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High-Definition Sourcing: Easing the Frustration of Complex & Strategic Sourcing

4/29/2011

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Sourcing Complexity Can Drive Frustration

»Category too messy: big and complex»Broad adoption tools can’t attack the critical aspects

of the problem»Category leader has a vision to tackle the “real”

problem, but don’t have the enabling technology»Problem solved only to see the solution fall apart

within months

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High-Def Sourcing: Simplifying Complexity »Customer: F50 Consumer Packaged Goods Company»The Situation:

» Tapped market for finished product; found insufficient capacity» Faced with building a plant to accommodate growth

»High-Definition Sourcing Approach: » Broke down manufacturing into steps; collected piecewise capacity» Put prior and next-generation processes out as options» Encouraged capital investment tied to multi-year contracts » Assembled 1MM+ value-chain sourcing options» Analyzed with scenario generation

»Result:» $50MM capital expense avoidance

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High-Def Sourcing: Sustaining Success »The Customer: Global Consumer Packaged Goods Leader»The Situation:

» $500 million in transportation spend; ~2,500 lanes, ~125 carriers» Insufficient contract/rate management and extreme data integrity

issues lead to the loss of savings initially secured

»High-Definition Sourcing Approach » Established business centers to preserve sourcing saving over the

length of the contract » Spend analysis and data management ensured alignment

»Results:» Dramatic reduction in claims and overpayments» Dramatic improvement in daily work efficiency» Dramatic increase in realized savings

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High-Def Sourcing: Solving The “Real”Problem

»The Customer: Global Giant in Technology & Services »The Situation:

» €150MM on travel spend for 4 clients in 130 countries» Only able to compare percentage discounts, not actual costs» Analytical complexity took almost an entire year

»High-Definition Sourcing Approach: » Sophisticated proposal collection capability let suppliers enter

wide range of booking classes and service levels» Optimization enabled rapid evaluation of rebates and potential

policy changes

»Results» Established contracts with savings of 7 – 15%

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»For more information on BravoSolution’s high-definition sourcing and supplier performance management solutions, visit BravoSolution.com.