SlideShare a Scribd company logo
$
Accelerate Procurement Performance
Consistently meet performance targets and drive value through
procurement excellence.
Lloyd's Risk Ranking
What’s your procurement excellence strategy?
Our senior procurement and sourcing customers tell us:
Procurement executives have invested heavily in information management
systems and policies to track purchasing activities, yet they increasingly
struggle to manage costs and risks effectively.
They lack visibility into material input costs, market dependencies, and drivers
of volatility which dramatically impact their supply base, resulting in
overspending and wasted resources.
Not being able to understand and quantify price change throughout the supply
chain can keep you from meeting your most important goals and leave the
enterprise vulnerable to risk.
“We have the strategy and we know where we need to go, but we have difficulty getting there”
“We cannot afford to hire full-time market experts for one-off purchases, yet our
team only has the required supply market knowledge less than 20% of the time”
of CPO’s feel their teams lack the skills
needed to deliver the procurement strategy
Source: Deloitte
has climbed from the #7
overall priority risk in
2011 to #4 today.
Source: Lloyd’s Risk Index
48%
of procurement professionals believe input cost, productivity,
and supply/demand analysis is critical to effective supplier
negotiations, yet only 39% have this insight readily available
Source: IHS
77%
Cost of
material inputs
Typical procurement
teams spend 20%
more time compiling
intelligence data than
world-class performers.
20%Source: The Hackett Group
0 5 10
Currency fluctuation
Rapid technological changes
Cost and availability of credit
Inflation
Changing legislation
Excessively strict regulation
Price of material inputs
Cyber risk
Loss of customers/cancelled orders
High taxation
IHS.com/PricingPurchasing
What if you could...
…drive consistency, gain insight, maximize resources?
Consistently meet targets, foster organizational agility,
and manage risk to maximize profitability
In order to move the enterprise to the next level of sourcing and procurement
results globally and deliver cost savings, procurement needs guidance and insight
to build and execute sourcing strategies.
The IHS advantage:
• Standardize global procurement on a single, consistent pricing platform.
• Access 500,000+ historic prices and 4,000+ forecasts, costs, and wages.
• Leverage powerful analytical tools to use IHS insight in your processes.
• Rely on recognized IHS experts to enhance capabilities of your talent.
• Quantify price change and price drivers across entire supply chains.
Benchmark pricing performance to increase efficiency and visibility
• Meet and sustain cost savings targets. Foster agility and efficiency to maintain profitability when
revenue is soft.
• Move the enterprise to the next level of sourcing and procurement results globally. Develop and enable
procurement talent to efficiently maximize added value.
• Mitigate risk and ensure continuity of supply. Ensure credible, reliable suppliers to avoid disruption or lack
of key input availability. Employ an early warning system to ensure proper back-up in cases of disruption.
• Develop and enable procurement talent to efficiently maximize added value. Enable team to manage price
volatility and supply chain risk for critical commodities, understand material input and supplier costs to
expand margin and performance.
We needed to lock in steel sheet
prices for the coming year and IHS
helped us save $10 million in one buy.
We estimate that, on average,
we save our clients 1-10% of their spend.
That translates to millions in savings.
“ “
50%
Best-in-class organizations
are more likely to target
visibility to improve their
supply chain processes.
$
What is the IHS advantage?
IHS is more than just a data provider. We deliver actionable insights and a model-based frame-
work for delivering value. Our team provides the most robust and accurate insight, analysis,
and forecasts available on the market today.
Source: Deloitte CPO Study

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Accelerate Procurement Performance

  • 1. $ Accelerate Procurement Performance Consistently meet performance targets and drive value through procurement excellence. Lloyd's Risk Ranking What’s your procurement excellence strategy? Our senior procurement and sourcing customers tell us: Procurement executives have invested heavily in information management systems and policies to track purchasing activities, yet they increasingly struggle to manage costs and risks effectively. They lack visibility into material input costs, market dependencies, and drivers of volatility which dramatically impact their supply base, resulting in overspending and wasted resources. Not being able to understand and quantify price change throughout the supply chain can keep you from meeting your most important goals and leave the enterprise vulnerable to risk. “We have the strategy and we know where we need to go, but we have difficulty getting there” “We cannot afford to hire full-time market experts for one-off purchases, yet our team only has the required supply market knowledge less than 20% of the time” of CPO’s feel their teams lack the skills needed to deliver the procurement strategy Source: Deloitte has climbed from the #7 overall priority risk in 2011 to #4 today. Source: Lloyd’s Risk Index 48% of procurement professionals believe input cost, productivity, and supply/demand analysis is critical to effective supplier negotiations, yet only 39% have this insight readily available Source: IHS 77% Cost of material inputs Typical procurement teams spend 20% more time compiling intelligence data than world-class performers. 20%Source: The Hackett Group 0 5 10 Currency fluctuation Rapid technological changes Cost and availability of credit Inflation Changing legislation Excessively strict regulation Price of material inputs Cyber risk Loss of customers/cancelled orders High taxation
  • 2. IHS.com/PricingPurchasing What if you could... …drive consistency, gain insight, maximize resources? Consistently meet targets, foster organizational agility, and manage risk to maximize profitability In order to move the enterprise to the next level of sourcing and procurement results globally and deliver cost savings, procurement needs guidance and insight to build and execute sourcing strategies. The IHS advantage: • Standardize global procurement on a single, consistent pricing platform. • Access 500,000+ historic prices and 4,000+ forecasts, costs, and wages. • Leverage powerful analytical tools to use IHS insight in your processes. • Rely on recognized IHS experts to enhance capabilities of your talent. • Quantify price change and price drivers across entire supply chains. Benchmark pricing performance to increase efficiency and visibility • Meet and sustain cost savings targets. Foster agility and efficiency to maintain profitability when revenue is soft. • Move the enterprise to the next level of sourcing and procurement results globally. Develop and enable procurement talent to efficiently maximize added value. • Mitigate risk and ensure continuity of supply. Ensure credible, reliable suppliers to avoid disruption or lack of key input availability. Employ an early warning system to ensure proper back-up in cases of disruption. • Develop and enable procurement talent to efficiently maximize added value. Enable team to manage price volatility and supply chain risk for critical commodities, understand material input and supplier costs to expand margin and performance. We needed to lock in steel sheet prices for the coming year and IHS helped us save $10 million in one buy. We estimate that, on average, we save our clients 1-10% of their spend. That translates to millions in savings. “ “ 50% Best-in-class organizations are more likely to target visibility to improve their supply chain processes. $ What is the IHS advantage? IHS is more than just a data provider. We deliver actionable insights and a model-based frame- work for delivering value. Our team provides the most robust and accurate insight, analysis, and forecasts available on the market today. Source: Deloitte CPO Study