Accelerated Savings can be realized through effective category management strategies and supplier collaboration especially once the simple and low hanging sourcing categories are exhausted. Without a clear strategy on structuring an effective category management program that includes the combination of people, process and tools sustaining savings year over year becomes a daunting task. Successful sourcing programs leverage an optimal mix of Category intelligence, Strategic Sourcing technology and Supplier Collaboration strategies to execute shorter sourcing cycles, maintain bottom-line savings, and extend their sourcing efforts globally.
Attend this session to learn from leading edge companies from various industries how they measure, implement and realize accelerated savings through effective supplier collaboration, strategic sourcing and sound category management practices.
20131003 Erste Group Procurement Supplier Relationship ManagementRobert SEMETHY
1) Erste Group Procurement (EGP) acts as the centralized procurement function for Erste Group, a large banking group operating in Central and Eastern Europe.
2) EGP was established in 2006 and has since expanded its operations by establishing subsidiaries across Central and Eastern Europe to serve Erste Group entities.
3) As the centralized procurement organization for Erste Group, EGP is responsible for managing the full source-to-pay process on a group-wide basis according to standardized policies and procedures.
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
Enhancing Value through Supplier Relationship ManagementZycus
The document discusses strategies for enhancing value through effective supplier relationship management. It emphasizes that most potential value from strategic sourcing can be lost within 6-18 months without effective ongoing supplier management. It outlines a 5-step supplier management process including daily operations, operational reviews, top-to-top reviews, and relationship mapping to classify suppliers and ensure the appropriate relationship model is used for each. Maintaining strong communication, aligning goals, and balancing power dynamics are important for maximizing value from supplier relationships.
Strategic Vs Tactical Procurement Shifting Focus Towards Value CreationGregStoller
Applying tactical versus strategic sourcing has huge implications on budgets, resources, value delivery and many other factors; the attached offers some insight in deciding which to apply
Bullwhip and Supplier Relationship ManagementDeepak Ramawat
This document discusses strategies for managing supplier relationships to reduce the bullwhip effect in supply chains. It defines the bullwhip effect as increased demand variability amplified at each stage of the supply chain. Key points made include:
- Categorizing suppliers as strategic, preferred, or transactional based on impact of late/poor quality deliveries.
- Countering the bullwhip effect through close communication, rate contracts, optimizing lead times, and supplier partnerships.
- Steps for a supplier relationship management program including supplier categorization, identification of critical items, and establishing contracts by strategy.
- The benefits of mutual commitment between organizations and suppliers through performance metrics and support for best practices.
This lecture slide was prepared for my guest lecture session in Bina Nusantara University's undergraduate program of International Business Management. It discussed the role of procurement function in an organisation, and how the function has been continuously evolved to meet market expectation by engaging business partners, as well as intra-company stakeholders. It shares top tips of how buyer can create value-add to the business from the book “Value-Added Purchasing” written by Eberhard E. Schening, PhD. Enjoy this as a part of your learning journey!
Chapter 8 sourcing strategies and relationshipskurbi
The document outlines chapters on sourcing strategies and relationships. It discusses the nature of sourcing decisions, attributes of good suppliers, different types of sourcing, the sourcing process, evaluating suppliers, and developing partnerships and tiers among suppliers. Strategic sourcing aims to continuously improve procurement by reducing costs, maintaining quality, and creating alliances with suppliers to support long-term organizational goals. The sourcing process involves analysis, identifying suppliers, selection, contracting, integration, and monitoring performance.
20131003 Erste Group Procurement Supplier Relationship ManagementRobert SEMETHY
1) Erste Group Procurement (EGP) acts as the centralized procurement function for Erste Group, a large banking group operating in Central and Eastern Europe.
2) EGP was established in 2006 and has since expanded its operations by establishing subsidiaries across Central and Eastern Europe to serve Erste Group entities.
3) As the centralized procurement organization for Erste Group, EGP is responsible for managing the full source-to-pay process on a group-wide basis according to standardized policies and procedures.
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
Enhancing Value through Supplier Relationship ManagementZycus
The document discusses strategies for enhancing value through effective supplier relationship management. It emphasizes that most potential value from strategic sourcing can be lost within 6-18 months without effective ongoing supplier management. It outlines a 5-step supplier management process including daily operations, operational reviews, top-to-top reviews, and relationship mapping to classify suppliers and ensure the appropriate relationship model is used for each. Maintaining strong communication, aligning goals, and balancing power dynamics are important for maximizing value from supplier relationships.
Strategic Vs Tactical Procurement Shifting Focus Towards Value CreationGregStoller
Applying tactical versus strategic sourcing has huge implications on budgets, resources, value delivery and many other factors; the attached offers some insight in deciding which to apply
Bullwhip and Supplier Relationship ManagementDeepak Ramawat
This document discusses strategies for managing supplier relationships to reduce the bullwhip effect in supply chains. It defines the bullwhip effect as increased demand variability amplified at each stage of the supply chain. Key points made include:
- Categorizing suppliers as strategic, preferred, or transactional based on impact of late/poor quality deliveries.
- Countering the bullwhip effect through close communication, rate contracts, optimizing lead times, and supplier partnerships.
- Steps for a supplier relationship management program including supplier categorization, identification of critical items, and establishing contracts by strategy.
- The benefits of mutual commitment between organizations and suppliers through performance metrics and support for best practices.
This lecture slide was prepared for my guest lecture session in Bina Nusantara University's undergraduate program of International Business Management. It discussed the role of procurement function in an organisation, and how the function has been continuously evolved to meet market expectation by engaging business partners, as well as intra-company stakeholders. It shares top tips of how buyer can create value-add to the business from the book “Value-Added Purchasing” written by Eberhard E. Schening, PhD. Enjoy this as a part of your learning journey!
Chapter 8 sourcing strategies and relationshipskurbi
The document outlines chapters on sourcing strategies and relationships. It discusses the nature of sourcing decisions, attributes of good suppliers, different types of sourcing, the sourcing process, evaluating suppliers, and developing partnerships and tiers among suppliers. Strategic sourcing aims to continuously improve procurement by reducing costs, maintaining quality, and creating alliances with suppliers to support long-term organizational goals. The sourcing process involves analysis, identifying suppliers, selection, contracting, integration, and monitoring performance.
Martin Kunz, VP Global Sourcing & CPO at Ahlstrom Corporation - Supplier rela...Global Business Events
The document outlines Martin Kunz's SRM model for identifying strategic suppliers. It discusses scoping the model, defining terms, establishing a cross-functional team, determining criteria and weightings, and the stratification process. The results section shows how suppliers can be analyzed by group, business area, and category. It recommends that sourcing drive the process, ensuring it is cross-functional and that criteria and weightings are thoroughly determined before execution, which requires a long-term roadmap and detailed implementation plan.
Staying Strategic How Procurement must Change!Bill Huber
As traditional sourcing techniques become increasingly outdated, the procurement function must evolve to remain strategic, and procurement professionals must acquire new competencies.
You will learn:
How traditional roles within sourcing and procurement are changing
How robotics and other disruptors will impact the procurement function
Emerging requirements for procurement professionals
Specific capabilities and skill sets procurement professionals need
Multisourcing is a new global trend that involves blending services from internal and external providers to pursue business goals. It leverages multiple specialist teams to improve quality, costs, and time-to-market over traditional outsourcing approaches. Critical success factors include having a clear strategy and governance model, managing relationships rather than transactions, and implementing measurements to manage complexity. Making multisourcing work requires visibility, coordination, and integration across partner boundaries.
In this slideshare presentation we discuss Supplier Relationship & Performance Management (SRPM) and how you can link your HSEQ programme to this.
SRPM is the proactive management of supplier relationships to secure strategic advantage and to add value to your organisation.
Here’s what will be covered:
- An introduction to SRPM
- Why SRPM & who is involved
- Objectives, process, roles & responsibilities of SRPM
- The benefits of SRPM
- How to link your HSEQ programme to your SRPM
The recording to this webinar can be found here: http://www.mangolive.com/blog-mango/how-to-link-your-hseq-programme-to-your-supplier-relationship-and-performance-management-system
This document provides a guide for developing a strategic sourcing strategy in 6 steps: 1) Analyze current spending, 2) Assess supplier markets, 3) Issue a supplier survey, 4) Review responses and select finalists, 5) Define target performance metrics and costs, and 6) Select and communicate with suppliers. The goal is to take an organized, collaborative approach to leverage spending and select suppliers that can create the most value by meeting quality, cost, and other objectives. Key aspects include understanding total cost of ownership, defining a target "to be" state, and setting clear performance metrics for supplier evaluation and continuous improvement.
