This document provides an overview of Cummins Inc.'s supplier evaluation and inclusion processes. It begins with an introduction to Cummins, describing its business segments and global presence. It then discusses Cummins' use of e-sourcing tools like Ariba to conduct competitive bidding processes called Rapid Source and Mega Source. Evaluation criteria and questions are used to score supplier responses. Diversity and inclusion are also considered in evaluations. The Minority Supplier Development UK (MSDUK) and WEConnect International organizations help Cummins identify and engage certified diverse suppliers.
Untuk memilih vendor/supplier yang dapat diandalkan dengan produk terbaik & jasa, spesifikasi yang tepat, kualitas yang tepat, ketepatan waktu pengiriman, layanan terbaik, dan juga harga yang terbaik, maka perusahaan harus melakukan proses seleksi dan evaluasi vendor/supplier secara komprehensif diukur dengan metode yang tepat.
Untuk memilih vendor/supplier yang dapat diandalkan dengan produk terbaik & jasa, spesifikasi yang tepat, kualitas yang tepat, ketepatan waktu pengiriman, layanan terbaik, dan juga harga yang terbaik, maka perusahaan harus melakukan proses seleksi dan evaluasi vendor/supplier secara komprehensif diukur dengan metode yang tepat.
Purchasing, Procurement, Vendor, Contract and RFP Process Management with Sha...Optimus BT
Using the Document management, Collaborative and Self service features of SharePoint to implement a turn key procurement management business solution, that will streamline the procurement process, help you comply with regulations, enable you manage contracts, empower self service and participative procurement, aid in informed procurement decisions, in executing an effective procurement strategy and make your procurement function hassle free. Optimus BT is a leader in providing Procurement software and other turnkey solutions using SharePoint.
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
This presentation will focus on developing the sourcing strategy as a fundamental and logical process involving the application of tools by skilled, competent, and knowledgeable purchasers. Simply put, our focus will be on the “how to” in developing a sourcing strategy. Are you experienced?
Topics that will be addressed include spend analysis, categorizing the best opportunities for sourcing group profiles, Porter’s Five Force Model and Sourcing Grids, establishing sourcing group portfolios and supplier portfolios, using the proper RFX format for sourcing, and making strategic sourcing the focal point for supplier negotiations. Participants will view “good practice” examples of the above.
If you find yourself “walking the tightrope” with a strategic sourcing initiative or an ongoing effort, you’ll get valuable information in developing your sourcing strategy. With our five phase approach, we will discuss the following “how to”:
1. Develop sourcing strategies differentiated by expenditure category and based on market dynamics.
2. Deeply involve end-users in sourcing for knowledge and buy-in.
3. Apply a rigorous sourcing approach that examines internal needs against supply market options to find the lowest total cost.
4. Challenge specifications and usage patterns to ensure that each expenditure is providing the best value for the company.
5. Identify, analyze, select, and negotiate with strategically advantaged suppliers, not just the ones with the lowest price today.
This presentation will conclude with a presentation review that can refine your understanding of the factors, tools, and guidelines you need to make your sourcing process more effective and more profitable for your organization.
Importance of having a right Sourcing strategy is key to success for CXO. It has to be correct blend of partners both internal as well as external. The strategy can be arrived only if business goals are understood correctly. This deck shares an approach and ways to arrive at IT Sourcing Strategy.
A world class procurement function is one that has a measureable impact on the organisation’s profit and loss and adds real commercial value. Find out how effective use of innovation and smarter working can help you get there.
Presented by: Gerard Chick, FCIPS (Optimum Procurement) at PfH Live 2014
Apply Outsourcing Best Practices to Increase the Performance of your Internal...ProcureChange
The most successful outsourced procurement engagements utilize a number of best practices to maximize the ROI of the program. However, procurement outsourcing is not for everyone. Learn how you can apply some of these best practices to your internal strategic procurement team to increase your performance.
Strategic Sourcing and B2B E Commerce Solutions For ASEAN Purchasing Professi...Bill Kohnen
As ASEAN regional demand grows the skill of Purchasing professionals in the region will need to change from the current focus on export industries and tactical BPO industries. Specifically developing core Strategic Sourcing skills and utilizing B2B E Commerce Solutions in ways optimized ASEAN demand will be important. 2015 PASIA Conference discussion presentation.
Gaining Competitive Advantage through Supplier Collaboration and Supplier Rel...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Race to win, rather than race to the bottom!
