Ariba Knowledge Nuggets - eSourcing Part VI

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Ariba Knowledge Nuggets - eSourcing Part VI

  1. 1. E-Sourcing Part VI—Supplier Management Key Activities / Steps Prepare Opportunity Overview & Invitation letters Support Stakeholders & Manage Incumbent Suppliers Monitor Supplier Activity Answer Supplier Questions Prepare Updates if Necessary Train Suppliers Key Deliverables When suppliers receive a strong, consistent and credible message of Weekly Supplier Update commitment to the process, they logically participate Tools Incumbent White Paper 86 % Invitation Letter Participate AS—Q&A Board AS—Message Center Market Making Sheet TIPS: Team • Current suppliers deserve special attention, as they have more at risk than other suppliers and as a result, are more cautious of the project. Supplier Operations • Contact current suppliers before contacting other suppliers and before publication of any RFX to incumbents do not hear of the project from another source. Suggested Incumbent Messages • CUSTOMER is seeking the absolute best quality and service at the best pos- sible price and is employing an eSourc- ing Tool to achieve this objective….. • …..Your company has demonstrated superior quality and service and we would be very pleased for you to retain and hopefully grow your business with CUSTOMER….. • …..CUSTOMER is building shareholder value by supplying world class prod- ucts to its customers, and this funda- mental precept will not be compromised by this process…..
  2. 2. Best Practice: Supplier CommunicationNew suppliers should be provided with adequate attention and information: They mayneed extra attention to help them to see that this is a real business opportunity andnot just an exercise to obtain savings from the current supplier(s).Step 1: Prepare for contacting current suppliers and dispelling some common misconceptions about the process.Step 2: Be aware of common current supplier tactics before and during the sourcing project.Step 3: Consider creating a brief overview of the project and timeline that can be distributed to suppliers prior to publication of RFXStep 4: Determine whether a Non-Disclosure Agreement (NDA)/Confidentiality Agreement is needed before suppliers can participate/view project detailsStep 5: Search for suppliers and then add new & incumbent to AS site.Step 6: Contact incumbent suppliers by phone or visit themStep 7: Contact New Suppliers and explain upcoming project & processStep 8: Publish RFX (RFI,RFP, RFQ) Project and send out project information to all suppliers via email Project OverviewStep 9: Manage suppliers using Market Making Sheet and control NDA submission - Call suppliers to follow-up on progress - Resolve any technical problems with assistance from the ARIBA Sourcing Helpdesk - Train suppliers via Test event & Individual sessions (depends on complexity of event & no. of suppliers) - Extend timeline if necessary - Answer any questions, make any necessary changes to documents/items published - Document critical conversations with suppliers in case any dispute is raised. - Limit calls according to no of suppliers (.e. 3 calls per supplier if more than 50)Best Practice: Q&A Board• Agree on a process up front AS Capability screen-shot• Avoid vague/rushed answers• Do not contradict existing event terms/specifications• Public vs private responses• If the answer already exists in the event start with “The answer you seek is located….”• Check the question for identify- ing information• Consider using MS Word, then copy/paste• Answer questions ASAP with- out sacrificing quality…. 24 hours• Editing responses….auto e- mails are not specific, send message• If the need arises to e-mail suppliers outside the tool…. “BCC”• If questions are received outside the Q&A board direct the supplier to post the question

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