eSupplier Relationship Management - CIPS Event uploads... · eSupplier Relationship Management... ... / training SRM Evolution ... » Training on eSourcing Platform and Change Management

© BravoSolution - All rights Reserved CONFIDENTIAL 1

eSupplier Relationship Management...

Richard Hogg

Account Director

September 2010


»Procurement and supply chain management has experienced

accelerated transformation over recent years.

»Current macro and micro-economic conditions, across public and

private sectors, provides both challenges and opportunities for the

role of procurement within organisations, which are increasingly

adopting a sophisticated blend of human experience and enabling

technologies.

»Not all human or technology approaches are equal or appropriate,

it is the correct decision of where to apply what approach, and

when, that defines continual and successful improvement within

the procurement function and wider supply chain.

Discussion Statement...


Discussion Points...

» eSupplier Relationship Management...

» eNOUGH...!

» SRM is SRM whether face to face or web based


»BravoSolution Background (Brief!)

»SRM Evolution and Solutions

»SRM Key Success Factors

»SRM Case Studies

» Q&A...

BravoSolution and SRM...


Track Record

BravoSolution - The Company

» Serving over 400 clients

with combined annual

procurement spend of over $500B

» BravoSolution is currently the

largest specialist provider in

Europe and top 3 globally

» One of the few full-suite

supply management

providers worldwide

» Software suite deployed to

over 30,000 buyers and used

by over 300,000 suppliers

worldwide

Technology Excellence

» Headquartered in Milan

» Over 440 staff in 8 countries

» Multi-language local service

delivery capabilities in US,

Europe and Asia

» Stable and experienced

management team

Global Scale, Local presence

» €51M turnover in FY2009,

with six consecutive years of

profitable growth (EBITDA).

» Solid balance sheet, with

positive net financial position

Financial Strength

Leadership in Supply

Management


BravoSolution – The People

Diversity

» 36 nationalities represented

» 25 languages spoken

Expertise

» 87% university graduates

» 90% front line staff with direct

procurement experience

Stability

» Current leadership team together for

the last 7 years

» Staff on 3-year average tenure

within BravoSolution


BravoSolution - Diversification

BravoSolution revenue breakdown by sector (Global)


BravoSolution - ClientsWe serve approx. 400 clients worldwide. These organizations have a combined $500 billion in

annual procurement spend

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Commodity

Management

Managed Events – eAuctions etc…Spend Data

Snapshot

Strategic

Sourcing

Process

Strategic

Sourcing

Launch

Organisation

Enablement

Self service

procurement

tools

Global change

/ training

SRM Evolution…

We are supporting many of our customers through their

entire Strategic Supply Management journey…

Lean/

Value Analysis

Supplier

performance

managementSupplier rationalization

/ diversity

LCCS

Supply risk

management

Supply Base

Transformation

Sustainable

Sourcing


Supply Management Excellence

SRM Solution Offering

Software Suite

Comprehensive suite of advanced

web-based technologies supporting

the full supply management

life-cycle

Rapid benefits delivery solutions

combining advanced tools and in-

depth expertise to support wide

range of spend categories

Portfolio of specialized advisory

services in supply management to

assist clients in quickly achieve

their business objectives

Category Solutions Professional Services

» Spend Visibility

» Program Management

» Sourcing

» Vendor Management

» Contract Management

» Full service sourcing events

» Spend snapshots

» Collaborative Sourcing

» Change management

» Low cost country sourcing

» Educational services

» Strategic sourcing

» Cost reduction programs

Areas

Overview

Components

Revenue

model

Software as a Service (SaaS) with

annual subscription fees based on

organization size and number of

modules deployed.

Project-based approach:

- Fixed lump-sum fee

- Time & material of staffed resources

- Success fee contingent on savings

Professional services fees based on

scope of activities requested. These are

typically either time & material or fixed

lump sum fees for given statement of

work.


SRM Software Suite

SourcingTo support the end-to-end negotiation

lifecycle with in-depth RFX and

Auctions capabilities for procurement

initiatives of any size and complexity

Contract ManagementTo manage and control contractual obligations across the supply

chain ensuring enterprise-wide visibility and compliance

management.