Continued consolidation of the food supply base will lead to more powerful and assertive customers in some markets. These customers are placing increasing demand on the entire supply chain for reduced cost and higher levels of value delivery. While many companies focus on price reduction as a solution they soon realize that there is only so much supplier margin and they soon become in effective in trying to meet the increasing demands of the customer and company management. They also realize that there is a significant cost and time involved in changing and developing new suppliers.
The solution to increasing demand for value is to get business alignment across the entire supply chain. This requires value-based relationships will require substantial changes in behavior by the buyer and seller. This webinar will detail the need to establish clear processes through which buyers and suppliers interface and collaborate. The focus is on building and developing a Supplier Relationship Management (SRM) focus for your business.
Things covered in the seminar:
-How can a company build a process that delivers cost and value improvement Year on Year
Understanding the Supplier Relationship Management Process
-Identifying which suppliers are good candidates for SRM
-How to drive collaboration with suppliers
2009 marks the 90th anniversary of Cummins Inc. Over the last nine decades, the Company has grown into a global leader in the production of diesel and natural gas engines, power generation systems and related components. Our commitment to customers, employees and communities is rooted in our heritage and has made us Cummins.
Purchasing, Procurement, Vendor, Contract and RFP Process Management with Sha...Optimus BT
Using the Document management, Collaborative and Self service features of SharePoint to implement a turn key procurement management business solution, that will streamline the procurement process, help you comply with regulations, enable you manage contracts, empower self service and participative procurement, aid in informed procurement decisions, in executing an effective procurement strategy and make your procurement function hassle free. Optimus BT is a leader in providing Procurement software and other turnkey solutions using SharePoint.
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
This presentation will focus on developing the sourcing strategy as a fundamental and logical process involving the application of tools by skilled, competent, and knowledgeable purchasers. Simply put, our focus will be on the “how to” in developing a sourcing strategy. Are you experienced?
Topics that will be addressed include spend analysis, categorizing the best opportunities for sourcing group profiles, Porter’s Five Force Model and Sourcing Grids, establishing sourcing group portfolios and supplier portfolios, using the proper RFX format for sourcing, and making strategic sourcing the focal point for supplier negotiations. Participants will view “good practice” examples of the above.
If you find yourself “walking the tightrope” with a strategic sourcing initiative or an ongoing effort, you’ll get valuable information in developing your sourcing strategy. With our five phase approach, we will discuss the following “how to”:
1. Develop sourcing strategies differentiated by expenditure category and based on market dynamics.
2. Deeply involve end-users in sourcing for knowledge and buy-in.
3. Apply a rigorous sourcing approach that examines internal needs against supply market options to find the lowest total cost.
4. Challenge specifications and usage patterns to ensure that each expenditure is providing the best value for the company.
5. Identify, analyze, select, and negotiate with strategically advantaged suppliers, not just the ones with the lowest price today.
This presentation will conclude with a presentation review that can refine your understanding of the factors, tools, and guidelines you need to make your sourcing process more effective and more profitable for your organization.
Importance of having a right Sourcing strategy is key to success for CXO. It has to be correct blend of partners both internal as well as external. The strategy can be arrived only if business goals are understood correctly. This deck shares an approach and ways to arrive at IT Sourcing Strategy.
A world class procurement function is one that has a measureable impact on the organisation’s profit and loss and adds real commercial value. Find out how effective use of innovation and smarter working can help you get there.
Presented by: Gerard Chick, FCIPS (Optimum Procurement) at PfH Live 2014
Apply Outsourcing Best Practices to Increase the Performance of your Internal...ProcureChange
The most successful outsourced procurement engagements utilize a number of best practices to maximize the ROI of the program. However, procurement outsourcing is not for everyone. Learn how you can apply some of these best practices to your internal strategic procurement team to increase your performance.
Strategic Sourcing and B2B E Commerce Solutions For ASEAN Purchasing Professi...Bill Kohnen
As ASEAN regional demand grows the skill of Purchasing professionals in the region will need to change from the current focus on export industries and tactical BPO industries. Specifically developing core Strategic Sourcing skills and utilizing B2B E Commerce Solutions in ways optimized ASEAN demand will be important. 2015 PASIA Conference discussion presentation.
Gaining Competitive Advantage through Supplier Collaboration and Supplier Rel...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Race to win, rather than race to the bottom!
Continued consolidation of the food supply base will lead to more powerful and assertive customers in some markets. These customers are placing increasing demand on the entire supply chain for reduced cost and higher levels of value delivery. While many companies focus on price reduction as a solution they soon realize that there is only so much supplier margin and they soon become in effective in trying to meet the increasing demands of the customer and company management. They also realize that there is a significant cost and time involved in changing and developing new suppliers.
