MICHAEL M. HOGAN 7507 Fairmeadow Trail Sachse, TX 75048 Cell: 214-457-0965 [email protected]
PROFILE: STRATEGIC SOURCING EXECUTIVE Value Proposition
Leveraging 20 years of procurement experience to create strategies that deliver long-term productivity, develop supplier capabilities, and manage commodity headwinds. Dedicated to building talent with a strong foundation in strategy development, Total Cost of Ownership (TCO), commodity risk management, and supplier relationship management. Personal leadership philosophy based on integrity, respect, and transparency. Delivering results enabled by strong cross-functional alliances with Operations, R&D, Finance, Human Resources, and Marketing.
Equally committed to identifying sustainable packaging solutions and creating partnerships that enable supply chain development of environmentally friendly materials. This includes working within categories to create consortiums and partnerships to shorten the development timeline of sustainable materials.
CORE COMPETENCIES INCLUDE: Procurement & Purchasing Governance Strategic Sourcing Planning & Leadership Sourcing Policy Development Process Improvement Cost Reduction Commodity Risk Management Mentoring & Development Developing Localization Strategies International Supplier Management P&L Restructuring Team Leadership & Motivation
EXPERIENCE & ACHIEVEMENTS
PEPSICO, INC., Plano, TX 2001 - Present Advanced through positions of increased accountability for procurement and supply chain functions based on consistently exceeding goals and expectations. Sr. Director Global Snack Films & Innovation Packaging – PepsiCo Global Procurement August 2017 – Present Responsible for global portfolio with a $2B spend for Frito-Lay Snacks (globally), Quaker Oatmeal, Nutrition, and Dry Cereal brands, spanning packaging formats in pillow pouch, cups, trays, spiral wound canisters, and innovation platforms for 100% of PepsiCo’s Snacks and Foods businesses globally. Managing a global team comprised of 48 associates based in the U.S., Europe, Thailand, India, China, Brazil, Chile, Mexico, Guatemala, Australia, Vietnam, and Pakistan. Responsible for developing the strategy that supports PepsiCo’s Global Snacks Groups and Sector Marketing platforms related to Global Brands (i.e., Lay’s, Doritos, Cheetos, Sunchips) as well as developing supplier relationships and sourcing solutions to drive quality, brand equity, and value for locally managed Brands (i.e., Kurkure, Toddy, Gamesa). Led global team in reducing year-over-year spend by $192MM (productivity) in flexible film and rigid food packaging spend from 2013 – 2018, combination of rate reductions through supplier negotiations and value engineering in partnership with PepsiCo Global R&D and Operations. Role includes the creation of the PepsiCo Winning with Purpose (WWP) Sustainability Goals related driving a reduction in Greenhouse Gases related to PepsiCo packaging products by 2030 globally. The foundation of the strategy will be driven by working cross-functionally with Global R&D, Marketing, and Operations to identify and develop technologies related to enable PepsiCo packaging to be industrial compostable, recyclable, or made from renewable materials to reduce liter. Developing supplier partnerships to progress this MICHAEL M. HOGAN Cell: 214-457-0965 [email protected] Page Two Experience Continued...
goal while maintaining economics of packaging, at a Sector level, leveraging advancements in plant-based film materials, recyclable materials, and working with the PepsiCo Government Affairs team to expand the acceptance of existing PepsiCo packaging materials within the recycle industries that exist today globally. Developing global supply chains that allow conversion of PepsiCo’s global snack films packaging needs to recyclable, compostable, or bio-degradable materials beginning in 2025. This body of work includes creating partnerships with key global suppliers to greenfield facilities capable of processing PLA, PHA, and/or recycle ready packaging materials. Developing financial framework to define technology licenses for patented sustainable film options, in partnership with Global R&D, PepsiCo Legal, and Treasury. Created global arbitrage program for base film creating competitive tension for Frito-Lay North America (PepsiCo’s largest snack food division) and reducing costs by ~$20MM over 4-yrs. Leveraging excess capacity globally and importing film into the US from Oman, Peru, Mexico, and Colombia. Introducing imports put more pressure on domestic incumbents resulting in significant rate reductions on snack film packaging for Frito-Lay North America.
Sr. Director Global Core Materials – PepsiCo Global Procurement February 2012 – Present In charge of global portfolio with a $1.3B spend in base film, cups, bowls, trays, and spiral wound canisters for foods and snacks leveraging polymer extrusion, thermoforming, and blow molding technologies (i.e., Stax, Dipetizers, Quaker cups), and paper innovation initiatives, such as the bi- furcation of paper production at the mill level from conversion to corrugate for PepsiCo’s Global Procurement team for global snack food packaging requirements. Spend is composed of commodity related spend of roughly $800M and compressible spend (non-commodity driven) of $500M. Accountable for creating and instituting strategies used to develop supplier relationships and manage commodity related risks for all business units. Direct team of 15 with 5 in U.S. and 10 throughout business units in Europe, Dubai, Thailand, India, China, Brazil, and Mexico. Achieved savings of $135M over 5 years, 2012-2016, representing 22% reduction in compressible spend by managing consecutive RFP’s and reverse auctions against PepsiCo spend on PP and PE base films for snack food packaging and beverage labels globally; additionally reduced global supplier base for packaging materials from 47 to 12 and moved ownership of decisions to the company thus creating ability to leverage 100% of global spend to drive cost savings and spur innovation of multi-national and regional suppliers. Created and launched North American risk management program that locks in fixed prices for polypropylene commodities to avoid price increases due to inflation; created financial instruments through collaboration with Goldman Sachs, JPMorgan Chase & Co., and Cargill’s internal risk management team utilizing financial swaps to stabilize pricing for North America packaging requirements. Founding member of PepsiCo Commodity Risk Management Committee created in 2013 to develop governance guidelines or playbooks outlining process by which Procurement teams could take coverage to mitigate market volatility. Governance guidelines created in collaboration with Treasury, Finance, and PepsiCo 3rd party auditor to ensure the appropriate due diligence related to financial analyses, risk profiles, historical market behaviors, and coverage levels were incorporated into each Commodity Playbook.