Program ManagementTo provide project management and control for full lifecycle

of each procurement initiative including workflow and

collaboration support for cross-functional teams

Spend VisibilityTo systematically and comprehensively

monitor organizational spend in order to

better formulate tactical-strategic procurement

decisions

Vendor ManagementTo provide detailed and updated intelligence

on suppliers in terms of characteristics,

capabilities and past performance. Includes

advanced workfdlow support for supplier

evaluation and qualification.

End-to-end technology that enables sourcing and procurement organizations to balance price, performance, and risk to achieve

the lowest total cost of ownership. Our software suite includes the following modules:


SRM Category Solutions

» Solution based on a unique combination of tools and expertise

able to identify and prioritize key savings opportunities based

on quick spend analysis service

» This solution allows to create and compare different

optimization scenarios of business, by single category of

spending. These scenarios, output of a different combinations

of constraints, support the decision process of procurement

organizations

» Fully Assisted online negotiation service comprised of

experienced professionals support and enabling technology to

manage client sourcing events, ‘on demand’, on specific spend

categories

Full Service Sourcing Events

Spend Snapshot

Collaborative Sourcing


SRM Professional ServicesBravoSolution advisory services address the full supply management lifecycle, delivering high impact consulting solutions to

drive rapid ROI

» Experienced supply management professionals deliver practical results

» Creative approaches to supporting the strategic role of supply

management to your business

» Tailored to meet individual customer needs

» Sample focus areas

» Strategic Sourcing

» Cost Reduction programs

» Spend Analysis consultancy programs

» LCC Sourcing

» Suppliers Scouting

» Change Management initiatives

» Educational Services

» Market Operations Centre


SustainLaunchEstablish

Establish detailed Goals to foster effective communications

Plan for success by clearly identifying how to achieve goals.

Execute with a targeted combination of training, hands-on experience, and incentives.

Celebrate your team's successes; recognize accomplishments at each stage.

Mandate best practices based on lessons learned at each stage.

Maintain the program to sustain and grow upon early success.

SRM Key Success Factors…


KSF: Goals

» Measurable, achievable goals are critical to the success of any program rollout

» Breaking high level goals into their resulting pieces helps to define discrete steps

» Goals at several levels enable implementation teams to understand the requirements at each level

Source 10% of total

spend in year 1

Breakdown into 5 events

per month

Average 10% Savings/Event

Save £4M


KSF: Plan

» Identify key stakeholders

and project champions

» Determine training and

education requirements

» Identify and plan

resources; people and

tools

» Define the scope of the

rollout


KSF: Comprehensive Planning Improves ROI

+ROI+ROI

Time0 0 Time

• No Executive Sponsor

• Goals and objectives NOT clearly communicated

• Limited investment in training

• Limited investment in support services

• Decentralized strategy

• High Executive Engagement

• Clear throughput goals (actively tracked)

•Training program

•Support services for “Wave 1” of initatives

• Centralized team with regional power-users

1 1

Source: Aberdeen Group Advanced Sourcing Benchmark Report, 2007


KSF: Execute

» Support the

implementation team

with a combination of

training and support

resources

» Focus on a

manageable set of

users, commodities,

or spend for Phase I


KSF: Celebrate

» Recognize internal

leaders with rewards and

peer recognition

» Identify high-performing

suppliers and challenge

strategic suppliers to work

towards a common goal


KSF: Mandate

» Identify successful techniques and areas of opportunity from Phase I to determine your plan for ongoing success

» Coordinate performance evaluation with the successful completion of established targets

» Provide robust change management to support users during this critical self-sufficiency stage


KSF: Maintain

» Measure performance against target goals on a regular basis

» Recognize training as an ongoing skill building process

» Continue to celebrate success and drive continuous improvement by adjusting targets as necessary


Case studies


The benefits realized from the processoptimization have been able to let usget a return on our investment inunder a year

Yves Vignoles,Information System Purchasing at EDF

Case Study: EDF

Outcome» Development and Optimization of relations with client’s suppliers and clients,

and between the buyers themselves

» Optimization of the 'logistics' of the purchasing process with key benefits

including the ability to receive automated reports following invitations to

tender, and the reduction of paper flow and consumption

» Increase of productivity through setting up a harmonized, simplified process,

making it easier to integrate the portal with business management systems

Client since 2002» Pilot Phase for the deployment of an eSourcing Platform to manage all EDF Group

Civil Works» Supply Management Suite launched in April 2006 as part of a project to optimize

EDF’s purchasing organization, creating a unique tool for buyers, covering the entire procurement process

