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New Victories in Retail Indirect Procurement


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A webcast presentation on the challenges and solution case studies for retail non-merchandising procurement categories, including transportation services, store facilities services, and store materials.

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New Victories in Retail Indirect Procurement

  1. 1. Welcome – Thank You for Joining Us Copyright © 2013. CombineNet, Inc.
  2. 2. Agenda CombineNet Presenters: – Jennifer Sikora, VP of Marketing – Wes Willoughby, VP of Account Management CombineNet Overview Retail indirect procurement categories Retail indirect procurement challenges & case studies: – Transportation complexities & seasonality – De-centralized store facilities spends – Evolving store networks – Business alignment Q&A Bonus Offer: Participants who attend the duration of this webinar will be eligible for CEH credits. They may be applied toward ISM CPSM recertification, CPSD recertification, C.P.M. recertification, and/or A.P.P. reaccreditation program requirements. (Note: ISM does not endorse, certify or sponsor this program or its content.)Copyright © 2013. CombineNet, Inc.
  3. 3. CombineNet Company Overview The Company The Technology Customer Value Established in 2000. Best of Breed Solutions that Capture >2X spend under E- improve Strategic Sourcing – Sourcing management. Global: Offices in holding 21 U.S. patents. Pittsburgh, PA; London, UK; Address complex spends Hamburg, Germany. Software-as-a-Service (SaaS) with advanced functionality. Partners for Latin America, delivery model for ease of Middle East, APAC. adoption and scale Fast implementation and broad adoption for any type Customers: Global 2000 Easy integration into your of user. spanning CPG, Food & Bev, environment to complement Retail, Manufacturing, existing applications. Nearly 100% see full payback Transportation, and more. after 1st sourcing event.Copyright © 2013. CombineNet, Inc.
  4. 4. CombineNet is used by 10 of the Top 50 retailers in the U.S. and 17 of the Top 200 retailers in the world. Focused on the Needs of Supply-Chain Driven Global Companies:Copyright © 2013. CombineNet, Inc.
  5. 5. CombineNet ASAP® for Advanced E-Sourcing Key Differentiators: SaaS-based Best-of-Breed product used Flexibility and Usability. by sourcing teams and their suppliers. Expressive Bidding® and Expressive Speeds, simplifies, and centralizes the Feedback support an expressive, creation and management of sourcing collaborative marketplace between events of any size, scale, or complexity. buyers and suppliers. For any spend category (direct materials, Optimization Engine and Scenario indirect materials, transportation, Builder enables rapid and advanced services). ‘what-if’ analysis. 21 U.S. Patents. Complements and enhances existing Fast Implementation – 1 ½ day training, solutions and processes. quick-start wizards, template uploads, event services enable fast, smooth adoption and immediate ROI.Copyright © 2013. CombineNet, Inc.
  6. 6. Key Components of CombineNet ASAP Create Bid Analyze & Award Scenario Builder RFxpress: RFIs, RFPs, Expressive Bidding Bid Optimization E-Auctions Expressive Feedback Awarding Category Templates Reports & Dashboards CombineNet ASAPCopyright © 2013. CombineNet, Inc.
  7. 7. Indirect Spend Categories & Retail: CombineNet’s Experience Facilities Services & Materials Merchandise Displays Transportation Renovations Fixtures Price Tags Ocean Plumbing Lighting Price Labels Ground (FTL, LTL) Painting HVAC Hangers Intermodal Landscaping Security & Alarm Shelving Air Housekeeping Systems Racks Small Parcel Trash Removal POS Systems Hooks Home Delivery & Snow Removal Holiday Décor Signage Assembly Armored Cars Shopping Carts & Mannequins Maintenance Baskets Electric Utilities Paper and Packaging Corporate Services Bags Marketing/Ads Gift Boxes/Wrap Legal Tissue Paper HR Shrink Wrap/Films IT Equipment Folding CartonsCopyright © 2013. CombineNet, Inc.
  8. 8. 3 Major Retail Supply Chain Challenges Impacting Indirect Procurement Complex, ever-evolving store networks  Store openings & closings  New/changing DCs Business Alignment  Store format conversions  Procurement Transformation  Countless preferences  Sustainability & reduced waste  Supplier diversity & local sourcing Seasonality Pressures  Transportation carrier services  Store facility services  Merchandising displays & signage  Marketing spendsCopyright © 2013. CombineNet, Inc.
