Freebenchmarking presentation

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Freebenchmarking presentation

  1. 1. A revolutionary pricebenchmarking servicefor the electronicsindustry “A tool like Freebenchmarking.com is what purchasing professionals dream about” - Commodity Manager, Leading OEM CONFIDENTIAL
  2. 2. What is Freebenchmarking.com? A revolutionary electronic component price benchmarking service – enabling millions of dollars in savings for many of the world’s leading electronics companies Component cost analysis unavailable from any other source in the industry The only benchmarking report that delivers part-specific cost analysis for your entire component spend A full range of commodities can be captured in the analysis The ideal supplier negotiation tool that delivers real bottom line savings with actionable target pricingCONFIDENTIAL 2
  3. 3. Why Freebenchmarking.com? The recognized global leader in component cost analysis The world’s largest independent database of electronic component pricing Supporting many of the largest OEM and EMS companies in the industry  No more guessing if your component pricing is competitive  Fast turnaround on reports – usually 5-7 business days  Industry-leading ROI for component price benchmarking dataCONFIDENTIAL 3
  4. 4. Lytica Inc. Overview Lytica Inc. is the developer of Freebenchmarking.com We are a leading supply chain services and consulting company focused on electronic component cost reduction Based in Ottawa, Canada Founded by seasoned electronics industry executives We serve a wide range of OEM and EMS customers worldwideCONFIDENTIAL 4
  5. 5. Lytica’s Five Key Differentiators Freebenchmarking.com - The global leader in electronic component cost analysis. - The world’s largest independent database of current component pricing. Advanced Component Engineering - Alternate component sourcing and qualification - End-of-life identification and recommendations - Component database management and restructuring - Component and mechanical design optimization - Device failure analysis Proven Cost Reduction Methodologies - Fine tuned methodologies for engaging with Contract Manufacturers and OEM’s to deliver accelerated cost reduction Supplier Metrics & Risk Assessment - Proprietary supplier metrics programs and risk assessment processes identify vulnerabilities, reduce risk and enable cost savings Independence - We accept no fees or commissions from suppliers – our independence allows us to be completely objective and uncompromised in our supply chain recommendationsCONFIDENTIAL 5
  6. 6. Lytica Leadership Team Ken Bradley, President - Former Chief Procurement Officer, Nortel Networks - Board of Directors, Powerwave Technologies, SynQor Inc. Tom McLeod, Vice-President, Engineering Services - Former Head of R&D, Mitel Networks Michel St. Jacques, Vice-President, Operations Services - Former Vice-President, Supply Management, Nortel Advanced Components Rob Griffin, Vice-President, Sales & Marketing - Former Global Sales/Business Development, Maxim IntegratedCONFIDENTIAL 6
  7. 7. Freebenchmarking.com Freebenchmarking.com The Global Leader in Component Cost AnalysisCONFIDENTIAL 7
  8. 8. Unique Methodology Analysis is based on exact MPN part matching of the entire customer spend Part matching against the world’s largest independent database of current industry pricing Confidential, contract based service Customer data is never revealed and only used in aggregate Each report contains: - Detailed spend analysis by commodity - Actionable target pricing specific to your bill of materials - Complete EOL analysis and alternate source substitutions - Component duplication analysis and savingsCONFIDENTIAL 8
  9. 9. Free Silver Report Risk free way to “try before you buy” – Total spend analysis by commodity against best- in-class pricing – Potential savings by eliminating coding duplications – Spend competitiveness rating – Total number of single-source risks – Total number of recommended substitutes for single-source componentsCONFIDENTIAL 9
  10. 10. Gold Report – Key Features Price competitiveness - Spend comparison against best-in-class and average pricing - Spend comparison by commodity - Detailed, actionable part specific Target Pricing - Regional analysis – Americas, EMEA, Asia - Price factors and negotiating leverage - Detailed part specific Coding Duplication savings Risk Assessment - Full listing of single-source risks and recommended substitutions Fees - Single report - $5K - 4 Report package (no time limit) - $18K - Higher volume discounts – please contact sales - Full money-back guaranteeCONFIDENTIAL 10
  11. 11. Example – Gold Report Executive Summary Pricing Competitiveness Client Submitted Data Freebenchmarking.com Results (Section 2.0) Analyzed annual spend $502,817,702 Analyzed client parts 3,364 Matched parts 2535 (75.36%) Commodity groups 9 Ranking 80 percentile Price rating Competitive Identified target price savings $25,153,652 Potential savings at “Best in Class” $61,408,364 Commodity Group Potential Savings by Commodity Extrapolated Savings at 100% Match at “Best in Class” (Section 2.3) CAPACITORS $34,843,820 $66,391,117 TRANSISTORS $9,936,487 $17,378,657 IC - MEMORY $6,120,568 $8,873,025 RESISTORS $3,810,015 $4,985,898 DIODES $2,545,168 $2,984,980 IC - LINEAR $1,625,028 $4,760,282 IC - STANDARD LOGIC $1,116,860 $2,654,862 BATTERIES $937,804 $2,031,286 CIRCUIT PROTECTION $472,612 $674,659CONFIDENTIAL 11