Strategic Sourcing is a print, apparel and promotional products business that takes charge and helps all sized businesses benefit from scale of economy.
Strategic Sourcing’s platform is twofold; first, our aim is to help all sized businesses. With our association with numerous buying groups, affiliations with overseas manufacturers and internal sourcing structure Strategic Sourcing has the ability to accredit fantastic cost savings no matter the size of the purchase. We have the ability to let small and medium sized businesses make purchases of essential procurement and marketing products they were never able to in the past.
Secondly, we have built a better mouse trap for independent sales associates that allows the associate to do what they do best and that is sell. Strategic Sourcing has taken the approach of servicing our sales associates with dedicated customer service representatives that handle all back end operations. Starting with quoting, presentations to invoicing, collections and order follow up. With our SOP, MIS back end system we have the ability to embrace our sales associates with the service they truly need and entertain our customer service representatives with a system that will not bog them down with tedious additional system entrees. Our system is enabled to take a quote and use it as a flow through to the final stage of each job. Additionally, we have enabled a better commission structure that promotes our sales associates to strive for superior results.
With our two fold approach we offer a win win business model.
The document discusses strategies for developing model suppliers and optimizing a company's supply base. It defines attributes of model suppliers, such as managing quality systems, demonstrating technology leadership, and supporting business goals. It also outlines steps for a mature supply management process, including defining a preferred supplier base, establishing strategic partnerships, integrating suppliers, and conducting supply base segmentation. Commodity source plans are developed annually based on supplier performance data and input from stakeholders to guide one-year and three-to-five-year sourcing strategies.
This article discusses how purchasing managers can adopt a more strategic approach to managing suppliers and supplies. It outlines a four phase process for classifying suppliers based on profit impact and supply risk. This allows purchasing managers to differentiate between supplier types and tailor strategies. The four phases include classifying supplies, analyzing supply markets, strategically positioning supplies based on the classification, and developing action plans to strengthen organizational structures, systems, and staff to support the strategic supply management approach. Adopting this strategic perspective helps companies better guard against supply disruptions.
This lecture slide was prepared for my session to the class of 2015/2016 MSc. programme of Operations, Project and Supply Chain Management in Manchester Business School, particularly for Research Methods module. This presentation covers the research stages, mainly in qualitative context, as well as my dissertation project: The enabling institutional context for a strategic shift toward milk-run logistics - Insights from an automotive manufacturer in Indonesia. It also shares some dissertation 101 tips to finish 15K-18K word paper with excellent result.
The document discusses best practices for strategic procurement, including setting high ambitions and maturity levels. It outlines key activities for procurement transformation like spend optimization and process optimization. It also discusses category management, contract management, compliance, and success factors for transforming procurement like clear long-term plans, communication, capabilities, and celebrating wins.
The document discusses supplier relationship management (SRM) and describes Bouygues Telecom's use of Ariba's sourcing solution. Bouygues Telecom is the third largest mobile operator in France with over 11 million customers. It has an annual purchasing budget of over 2.4 billion euros managed by 80 people. Bouygues Telecom implemented Ariba's on-demand sourcing solution in 2010 for supplier information management, performance management, and sourcing events across all commodity areas. The contract module will be deployed in June 2012 to further improve SRM.
1. Strategic sourcing is a continuous process that involves discovering, prioritizing, improving, and re-evaluating sourcing activities to achieve cost savings and meet business needs.
2. The document outlines a 9-step process for strategic sourcing, beginning with internal research to analyze company spend data, categorize spending, evaluate risks, select project scope, and conduct spend, cost structure, and total cost of ownership analyses.
3. The first step of internal research lays the groundwork for subsequent steps by gathering and analyzing internal company data to understand spending patterns and costs. This information is then used to inform strategic sourcing decisions.
The document summarizes Peter Woon's presentation on Agilent Technologies' implementation of Supplier Relationship Management (SRM) to enhance its supply chain competitiveness. It discusses Agilent's business need for a common SRM model, the key components of its SRM model including supplier stratification, governance, performance measurement, and supplier development. It also provides details on each of these components, examples of best practices, and how they are applied at Agilent.
This document discusses product innovation and the involvement of suppliers in new product development. It defines different types of innovation and explains concepts like kaizen, continuous improvement. Early supplier involvement aims to include suppliers early in the development process to leverage their expertise. Different relationship types between buyers and suppliers are described like co-development, co-makership and co-destiny. The advantages and disadvantages of early supplier involvement are provided. Finally, the document outlines the process of supplier development to improve supplier performance and capabilities.
Tactical Vs Strategic Procurement Shifting Focus Towards Value Creationjamie.mahoney
The document discusses shifting the focus of procurement from tactical to strategic to create more value. It outlines 10 dimensions for an effective procurement organization, including developing a procurement strategy aligned with corporate strategy, implementing tools and technology for spend analysis, establishing an efficient source-to-pay process, ensuring the right organizational structure, managing supplier relationships strategically, and mitigating risks. Moving these dimensions from tactical to strategic can help procurement optimize results and deliver expected savings and value.
Supplier Relationship Management takes traditional sourcing methods to the next level. While the sourcing process uses Requests for Proposals (RFPs) and templated one-way communications to select suppliers and derive the most upfront value for contracted services or products, SRM uses processes, principles, communications and tools to help companies better manage their existing suppliers within all areas of the company during the entire supplier lifecycle.
The document outlines 10 ways to improve a vendor management program. It discusses evolving the role of the vendor manager to be more strategic. It recommends having a senior-level vendor manager and understanding the market position of vendors and your own institution. It also suggests changing performance metrics, connecting with vendor representatives on LinkedIn, using the right type of ROI metrics, tying vendor performance to business plans, choosing the right implementation model, and making vendor management a key strategic performance indicator.
Supplier relationship management srm research 2013tdolder
Over the last twelve years that we have conducted the Supplier Relationship Management (SRM) Survey, the market for SRM has steadily grown and companies continue today to invest in these critical applications. The growth in this market is a testament to the importance of this survey.
In addition to an overview of the major players in the market, the vendor survey shares the experiences, issues and questions that we see daily as procurement professionals implementing and optimizing SRM. Within the document, our expert colleagues share their views and experiences on SRM, resulting in cutting-edge opinion that offers a unique perspective on different facets of SRM. Major themes include the Seven Strategies for Future Procurement, Procurement and Sustainability, Usability and Demand Management, Supply Chain Finance and Procurement and Innovation.
Furthermore, the reader can find vendor profiles describing the participating vendors in greater detail. The descriptions cover information related to their specialization, the total scope of their offering, their distinguishing characteristics compared to competitors, the types of solutions offered (SaaS/In-house etc.), implementations and markets targeted.
Supplier Relationship Management Srm Research 2010 2011salleijn
This fifth SRM Survey marks Capgemini Consulting’s continued efforts to understand the trends and issues affecting organizations when implementing a SRM solution and provides insights for executives on issues and trends across the Procurement profession. Capgemini Consulting has surveyed 100 SRM vendors over the last five years, with this edition surveying twenty vendors with a global geographical scope and worldwide implementations. These vendors represent a broad range of applications that provide full coverage for all sub-processes to niche players supporting only a selected functionality
A full copy of the report can be downloaded from:
http://www.capgemini.com/insights-and-resources/by-publication/supplier-relationship-management-srm-research-20102011/
This document discusses how to move internal procurement from a transactional "shopping" role to a more strategic function that adds value. It identifies barriers like the intangible nature of procurement's work and lack of involvement in key decisions. The document recommends developing an internal marketing strategy including an audit of current and desired positioning. It also suggests professionalizing procurement, aligning strategically in all decisions, and using indicators to justify moving to the next stage of involvement rather than focusing on transactions. The overall goal is for procurement to have a "meaningful involvement" in the organization.
Collaborative Sourcing: Achieving the Next Wave of Sourcing Savings SAP Ariba
The document discusses collaborative sourcing and achieving savings through visibility, analysis, process and collaboration. It describes a panel discussion on these topics between representatives from Ariba, Ardent Partners, BB&T, Coach and Ranbaxy Laboratories. The panelists discuss how gaining spend visibility, analyzing spend data, standardizing sourcing processes and collaborating across organizations and with suppliers can help unlock savings. BB&T and Coach provide examples of sourcing programs and savings achieved through these collaborative sourcing approaches.