The solution to increasing demand for value is to get business alignment across the entire supply chain. This requires value-based relationships will require substantial changes in behavior by the buyer and seller. This webinar will detail the need to establish clear processes through which buyers and suppliers interface and collaborate. The focus is on building and developing a Supplier Relationship Management (SRM) focus for your business.
Things covered in the seminar:
-How can a company build a process that delivers cost and value improvement Year on Year
Understanding the Supplier Relationship Management Process
-Identifying which suppliers are good candidates for SRM
-How to drive collaboration with suppliers
2009 marks the 90th anniversary of Cummins Inc. Over the last nine decades, the Company has grown into a global leader in the production of diesel and natural gas engines, power generation systems and related components. Our commitment to customers, employees and communities is rooted in our heritage and has made us Cummins.
Tail End Spend Management - presented by Olivier ChalonXchanging
Olivier Chalon's presentation on Tail End Spend Management was shown at the World Procurement Congress 2014 during a Breakfast Briefing hosted by Xchanging Procurement.
A Success Story: Managing Beyond IndirectSAP Ariba
Like many companies, Kaeser Kompressoren began their journey of spend management looking at the traditional catalog / indirect spend categories. However, they quickly realized that opportunities existed to extend their investments and deliver greater returns and continuity across broad indirect spend categories, temp labor, training, and much more. Learn the steps they’ve taken to become a leader in broad spend management strategies.
5 GPO Myths...Debunked (Or: What You Always Wanted to Know But Were Afraid to...Corporate United
Group purchasing organizations (GPOs) are member-based organizations, but with as many misconceptions as there are about them, you’d think they were something like the Illuminati or the Freemasons.
Are they really a good option for achieving savings on your indirect spend categories? Are you getting the whole picture when you work with a GPO?
Here are five common myths about GPOs and the truth behind them.
Future of Indirect Purchasing - Shifting to New Process and Technology Bill Kohnen
History shows that any level of focus on Indirect Purchasing can identify significant savings
Disruptive changes across many indirect spend categories have Chief Purchasing Officers refocusing on indirect spend. The biggest opportunities in next 5 years will come from an approach using both expert category managers and cloud based software as service tools.
Global Sourcing Case study in Appliances MarketDragon Sourcing
This market survey identifies and highlights the new competitive suppliers, 5 major spend categories in the selected sourcing countries.
For more information, please visit: www.dragonsourcing.com/
Indirect Procurement - Mr. Ashwani Singh (Watson Pharma)ELSCC
Indirect procurement is the sourcing of all goods and services for a business that enable its activity. It is a slow, technology intensive process requiring change management across the organization boundaries.
Currently, indirect spend is recognized as a major area for potential improvement, with up to 70/90% (by number) of purchase orders, shipment expenses, and invoices processed attributed to materials and services that are not used in the finished product”
Indirect Procurement deals with the acquisition of all those goods and services not directly involved in the core business of the organization. This is the reason why the contribution that indirect goods and services are able to offer to the company is very often misunderstood or underestimated.
Selecting the right B2B e-commerce platform is a critical decision for
businesses, as it can significantly impact their online presence,
customer experience, and overall success. Here are some tips and
considerations to help businesses make an informed choice that
aligns with their specific needs, budget, and scalability requirements:
1. Proposal (RFI/ RFP/ RFQ) Management: A web based tool to make your proposal management highly efficient and audit governance friendly
2. Reverse Auctions/ Forward Auctions: an online negotiation platform to get the best quote from your suppliers in a quick and transparent manner
3. Supplier Registration Portal: a web based registration and self - profile management portal for supplier empanelment
4. Contract Document Management: a tool to centralize contract documents and facilitate stronger document governance and compliance
Request for ProposalMGMT 393 Group Case ProjectA. INTRODUCTIO.docxsodhi3
Request for Proposal MGMT 393 Group Case Project
A. INTRODUCTION AND INSTRUCTIONS TO VENDORSA.1 introduction
We invite vendors to submit proposals and prepare a presentation to design and implement and support a corporate informations system in accordance with the requirements, terms, and conditions of this Request for Proposal (RFP).
This RFP sets forth the requirements for all services and solicits a detailed response from vendors to include pricing, design, drawing, and service descriptions in the specified format.
