Proprietary & Confidential eSourcing Presentation for: Part 1 – Why eSourcing? - What is eSourcing - Best-in-class - eSourcing Maturity - Increasing eSourcing Maturity Part 2 – Next Level eSourcing - Auctions: A Brief History - eAuction Types - 3C Model - Scanmarket Stats Analysis Dan Gianfreda Sales Manager UK and Italy Scanmarket [email protected]Mobile: +44 7766 746196
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Part 1 Why eSourcing? Speaker... · Procurement Maturity vs eSourcing Maturity Reactive Proactive True Spend ... Correct type of eAuction must be used and set up correctly ... Chlorine,
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Proprietary & Confidential
eSourcing Presentation for:
Part 1 – Why eSourcing?- What is eSourcing- Best-in-class- eSourcing Maturity- Increasing eSourcing Maturity
Part 2 – Next Level eSourcing- Auctions: A Brief History- eAuction Types- 3C Model- Scanmarket Stats Analysis
• Fully managed/planned/documented• Detailed goals defined• Highly standardised approach/Cat Man• Resource allocation/projects planned• Aiming for best practice • Reporting and optimisation• Adding value through innovation
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Reactive
• Excel and emails • <30% eRFx (few users)• <20% eAuctioned (only reverse)• “Only commodities can be eAuctioned”• 20-50% Spend visibility • <40% Spend under management• Expensive file sharing system
eSourcing Maturity
• 50-70% eRFx (majority users)• 20-40% eAuctions (mainly reverse)• “Where else can we use eAuctions?”• 50-70% Spend visibility (no tail)• Spend Analysis or CM • 40-60% Spend under management
• 70-100% (whole team + cross functional)• eAuctions default (all types)• “Where can’t we use an eAuction?”• 70-100% Spend visibility• 60-100% Spend under management• Spend Analysis, CM, SBM, PM• Clear benefit tracking (Finance dept)
True Spend ManagementProactive
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How to maximise adoption and increase eSourcing
Go Full Circle
Buyers – clients –stakeholders.
Full circle stakeholder
centric approach critical
Dispelling Myths
Breaking new ground and
dispelling the myths early
absolutely key. If required, bring an
audience…
Platform Selection
Separating the ‘want’ from the
‘need’. A flexible, customer centric and progressive
tool key
eSourcingNetwork
Regional or cross-category eSourcing
champions vitally important to
sustained adoption growth
cross; geography, time-zone and
business cultures
Bringing the best in-house
Through round-table events,
eSourcingworkshops or
leveraging consultancy expertise –ensure best
practise is bought in-house early
Innovation
The need for innovation forms
as key underpinning
strategy. Internal training events, event creation,
eSourcingprocess
development and communication
all benefit.
Proprietary & Confidential
eSourcing Presentation for:
Part 2 – Next Level eSourcing- Auctions: A Brief History- eAuction Types- 3C Model- Scanmarket Stats Analysis
Dan GianfredaSales Manager UK and Italy
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Auctions: A Brief History
500 BC – Babylon190 AD - Roman Empire1670s - Sweden 1600s – Dutch Auctions 1700s – London: First Auction Houses 1780s – London: Common place1990s – First eAuctions
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Which type to use
Correct type of eAuction must be used and set up correctly
English Reverse
Japanese
Dutch
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eAuction Types
...an eAuction is an eAuction is an eAuction – NOT TRUE!
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When to use eAuctions
Use of eAuctions should be limited to commodities
only… Not True!
1) Scanmarket’s 3C model:
Compelling Spend
Competition
Clear Specifications
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3C Model
SavingsCost avoidancePrice compressionRisk avoidanceIncrease/decrease # of suppliersTrue market value