Martin Kunz, VP Global Sourcing & CPO at Ahlstrom Corporation - Supplier rela...Global Business Events
The document outlines Martin Kunz's SRM model for identifying strategic suppliers. It discusses scoping the model, defining terms, establishing a cross-functional team, determining criteria and weightings, and the stratification process. The results section shows how suppliers can be analyzed by group, business area, and category. It recommends that sourcing drive the process, ensuring it is cross-functional and that criteria and weightings are thoroughly determined before execution, which requires a long-term roadmap and detailed implementation plan.
Staying Strategic How Procurement must Change!Bill Huber
As traditional sourcing techniques become increasingly outdated, the procurement function must evolve to remain strategic, and procurement professionals must acquire new competencies.
You will learn:
How traditional roles within sourcing and procurement are changing
How robotics and other disruptors will impact the procurement function
Emerging requirements for procurement professionals
Specific capabilities and skill sets procurement professionals need
Multisourcing is a new global trend that involves blending services from internal and external providers to pursue business goals. It leverages multiple specialist teams to improve quality, costs, and time-to-market over traditional outsourcing approaches. Critical success factors include having a clear strategy and governance model, managing relationships rather than transactions, and implementing measurements to manage complexity. Making multisourcing work requires visibility, coordination, and integration across partner boundaries.
In this slideshare presentation we discuss Supplier Relationship & Performance Management (SRPM) and how you can link your HSEQ programme to this.
SRPM is the proactive management of supplier relationships to secure strategic advantage and to add value to your organisation.
Here’s what will be covered:
- An introduction to SRPM
- Why SRPM & who is involved
- Objectives, process, roles & responsibilities of SRPM
- The benefits of SRPM
- How to link your HSEQ programme to your SRPM
The recording to this webinar can be found here: http://www.mangolive.com/blog-mango/how-to-link-your-hseq-programme-to-your-supplier-relationship-and-performance-management-system
This document provides a guide for developing a strategic sourcing strategy in 6 steps: 1) Analyze current spending, 2) Assess supplier markets, 3) Issue a supplier survey, 4) Review responses and select finalists, 5) Define target performance metrics and costs, and 6) Select and communicate with suppliers. The goal is to take an organized, collaborative approach to leverage spending and select suppliers that can create the most value by meeting quality, cost, and other objectives. Key aspects include understanding total cost of ownership, defining a target "to be" state, and setting clear performance metrics for supplier evaluation and continuous improvement.
Strategic Sourcing is a print, apparel and promotional products business that takes charge and helps all sized businesses benefit from scale of economy.
Strategic Sourcing’s platform is twofold; first, our aim is to help all sized businesses. With our association with numerous buying groups, affiliations with overseas manufacturers and internal sourcing structure Strategic Sourcing has the ability to accredit fantastic cost savings no matter the size of the purchase. We have the ability to let small and medium sized businesses make purchases of essential procurement and marketing products they were never able to in the past.
Secondly, we have built a better mouse trap for independent sales associates that allows the associate to do what they do best and that is sell. Strategic Sourcing has taken the approach of servicing our sales associates with dedicated customer service representatives that handle all back end operations. Starting with quoting, presentations to invoicing, collections and order follow up. With our SOP, MIS back end system we have the ability to embrace our sales associates with the service they truly need and entertain our customer service representatives with a system that will not bog them down with tedious additional system entrees. Our system is enabled to take a quote and use it as a flow through to the final stage of each job. Additionally, we have enabled a better commission structure that promotes our sales associates to strive for superior results.
With our two fold approach we offer a win win business model.
The document discusses strategies for developing model suppliers and optimizing a company's supply base. It defines attributes of model suppliers, such as managing quality systems, demonstrating technology leadership, and supporting business goals. It also outlines steps for a mature supply management process, including defining a preferred supplier base, establishing strategic partnerships, integrating suppliers, and conducting supply base segmentation. Commodity source plans are developed annually based on supplier performance data and input from stakeholders to guide one-year and three-to-five-year sourcing strategies.
This article discusses how purchasing managers can adopt a more strategic approach to managing suppliers and supplies. It outlines a four phase process for classifying suppliers based on profit impact and supply risk. This allows purchasing managers to differentiate between supplier types and tailor strategies. The four phases include classifying supplies, analyzing supply markets, strategically positioning supplies based on the classification, and developing action plans to strengthen organizational structures, systems, and staff to support the strategic supply management approach. Adopting this strategic perspective helps companies better guard against supply disruptions.
This lecture slide was prepared for my session to the class of 2015/2016 MSc. programme of Operations, Project and Supply Chain Management in Manchester Business School, particularly for Research Methods module. This presentation covers the research stages, mainly in qualitative context, as well as my dissertation project: The enabling institutional context for a strategic shift toward milk-run logistics - Insights from an automotive manufacturer in Indonesia. It also shares some dissertation 101 tips to finish 15K-18K word paper with excellent result.
The document discusses best practices for strategic procurement, including setting high ambitions and maturity levels. It outlines key activities for procurement transformation like spend optimization and process optimization. It also discusses category management, contract management, compliance, and success factors for transforming procurement like clear long-term plans, communication, capabilities, and celebrating wins.
The document discusses supplier relationship management (SRM) and describes Bouygues Telecom's use of Ariba's sourcing solution. Bouygues Telecom is the third largest mobile operator in France with over 11 million customers. It has an annual purchasing budget of over 2.4 billion euros managed by 80 people. Bouygues Telecom implemented Ariba's on-demand sourcing solution in 2010 for supplier information management, performance management, and sourcing events across all commodity areas. The contract module will be deployed in June 2012 to further improve SRM.
1. Strategic sourcing is a continuous process that involves discovering, prioritizing, improving, and re-evaluating sourcing activities to achieve cost savings and meet business needs.
2. The document outlines a 9-step process for strategic sourcing, beginning with internal research to analyze company spend data, categorize spending, evaluate risks, select project scope, and conduct spend, cost structure, and total cost of ownership analyses.
3. The first step of internal research lays the groundwork for subsequent steps by gathering and analyzing internal company data to understand spending patterns and costs. This information is then used to inform strategic sourcing decisions.
The document summarizes Peter Woon's presentation on Agilent Technologies' implementation of Supplier Relationship Management (SRM) to enhance its supply chain competitiveness. It discusses Agilent's business need for a common SRM model, the key components of its SRM model including supplier stratification, governance, performance measurement, and supplier development. It also provides details on each of these components, examples of best practices, and how they are applied at Agilent.
This document discusses product innovation and the involvement of suppliers in new product development. It defines different types of innovation and explains concepts like kaizen, continuous improvement. Early supplier involvement aims to include suppliers early in the development process to leverage their expertise. Different relationship types between buyers and suppliers are described like co-development, co-makership and co-destiny. The advantages and disadvantages of early supplier involvement are provided. Finally, the document outlines the process of supplier development to improve supplier performance and capabilities.
Tactical Vs Strategic Procurement Shifting Focus Towards Value Creationjamie.mahoney
The document discusses shifting the focus of procurement from tactical to strategic to create more value. It outlines 10 dimensions for an effective procurement organization, including developing a procurement strategy aligned with corporate strategy, implementing tools and technology for spend analysis, establishing an efficient source-to-pay process, ensuring the right organizational structure, managing supplier relationships strategically, and mitigating risks. Moving these dimensions from tactical to strategic can help procurement optimize results and deliver expected savings and value.
Supplier Relationship Management takes traditional sourcing methods to the next level. While the sourcing process uses Requests for Proposals (RFPs) and templated one-way communications to select suppliers and derive the most upfront value for contracted services or products, SRM uses processes, principles, communications and tools to help companies better manage their existing suppliers within all areas of the company during the entire supplier lifecycle.
The document outlines 10 ways to improve a vendor management program. It discusses evolving the role of the vendor manager to be more strategic. It recommends having a senior-level vendor manager and understanding the market position of vendors and your own institution. It also suggests changing performance metrics, connecting with vendor representatives on LinkedIn, using the right type of ROI metrics, tying vendor performance to business plans, choosing the right implementation model, and making vendor management a key strategic performance indicator.
Supplier relationship management srm research 2013tdolder
Over the last twelve years that we have conducted the Supplier Relationship Management (SRM) Survey, the market for SRM has steadily grown and companies continue today to invest in these critical applications. The growth in this market is a testament to the importance of this survey.
In addition to an overview of the major players in the market, the vendor survey shares the experiences, issues and questions that we see daily as procurement professionals implementing and optimizing SRM. Within the document, our expert colleagues share their views and experiences on SRM, resulting in cutting-edge opinion that offers a unique perspective on different facets of SRM. Major themes include the Seven Strategies for Future Procurement, Procurement and Sustainability, Usability and Demand Management, Supply Chain Finance and Procurement and Innovation.