Our objectives are to implement a new startup business and have a newly developed business information system that will allow us to be competitive within our industry. We believe this can be accomplished with an effective Manaement Information System that comprises of a reliable computer network, data communications services and various information technology components. A.2 Background Information
Our new startup company is called Eagle Ridge Aviation and we are an airplane reseller with our headquarters in Denver, CO approximately 15 employees in Denver, Irvine CA, and Orlando FL. Our projected corporation’s annual revenues for the 2017 fiscal year ending December 31, 2017, is estimated 4 million. Our goal is to sell 2 airplanes per quarter at an average selling price of $500,000 per airplane.
We currently have not purchased any technology including computers or accounting software. This is especially proving to be difficult for the accounting department which performs all accounting services with the “old fashion” GAAP standards of double entry accounting (book-keeping) by hand. The sales and marketing departments have equally struggled without the availability of computers.
Our company also does not have a phone system in place either and currenty just using our cell phones.
A.3 General Conditions
This RFP is not an offer to contract. Acceptance of a proposal neither commitsour company to award a contract to any vendor, even if all requirements stated in this RFP are met, nor limitsour right to negotiate in our best interest. We reserve the right to contract with a vendor for reasons other than lowest price.
Failure to answer any question in this RFP may subject the proposal to disqualification. Failure to meet a qualification or requirement will not necessarily subject a proposal to disqualification.
A.3.1 Valid Period of Offer
The pricing, terms, and conditions stated in your response must remain valid for 90 days from the date of delivery of the proposal to our company.
A.3.2 Confidentiality/Non-Disclosure
The information contained in this RFP (or accumulated through other written or verbal communication) is confidential. It is for proposal purposes only and is not to be disclosed or used for any other purpose.
Information received in response to this RFP will be held in strict confidence and not disclosed to any party, other than our company,without the express written consent of said vendor. We ...
Critical steps in Determining Your Value Stream Management SolutionDevOps.com
In order to increase your delivery velocity, you must find, identify and solve the bottlenecks of delivery. Value Stream management solutions capture metrics and processes helping guide your digital transformation journey.
Join Marc Hornbeek, Principal Consultant and Jeff Keyes from Plutora where they will discuss a methodology determining a value stream management solution for your organization. It will consist of critical steps including a Review of VSM Assessments, Future-State Value Stream Mapping, Road-Mapping VSM Transformation, and more. Following these steps provide a logical and comprehensive approach to determine a value stream management solution that fits for your organization’s requirements.
What will be learned:
WHY – is following steps for determining a VSM solution important?
HOW – are VSM solutions determined?
WHAT – is the expected outcome of a Value Stream Management solution recommendation?
Best Practices for Preparing a Request for Proposalby Be.docxikirkton
Best Practices for Preparing a Request
for Proposal
by Betsy Walli
Copyright 2010, Faulkner Information Services. All Rights Reserved.
Docid: 00018560
Publication Date: 1012
Report Type: TUTORIAL
Preview
A well-crafted, thoroughly defined RFP is the principal instrument for successful procurement of enterprise
systems and software. The RFP should focus on the business needs to be addressed by the acquisition,
and be designed to elicit vendor responses that are specific, complete, and of a consistent format to allow
cross-vendor comparisons. The winning vendor's RFP response can be automatically incorporated into
an organized, detailed contract. RFP preparation tools that allow electronic distribution and results
processing greatly reduce data entry and analysis time, as well as printing and distribution costs.
Report Contents:
● Executive Summary
● Description
● Current View
● Recommendations
● Web Links
Executive Summary
[return to top of this report]
A well-crafted, thoroughly defined request for proposal (RFP) is the principal instrument for successful
procurement of enterprise systems and software. An RFP should focus on the business needs to be
addressed by the acquisition, and be designed to elicit vendor responses that are specific, complete, and
of a consistent format, to allow cross-vendor comparisons. The winning vendor's RFP response can be
automatically incorporated into an organized, detailed contract. RFP preparation tools that allow electronic
distribution and results processing greatly reduce data entry and analysis time, as well as printing and
distribution costs.
Effective contract management comprises a series of steps.
The first step is to determine the business needs that the technology procurement will address. Next a
company must prepare and distribute a request for proposal (RFP) that articulates those needs. After
evaluating the proposals it receives in response to the RFP and choosing a supplier, the company is
ready to negotiate and write a contract with the supplier. The company must then be prepared to ensure
contract performance, and to re-negotiate the contract when circumstances change. Each step builds on
all the preceding ones. Contract management is most successful when a company approaches each step
with this entire process in mind.
