly meetings. Represents Business Segment on LII World Wide Supply Chain staff as single point of contact for the Business Segment.
    • Drives annual productivity improvements in each spend category. Working within and external to Lennox, develop, champion, and ensure implementation of ideas that will optimize Lennox’s total cost of ownership for spend categories (material and freight) under supply chain’s responsibility
    • Owns final master financial reporting of business segment material cost reduction initiatives
    • Uphold internal and external policies, regulations and laws. Maintain a working knowledge of applicable federal, state and local laws and regulations as well as any internal policies (e.g. code of ethics) or procedures to ensure that the behavior exhibited by the organization is honest, ethical and professional

    Key organizational relationships

    • The success of the Leader of Business Unit Sourcing will be dictated largely by the effectiveness of his/her relationship with the following:
    • The Vice President of World Wide Supply Chain must provide senior management counsel and guidance for all strategic sourcing activities (corporate and business unit), ensure sourcing objectives are consistent with overall Lennox objectives and follow best practices observed both within Lennox and the industry
    • The Director of Product Development must provide senior management counsel and guidance for the MGSP (Multi-Generational Sourcing Plan), ensure sourcing objectives are consistent with the World Wide Refrigeration Product Development plan and consistent with World Wide Supplier strategies
    • The Business Segment President, Business Unit GMs, Vice President of Finance, and Stuttgart Plant Manager must work closely with the Leader of Business Segment Sourcing to jointly develop and execute sourcing strategies for the commodities. The Sourcing Leader must engage key business unit stakeholders to jointly achieve total cost, service, and quality improvements on an on-going basis.
    • Component, Commodity, Indirect, and Strategic Sourcing Analytics Directors must have input into the development of sourcing and freight priorities for the business segment. Supply Chain leadership will provide guidance to the Leader of Business Segment Sourcing based on their interface with the Commercial senior leadership team, and identify/secure required business segment resources in executing material cost reduction and freight cost reduction strategies.
    • Strategic Sourcing Managers and the Lennox Asia Sourcing and Engineering Center (LASEC) report to and work closely with the Commercial Leader of World Wide Sourcing in the development of sourcing strategies, performance management, supplier forecasting, and systems/process implementation.

    Success criteria

    • The Leader World Wide Sourcing is successful 18 month from now ifSourcing efforts in 2019 will have been completed with clear evidence of savings captured (~$5.7M in MCR and no more than $2.3M in total tariff impact to P&L)
    • Sourcing agreements, internal performance measures, and objectives will have been defined and agreed to; all local/regional business unit sourcing managers will be able to measure overall performance along dimensions of total landed cost, quality and service for those spend categories that have undergone a strategic sourcing review/Roadmaps
    • Multi Generational Sourcing Plan firmly established within Commercial and connected to the Commercial Product Development Roadmap
    • The working relationship between Lennox World Wide Sourcing and Commercial will be established and clear
    • The Leader of Commercial Sourcing is successful 3 Years from now if the MGSP has yielded >$15M of savings
    • All WW sourcing components and commodities will have undergone at least one wave of cost reduction
    • There is no component/commodity that is sole sourced within Commercial or isn’t being addressed by the BU with a strategic plan in place.
    • Sourcing will be actively involved in the product development process for strategic sourcing categories, and will have demonstrated clear and meaningful impact
    • Material Cost Reduction and Freight Cost Reduction performance internal metrics and supporting data collection processes will be in place, actively monitored, and viewed as credible and accurate
    • Suppliers will be actively managed and developed through the use of a material alert and common scorecard process

    Leadership Characteristics

    • Making Complex Decisions - can solve even the toughest and most complex of problems; great at gleaning meaning from whatever data is available; is a quick study of the new and different; adds personal wisdom and experience to come to the best conclusion and solution, given the situation; uses multiple problem-solving tools and techniques.
    • Getting Organized - Is well organized, resourceful, and planful; effective and efficient at marshalling multiple resources to get things done; lays out tasks in sufficient detail to mark the trail; is able to get things done with less and in less time; can work on multiple tasks at once without losing track; foresees and plans around obstacles.
    • Managing Work Processes - Is an effective process, work flow, and systems designer; is good at figuring out what to measure to track progress; sets up systems that can almost manage themselves; is a master at the effectiveness and efficiency of work systems; can quickly diagnose and fix a work flow problem; always looking for incremental process improvement.
    • Focusing on Action and Outcomes - Attacks everything with drive and energy with an eye on the bottom line; not afraid to initiate action before all the facts are known; drives to finish everything he/she starts.
    • Relating Skills - Warm, friendly, and interpersonally agile; easy to approach and talk to; relates well to all kinds of people; makes a pleasant first impression and builds solid relationships.
    • Managing Diverse Relationships - Relates well to a wide variety of diverse styles, types, and classes; open to differences; effective up, down, sideways, inside, and outside; builds diverse networks; quick to find common ground; treats differences fairly and equitably; treats everyone as a preferred customer.
    • Collaborative problem solving style – Earns buy-in to the material cost reduction strategy while also understanding and tailoring the strategy to the needs of the Commercial Business Segment. Clearly understands the Commercial product roadmap and is able to proactively engage the right Sourcing resources at the right time. Is able to effectively communicate the priorities of the Commercial Business Segment to the WWSC (and vice versa) in such a way that fosters a strong working relationship between the WWSC and the Commercial Business Segment while over delivering business objectives.

    Qualifications

    Professional

    • BA required with MBA preferred; other graduate degree potentially acceptable
    • Successful, 5+ year track record in a within fortune 500 organizations - Commercial HVAC experience preferred
    • Lean and Six Sigma trained
    • Previous experience with/insights to new product introductions and stage gate processes
    • Potential future Component or Commodity Sourcing Director, Product Management Director (Commercial or Residential)

    Technical

    • Strategic ability to develop high impact Multi Generation Sourcing Plan. Exhibits thought leadership
    • Solid analytical and process management skills. Able to define and understand the most critical issues
    • Strong negotiating skills. Thorough understanding of sales/marketing practices
    • Ability to develop actionable recommendations and implementation plans
    • Excellent communication skills (written and verbal)
    • Strong people and management skills – with emphasis on people development

    Behavioral

    • World class project management skills. Continuously, but constructively, demanding of team performance
    • Outstanding cross-functional leadership skills; viewed as credible by business unit/functional leaders
    • Willingness to “constructively dissent” and challenge senior management thinking on key purchasing issues
    • Visionary leader with a global business perspective
    • Able to get buy-in and commitment from both internal and external stakeholders
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