Furthermore, the reader can find vendor profiles describing the participating vendors in greater detail. The descriptions cover information related to their specialization, the total scope of their offering, their distinguishing characteristics compared to competitors, the types of solutions offered (SaaS/In-house etc.), implementations and markets targeted.
Supplier Relationship Management Srm Research 2010 2011salleijn
This fifth SRM Survey marks Capgemini Consulting’s continued efforts to understand the trends and issues affecting organizations when implementing a SRM solution and provides insights for executives on issues and trends across the Procurement profession. Capgemini Consulting has surveyed 100 SRM vendors over the last five years, with this edition surveying twenty vendors with a global geographical scope and worldwide implementations. These vendors represent a broad range of applications that provide full coverage for all sub-processes to niche players supporting only a selected functionality
A full copy of the report can be downloaded from:
http://www.capgemini.com/insights-and-resources/by-publication/supplier-relationship-management-srm-research-20102011/
This document discusses how to move internal procurement from a transactional "shopping" role to a more strategic function that adds value. It identifies barriers like the intangible nature of procurement's work and lack of involvement in key decisions. The document recommends developing an internal marketing strategy including an audit of current and desired positioning. It also suggests professionalizing procurement, aligning strategically in all decisions, and using indicators to justify moving to the next stage of involvement rather than focusing on transactions. The overall goal is for procurement to have a "meaningful involvement" in the organization.
Collaborative Sourcing: Achieving the Next Wave of Sourcing Savings SAP Ariba
The document discusses collaborative sourcing and achieving savings through visibility, analysis, process and collaboration. It describes a panel discussion on these topics between representatives from Ariba, Ardent Partners, BB&T, Coach and Ranbaxy Laboratories. The panelists discuss how gaining spend visibility, analyzing spend data, standardizing sourcing processes and collaborating across organizations and with suppliers can help unlock savings. BB&T and Coach provide examples of sourcing programs and savings achieved through these collaborative sourcing approaches.
This document provides an overview of spend management and procurement software. It discusses features like spend analysis, supplier management, sourcing, invoicing and payment, e-procurement, and contract compliance. Spend analysis involves gathering spending data from multiple sources, categorizing spend, standardizing items, and establishing contracts. The document uses an example of a global pharmaceutical company to show how spend analysis can identify savings opportunities between 15-50% through implementing sourcing best practices and reducing buyer/supplier administration by up to 80%.
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
Dashboard templates determine the layout and content of user dashboards. Administrators can modify the default template and create new templates, which have an associated rank that determines which template new users receive. Templates can be customized by adding or modifying tabs and content items, then published to make them available to users. Existing users will not receive new templates automatically.
Securing your supply chain & vicarious liability (cyber security)Ollie Whitehouse
This document discusses securing supply chains and evaluating third party risks. It introduces a cyber security maturity model for supply chains with five levels from immature to mature. Key points covered include information classification systems, assessing risks from third party suppliers, challenges around unencrypted media, and analyzing culture with suppliers. The best supply chains have a mature approach with defined security strategies, ongoing risk management, validation of standards, and overall cyber resilience.
This document provides an overview of Bhagyam operations for Cairn India Limited. It summarizes production and safety highlights for the oil fields, including cumulative oil production of 20.1 million barrels and over 3 million injury-free man hours of operation. It also includes diagrams and descriptions of the well pads and clusters, water injection lines, pumping systems, and health and safety facilities and protocols in place.
Changing Dynamics: Driving Direct Materials Sourcing and Supplier CollaborationSAP Ariba
"No two categories are the same, and neither are sourcing and procurement strategies. Direct materials sourcing – considered the lifeblood of the supply chain – presents unique challenges and opportunities. Success requires the right blend of in-depth product expertise, close supplier collaboration, and tight integration across processes. In today’s global economy, greater reliance on trading partners has made supply chain collaboration a competitive mandate. As supply chains become more complex and dynamic, your ability to use direct materials sourcing and procurement to achieve the perfect order – receiving the right product, in the right place, at the right time, in the right quantity – depends on having the right tools and partners.
Join this session to learn how SAP Ariba solutions are helping customers with their direct material sourcing strategy; how to collaborate across multiple processes, systems, and geographies in real time; and how to quickly identify and respond to unplanned supply chain events."
Benchmark Your Costs and Transform Your Source-to-Pay ProcessSAP Ariba
Reducing supply chain costs and meeting customer requirements continue to be the key supply chain priorities for many organizations. Indirect spend is a key cost driver, and managing strategic sourcing and tactical sourcing through a well-managed process lowers costs and improves execution capability. In this session, IGATE will instruct you how to benchmark yourself against your industry peers and set a goal to improve your success rate in transforming your source-to-pay process. You will also hear how other companies are experiencing success on their source-to-pay transformation journey.
Category management is a process that retailers use to maximize sales and profits by grouping similar products into categories and devising strategies for each category. It involves defining product categories, assessing category performance, setting objectives, developing an overall strategy and specific tactics, and regularly reviewing performance to make adjustments. Key aspects of category management include defining the target customer, assessing inventory and shelf space needs, setting sales and margin targets, and appointing category captains from supplier partners to help implement category strategies.
"Cost Savings Enabled for European Financial Services company "HCL Technologies
"HCL Consolidated Siloed Applications to Enhance Cost Savings of a Leading Financial Services Firm. Cost savings for the firm included Integration of Multiple Silos into One Platform, Providing About 28% Overall Cost Savings, Enhanced Mobility Capabilities Helped to Generate Good Traction Across Europe, the Single Customer View Of 9.16 Million Customers Helped to Build Better Customer Relationships and Experiences
"
Catalyst 2016: Cost Avoidance 1: M&V Fundamentals.EnergyCAP, Inc.
This session covers the fundamental principles and process of
industry-standard measurement and verification (M&V) of savings attributable to energy management projects.
Business Commerce, the Cloud, and the CIO SAP Ariba
The document summarizes research on CIO attitudes toward cloud-based business applications. Key findings include:
1) CIOs see significant business benefits from cloud applications but also have security and governance concerns.
2) Most companies have ERP systems but are pursuing cloud applications to enhance and extend their ERP capabilities.
3) Three-quarters of companies report cloud applications are meeting or exceeding their expectations, and companies are aggressively moving more business apps to the cloud.
This document discusses approaches to addressing chronic quality problems through quality improvement projects. It states that chronic problems are gradual issues that occur over long periods of time and are often difficult to detect and solve compared to sporadic problems. It recommends selecting specific chronic quality issues to focus quality improvement projects on. These projects should verify the need, diagnose causes, provide and prove remedies, address resistance to change, and institute controls to maintain gains.
Measurement and Verification (M&V) refers to the standards and processes for determination of energy savings due to energy management projects. When energy savings are quantified and expressed in units of currency, this type of savings is called Cost Avoidance.
Social Media to Improve Lead Generation & Customer RetentionSAP Ariba
Do you want to rock the awesome with your digital marketing? In this session you will learn how to use social media to generate more leads and nurture your relationships with current clients. You will understand how to measure social media’s impact on lead generation and customer retention to ensure that your strategies are delivering upon their intended results.
Ms. Kelly will help the attendee figure out where social media fits, assist in executing the recommended strategy across the “right” mix of social media channels through the use of a scalable content approach, and discuss measuring the results to your bottom line.
The document outlines a commodity management and strategic sourcing methodology with the following key steps:
1) Develop a commodity team to identify opportunities, understand needs, prioritize opportunities, and obtain stakeholder buy-in.
2) Conduct spend analysis and market intelligence to understand external spending, costs, and the supplier market.
3) Develop supplier selection criteria, evaluate supplier responses, select suppliers for negotiation, and make a final selection.
4) Implement the selection through developing service level agreements, selecting an implementation team, and establishing performance measures and continuous improvement processes.
The document discusses the implementation of the ActiveStrategy performance management system within WellPoint's State Sponsored Business division. Key points:
- ActiveStrategy was implemented within 6 months to centralize performance data, display KPIs, and ensure accountability.
- An internal team of 5 associates worked with ASE Consulting to build out scorecards linking objectives and measures across various levels.
- Over 100 users were onboarded and trained. The system now includes 30 scorecards, 14 objectives per scorecard, and over 4,000 measures across various dashboards and reports.
- Users have provided positive feedback on the system's fast reporting and ability to track historical performance. Future projects aim to utilize data to run the
Finding and Mining Value Hidden in Operations - The ProAction GroupThe Proaction Group
In this set of slides, you'll find an overview of ProAction's role, values, a few case studies covering diligence through exit, as well as several team member bios.
