SSG Introduction


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SSG Introduction

  1. 1. Introduction to SpendSmart Group
  2. 2. Agenda  About SpendSmart Group  Purchasing Options  What We Offer You  Becoming a Member 2 2009 © | proprietary & confidential
  3. 3. About SpendSmart Group Founded December 2008 Small Cap ($1b revenue and under) clientele Commodity sourcing experience Fortune 100 spend management experience Financially stable 3 2009 © | proprietary & confidential
  4. 4. Traditional Purchasing  Lack of automation (manual purchasing being done)  Can’t justify cost vs. benefit of implementing an eProcurement system  Most indirect spend categories go un-sourced  Focus is on most important direct materials categories • Low-hanging fruit • Constrained by lack of resources • Indirect may not be a core competency 4 2009 © | proprietary & confidential
  5. 5. What We Do  SpendSmart Group hosts a community of manufacturers that leverage their indirect material sourcing spend while harnessing the power of procurement technology. • Multiple Supply • Requisition, Approval, Categories and Accounting Efficiencies 5 2009 © | proprietary & confidential
  6. 6. Value Proposition  Sourced / negotiated supplier contracts  Purchase authorization workflow  Electronic Req to P.O. automation  Accurate, updated catalog and buying portal  Leveraged Member’s category spend  Savings in categories range from 5% - 56% 6 2009 © | proprietary & confidential
  7. 7. How SpendSmart Group Works Members SpendSmart Group Suppliers Offers  Sourced / Negotiated supplier catalogs  Purchase authorization workflow  Electronic Req to P.O. authorization  Accurate, updated contract pricing By combining purchasing forces, and eCatalog members drive greater savings 1 Members place their order on 2 The SpendSmart Group system 3 Supplier fulfills the order, sends directly to members. All suppliers; one expedites your order to relative send invoices to SpendSmart. purchase order is processed. suppliers for fulfillment SpendSmart sends you ONE invoice for all purchases 7 2009 © | proprietary & confidential
  8. 8. Categories Offered Profile boxes/enclosures, conduit, data communications, fittings/fasteners, fuses, lamps/ballasts, lighting, motors, maintenance items, signals, tools/test equipment, wire, wiring devices Bathroom supplies, cleaning agents, chemicals, cleaning items, facility maintenance, odor control, mops/brooms/brushes/dust pans, paper towels, waste receptacles/trash can liners Indirect materials account for: bearings, power transmission, material handling, linear motion, fluid power, accessories: batteries, castors, shims, steel balls, trolley wheels, wearing compounds, abrasives, welding and sheet-metal supplies $ 380,000* of annual spend for a small firm office supplies, binders, desk/wall accessories, filing & storage, ink, toner cartridges, labels, label makers, pens & accessories $ 1,400,000* for a medium size manufacturer __________ bags, corrugated boxes, film, interior packaging, mailers, packing list envelopes, pallet protection, strap, tape 20% * savings lost on average due to uncontrolled spending eye protection, ergonomics, head/face protection, fall protection, hearing protection, respiratory protection, hand protection, emergency response, protective clothing, footwear, facilities maintenance Laptops , Tablets, Desktops, Workstations, Servers, Storage, Networking , Printers, Ink and Toner, Electronics, Software & Accessories, Services, Solutions Office equipment & furniture: workstations, training tables, easels, seating, carts, notebook carts, security products, projection screens, mounts *Havens & Company 8 2009 © | proprietary & confidential
  9. 9. Differentiation / Advantages How Are Companies Buying Now? Typical Client Process Grainger- type Integrators • One vendor site • Provide labor on site  One site for multiple 1. Surf multiple sites vendors • Carry high inventory • Provide inventory control 2. Call vendor • Robust web site ordering  Robust ordering catalog 3. Create 1 requisition per • Provide substitutions of OEM parts (B2C buying experience) • Great distribution vendor • Can not carry all needs • Source only from parent  No inventory or labor 4. Get Requisition approved company • High overhead = High prices  Utilize strengths of 5. Maybe get 3 quotes • Exacerbates problem • Cost plus+ model suppliers stock and 6. Accept Price and send PO distribution  Low overhead  Sourced and leveraged volume for best pricing  Purchasing/sourcing consultation  System efficiencies and B2B controls = No procurement = Expensive = Even more expensive = Spend smarter 9 efficiencies 2009 © | proprietary & confidential
  10. 10. Benefits Continued… Member Services Online Chat, 800#, On-Demand Tutorials, FAQ’s Suppliers Top-Tier Suppliers in each category Web-Based Buying Portal No software to purchase, web portal accessible from anywhere in the US Increased Bottom Line Have your purchasing team focus on more important strategic initiatives Avoid Software Expenses SpendSmart Group continuous improvements and upgrades are FREE and available real-time Improve Controls and Your indirect spend is now controlled with SpendSmart Group’s Reliability workflow system, giving management the ability to understand indirect materials spend Request Additional SpendSmart Sourcing Team is continually adding new categories, Categories submit your request at any time 10 2009 © | proprietary & confidential
  11. 11. How fast can I see an ROI? Case Study Client Leading US based organic food manufacturer Description Situation • Decentralized purchasing • No strategic sourcing done on indirect items • Req-to-check was done via manual entry • No spend visibility by line item including what, quantity, and how much paid • Cost centers applied to invoices manually • Multiple checks being cut for multiple suppliers Solution • SSG conducted an apples-to-apples comparison on products for cost savings analysis • SSG provided crib crawl comparison for substitutions of commercially equivalent products • Provided reports to management for cost savings opportunities • Provided inventory and preventive maintenance suggestions for purchasing improvements • Provided additional catalog sourcing categories specific to client’s needs Results • Accurate catalog pricing for items that they purchase, with savings • New workflow tool that exposes plant managers to spending approvals • Cost centers applied to invoices for better accounting efficiencies along with reduction of check writing • Tax savings • Yearly subscription fee was paid back with first order placed • Savings in categories ranges from 5% - 56% 11 2009 © | proprietary & confidential
  12. 12. 3 Easy Steps to Join Step 1 Step 2 Step 3  Member supplies a  SpendSmart Team  Member setup: the “market basket” of will then provide a SpendSmart Team typical indirect Cost Analysis will designate buyer items, about 10-15 Report showing log-ins, input cost of your re- you how much you centers, and set-up occurring items for can save for each your requested each sub-category sub-category of authorization spend approval tree 12 2009 © | proprietary & confidential
  13. 13. To Join: (office) 866-944-9553 x: 705 (cell) 773-818-7875 13 2009 © | proprietary & confidential