1. New report by BravoSolution

2. 10. e-RFX
• The first stop for supply management savings – e-RFX expands
the supplier base, improves efficiency and increases cost
savings.
• New suppliers may have:
• better processes or technology, allowing them to meet
your needs at a lower cost.
• higher quality or better reliability, lowering TCO.
• Result – 30% purchase price cost reduction for key commodity
groups by switching suppliers, or save 20% by redistributing all
but 5% of the parts between the current suppliers.

3. 9. e-Auction
• After a sourcing manager creates the tender specifications and
sets up the e-auction, the process drives itself –
• eliminating all manual outreach to suppliers and proposal
comparisons.
• E-auctions streamline the entire process, creating a minimum
threshold for savings and driving competitive bidding among
suppliers.
• Result – A recent IBM report estimates that the federal
government could save $8.9 billion annually by increasing the
use of reverse auctions.

4. 8. P2P – Procure-to-Pay
• P2P – which focuses on the requisition, invoice management,
and e-Payment – boosts visibility into off contract spend,
increasing negotiated savings up to 40%.
• This detailed transaction data is invaluable in the long run as
procurement teams develop technology-driven sourcing plans.
• Result – While P2P will only be a piece of the puzzle, its
indirect benefit can be significant, especially since it can
reduce the manual purchase order processing costs by up to
80%

5. 7. Contract Management
• While sales and legal are also heavily involved, contract
management means big things for procurement.
• It ensures that preferred suppliers are used and negotiated
savings are realized.
• In addition to reducing cycle time and improving visibility,
contract management technology improves compliance,
prevents evergreen renewal, and allows for quick identification
of the Top N suppliers.
• Result – A UK National Audit uncovered that better contract
management could generate savings between £160-190 Million
annually in the UK public sector.

6. 6. Global Trade Management (GTM)
• GTM streamlines the global trade process – from logistics to
settlement activities – significantly improving operating
efficiencies and cash flow.
• Multinational companies depend on GTM. A single global
shipment can require 20+ documents for important and
export.
• Result – An analysis of trade data for five organizations with
$66 billion in revenue found direct-compliance related savings
of $261.2 million.

7. 5. Supplier Information Management (SIM)
• SIM ensures that all supplier information – from contract
names and location to contract terms and conditions – is
housed in one, central depository.
• This is a near-impossible task without technology.
• In addition to ease of use, SIM tools allow buyers and supplier
reps to update the data in real-time.
• Result – Procurement teams have increased in size by 35%, but
SIM technology decreases time and expense required to
manage suppliers by 7 times.

8. 4. Supplier Performance Management (SPM)
• SPM solutions revolve around quality and performance
improvement, collaborative innovation, and mitigation of
potential supply disruptions that can cost millions of dollars.
• SPM provides a common platform for suppliers and buyers
to collaborate to improve processes, quality and effectively
reduce cost.
• Result – In 1999, Hershey lost $150 million due to a failed order
management system, and Nike lost $100 million in revenue in
2001 because of issues with its new planning system.

9. 3. Spend Analysis
• Spend analysis answers the 6 W’s – who is buying what from
whom, when, where, and at what price.
• From identifying duplicate payments to inventory optimization,
spend analysis identifies limitless savings – even for
organizations where little or no savings were expected.
• Result – Spend analysis can uncover substantial savings across
diverse categories, with savings up to 20% on legal, 25% on
Marketing, and 40% on consulting and integration not
uncommon.

10. 2. Decision Optimization
• Decision optimization is applied to reduce good and service
acquisition costs and freight costs, in addition to inventory,
network and labor costs.
• By applying rigorous analytical techniques, decision
optimization narrows down to the best decision after
assessing all alternatives – it’s powerful, proven and
repeatable.
• Result – Other than spend analysis, decision optimization is the
only other technology proven to deliver double-digit savings.

11. 1. Integrated, Collaborative Sourcing
• #10-2 are only the tip of the iceberg for uncovering savings – An
end-to-end sourcing suite delivers a greater ROI than each
individual tool, delivering up to 40% savings on hundred-million
plus categories.

12. Contact Us
217 N Jefferson, Suite 400
Chicago, IL 60661
312-373-3100
For more information on BravoSolution,
the spend analysis and strategic sourcing company,
visit www.bravosolution.com