This corporate presentation outlines Symantec's new strategy to strengthen its offerings by investing more in R&D, improving the customer experience, providing right-for-me offerings, and addressing broader customer needs through new integrated modular offerings. The strategy aims to accelerate organic growth above 5% annually and expand operating margins. Symantec will also simplify its organization and go-to-market approach to better serve customers and partners.
The document discusses how Expense Reduction Analysts (ERA) can help XXX Corporation find extra profit by reducing non-core expenses through their proven process. ERA analyzes a company's expenses, identifies potential savings opportunities, implements recommendations, and monitors for 24 months to ensure savings. Their average cost savings across all expense categories for clients is 19.7% with no fee unless savings are achieved. The document outlines ERA's approach and encourages XXX Corporation to work with them to lower costs and increase profits.
Horizon 2013 Driving Global Adoption to Procurement Technology - A Cargill Ap...Zycus
"In 2010 Cargill, a $130B international producer and marketer of food, agricultural, financial and industrial products and services, initiated a project to reorganize the fragmented procurement function into a centralized Global Strategic Sourcing Function. One key missing element of a successful transformation was a spend visibility solution which could collect, categorize and disseminate spend data across the companies 70 plus business units, 30 plus ERP systems, 60 plus countries and more than a dozen languages. Cargill turned to Zycus’s spend analysis tool as their solution of choice.
Derek Batchlor will share Cargill’s approach to implementation of spend analysis tool and how they have been able to drive broad adoption of the tool by over half of the nearly 200 team members in Strategic Sourcing. "
Sustainable Procurement Index for Health (SPIH) Virtual SessionUN SPHS
This document provides an overview and agenda for a session on the Sustainable Procurement Index for Health (SPIH) project. It introduces the moderator and speakers for the session. The session will include an overview of the SPIH concepts, a discussion of the piloting phase where the SPIH was tested, and feedback from the piloting phase. It will conclude with a question and answer period. The objectives of the piloting phase are outlined as understanding how easy or challenging the SPIH is for suppliers to complete and buyers to review, and gathering feedback on the SPIH structure, criteria, and implementation. An overview of the piloting process and the types of feedback requested from participants is also provided.
Operations management involves directing and controlling processes to transform inputs into products and services. It is a set of decisions made by operations managers regarding strategic, process, quality, capacity, location, and operating issues. Key decisions include determining strategic priorities, improving processes, establishing quality objectives, determining system capacity and layout, and coordinating supply chain and resource planning. Operations management aims to attract more customers than competitors through product/process expertise and quick delivery.
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBAAustraliaChapterIIBA
James Barnes discusses the BA capability in the Environment/Society/ Governance Framework world (ESG). Learn something new while also sharing your ideas and networking with like-minded people.
Stakeholder Engagement:
Strategic Alignment
BU Functional Analysis
Measurement
The most protracted, complex and pressing problems we have in the world today need innovative solutions, sustained over time. That does not match a donor template. Most organisations tackling these problems need a better business model.
Digital Healthcare Revolution conference. 25.02.2016mckenln
The document outlines Oldham CCG's innovation strategy. Key points include:
1) The healthcare landscape is changing with new regulations, performance measures, and a focus on transformation. This presents both challenges and opportunities for Oldham CCG to improve population health.
2) Oldham CCG aims to build a culture that encourages innovation from members to empower communities, use resources effectively, prevent unnecessary costs, and improve care.
3) Oldham CCG will adopt an innovation-based approach, investing in good ideas through a "Dragons' Den" process to test projects. Successful innovations will be implemented more broadly.
4) Three innovation streams are proposed for ideas from various sources. Projects will be
How can sponsors and SROs be sure that their projects or programme will actually create business value? A presentation by Matt Williams and Phil Driver at an APM Benefits Management SIG breakfast briefing on Wednesday 24th June 2015. The event was sponsored by BMT Hi-Q Sigma.
The document summarizes Indigo Advisory Group's utility strategic planning services. It outlines their UtiliSME methodology which provides strategic planning, management, and execution services to utilities. The methodology involves conducting an assessment, developing strategic goals and initiatives, defining metrics and KPIs, and creating an implementation plan. It also discusses trends impacting utilities and the importance of strategic planning given changes in areas like regulation, markets, technology, and customer behavior.
Detailed concepts of the Plan Do Check Act Process – Critical to achieving an...ASQ Buffalo NY
The document discusses the Plan Do Check Act (PDCA) methodology for process improvement. It describes the four phases of the PDCA cycle: plan, do, check, act. Key aspects of each phase are planning improvements, implementing plans, monitoring results, and deciding on changes. The benefits of using PDCA include increased efficiency, reduced costs, and improved quality.
Aegon A&I Conference: Accelerating execution of strategyAegon
Mark Mullin, CEO of Aegon in the Americas provide an update on how Aegon is accelerating the execution of its strategy at the December 2016 Aegon Analyst & Investors Conference in New York.
The corporate presentation provides an overview of Symantec Corporation and its strategy, financial performance, products, and corporate responsibility efforts. It discusses [1] Symantec's key strengths, global intelligence network, and vision to protect what matters; [2] its financial results and growth priorities; and [3] plans to strengthen its offerings through increased R&D, right-for-me offerings, and an improved customer experience.
This document discusses operations strategy and competitiveness. It explains that operations strategy can be used as a competitive weapon through factors like shorter product cycles, production flexibility, low costs, product variety, quality, and more. It also discusses competitive dimensions like cost, quality, delivery speed and reliability, flexibility, and product-specific criteria. Order qualifiers are basic criteria that allow a product to be considered for purchase, while order winners differentiate products. The balanced scorecard and Kaplan and Norton's generic strategy map are presented as frameworks for developing operations strategies. Steps in developing manufacturing and service strategies are also outlined.
The document discusses operations strategy and competitiveness. It provides examples of how operations can provide competitive advantages through factors like shorter product cycles, production flexibility, low costs, convenience/location, product variety, and quality. It also discusses order qualifiers, which are basic criteria for customer consideration, and order winners, which differentiate products. Finally, it discusses developing an operations strategy through aligning with corporate strategy and determining specific operational decisions and infrastructure needs.
The document discusses international procurement strategies and global sourcing strategies. It defines strategic purchasing as coordinating procurement requirements across business units to acquire goods and services in a way that supports business needs. A global sourcing strategy aims to reduce costs, access new technologies, establish alternative suppliers to reduce risk, and take advantage of superior quality from supplier investments. Developing an effective global sourcing strategy requires determining objectives, quality standards, quantities, suppliers, prices, and managing various risks and challenges of operating across different countries.
This document is a presentation by Jay Martin on the topic of Chief Innovation. It summarizes that Chief Innovation focuses on three main functional areas: innovation, supply chain, and strategic planning. It provides examples of projects completed in each of these areas for various industries and international clients. The presentation aims to demonstrate Chief Innovation's breadth of experience across different functions, industries, and geographies to address unique client needs.
Similar to Realize Accelerated Savings Through Effective Category Management + Supplier Collaboration Strategies (20)
WINC. Australia and New Zealand: Collaborating with Direct Spend Suppliers - ...SAP Ariba
As enterprises evolve from bricks to clicks, it becomes essential to integrate to and collaborate with suppliers on key planning and execution processes to obtain instant supply chain visibility and to help ensure uninterrupted delivery to end customers. Come join this session to hear how WINC. Australia and New Zealand has engaged suppliers to collaborate on ordering, fulfillment, and invoicing processes. Learn about the technical details of how to make this happen.
Using E-Commerce to Integrate Your Collaborative Business Transactions - SID ...SAP Ariba
Leading suppliers are using B2B e-commerce to automate business collaboration and coordinate with customers. E-commerce enables suppliers to reduce costs associated with manual keying of documents; increase customer satisfaction with faster, more-accurate response rates to purchase orders; and achieve cleaner, more-accurate invoices. Hear this panel of leading suppliers discuss how suppliers can leverage the various transactional and integration options available on Ariba Network.
The Road to Strategic Finance: Characteristics of a Highly Effective Finance ...SAP Ariba
Oxford Economics surveyed 1,700+ CFOs and finance leaders globally, with 300+ in ANZ. The results revealed interesting insights on how finance in ANZ compares to global leaders. Join this session to hear key themes that emerged and use cases of SAP solutions helping finance leaders become more effective in the digital age. Key themes include supporting strategic growth and line-of-business collaboration, staying on top of technology and innovations, and closing the gap between finance and risk.