» 4 Areas involved in the projects

» 3 modules rolled-out along the years: Sourcing (inc Auctions); Vendor Management; Contract Management;

» Project roll-out extended to 4 Countries;

» Integration with SAP (upstream and downstream flows)» Dedicated support of BravoSolution consultants along the years

» Training on eSourcing Platform and Change Management

» Dedicated Professional Services to support client procurement activities

» Dedicated Customer Support

» Periodical Reporting on EDF suite activity, by single client Business Units

Extensive Platform Usage

» 4.500 Procurement Professionals

» 40 Business Units

» 12.000 Suppliers

» 25.000 Online Tenders


Delivering a multi-venue park on thisscale within a fixed timescale is a taskunprecedented in the history of UKConstruction…

Sir Roy McNulty (Acting Chair of theOlympic Delivery Authority)

Case Study: Olympic Delivery

Outcome» Automated PQQ processes, pre-formulated best practice templates and

streamlined electronic evaluation - efficiency savings between 30-50%.

» Best practice continuous cascade across the wider organization and down

to fist tier contractors/suppliers

» Reporting/visibility benefits on key strategic projects and milestones (this is

critical considering the time-bound nature of the project)

Client since 2007» 7 years contract for development and implementation of a customized

procurement portal to be used for all contracting activities conducted by the Client;

» 3 modules rolled-out: Sourcing; Vendor Management; Contract Management;

» Project roll-out expanding to cover other authorities and then the first tier contractors/suppliers responsible for delivering key strategic projects

» Continuous technology enhancement to support streamlining tendering process, whilst providing

» Development and implementation of a EU compliant eTendering portal

» Training and coaching support for the full adoption of the solution

» Full help-desk support» Evaluation professional services and collaborative tool on subject-matter

expert evaluations

» Supplier opportunities advertising.» Supplier profiling database and alerting

» Innovative use of ‘micro-sites’ to provide project specific

Extensive Platform Usage (Year 3 of a 7 Year

Contract)

» 100 Procurement Professionals

» 100.000 Suppliers Docs

» 14.000 Suppliers

» 220 Online Tenders


BravoSolution has been an effective partner in helping us to rollout the solution and execute sourcing events to drive savings.”

Greg Thomas, PepsiCo

Case Study: Pepsico

Outcome» Standardized RFX language across PepsiCo» over 100 events in indirect and fleet services and specialized

optimization to support diesel fuel sourcing projects» Compression of bidding cycle time» 2-10% unit cost reduction above and beyond traditional sourcing

savings» 1.9 Million vendors normalized to approximately 250k» 98.7% of spend categorized

Client since 2002» Launch in 2002 of an eSourcing Platform to manage online purchase process

and to enforce Best-Practice Sourcing Processes: aim of driving savings on key indirect procurement categories and matching competitor’s use of eSourcing tools to stay ahead of competition:

» Design and rollout of the eSourcing solution across multiple sourcing teams

» Dedicated event support for initial savings categories» On-going support for large reverse auction events

» Spend Analysis Project to facilitate the classification of client’s spend data to a custom PepsiCo category structure:

» Consolidation of multiple business unit spend systems into single view » Development of a mechanism for tracking supplier diversity spend» Data combination from 10+ different extracts» Timely refreshes every 4 weeks» Extensive project roll-out to European divisions

» Collaborative Sourcing project for LTL (Less than Truckload Transportation) optimization in order to reduce LTL spend and consolidate number of LTL carriers

Extensive Platform Usage

» 200 Procurement Professionals

» Over 700 online tenders

» 1.000 suppliers enabled on eSourcing Platform


Challenging times for procurement

Procurement has a an unprecedented opportunity to create value in today’s climate

© BravoSolution - All rights Reserved CONFIDENTIAL 27© - All rights Reserved CONFIDENTIAL

Thankyou and...Questions?

mailto:[email protected]




© BravoSolution - All rights Reserved CONFIDENTIAL28

Contact Us

Richard Hogg

BravoSolution UK Ltd

85, London Wall

London

UK

Mob: +44 (0)7875 316221

Tel. +44 (0)20 7796 4170

Fax +44 (0)20 7796 4149

Email [email protected]

www.bravosolution.com


Documents

eSupplier Relationship Management - CIPS Event uploads... · eSupplier Relationship Management... ... / training SRM Evolution ... » Training on eSourcing Platform and Change Management