  9. 9. Retail Indirect Strategic Sourcing Solutions Targeting Complex Spends: How to better tackle complex transportation requirements How to effectively aggregate store facilities spends and preferences to gain improved results Supporting Business Requirements: How to be more efficient with constantly changing store networks How to better align with business initiatives (i.e. sustainability, supplier diversity) in the indirect sourcing processCopyright © 2013. CombineNet, Inc.
  10. 10. Retail’s Complex Transportation Requirements Challenges: CombineNet’s Solution: Size of networks Scalable solution – Seasonality manage network in a Special handling single sourcing event to requirements increase efficiency and carrier competition Home delivery and Allow carriers to bid on growth of small parcel the pieces they can (e-business fulfillment) support services Manage & secure capacity – at both the lane level and network level Qualify carriers and conduct scenario analysisCopyright © 2013. CombineNet, Inc.
  11. 11. Ocean Sourcing Case Study Low-cost & growing apparel Case Study Fast Facts retailer in Europe with over 250 stores, owned by Associated 250+ stores CombineNet also British Foods (ABF) used by parent Sourcing Ocean cargo shipping 100,000 TEUs of ABF from Asia sites to Europe. annual container volume Savings of $2.5M – China labor costs rising – Adding new lower-cost sources of $100 million spend Committed supply (Bangladesh, Vietnam, India) Multiple points of weekly business Seasonality required capacity origin across Asia in exchange for commitments at a competitive seasonal service price. 3PL’s tool couldn’t handle “We are a volume supply chain, so everything optimization scenarios. has to be low cost…. [CombineNet] enabled us Results: to say, for instance, this is the carrier you – 2.5% savings on spend should be able to give freight to from a given – CombineNet scenarios run in port and at such-and-such rates.” minutes – handled complex allocations to carriers – Martin White, Supply Chain Director (Source: SupplyChainBrain, May/June 2012)Copyright © 2013. CombineNet, Inc.
  12. 12. Case Study: Truckload Consolidating Truckload Using CombineNet ASAP enabled Key Facts consolidation across multiple 2,500 lanes 8% + savings regions, creating a better overall Mostly Full Truckload Retained 80% of picture of what was available for incumbent carriers carriers: Inbound/Outbound between locations across Single sourcing event – Encouraged carriers to pick and supply chain for multiple regions choose which transportation lanes Previously handled as to bid on multiple events – Enabled carriers to leverage their assets to best customer’s needs “With more data under one tender event, there was the with Packaged Bids and Conditional need to support the process with a strong e-sourcing Offers solution. We chose CombineNet based on its intuitive Using CombineNet’s Expressive handling of large data sets, the flexibility in defining tender variables, and the strong analytical engine to Feedback provided carriers with assess and visualize different implementation guidance on their competitiveness scenarios.” during bidding - Global Category Director for Freight and FleetCopyright © 2013. CombineNet, Inc.
  13. 13. Store Facilities Spends: Fragmented, De-Centralized Sourcing Challenges: CombineNet’s Solution: Regional and location- Centralize/aggregate the specific preferences spends into single larger- Difficult to aggregate using scale event existing technology (size Collect preferences up- limits, event set-up front in the RFI  and later challenges, etc.) use for analysis Invite regional and national suppliers to bid on the businessCopyright © 2013. CombineNet, Inc.
  14. 14. Case Study: Retailer Common Area Maintenance Background: Case Study Fast Facts Corporate sourcing group for large, US- based retailer handling all not-for resale 800+ stores 10% savings – purchases. 18 regions half from Wanted to improve results in sourcing packaged offers $20 million+ spend common area maintenance services Bid analysis (landscaping, snow removal, trash Analyzed 8 different conducted 10x removal, lot sweeping, etc.) price points. faster Many stakeholder Reduced project CombineNet Details preferences. time by 3 weeks – Replaced time-consuming spreadsheet-based approach. “Being able to inject or take out different – Expressive Bidding allowed suppliers suppliers in different districts to see where to submit “package” offers with the savings lie was a huge benefit to our further discounts. process. We wouldn’t have had the time to – Results: 10% savings, reduced consider this without the bid analysis and sourcing project timeframe by 3 optimization speed of CombineNet.” weeks. – Retailer’s senior sourcing managerCopyright © 2013. CombineNet, Inc.
  15. 15. Armored Car Services Case Study Large retail chain with 1,000+ Case Study Fast Facts stores Traditionally used 3 national 1,000+ stores Invited 20 suppliers 92% of stores suppliers to bid historically 16% savings Using CombineNet, consolidated supported by 3 all regions into single online suppliers Awarded to 7 sourcing event suppliers Spend size of >$5 – Invited nearly 20 suppliers to bid million – Collected additional cost drivers – Used analytics to look at scenarios that favored incumbents and at increasing supplier diversity Results: – 16% savings – Allocated the business to 7 suppliersCopyright © 2013. CombineNet, Inc.