The Future of How Work Gets Done: Are You Seeing the Big Picture? - SID 51473SAP Ariba
While sourcing and contracting capabilities continue to mature, operational procurement, especially for services, remains a challenge. Complete services category management can help your organization reduce excess spend, inefficiency, and significant risk. This is where SAP Fieldglass solutions come in. Join us to learn how organizations can use these solutions to power the agile enterprise and streamline statement of work management.
Simplify Supplier Risk Management Across Your Procurement Processes - SID 51538SAP Ariba
Suffering from sporadic supplier due diligence and fragmented risk information? Getting burned from engaging with at-risk suppliers? You are not alone. Come learn how to simplify supplier risk management across your procurement processes. Industry experts will share their experience using the SAP Ariba Supplier Risk solution to help ensure focused risk due diligence during supplier selection, detect early warning signals, and proactively monitor and address risks for each supplier engagement.
SAP Ariba Solutions Realized: Stories of Effective Implementation and Forward...SAP Ariba
Hear how an SAP customer used change management to deploy multiple SAP Ariba solutions. Discover how the company overcame competing priorities and cultural resistance to automate manual procurement processes. Join us to learn how the company is successfully implementing SAP Ariba solutions, seeing results, and learning lessons along the way.
Rio Tinto: Sourcing Multiple Spend Categories in a Single Platform - SID 51255SAP Ariba
One of the biggest challenges enterprises face in their sourcing processes is managing multiple types of spend – direct materials, indirect, and services. Join this session to learn how Rio Tinto is using SAP Ariba solutions to manage multiple types of spend, including complex spend. Obtain strategic frameworks and best practice recommendations for sourcing tactics and templates. Hear about new capabilities that simplify the sourcing of complex spend.
Preparing for Awesomeness: 12 Keys to Success - SID 51270SAP Ariba
"Effective use of SAP Ariba solutions can drive significant results, but to maximize value, a focus on factors such as governance, compliance, and success measurement is critical. Changing the behavior of people is at the heart of delivering on this vision. In this session, learn about 12 key areas on which to focus and hear from others on how they are achieving success. We also review actions you can take now to get a plan on track.
Workshops have a different format from that used for traditional theater-style breakout sessions. They offer more intimate, team-style environments with hands-on and group activities. In order to provide the best possible experience, we limit these sessions to 50 attendees. The first 50 people who schedule a workshop session in the agenda builder will be registered to attend. There will be a waitlist for those who sign up after the initial 50. Please plan to arrive 10 minutes before the scheduled start time in order to check in. Those who have not checked in by the start time will forfeit their seats, and waitlisted attendees will be allowed to take any open slots."
Paperless Supply Chain Collaboration at DuluxGroup - SID 51254SAP Ariba
As manufacturers become more reliant on their direct spend suppliers, supply chain processes become more iterative and collaborative. Learn from DuluxGroup, a major process manufacturer, how it has leapfrogged traditional collaboration means like EDI and extended collaboration efforts to large and small suppliers alike in its paperless factory initiative.
Leading Change and Diversity in Procurement - SID 51537SAP Ariba
Join us for a provocative Women in Leadership panel discussion featuring successful female leaders who will share their personal experiences of opportunities and barriers to success for women in the procurement and supply chain industry. We will explore recruiting and developing female talent for leadership, leveraging diversity as a change agent, and the importance of honing effective communication skills to succeed.
Key Strategies for Procurement to Increase Savings and Contribute to Strategi...SAP Ariba
Procurement can have a significant impact on financial results, negotiating beyond price reduction while strengthening both the supply chain and supplier relationships. Learn how procurement can use payment terms to increase savings and income for the company via early payment discounts or help the company increase DPO and cashflow. Find out how these strategies are helping procurement partner with the CFO to support corporate goals such as growth, innovation, R&D, and financial objectives.
Redefining Procurement Transformation in the Digital Age - SID 51413SAP Ariba
Hear how the provider of the largest electricity network in Australia, Ausgrid, has gained real advantages and procurement efficiencies. Learn how this company is using a single platform in the source-to-contract and procurement environment with minimal customization.
Redefining Procurement Transformation in the Digital Age - SID 51413SAP Ariba
Hear how the provider of the largest electricity network in Australia, Ausgrid, has gained real advantages and procurement efficiencies. Learn how this company is using a single platform in the source-to-contract and procurement environment with minimal customization.
Recent Innovations in Sourcing, Contracts, and Spend Visibility - SID 51373SAP Ariba
The SAP Ariba solutions team has embarked on a journey to bring persona-based user experience (UX) to both sourcing and contract management. Enhanced with in-context intelligence and analytics, smart sourcing and contracts are now a reality. See demos of some of our recent innovations such as the shared services application and mobile and enhanced authoring. You will also get a preview our future innovation plans and upcoming features.
More Ways to Buy Means More Savings: Maximizing the Value of SAP Ariba Soluti...SAP Ariba
There are always opportunities to improve your spend management program. If you have your eye on areas of spend, but are uncertain how to tackle them, this session is for you. We explore different ways of buying with SAP Ariba solutions, and discuss which categories of spend are best suited to each. You’ll leave the session well-armed to take on projects for invoice against contract, spot buy, non-PO invoicing, and more, maximizing the value your organization derives from SAP Ariba solutions.
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How to Craft a World-Class Commerce Program with Your Suppliers - SID 51263SAP Ariba
This document discusses how to craft a world-class commerce program with suppliers using digital collaboration. It outlines how SAP can help companies develop and run supplier enablement programs to maximize success. The benefits of digital commerce networks for both customers and suppliers are described, such as improved process efficiency, cost reductions, and sales growth. Successful strategies for supplier onboarding onto digital networks through active and light enablement approaches are also presented.
How Procurement Leaders Are Changing to Manage in the Digital Economy - SID 5...SAP Ariba
Hear how businesses are driving change in procurement to meet the digital demands of today’s economy and prepare for the future. Listen to how these companies have leveraged the SAP Ariba Procurement solutions to improve compliance, gain efficiency, and ensure better controls in their processes.
How Do Our Most Successful Customers Do It? The Must-Have Ingredients for Val...SAP Ariba
This document discusses key ingredients for successful business transformations. It identifies program vision and business case, executive sponsorship, supporting policy, cross-functional collaboration, and communication as critical success factors. The document provides best practices for each success factor and explains how they can increase the likelihood of a transformation effort achieving its goals. Executive sponsorship in particular is emphasized as essential for gaining company-wide support, ensuring goals are prioritized, and removing barriers to progress. Strong program vision and business case are also highlighted as important to define expected outcomes and benefits in a clear and tangible way.
How Do Our Most Successful Customers Do It? The Must-Have Ingredients for Val...SAP Ariba
Companies are looking to solve different challenges and to achieve different outcomes. Despite all the factors that differentiate these companies, the key ingredients in the recipe for success are the same. Attend this session if you are interested in understanding how to build a strong program with SAP Ariba solutions that will lead to long-term value realization. Learn about the critical elements that our most successful customers share, and that all customers should strive for.
The Role of White Label Bookkeeping Services in Supporting the Growth and Sca...YourLegal Accounting
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During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?
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7. Integrity, Honesty, Safety and Quality
We will conduct business with
integrity
and honesty in compliance with all
laws
and Company policy.
We are committed to produce
products
that are safe and of the
highest quality for our customers.
7 | Confidential & Proprietary
8. 8 |
is …
Covidien is a $12 billion global healthcare products leader
dedicated to innovation and long-term growth. Covidien
creates innovative medical solutions for better patient
outcomes and delivers value through clinical leadership
and excellence.
Medical Supplies
$1.74B
2012 Net Sales by Business Segment - 11.85 Billion
Medical Devices
$8.11B
Pharmaceuticals
$2.0B
9. Our Mission and Vision
Create and deliver innovative healthcare solutions, developed
in ethical collaboration with medical professionals, which enhance
the quality of life for patients and improve outcomes for our
customers and our shareholders.
Deliver unmatched value to our customers by providing solutions
that improve patient outcomes and healthcare delivery through
clinically relevant and economically valuable innovation.
Our Vision
Our Mission
11 |
10. 51 Manufacturing Facilities in 18 Countries
14 |
Countries with Multiple Facilities
United States 23 France 2
Canada 2 Germany 2
Mexico 3 Ireland 4
United Kingdom 2
11. Covidien’s Ariba Footprint:
19 |
FY12
•Ariba Sourcing Professional
•$1B Sourced
Contract
Mfg
10%
Direct
47%
Indirect
43%
FY13 goals
• Capture more Spend/Projects
• Better link sourcing
productivity to performance
goals
• Measure productivity
consistently & globally
• Improve Auditability – link
savings to projects
• Categorize Savings better &
support more advanced
analytics
• Improve global visibility to
real-time savings
performance (Dashboards)
12. Typical Savings Reporting Use Case:
20 |
User Completed a Strategic Sourcing Project and selected a supplier.