The procurement of enterprise systems and software is a complex process that must be carefully planned
and executed. A well-crafted, thoroughly defined RFP is the principal instrument for success. Those
buyers that develop an effective RFP can reap a significant return on investment (ROI) due to having
meticulously described business requirements for a select group of vendors. The RFP is a critical link
between the buyer and the seller that enables both to work from the same set of requirements, schedules,
and information. The winning vendor is awarded the contract after effectively responding to the RFP’s
strin ...
You need to hire a consultant or agency to help you with web conferencing services.
Get this template @ http://www.demandmetric.com/content/webinar-consulting-services-rfp-template
B2B Sales Dynamics and Transporter Selection Dynamics for Maruti Suzuki India...Suyash Sharma
Contains the company overview with the business model canvas for MSIL. This deck can help you understand the business dynamics and processes behind the selection of logistics service providers for Maruti, it also encompasses the hierarchy level and the way MSIL approaches corporate sales as a whole.
Similar to Denis Ford, International Leader EMEA at Cummins - Supplier Evaluation & Inclusion (20)
Lee Glendon & Nick Wildgoose - Seeing the wood from the trees: New approaches...Global Business Events
Lee Glendon, Supply Chain Risk Specialist at Dun & Bradstreet and Nick Wildgoose, Global Supply Chain Product Leader at Zurich Insurance spoke at the CPO Event March 2014
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
Denis Ford, International Leader EMEA at Cummins - Supplier Evaluation & Inclusion
1. Supplier Evaluation & Inclusion
Denis Ford MBA MCIPS – Cummins Indirect
Purchasing
International Leader EMEA, NE/SE Asia &
South Pacific
2. Agenda
• Introduction to Cummins
• Corporate Indirect Purchasing at Cummins
• e-Sourcing
• How Do Cummins Use e-Sourcing?
– Rapid Source
– Mega Source
• Supplier Response Evaluation
• Supplier Diversity & Inclusion at Cummins
• Questions?
• Appendix
3. •Aftermarket Support
•Heavy-Duty Engines
•High-Horsepower Engines
•Mid-Range Engines
•Alternators
•Automatic Transfer Switches
•Commercial Power Systems
•Consumer Systems
•Engines
•Paralleling Systems
•Emission Solutions
•Filtration
•Fuel Systems
•Turbo Technologies
•Engine and Power Generation Distribution
•Service and Parts
Cummins Inc., named from Clessie Cummins who helped pioneer the commercial use of diesel engine
technology in the United States, is a Fortune 500 company whose products are sold in more than 190
countries and territories around the world.
Cummins is a diverse, community-minded technical leader in the design, manufacture, sale and service of
diesel engines, power generation equipment and related components. We operate as four distinct, yet
complementary, lines of business.
Company name: Cummins Inc.
Corporate Headquarters: Columbus, Indiana
Founded: 1919
Stock Symbol: CMI (traded on NYSE)
2013 revenues: $17.3 billion
2013 Fortune 500 rank: 160
2013 earnings before interest and taxes: $2.16 billion
2013 net income: $1.48 billion
Employees: Approx. 46,000 worldwide; 16,000 United States
Business segments: Engines, Power Generation, Distribution and
Components.
Major products: diesel and natural gas engines for on- and off-
highway applications; power generating systems and standby
generators; engine filters, advanced exhaust after treatment products;
turbochargers; fuel systems
Major markets: Global heavy- and medium-duty truck markets; light-
duty truck markets in Asia; construction; oil, gas and mining;
agriculture; construction; government; commercial and consumer
power generation; parts and service; exclusive supplier of diesel engines
for the Dodge Ram pick-up truck
International presence: Operations in more than 190 countries and
territories worldwide, with more than 60 percent of our sales generated
outside the United States. A leading maker of diesel engines and related
products in China, India, Brazil, United Kingdom and Mexico
“Making people's lives better by unleashing the power of Cummins.”