MICHAEL M. HOGAN Cell: 214-457-0965 [email protected] Page Three Experience Continued...
Member of PepsiCo Global Sustainability implementation team charged with building global supply chain and raw material economic models for bio-degradable and compostable materials to support PepsiCo’s 2016 Performance with Purpose Goals to reduce Greenhouse Gas Emissions related to PepsiCo snack and food packaging requirements by 2030. Led global initiative, starting in 2013 thru end of year 2015, to increase the percentage of packaging costs priced in local currency in Mexico, Colombia, Brazil, Egypt, and India to minimize FX impact on total packaging costs.
PEPSICO, INC., Plano, TX – Director, North America Base Film, Resin, & Rigid Packaging • 2008 – 2012 Set strategy for $200M PepsiCo Foods North America base film and rigid packaging (including aluminum cans, glass jars, and lids) for all PepsiCo food’s packaging spend. Developed risk management tools with N.A.-based financial institutions to offset inflationary pressures. Directed team of 3 accountable for contract negotiations for Quaker Foods packaging and PepsiCo-Canada base film requirements. Drove productivity rise and innovation in supplier management. Collaborated with Frito-Lay R&D organization to develop new base film suppliers to create a competitive landscape in North America for packaging film.
PEPSICO, INC., Plano, TX – Group Manager Frito-Lay, Inc. Supply Chain 2005 – 2007 Directed team of 10 Supply Chain Managers whose responsibilities included deployment of seasoning, packaging, and agricultural ingredients (potatoes and corn) for all North America and Canada based Frito-Lay manufacturing sites. Team served as liaison between Marketing, Operations, and Strategic Sourcing teams to manage the packaging changes, inventory levels, and seasoning requirements for all on-shelf promotions. Partnered with Strategic Sourcing Group in contract negotiations and supplier management and tracking of financial metrics such as supplier run-speeds, equipment utilization, capacity management, supplier defects, recalls, days in inventory (DII), and quality. Saved $6M in 2006 over 2005 from $12.3M to $7.46M by spearheading initiative to eliminate slow-moving skus across product portfolio; collaborated with packaging and seasoning suppliers.
PEPSICO, INC., Plano, TX – Sr. Purchasing Specialist and Price Variance Analyst 2003 – 2005
In charge of $160M spend for rigid packaging procurement for Frito-Lay Party Bowl for Dips, Stax and Go Snacks, as well as Quaker oatmeal pouches and cereals (Life and Captain Crunch). Managed supplier development and contract negotiations. Collaborated with R&D to develop and launch the Frito-Lay Stax product line; developed 3- year amortization schedule for the supplier investment in a greenfield site in Mexicali, Mexico and commissioning of blow molding equipment. Directed Frito-Lay North America price variance account which included tracking by-period variance for polypropylene, polyethylene, and PET packaging (films, thermoformed, and blow molded formats) versus plan; worked with Controls Group and Cost Accounting to minimize impact of variance on the Frito-Lay North America P&L.
PEPSICO, INC., Plano, TX - Purchasing Specialist – Corrugated and Paperboard 2001 - 2003
MICHAEL M. HOGAN Cell: 214-457-0965 [email protected] Page Four Experience Continued...
Accountable for $80M spend for Frito-Lay’s corrugated and folding carton purchases. Directed 2 staff and 6 suppliers. Generated $7M YOY in savings beginning in 2002 through partnership with Frito-Lay R&D and suppliers in developing new technology that enabled reuse of returnable cartons 4 to 6 times before becoming unusable.
Career Note: Details of early career success are available on request during an interview and include: ASHLAND CHEMICAL COMPANY, Columbus, OH – Process Engineer – Electronic Chemicals Division
EDUCATION
Doctor of Philosophy, Business Administration, School of Business & Technology, Capella University Master of Business Administration, Satish & Yasmin Gupta School of Business, University of Dallas Master of Science, Chemical Engineering emphasis Mathematical Modelling, Purdue University Bachelor of Science, Chemical Engineering, Prairie View A&M University
Completed the following Executive Education Courses: Leading Strategic Decision Making (2019), University of Texas - Austin Negotiation Skills for Managers (2017), Owen Graduate School of Management, Vanderbilt University Leading Change (2016), Owen Graduate School of Management, Vanderbilt University