  12. 12. Example – Gold Report Executive Summary Coding Duplication Client Submitted Data Freebenchmarking.com Results (Section 4.0) Total duplicate coded parts 2,012 Potential savings by eliminating coding $47,851,541 duplications Risk Assessment Client Submitted Data Freebenchmarking.com Results (Section 5.0) Analyzed client parts 3,364 Single sourced 2,072 Drop-in replacement devices 1,242 Unnecessary risk level - 59.9% Replacement devices vs. total single sourceCONFIDENTIAL 12
  13. 13. Actionable Target Pricing • We identify your least competitive pricing that represents the majority of cost reduction opportunity • We provide target prices that are set to ensure actionable, achievable savingsCommodity Customer Part Number Client Current Freebenchmarking Target Minimum Price Recommended Price Savings Target PriceTRANSISTORS SAMPLEA1 $0.176800 $0.104926 $2,716,837CAPACITORS SAMPLEB2 $0.015300 $0.009179 $2,578,165CAPACITORS SAMPLEC3 $0.285760 $0.008119 $2,341,013IC - MEMORY SAMPLED4 $0.660000 $0.262576 $2,050,708CAPACITORS SAMPLEE5 $0.081100 $0.035744 $1,825,488TRANSISTORS SAMPLEF6 $1.054900 $0.109019 $1,096,465CAPACITORS SAMPLEG7 $0.087264 $0.052221 $820,006CAPACITORS SAMPLEH8 $0.170910 $0.012650 $766,580CAPACITORS SAMPLEI9 $0.001000 $0.000649 $674,369DIODES SAMPLEJ10 $0.014000 $0.004954 $671,666 CONFIDENTIAL 13
  14. 14. Pricing Database - Cross Section Worlds largest independent database of component pricing Current pricing information from many industry-leading OEM and EMS companies Average age of data is 3 months, maximum age is 6 months Over 40% of companies have revenues >$1B All electronics commodities – Semiconductor, Passives, Magnetics, Interconnect, Opto, Batteries and more 5000+ component suppliersCONFIDENTIAL 14
  15. 15. Client MixCONFIDENTIAL 15
  16. 16. Client Mix – End Market Segment 13% Communications & Networking 5% Computing & Storage 5% Medical 7% Automotive 58% Industrial 12% ConsumerCONFIDENTIAL 16
  17. 17. Client Revenue DistributionCONFIDENTIAL 17
  18. 18. Global Interest in Freebenchmarking.com • 116 Countries • 1,203 Cities Source: Google analytics, November 22, 2011CONFIDENTIAL 18
  19. 19. Client Results – Single Gold Report Client 1: Tier 1 EMS Client 2: Tier 1 OEM Results: $191M in potential savings Results: $43M in potential savings Client 3: Tier 2 EMS Client 4: Tier 2 OEM Results: $11.8M in potential savings Results: $12.8M in potential savingsCONFIDENTIAL 19
  20. 20. iSuppli Feature Comparison Freebenchmarking.com™ iSuppli Gold Report Component Price Tracker™ Detailed line by line price analysis Price tracking by sample part descriptions World’s largest independent database of component pricing External monthly market price surveys Detailed price analysis by Manufacturer Part Number Price ranges High/Average/Low Actionable recommended Target Pricing Separate spend and price analysis Regional analysis Detailed customer specific regional analysis Savings from customer coding duplications Analysis against best-in-class and average pricing Annual service – Monthly surveys Fully flexible report based service – 7 day delivery Risk assessment includes: -Second Source alternatives -End-Of-Life risks Price factors & negotiating leverage Full money-back guarantee Industry leading ROICONFIDENTIAL 20
  21. 21. Wide Industry Exposure & Media Interest"This is a great methodology, and a very useful tool for procurement professionals." More on Pricing: Can Benchmarking Help End the Secrecy?Kevin Melia, Former VP Operations & CFO November, 2010Sun Microsystems Freebenchmarking.com - A Revolutionary Price Benchmarking Service for Electronic Components – October 2010"Your team has hit a home run withFreebenchmarking.com. Long time comingand worth the wait from my perspective." Lytica Gives Product Designers a Hand With Electronic Component Cost Estimator – January 2012Steve Smith, Senior DirectorSupply Chain Management Component benchmarking service for OEMs gauges price competitiveness – October 2010 Enabler Tech, Paxcell and Cariken to drive major "Lytica and the services offered through market expansion of Freebenchmarking.com Freebenchmarking.com are effective in driving cost across North America – January 2011 reduction. Lytica has helped Mitel improve margins by enabling significant cost reduction in our supply chain over the last several years" BusinessWire - Lytica Inc. to exhibit at 2012 International CES Michel Leduc, VP Operations CONFIDENTIAL 21
  22. 22. Contact Us Freebenchmarking.com is For sales & support: a division of Lytica Inc. Canada & USA 200-308 Legget Drive 1.877.330.9698 Kanata, Ontario, Canada International Calls: K2K 1Y6 1-613.270.9698 Rob Griffin Email: Vice-President support@freebenchmarking.com Sales & Marketing rob_griffin@lytica.com +613.271.1414 ext. 236CONFIDENTIAL 22

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