4. Corporate Indirect Purchasing(CIP) Structure
A Global Corporate function organised in 10 Geographic Regions
– Led from HQ Indiana, US, with 2 International Sourcing Leaders
– 10 Regional Leaders cover Cummins Global presence
– Regionally centralised teams allowing variance to meet internal customer needs
– Use the same tools and processes globally to ensure consistency
– Source Indirect Goods and Services that are not used in Cummins end products
4 = CIP Office Locations (16)
5. What is e-Sourcing and Why Use it?
A Mix of Technology and Process for Competitive Tendering (bids)
A Web-based tool which complements traditional sourcing process to help Buyers identify,
evaluate, and negotiate, procurement decisions
Ariba suite of tools are used within Cummins (Ariba Sourcing, Analysis, Buyer, Category
Management, Contract Warehouse)
Ariba Sourcing tool supports multiple methods of bid submission (RFx)
RFI (Request For Information)
RFP (Request For Proposal)
RFQ (Request For Quote) Competitive Live Reverse Auction
RFB (Request For Buy)
Provides a platform to help enhance consistent practices across the globe . Promotes team
collaboration and is an effective way to capture information
Gives structure, repeatability & flexibility around sourcing activities - saves time! can
source for one plant/site, UK wide, Regional or Globally
Provides for Comprehensive evaluation based on pre defined criteria to obtain
lowest Total Cost of Ownership (TCO).
6. How Do Cummins Use e-Sourcing?
Two Main Methods:
Rapid Source
Mega Source
7. e-Sourcing:Cummins RapidSource Process
Process Improvement
Buyer Supplier
Collect
product
specification &
supplier group
Communicate to
pre-enabled
suppliers
RFx Launch
Bid/Prebid
collection &
evaluation
Live event
(Reverse
Auction)
Bid award PO
Issued
RFx and bid
calculator
creation
RFx review,
testing & Launch
Manage Q&A
board
RapidSource
No source selection required, only pricing!
Constant price fluctuations, no long term contract
Take advantage of excess supplier capacity
Agreement based on Purchase Order T&C’s
Generally takes 1-2 days
Low bid value/Low Risk in comparison to Mega Source
8. e-Sourcing : Cummins MegaSource RFx Process
Process Improvement
Buyer Supplier
Pre Kickoff
meeting
Kickoff
meeting
RFx Launch
Bid/Prebid
collection &
evaluation
RFx creation
RFx review,
testing &
Launch
Manage Q&A
board
Project overview
Business requirement
RFx questions
Cost model/Pricing Worksheet
Live event
Contract
establishment
10 days
4-7 days
7-14 daysMegaSource
Source selection, pricing and supplier capability evaluated
Agreement based on MSA, long term contract
Generally takes 4-12 weeks
High bid value/complex
RFI, RFP, & RFQs
Closed bid and reverse auction
Selection based on lowest Total Cost of Ownership (TCO)
9. Project Overview
PROJECT OVERVIEW
<RFX TITLE>
INTRODUCTION / SCOPE
<Cummins Inc.> is seeking bids from qualified <provider type> to …
Include a high level description of what services, to whom, and where the vendor will be
required to provide services
CURRENT PROCESS FLOW
Provide a description of the existing process for the service/product including location, hours
of coverage, customers, and performance metrics, if any.
OBJECTIVES
Functional Requirements:
What does the vendor need to provide – provide a high level list of all services and/or
products, support required, any hardware or software requirements, performance
metrics and any reporting requirements
Describe who the customer will be
How much (volume or time) and when (if it is a service, then provide exact hours of
coverage)
Selection Criteria
All proposals will be evaluated by Cummins. Each proposal will be evaluated according to a
number of criteria within the following categories:
Describe the criteria for selection. Each criterion must have questions relating to it in
the RFX worksheet in order to evaluate vendor accurately
The RFQ questions are designed to address your capabilities while providing the opportunity
for you to demonstrate your firm’s strengths in these areas.
Translates to Business
Requirements
Each criteria should correspond to a
set of RFx Questions
First document the supplier gets to see when RFx
is launched
Defines the scope of the project, project schedule,
functional requirements and questions
Every Business Requirement and Question will be
linked to a selection criterion in the project
overview
Requirements will read “Supplier must”
Project overview must be written with the SOW in
mind
Project overview feeds into the SOW at time of
contract with input from the responses to the
requirements and questions in the RFx
10. Business Requirements and Questions Evaluation
Requirement
“MUSTHAVES”
Supplier BSupplier A Supplier CCriteria
DifferentiatingFeatures
“GOODTOHAVE”
11. Evaluation completed using scores from Qualitative and Quantitative supplier
responses collected from Ariba Sourcing tool
Section
Weightage
RFX
Seri
al #
40% Section 1: Qualitative Questionnaire
% Weightage
of question
R at ing of
R esponse
Overall
W eight a
ge
R at ing of
R esponse
Overall
W eight ag
e
R at ing of
R esponse
Overall
W eight ag
e
5.2
Do you agree to comply with the terms stated in the document attached
as section 5.1?