The project is scheduled to begin saving $1.2M annually when it begins on
Jan 1st. The $1.2M is allocated across 2 GBUs and several Locations.
Management wants to know:
• What’s the “effective” savings – i.e. savings that occur in the present
FY. Note: COV uses an OCT-SEP FY.
• What’s the status of this savings?
• Is the project on track?
• On time to deliver when planned?
• Delivering +/- from the estimate?
• Is the Team/group/organization on track to FY goals?
• Which projects are lagging/require chasing?
• Which strategies are most productive?
• Which categories are most/least productive?
Challenge: How to measure “savings” from non-competitive Sourcing Projects
13. Insert: Project Pipeline and Savings Tracking
21 |
Uniform way for all teams to measure Savings/Productivity
Links savings reporting to actual projects
Creates auditable Approval Process
Plots & Forecasts multiple savings measures, over time
Legend: OOTB, Repurposed, Custom
OOTB Savings Measures
• Estimated
• Negotiated
• Actual
Covidien Savings Measures
• Estimated Savings
• Negotiated
• Implemented
• Latest Estimate
• Latest_Estimate (for reporting)
14. New fields:
22 |
Covidien Savings Form Fields
Legend: OOTB, Repurposed, Custom
• Commodity
• GBU (Department)
• Contract Awarded
• Savings Type*
• Location
• Supplier(s)
• Source of Baseline*
• Sourcing Lever (execution strategy)
• Material Category
• Sourcing Lever Region
16. 24 |
Measure Definition Use
Estimated Savings Initial estimate
(sometimes
goal/plan/budget)
• Set up initial
plan years.
• Long term,
measure how
well me meet or
beat our initial
estimates
Negotiated All Negotiated savings
(including any rebates
or potential thresholds)
To see if we
ultimately realize all
negotiated savings
(or measure “leak”)
Implemented Actual savings
realized/implemented
Measure overall
performance
Latest Estimate aka: LE – most recent
estimate
High Confidence
forecasting based
on latest data
17. Some Standard Reports:
• Pipeline Report: All Active/planned projects
(and what savings, if any, are
projected/reported on them)
• FY+ Report: All projects contributing to this
and future FYs (all statuses)
• Current FY Allocation detail: Just this year,
cumulative.
25 |
21. What’s Behind the Increase?
• More Project types are being captured
• FY12 Projects (previously uncaptured) have
now been captured to show FY13 impact
• Users who want to prove their job
performance, ensure they have
savings forms!
• Managers want their dashboards to be
accurate and complete.
29 |
24. Next Generation:
• Use negative savings amounts to create
headwinds
• Directors & above will enter headwinds & tailwinds
• Tailored Savings form templates for
different groups
• Streamlining approval process
• Measure & Investigate “leak”
• Monthly Savings reports / linking savings reports
to performance metrics
• Report on outstanding approval tasks
32 |
25. Lessons learned:
• Start Early – don’t wait for a new FY
• Plan for “Carryover” from prior years
• Audit the transfer from prior sources
• Get all the “measures” right the first time (updating
many savings forms is a lot of work)
• Use the system approvals process as much as possible
• Do have oversight from Sourcing Excellence or an
independent party
• Plan for data loads – leave enough time at quarter-end
• Use Reports or saved searches for users with
many forms
33 |
26. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.34
Enterprise Sourcing & Procurement
UHG Procurement & Sourcing Transformation
May 8, 2013
Eric Noyes
Senior Director, Enterprise Sourcing & Procurement
27. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.35
UnitedHealth Group is the most diversified health care company in the United States and
a leader worldwide in helping people live healthier lives and helping to make the health
system work better for everyone.
• Serving more than 80 million individuals worldwide with health benefits and services.
• Operations in all 50 states in the United States and 20 other countries worldwide.
• Headquartered in Minnetonka, MN
• 2012 revenues of $110.6 billion
• Fortune 500 ranking: No. 22
• Named a member of Dow Industrial Average in 2012
• Named World’s Most Admired Company in the Insurance and Managed Care sector,
2010, 2011, 2012, by Fortune.
• 133,000 employees
• Founded in 1974
UHG at a Glance
28. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.36
• United Healthcare, our Health Benefits platform, serves key markets and geographic
regions with a broad range of health benefit products and services for both
consumers and benefit sponsors. We serve people in employer-sponsored health
plans, those enrolled in Medicare and Medicaid, as well as those who purchase their
own health plans.
– Employer & Individual
– Community & State
– Medicare & Retirement
– Military & Veterans
• Optum, our Health Services platform, focuses on helping improve the health care
system itself, including population health management, care delivery and improving
the clinical and operating elements of the system.
– OptumHealth
– OptumInsight
– OptumRx
Our Businesses
29. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.37
Establishing ES&P
Governance and Controls were established:
• Binding Authority Policy – Updated to Require ES&P Approval
• New Supplier Setup – Requires ES&P Involvement and Approval
• Mandate Ariba request to engage with ES&P
• Created dedicated Vendor Oversight Team
ES&P Operations team created within ES&P
• Define and Enforce Policies and Procedures
• Develop Processes for Procurement Activities
• Support and Develop ES&P Tools
ES&P
Operations
(18)
Commodities
(183)
M&A
(5)
30. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.38
Establishing Enterprise Sourcing & Procurement
Outstanding Customer Service
Maximize Value
Mitigate Risk
Common, Practical Solutions
simple:
create a simple
experience for
our customer
that automates
both value and
control
functions
strategic:
be a strategic
partner in the
sourcing and
buying process
both on value
creation and
risk mitigation
secure:
manage the
risk introduced
to our business
and brand
through
commerce with
suppliers
In 2010, UnitedHealth Group centralized procurement functions across all
business units with a vision and four main business goals:
31. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.39
ES&P by the Numbers
~ 12,000 Requisitions per month
~ Over 200 employees
(Domestic and off-shore)
~ $4.5 Billion in Indirect Managed Spend
~ 15% of new suppliers require risk assessments
~ Run-rate savings targets achieved for
2010, 2011 and 2012
Buyers
Assistance
RFx
New
Supplier
30 – 40 new supplier setups delivered per month
32. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.40
ES&P Timeline
2013:
− Deliver 2013 Run-Rate Savings Target
− Complete Wave 3 Ariba implementation (Contracts Pro)
− Complete Wave 2 Supplier Data Hub Implementation (Data Mart /
Reporting Warehouse)
− Develop and optimize Strategic Sourcing organization
− Complete build-out of offshore team
2012:
− Complete Wave 2 Ariba implementations (Sourcing Pro)
− Complete Archer eGRC implementation
− Complete Wave 1 Supplier Data Hub implementation
− Continue to build-out offshore team
Align Build Optimize
Q1 Q2
20 10
Q3 Q4 Q1 Q2
20 11
Q3 Q4 Q1 Q2
20 12
Q3 Q4 Q1 Q2
20 13
Q3 Q4
2011:
− Developed and drove Procurement Business Goals
− Delivered 2011 Run-Rate Savings Target
− Purchased Ariba Procurement technology suite and
deployed Wave 1 implementation (P2P & SIM)
− Built-out offshore staff
2010:
− Centralized Procurement in Enterprise Operations
− Developed and deployed new organizational structure
− Built and staffed organization
− Built detailed Future State Roadmap
− Delivered 2012 Run-Rate Savings Target
− Completed Procurement Tools assessment
Maximize Value
Outstanding Customer
Service
Mitigate Risk
Practical, Innovative
Solutions
33. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.41
ES&P Technology Updates
Risk ToolContracts SIMP2PSourcing
Work
Intake
Sourcing – Established centralized Sourcing team to facilitate UHG Sourcing Events
Increased amount of competitive bidding
Drives material run-rate savings and
Improves UHG’s ability to leverage scale
Documentation and formality to award process, eliminates subjectivity
A R I B A
Key Metrics
• Spend amount ($) competitively bid
• Amount bid by diverse suppliers
• Cost savings ($)
34. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.42
Dedicated Team: Sourcing Process Expertise
Setting sourcing strategy
Business requirements definition
Process definition
Roles & responsibilities for all parties
“No-hand-off” model – continuous participation & ownership of commodity
manager and business
Continuous connection to our businesses on sourcing events
Benchmarking
Ariba Sourcing Tool
Owner & SME for the Ariba Sourcing Tool
Event (RFP, RFI, RFx Auction) expertise
Event Management
Liaison to the suppliers for tool & process interface
First line of system trouble-shooting & triage
Management of library of templates, attachments, content etc.
