. Low value transactions moved out and focus on strategic spendBottom-line: Procurement organizations are challenged to continue to drive value beyond traditional approaches and categories
But in discussing collaboration, we have to understand that social media users have surpassed email users and by a growing margin. It’s not that people are communicating less and that is why email usage is declining - they are actually communicating more but just through an increasing amount of channels. So the era of email isn’t over per se, it’s just evolving as all communication channels have throughout history. The digital landscape just makes those changes happen a lot more quickly, and distinct communication channels will become blurred.We must keep this in mind in our daily jobs especially with younger workers coming into the workforce. The opportunities to consume information are growing which is good and bad. We must consider the best ways to find the useful information.
So let’s talk more about collaborative sourcing and the collaborative sourcing framework. As we discussed earlier, it is important to remember that while technology can absolutely enable collaboration (think facebook, twitter, google+, etc.), although we’ll start with technology, a collaborative sourcing framework goes far beyond software.That said, collaborative – or strategic – sourcing usually include some version of four distinct areas:Spend analysis to aggegrate, classify, and enrich, and analyze spend for strategic sourcing decision-makingSourcing ranging from simple rfx’s to auction tools to potentially complex configuration and optimization toolsContract management to assure the terms agreed to during the sourcing process are recorded and observed in requisitioning and invoicing,and Supplier management encompassing both information management – gathering info on the supply bases – as well as performance management – to monitor and track how your suppliers are performing and take resulting and/or corrective action.
Company created in 1968. Family culture where customer would just get what they needed not thinking long termCustomers used to doing what they wanted without answering to anyoneCustomers were used to supplier so they never challenge their pricing or look to see if anyone was cheaper with same qualityHad to show customers benefits from having online solutions rather than receiving word documents
Business units did not have time to compare pricing to other suppliers to see if someone can do work cheaper without sacrificing qualityCould not advantage of volume discounts since each business unit was buying from different suppliersTo get contract executed quicker customer did not have extensive review of contracts. Exposed company to unnecessary risk.
In order for our department to be successful we know we needed the technology solutions to make process efficient and effective.Up until 2007 we have laid out the ground work for what role centralized procurement needs to play.From 2008 to 2010 we implemented system to help us accomplish our vision. Technology help our department take off.Also in 2010 the accounts payable department were brought under the same leadership as procurement to have a complete procure to pay process.
Since work a lot with legal we know what they are looking for in the contract and we make these additions to limit our exposure and not sacrifice the time Performing financial review was a big item with the economic situation. We were providing valuable information that customers did not have before.We needed to show the customer that we are not taking away there decision making. We were helping them make a more informed decision.Supplier now needed to enter information in system rather than send an email with word document.Customer always wanted response quick. Had to wait for mail runs. Now we can give responses quicker.Show benefits of using auctions. Demo auctions so they feel comfortable with process
Our spend system gave us the ability to supply information from all our source systems. Ability to show how much we really spend with a company and its subs. Ability to show how many suppliers we have in one area.Reactions from customer and upper management is WOW I never knew that.We get alerts if financial stability is downgraded for critical supplier and we are know looked to by our internal customer to provide them with a financial review of suppliersOne of our core values at JMFE is innovation. Need to be innovative in our process. Need to keep up to date with best practices in our area. Like we are doing here at the conference, we also meet with our peers at Toyota and other distributors and with other groups in our area.We now have processes and technology in place. We need to use these to provide more feedback and do more analysis
This is significant especially when you consider that of the 40% remaining 20% of that is our marketing area that we may never get an open door to. Since we are not mandated this is a great accomplishment as the majority of this is due to our performance and showing customers what we can do for them.
These savings are purely from negotiations. We still have customers that come to us that did initial negations and limits our savings opportunities.
We need to continue this trend going into the future but it will not be an easy task. We need to continue to offer superior customer service to our customers.Continue to generate savings opportunitiesOne of our core values at JMFE is innovation which we need to be to be successfulOur founder summed it up well.
Collaborative Sourcing - Unlocking Greater Savings and Value for You and Your Supply Chain
Key Requirements in Unlocking Greater Value Globally • Ease of Adoption, Implementation, Sustainability • Appearance about the process, not the tool • Robust Functionality • RFx, eAuction, Collaborative events • Lean • Standardization without limitation in customizations • Broad, Transparent Collaborative Environment • People & Information31
Key Requirements in Unlocking Greater Value Globally (continued) • Comprehensive Template Library • Structure, Content - core, customizable, consistent, versatile • Globally Inclusive • Currency, Language Translations, Support • Drives & Further Enables Business Continuity • Auditable & Traceable32
Opportunities • Global eSourcing Program Refresh Training & Communication • Core Functionality Enhancements • Reporting Insights • Optimize, Anticipate, Execute, Measure33