H
13% 9 0.47 9 0.47 1 0.05
7.8 Are you ISO registered? L 4% 9 0.16 0 0.00 9 0.16
7.11
Does your Company contract with a third party to deliver any in scope
service?
M
9% 1 0.03 1 0.03 1 0.03
7.12
If yes to the above question, please specify the service(s) and the
subcontracted entity.
M
9% 1 0.03 1 0.03 1 0.03
7.13
Can you supply an annual inspection/maintenance service for the
products to be installed?
L
4% 9 0.16 0 0.00 0 0.00
7.14
If yes to the above, will this be included in the first 3yrs or the warranted
period?
M
9% 0 0.00 0 0.00 0 0.00
7.15 If no to the above, what will be the cost of this service? L 4% 5 0.09 1 0.02 1 0.02
7.16 How many years warranty is included for supplied equipment? H 13% 5 0.26 5 0.26 1 0.05
7.17 What is the average delivery lead-time (days) for the required product? M 9% 1 0.03 1 0.03 9 0.31
7.18
What is the maximum period of time (months) that the submitted pricing
will be valid for? This could be used for future warehouse expansion
decisions.
M
9% 0 0.00 9 0.31 0 0.00
7.19
If selected you would be required to present your proposal and project
plan at short notice before contract award. Are there any issues with
this or dates which would be unacceptable to you?
H
13% 9 0.47 9 0.47 9 0.47
9.1
Please describe any value added services you may have, including the
cost and related benefit to Cummins?
L
4% 0 0.00 5 0.09 0 0.00
Section 1 Subtotal 100% 170% 172% 113%
60% Section 2: Pricing
% Weightage
of question
R at ing of
R esponse
Overall
W eight a
ge
R at ing of
R esponse
Overall
W eight ag
e
R at ing of
R esponse
Overall
W eight ag
e
Total Bid Value 1 H 100% 5 3.00 9 5.40 1 0.60
Section 2 Subtotal 100% 3.0 5.4 0.6
100% Supplier Total 4.70 7.12 1.73
Supplier CSupplier BSupplier A
Section
Weight
Question
Rank
H/M/L
Supplier
Response
Rating
Supplier Overall Score
Evaluation of Supplier Responses
12. Evaluation Summary
• Comprehensive evaluation of Qualitative and
Quantitative data /supplier responses to questions
within the tools
• Different weighting and ranking of questions
depending on commodity or stakeholder requirement
• Historically, the evaluation process would not have
consider Supplier Diversity
• Diversity questions added to sections in each RFx
• Relative weighting given to Diversity section in RFx
• Scoring of elements of Diversity and Supplier
programs now included in overall evaluation. Why?.....
13. Supplier Diversity & Inclusion at Cummins
• Cummins is a Multi cultural company and we want our employees and suppliers
to be diverse like the people who use our products.
• Support businesses & not discriminate by race, gender, religion, ethnicity etc.
• Cummins wants to give opportunities to all suppliers to ensure we have the best
suppliers
• Supplier Diversity & Inclusion Program efforts include such activities as:
– Surveying supply base to identify any that are diverse suppliers,
– Including Certified diverse suppliers in sourcing events, where possible
– Asking Diversity and Inclusion questions of potential suppliers in all RFx
– Identifying which diverse suppliers have the best potential to do business
with Cummins – aligning values and capabilities
– Introducing diverse suppliers to Cummins functional owners
– Educating functional owners within Cummins about supplier diversity
– Helping diverse suppliers improve their capability(feedback/training)
– Participating in diverse supplier organization events. (Meet the
buyer/Supplier, Networking round tables, House of Commons visits, Awards
Dinner etc)
14. Supplier Diversity & Inclusion at Cummins
• Cummins are aligned to two non-profit organisations. Use
MSDUK & WeConnect databases to search for Certified
suppliers before all sourcing events
• Also use MSDUK & WeConnect Supplier Referral Process
(Wider network/commodity specific)
• Meet the Buyer/Supplier days and networking roundtables
• One to one introductions to increase supplier development
& engagement
• Diverse suppliers given an opportunity to be considered
and included in sourcing – still need to be the best supplier
for Cummins!
16. MSDUK Organisation
Formed in
2006
MSDUK
was.. A not for
profit
company
limited by
guarantee
MSDUK
is..
A UK affiliate
of NMSDC
MSDUK
is..
A Board of
Directors from:
MSD, Enterprise
Rent-A-Car, IBM,
ExxonMobil,
GSK, Cummins,
BT
MSDUK
has.. An
experienced
programme
management
team
MSDUK
has Head
Offices in
Leicester.
strong
presence in
London
MSDUK
has.. Generated
more than
£25m worth
of business
for suppliers
MSDUK
has..