Sourcing “Center of Excellence Model” Approach
What is our Sourcing Team’s Focus today?
35. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.43
Three Year Strategy
2012 2013 2014
Strategic
Focus
• Understanding the
Ariba Tool
• Developing Process
Matter Expertise
• Mastering the
Ariba Tool
• Forecasting &
Planning of Work
• Going Beyond
RFx: Auctions,
Dutch Auctions
etc.
Key
Deliverables
• Increased Proficiency
• Savings
• Basic metrics
• Even more savings
• Integration with
Ariba Contracts
• Improved Reporting
& Metrics
• Customizable
solutions for our
customers
Investment
Requests
• Training
• Define
Commodity/Sourcing
Roles &
Responsibilities
• Build the Team:
FTE’s to meet
demand (5 more
FTE’s)
• Dedicated Sourcing
Event Room
36. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.44
Summary
Summary/Key Benefits
– Continue to experience evolution in our
business processes
– Visibility into our processes and metrics have
increased
– Increased automation and standardization
– Drive additional hard dollar savings
– Improved controls and policy compliance
► We operate in a highly regulated industry
► Driving program compliance is critical to our success
38. 46
Agenda
Cairn: An overview
Our assessment of our procurement capabilities
Journey towards becoming a High Performance Procurement
organization
Next steps
39. 47
Agenda
Cairn: An overview
Our assessment of our procurement capabilities
Journey towards becoming a High Performance Procurement
organization
Next steps
40. 48
Overview
“Fastest growing energy
company in the world,
2012” - Platts Top 250
“Runners up award to
Raageshwari Oil Mine by
National Safety Awards (Mines)
by GoI”
“16 awards in 26th Mines
Safety week 2012 under
aegis of DGMS, Ajmer”
SRI LANKA
PR-OSN-2004/1
KG-DWN-98/2
KG-ONN-2003/1
KG-OSN-2009/3
INDIA
SOUTH AFRICA
MB-DWN-2009/1
CB/OS-2
RJ-ON-90/1
BLOCK 1
RAVVA
SL-2007-01-001
• Amongst top 20 global independent
E&P company; Market Cap
>US$12bn
• Q3 FY 2012-13 average daily gross
operated production of over 200,000
boepd; Currently operating ~25% of
India’s domestic oil production
• Proven and Probable resource base
over 1bn boe
41. 49
Procurement effectiveness is critical to Cairn
Procurement
is a key
foundation to
Cairn’s
Success
We deal with over 2200
suppliers, which leads
to over 6400 purchase
orders and 50,000
invoices
Logistics
50 Cairn FTE’s are
devoted to finding,
negotiating &
contracting with
suppliers
Resources
400 different people
are required to interact
in the procurement
cycle
Organization Impact
At any one time $1Bn
spend is committed with
suppliers to deliver goods
& services essential to
the business
Spend Impact
42. 50
Agenda
Cairn: An overview
Our assessment of our procurement capabilities
Journey towards becoming a High Performance Procurement
organization
Next steps
43. 51
Cairn – Procurement Maturity Matrix in Apr’12
Major Moderate
Performance Gaps
Organizational
Alignment / Model
Sourcing
& Category Management
Operating Process
Management
Supplier Relationship
Management
Knowledge/ Information Management
Performance
Management
Human Resources Management
Supply
Management
Strategy
Process gaps, non-compliance and long lead time were key issues
Inadequate transparency and information sharing across functions
Substantial (and increasing) contracting load – Significant potential for delay
Low
Source: A.T. Kearney’s House of Procurement
44. 52
Significant challenges through the Purchase
Requisition (PR) to Pay process cycle
Requirements
Finalized
Place Purchase
Order (PO) /
Contract in SAP
Goods / Service
received by User
GRN/SES Created by User
Invoice
Received from
Supplier
Invoice MatchingSuppliers Paid
•No system based end-to-end Sourcing solution available
•One way to purchase every item - SAP PR (Purchase
Requisition)
•Multiple Tenders for the same/similar material/services
•Lack of structured and standard way of communication with
vendor
•Lack of visibility of Invoice status to Vendor
PO/Callout in SAP
45. 53
Our challenges were reflected in the metrics
Procurement TAT very high
~ 50 days (<$50K)
~ 150 days (>$100K)
Lack of visibility of savings and
potential vendor database
Challenges in adding new vendors
to the sourcing database
% Payments within 30 days of
invoice receipt at 75%
First pass yield of Invoices at 40%
Limited Spend review & category
management
~80% material codes used once
47. 55
Agenda
Cairn: An overview
Our assessment of our procurement capabilities
Journey towards becoming a High Performance Procurement
organization
Next steps
48. 56
Initiatives towards areas of improvement
Procurement Dimension Key initiatives
Sourcing &
Category
Management
Requisition to
Pay process
Procurement
Technology
1 Improving spend visibility
2
3
Multiple buying channels4
Electronic supplier collaboration5
E-sourcing and visibility at each
stage
Easy data availability for analytics
50. 58
MIS – PACE
(e-Passport)
SAP ECC
SupplierInteractionwithindividualbuyers/
users
ManualPurchaseRequisition
Existing IT Landscape
MDM
51. 59
MDM
MIS
SAP ECC
SupplierCollaboration
Req. -To –
Pay (RTP)
SRM Module
(On Premise)
Contract Management (CM)
(On Cloud)
eSourcing (On Cloud)UserPortal*
Catalogs
A combination of SAP SRM and Ariba chosen to
drive the change
(On Cloud)
(On Premise)
52. 60
2. E-Sourcing and Visibility at each Stage
Key benefits
Online submission providing
more time for bid submission
(saves on courier delivery time)
No need for physical
signatures, print-outs, courier
Re-submission / clarifications
response is easier
More opportunities for suppliers;
enabling better supplier
participation
Fast Track implementation within 2 months
Spend adoption at 90%+
500+ projects completed with $1.8 Bn spend in pipeline
2700+ Vendors on boarded
53. 61
3. Easy data availability for analytics
e-Sourcing tool helps capture the
details on categories, vendors and
spends
Web reports can be accessed
anytime, from anywhere
Standardized reports configured in SAP
Implementing SAP BI/BO for accessing
relevant information in future
54. 62
4. Multiple buying channels
Multiple
Buying
Channels
PRF- Low
value
purchase
s
Credit
Card
Catalog
User Led
Procurem
ent
Purchase
Requisitio
n
Initially, primary channel of procurement was a PR-PO process [requisition to order]
Simplified
Process
Simplified
Process
55. 63
5. Electronic Supplier Collaboration
ARIBA
Contracts
1
B2B Integration
2
Vendor Portal
3
Standard Contract templates & Faster Buying Channel
Standard Terms; Transparent and faster negotiation
Reduce To utilize the suppliers’ feedback to have more market-aligned terms &
conditions to shortening the sourcing cycle
Establish business integration with other vendors
Seamless integration of backend ERP systems with key
strategic suppliers by using Quadrem
Data transfer (PO, SES, invoices) – expected to ease invoice
processing & enable on-time payment
On time information to all Suppliers everytime
Enabled vendor portal using SAP SRM for all vendors
Suppliers get information on PO, GRN/SES, Invoice status, Invoice deductions
Ease invoice processing & enable on-time payment
56. 64
Cairn – Current Procurement Maturity Matrix
Major Moderate
Performance Gaps
Organizational
Alignment / Model
Sourcing
& Category
Management
Operating Process
Management
Supplier Relationship
Management
Knowledge/ Information Management
Performance
Management
Human Resources Management
Supply
Management
Strategy
Process gaps, non-compliance and long lead time were key issues
Inadequate transparency and information sharing across functions
Substantial (and increasing) contracting load – Significant potential for delay
Low
57. 65
Agenda
Cairn: An overview
Our assessment of our procurement capabilities
Journey towards becoming a High Performance Procurement
organization
Next steps
58. 66
Next Steps
Codification of materials for Projects and codification of Services
Continued focus on ensuring 100% sourcing through Ariba
Bring on-board more strategic suppliers through integration with Quadrem
Greater usage of e-auctions for relevant categories in due course
Leverage the building blocks to ensure more focused category
management and strategic sourcing
Brief Overview of how we use Ariba in our business process; benefits of tool,
As we continue to evolve as an organization, it is important that all of us can clearly articulate our vision.To that end, we have augmented our ES&P Logo with three words that summarize our mission and represent our high-level business goals:As an organization, we are focused on being simple to work with, strategic in delivering value and mitigating risk, and secure in our supplier relationships.