  16. 16. Constantly Evolving Store Networks Challenges: CombinNet’s Solution: Entry into new Enables faster time to geographical markets market for sourcing events Store openings & – RFX templates closings – Spreadsheet to e-sourcing event in 6 steps New DCs – Event copy New store formats Quickly add new suppliers / re-bid Qualification & analysis of new suppliers using RFI and RFP data collectedCopyright © 2013. CombineNet, Inc.
  17. 17. CombineNet ASAP’s RFxpress™ Feature Start events from Excel or an existing RFP template. Our RFxpress Wizard is an “on-ramp” where new users migrate existing Excel-based bid templates into CombineNet ASAP -- in just 6 steps. If users are familiar with Excel, they can easily adopt ASAP.Copyright © 2013. CombineNet, Inc.
  18. 18. Alignment with Corporate Initiatives Challenges: CombineNet’s Solution: Improving supplier Invite more suppliers to diversity the table to bid on parts of Supporting sustainability & the business reduced waste – Run scenarios to determine commitments the optimal mix of incumbents and new – Local sourcing suppliers – “Green” practices RFI questions linked to Gaining visibility into the your analysis, which cost trade-offs of business means: preferences – Collect sustainability requirements from suppliers up-front and analyze later for what-if costing – what is the cost of sustainability?Copyright © 2013. CombineNet, Inc.
  19. 19. Easily Creating Your Rules in CombineNetCopyright © 2013. CombineNet, Inc.
  20. 20. CombineNet ASAP - Expressive Bidding® Increase collaboration with suppliers to drive savings, innovation and efficiency Encourage suppliers to express their value beyond price, introduce innovation, and bid to their strengths with multiple Expressive Bidding capabilities in CombineNet ASAP. RFI/Questionnaire Flexible collection of supplier information for evaluation and assessment of capabilities and risk profiles. RFI responses can be analyzed along with price and non-price factors in award scenarios. Unbundled Bidding Each item is treated as a separate line item in your RFP, letting suppliers pick and choose the business on which they want to compete. Alternate Offers Allow suppliers to propose alternates to your item specifications based on their capabilities or production efficiencies: Materials, production processes, service levels, price structures, lead times, equipment, etc. Non-price Factors Any non-price bid item requested, including capacity, lead times, service levels, inclusive of the RFI. Conditional Offers If/Then proposals that reflect supplier business strategies, offering volume discounts, rebates or tiered pricing on items based on unit volumes, percentages, or $$ in awarded business, for any combination of items Package Offers Discounted, Supplier-defined bundles or lots of items based on their business strategies.Copyright © 2013. CombineNet, Inc.
  21. 21. CombineNet’s Retail Strategic Sourcing Solutions Solution of technology + best practices support service CombineNet’s Strategic Sourcing Solution for Retail: CombineNet ASAP® – Our industry- Retail Best Practices Center –access to leading best-in-class e-sourcing a wide range of best practices solutions platform for creating and managing and guidance. Included: online RFIs, RFPs, and e-auction Retail Template Library events. Key features include: Event Start-Up Service RFxpress Unlimited RFP Readiness Expressive Bidding® Reviews Expressive Feedback Event Coaching Services Scenario Builder Premium Content Bid Analysis and Premium Training Optimization 15% Discount on Other Reporting and Dashboards ServicesCopyright © 2013. CombineNet, Inc.
  22. 22. CombineNet’s Solutions Fit a Market Need 70% of our customers already have Nearly 100% of customers see full sourcing tools from SAP/Ariba, Oracle, IBM, or other procurement suites – but ROI on their total contract value turn to CombineNet to take it to the next following their first event with level. CombineNet. CombineNet’s Growth – 2011 to 2012: 45% growth in customers. 10% savings on average on spend size, 101% growth in sourcing events with ranges typically 8-40% . supported.Copyright © 2013. CombineNet, Inc.
  23. 23. To Learn More… Visit the Webcast Resources folder to access: White Paper Case Study LinkedIn Group Also visit our Website Resources at:  www.combinenet.comCopyright © 2013. CombineNet, Inc.
  24. 24. Thank You.Questions & Discussion Phone: 412-471-8200 Copyright © 2013. CombineNet, Inc.