Strategy: Taking Global Sourcing Operations to the Next Level

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Procurement Case Study: finding flexible and scalable sourcing support to meet peaks in demand, accommodate enterprise growth and adjust to changing footprints around the world.

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Strategy: Taking Global Sourcing Operations to the Next Level

  1. 1. Technology Leader Takes Global Sourcing Operations to the Next Level “We were reorganizing and restructuring at a feverish pace, and our procurement specialists were overburdened. ISG was incredibly flexible and helped us achieve our goals. They tailored their work material and design model to match our direction and culture. They led the way with everything – development of the RFP, supplier selection, due diligence visits, change management, negotiations and ultimately through to the signing of the contract.” Senior Director, Global Sourcing Services Overview One of the fastest-growing storage and data management providers in the industry, this firm delivers a wide range of services, including support for business applications, storage for virtual servers, disk-to-disk backup and more. With 10,200 employees in over 130 offices worldwide, the company is widely recognized as an innovative and supportive workplace. It has reported significant growth over the last five years with revenue of $5.1 billion in 2011. A period of operational profitability and rapid growth outpaced the company’s internal sourcing support structure. With limited geographic scope, the global sourcing team was taking a mostly tactical approach. Insufficient global process standardization resulted in regional procurement that was essentially “self service.” With little visibility into spend, procurement tracking had no clear ties back to finance, and, because few meaningful service levels were in place across the organization, administrators had inadequate transparency into the root cause of bottlenecks and difficulty in providing timely solutions. Client: Storage/Data Management Industry: Technology ISG Services: Sourcing Strategy client requirements ■ Transparency into global spend ■ Consistent and standard processes ■ Flexibility ISG solution ■ Current-state assessment ■ Transaction support ■ Change management and governance client benefits ■ Cost savings ■ Visibility into spending patterns ■ Reduced cycle times To address these challenges, the company sought flexible and scalable sourcing support to meet peaks in demand, accommodate enterprise growth and adjust to changing footprints around the world. Specific requirements included:  A single view of global spend Consistent standard process flows and process management with automated purchase order creation  Clear service levels to measure and account for performance  Flexible sourcing and contracting capabilities Consistent and timely reporting  Savings methodology that links realized savings to financial reporting  Service desk availability for all time zones   www.isg-one.com
  2. 2. CASE STUDY: Global Sourcing Operations ISG Solution Client Benefits ISG was engaged to help develop an optimized sourcing delivery model to meet business needs and help lower costs. After an indepth assessment of the company’s current state, ISG advisors recommended a strategy that would complement the internal organization’s capabilities with sourcing of six procurementrelated processes, including strategic sourcing, spend analytics, service desk support, catalog management and spot buying. Following the process, the company was positioned to reap the benefits of a more strategic sourcing plan. A hybrid capability model for the six selected sourcing processes brought the following specific benefits:  Greater efficiency and effectiveness from process standardization across geographies  Increased ability to meet demand peaks and growth  Costs savings from new and incremental spend  Greater visibility of spend patterns and concentrations  More consistent management of operational and financial risks  Stronger financial control and regulatory compliance  Improved support of users  Reduced processing cycle time Selecting the right third-party provider was critical to the implementation of the strategy. ISG leveraged its outsourcing transaction experience and market data to help the client through all phases of the outsourcing process – from evaluating alternative organizational approaches, to developing a detailed RFP for potential providers, to gauging RFP responses, to contract and SLA standards negotiations. As a part of evaluating and narrowing the field of potential service providers, ISG conducted due diligence visits to candidate provider facilities in Europe and India and created customized score cards to help the team assess provider capabilities to ensure appropriate service levels. As a result, the company was able to find the “right-fit” service provider that could deliver results and match its high-tech, high-growth company culture. Finally, ISG prepared the change management plans required for a successful long-term service provider relationship and the governance structure to meet the retained organization objectives. Specifically, service level methodology training and a communication plan were implemented to manage expectations and capitalize on the process of change for the whole enterprise. Instead of spending time and resources band-aiding problems on an ad hoc basis, the company’s sourcing organization staff can now focus on account management and play a more strategic role across all regions of the company. The new procurement model evolves the work of the internal team so that it can proactively address behaviors, processes, perceptions and expectations to help more directly meet customer needs and business requirements. Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries. For additional information, visit www.isg-one.com. To learn more about ISG solutions for Global Service Delivery Strategies, contact: Alex Kozlov Director +1 617 558 3377 alex.kozlov@isg-one.com www.isg-one.com 052913 © Copyright 2013 Information Services Group – All Rights Reserved

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