18. Services to Members
Outreach events(Buyer/Supplier) -6 a year inclusive in membership fees
Online Certified supplier database
Certification programme of Ethnic Minority Businesses
Supplier Referrals
Access to industry best practices for Diversity & Inclusion
Dedicated account management
Potential recognition at the Awards Dinner
Peer-to-peer networking and learning
20. About WEConnect International
Corporate members established WEConnect International to
provide WBE certification outside the US
• Represents over US$700 billion in annual purchasing power
• Connects non-US women-owned businesses to global value chains
• Offers certification and training in Africa, Asia, Australia, Canada, the
Caribbean, Europe and Latin America
• Provides an exclusive global database of women-owned businesses
(certified and self-registered)
• Supports corporate members in the development and
implementation of global inclusive sourcing programs
22. Summary & Conclusion
• Gave Introduction to Cummins & Corporate Indirect
Purchasing at Cummins
• Explained e-Sourcing & How Cummins Use e-Sourcing
– Rapid Source
– Mega Source
• Covered Supplier Evaluation & How Cummins includes
Diversity Questions
• Introduced MSDUK & WeConnect – Explained Supplier
Diversity & Inclusion at Cummins
• In Conclusion, We Can See How Supplier
Evaluation/Diversity & Inclusion Can Be Applied in the Day
to Day Work of Procurement...Its Not Hard Work, If We
Really Want To Be Inclusive!
26. Private and Confidential
Ethnic
Minority
Businesses
A for profit enterprise
registered and physically
located
in the UK
At least 51% owned,
managed and
controlled by people
of Ethnic Minority
origin
Ethnic Minority
* Asian
* Black African
* Black Caribbean
* Chinese
* Mixed Race
Owners to be either British
Citizen or Permanent
Resident
Defining Ethnic Minorities
The MSDUK certification programme, through verification of relevant documents and site visits,
establishes that the businesses fulfil MSDUK’s definition of an ethnic minority business. It assures
MSDUK corporate members that the ethnic minority businesses (EMBs) they seek to contract with are
majority owned as well as managed and controlled by people of ethnic minority origin.
27. Private and Confidential
Website: www.msduk.org.uk
MSDUK Contacts
Name Job Title Email Tel Mobile
Mayank Shah Director mshah@msduk.org.uk +44 (0) 116 2532520 +44 (0) 7779254414
Raj Pattani Business Development Manager raj@msduk.org.uk +44 (0) 116 2532520 +44 (0) 7961945161
Malvika Patel Certification Officer malvika@msduk.org.uk +44 (0) 7791443833
Rebecca Dunkley Events & Office Manager rebecca@msduk.org.uk +44 (0) 116 2532520
28. Main Plant Locations EMEA
Manufacturing
Office
Warehouse
Other
Engines
BU Plant location
EBU Darlington, UK
EBU Daventry, UK
CES Darlington, UK
CTT Huddersfield, UK
CGT Stamford, UK
CGT Ingolstadt, Germany
CGT Craiova, Romania
CPG Ramsgate, Kent
CF Quimper, France
CES Rosslyn, South Africa
CF Port Elizabeth, South
Africa
CF Turkey
CF Rugby, UK
29. Supplier Diversity Program
What is it?
Sourcing initiative designed to significantly
increase spend from QUALIFIED suppliers
representing the following groups:
1. Minority Owned Business (MBE)
2. Women Owned Business (WBE)
3. Veteran & Service Disabled Veteran Owned Business
4. Lesbian, Gay, Bisexual, Transgender (LGBT) Owned Business
5. Disabled (Non-Profit Organizations)
6. Small Business(SME)
30. What counts as diverse supplier spend?
• At Cummins, diverse suppliers are defined as:
– Minority owned, Women owned, Veteran owned, and LGBT owned
companies.
• Ownership – at least 51% ownership of the company is held by one or more
people from the diverse group
• Management – the company is led / managed by the diverse owner(s)
• Control – the key business decisions regarding the company’s finances,
operations, personnel and strategy are made by the diverse owner(s)
– Small and medium-sized enterprises (SMEs) is made up of enterprises which
fall under European definition:
• employ fewer than 250 persons and
• have an annual turnover not exceeding 50 million euro, and/or
• an annual balance sheet total not exceeding 43 million euro.
– Non-Profit Organizations that help provide jobs to the disabled