Lyvio Frimat, is currently Global Senior Director of Procurement Strategy & Partnership Excellence at Opella (Sanofi CHC) and has built an impressive career at the intersection of business transformation, Operations excellence and strategic procurement. With his extensive experience in developing and leading procurement strategies, Lyvio has been instrumental in driving both operational efficiency and long-term value along his career, and now applying his approach at Opella (Sanofi CHC). In this Executive Insight, he shares his professional journey, his approach to fostering innovation within procurement, and the pivotal role strategic partnerships play in shaping the future of global procurement operations.
What role is digital transformation playing in continuing shaping your procurement operations approach?
Relying on current momentum and role, we are at the edge of a very interesting transformation. Very different from what is used in a Carveout, and if you compare it with our competitors or general industry. Indeed, moving from a pure BioPharma driven way of working to a Product yet consumer-oriented company, is not an easy shift; however, a vital necessity to succeed. Talking about, unlocking opportunities to accelerate time to market through Off-the-shelf solutions, further reinforcing strategic partnerships, bringing innovations and disruptive solutions to the table.
Based on my experience in business transformations, driving Procurement Maturity and Operations fit-for-business acceleration, digital plays a pivotal role as an “enabler.” Compared to four or five years ago (pre-Covid), we’ve quickly moved away from the “issue-fixing” mindset, where we were desperately trying to answer the question, “What is the available solution to fulfil my needs as a function?” Now, it’s more about asking, “What are the available technologies supporting multiple aspects of business acceleration whilst addressing my challenges?”
The line between these two concepts (Business before Technic) is thin, but it certainly makes a clear difference when transitioning into selection and execution mode. In a fast-paced, technology-driven world (which is still to stabilise, at least for the next five years), it’s critical for FMCG/FMCH companies to be able to move quickly, remain highly flexible, and enable testing and learning through internal ecosystems. We must also be ready to quickly adapt as technologies and solutions evolve.
This requires agility, coupled with strong engagement with the external world and a clear shift in mindset internally. This is the “cost” today in finding the right fit and significantly reducing potential pitfalls.
Our teams are increasingly composed of Gen Z profiles, who are accustomed to this “swiping” exercise – it’s in their DNA. As a Gen Y myself, I can see how easy this shift is for them and how quickly and effectively they can try, learn, fail, reassess, and ultimately succeed at low costs. Always keep in mind: the solution of today is already obsolete tomorrow.
How do you generally assess the return on investment (ROI) for digital procurement tools?
When it comes to ROI, I generally assess it across two dimensions: Tangible and Non-Tangible. Tangible ROI focuses on effective cost savings, such as the average cost of people versus the time spent on tasks, compared with the considered investment and solution lifetime. These are basic financial ratios that are easily reportable. Non-Tangible ROI refers to the effectiveness factor that can’t be measured as clearly in terms of cost savings, but still demonstrates significant changes in the user experience (UX) journey and day-to-day management. It also includes operational effectiveness (Make or Buy, Buy or Digitalise…) by measuring process lifecycles, frictions versus satisfaction. Moreover, and in line with my previous statement, these metrics should not focus solely on the procurement function but also be fully related to other business areas. At the end of the day, regardless of the ROI, it should benefit everyone as well as business ambitions!
What technologies have had the biggest impact on streamlining procurement processes?
AI-based technologies have been the most impactful in the procurement arena, particularly since post-Covid, and similarly across all business functions. In the context of procurement, there is a clear trend of major organisations of repositioning the former “Support” function as a “Strategic Co-creation Power Engine.”
The old approach of firefighting and problem-fixing is no longer the norm. Focus has shifted to delivering instant access to data for fast, forward-looking business decision-making alongside a seamless user experience (UX). This shift fosters a higher level of collaboration and connections with all internal stakeholders, providing increased ways of communicating and exchanging ideas.
The emphasis is now on moving the needle from savings delivery (bottom-line) to Total Value Contribution (TVC), still including bottom-line yet extending to impacting top-line, sound innovation, outside-in strategies, value creation, and design-to-cost principles.
Finding the right (not necessarily the best) technologies, automating, and supporting processes help to energise teams and their day-to-day work. It enables them to further focus on “what matters” — such as offering a one-stop-shop entry point to internal stakeholders and external partners, fostering cross-collaboration and co-creation with the business, accelerating decision-making, building strategy and partnerships, ensuring closer follow-up on execution, and planning more impactful corrective actions.
How do you approach the challenge of integrating new technologies with heritage systems?
In my current role, we are in the process of strengthening in building our own legacy since carving out from Sanofi. As such, and in my opinion, we are already very mature, yet still in the learning curve of how to best navigate latest aspects our transformation amid this major transition.
From my perspective, based on what I have seen and experienced in the past 10 years during large transformations, change never happens all at once (basic). It lately triggers high levels of change management engagements, agility, and the ability to move at a fast pace.
However, the approach to managing heritage systems has evolved significantly. Traditionally, these were long-term projects with complex interdependencies and risks, typically assessed through large tenders.
What has changed today is the landscape of solutions that enable quick and efficient synchronisation, connectivity across various disparate systems, and full transparency with agility in integration, divestiture, and reintegration, in creating your own Legacy.
I call it the “Lego-Play” model. It addresses business needs in a fast-paced environment and targets a “Good-to-Go” approach (including testing, failure, learning, and improvement). This generally leads to a better “Fit-for-Need” in the mid-to-long term, rather than the endless quest for a perfect fit at all costs.
For this approach to work, it requires a clear shift in the way we think about digital enablement, technology, and both business and personal resilience. Gen Z is particularly adept at this, as they are 100% digital natives.
Aiming for perfection from the very beginning, in today’s world, seems utopian and unrealistic. It is not aligned with the pace of business and the need to deliver timely ambitions. Compared to 3-5 years ago, obsolescence can start even before the needs are expressed and challenges identified (demand planning), which calls for much more anticipation and self-reflection.
How have you fostered a culture of innovation within your procurement team?
As a strategic co-pilot, Procurement acts as a catalyst for innovative and disruptive ideas and concepts that will benefit the business. By nature, and because it’s part of our DNA, we are more exposed to both macro and micro business and environmental changes, such as geopolitical shifts, societal risks, and innovations. Whether through our constant connections to the external world or discussions with key partners across various sectors, this increased visibility must be leveraged for the greater benefit of the organisation.
We are moving away from the traditional “support function/firefighting” role and using technology enablement is essential to redirect our focus toward what is meaningful and impactful.
This requires significant people engagement, operating model revisions, and the reassignment of tasks. Change is not solely reliant on people’s willingness to adapt; it’s about clearly defining the purpose (Why), deploying the right resources (How), pinpointing the level of severity (Watchouts), and guiding the team on who is responsible (Who). The timing must be driven by business transformation constraints.
Success highly depends on these key factors. If they are missed, the transformation will take longer, and the cultural shift will also take longer to implement. People need to understand the benefits of the shift, not only for the business but also for themselves as individuals contributing to the vision and solving the challenges ahead.
It’s all about constant communication, clarity, and transparency!
