Strategic Sourcing Guide

12Steps toStrategicSourcing

Analyze Spend &Gain VisibilityAnalyze Spend &Gain Visibility

Classify spend across multiple parameters and dimensions including supplier, category and business units

Make visibility across the procurement process a priority not just spending

360˚ visibility supports a full range of strategic procurement activities

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12 Steps to Strategic Sourcing

1

Analyze OpportunitiesAnalyzeOpportunities

Visibility enables sourcing professionals to analyze the nature, scale and complexity of categories

Sourcing professionals can now determine if a strategic sourcing approach can deliver additional value over alternative approaches which in turn can generate savings

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12 Steps to Strategic Sourcing

2

Analyze MarketAnalyzeMarket

Develop an in-depth

knowledge of the your

ecosystem – suppliers,

supply markets, the

changes in the

commodity prices,

supply chain structure

and economics.

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12 Steps to Strategic Sourcing

3

ManageCategoriesManageCategories

Collect, collate and analyse supplier & buyer reporting data

Gather category intelligence through external research reports, internal research and trend mapping on indices)

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12 Steps to Strategic Sourcing

4

Standardize SourcingStandardize Sourcing

Rationalize product specifications & standardize buying practices.

Set up selection & qualification criteria for suppliers by developing benchmarks created by taking inputs from the various stakeholders involved in the usage of the product/service being procured.

Based on the spend analysis & qualification criteria set for suppliers produce a new list of qualified suppliers

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12 Steps to Strategic Sourcing

5

Encourage SupplierInnovationEncourage SupplierInnovation

Be flexible while seeking

information from suppliers

as well as inviting supplier

bids

Rigid contracting terms

will inhibit suppliers from

offering their best and

inhibit mutually beneficial

supplier relationships

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12 Steps to Strategic Sourcing

6

OptimizeSupplier BidsOptimizeSupplier Bids

Create & compare award scenarios to suite your business requirements

Lowest bid is not necessarily the best bid

Analyze the bid from

various business

constraints based on

material cost /

transportation cost / labor

cost etc

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12 Steps to Strategic Sourcing

7

ManageSupplier RelationshipManageSupplier Relationships

Create supplier management, enablement and development programs to Improve supplier performance and develop mutually beneficial relationships.

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12 Steps to Strategic Sourcing

8

Manage ContractsManage Contracts

Monitor and ensure that

buyers & suppliers comply

with the performance

requirements of the

contract.

Negotiate not only on

price but also on various

other criteria like payment

terms, on-time delivery,

volume etc.

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12 Steps to Strategic Sourcing

9

ShareInformationShareInformation

Share information on

best practices for a

market, category,

supplier profiles

among both internal

and external

stakeholders

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12 Steps to Strategic Sourcing

10

CollaborateCollaborate

Work closely with internal & external stakeholders

Capture knowledge and information effectively & efficiently from many sources (internal & external stakeholders), transform & redistribute it where needed

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12 Steps to Strategic Sourcing

11

TrackSourcingTrackSourcing Benefits

Create & manage

sourcing projects on a

single platform. Monitor

project progress and

identify bottlenecks &

replicate sourcing best

practices across the

organization.

12 Steps to Strategic Sourcing

12

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At Zycus we are 100% dedicated to positioning procurement at the heart of business performance. For more than a decade we have been the world's most trusted leader in Spend Analysis. With our spirit of innovation and a passion to help procurement create even greater business advantages, we have evolved our portfolio to a full suite of Procurement Performance Solutions — Spend Analysis, e-Sourcing, Contract Management, Supplier Management, and Financial Savings Management.

Behind every Zycus solution stands an organization that possesses deep, detailed procurement expertise and a sharp focus on being responsive to customers. We are a large — 600+ and growing — company with a physical presence in virtually every major region of the globe. We see each customer as a partner in innovation and no client is too small to deserve our attention.

With more than 200 solution deployments among Global 1000 clients, we search the world continually for procurement practices proven to drive competitive business performance. We incorporate these practices into easy-to-use solutions that give procurement teams the power to get moving quickly — from any point of departure — and to continue innovating and pushing business and procurement performance to new heights.

Z

AboutZycus

Princeton: 103, Carnegie Center Suite 117, Princeton, NJ 08540 Ph: 609-799-5664

Chicago: 5600 N.River Road; Suite 800, Rosemont, 1L 60018. Ph: 847-993-3180

Atlanta: 555 North Point Center East; 4th Floor, Alpharetta, GA 30022. Ph: 678-366-5000

NORTHAMERICA

Frankfurt: EPJ Business Center, Suite # 418, Mainzer Landstrasse,

27-31 60329 Frankfurt am Main, Germany. Ph : +49 (0) 69 27-4015-251,

+49 (0) 172-614-4874, +49 (0) 69 27-4015-111

Paris: 20, Bis rue Louis Philippe, 92200 Neuilly sur Seine. Ph :+33 (1) 393-58023

London: Office 404, 4th floor, Albany House, 324/326 Regent Street, London, W1B3HH.

Ph : +44 (0)800 6226561

EUROPE

ASIA Mumbai: Plot No. GJ – 07, Seepz++, Seepz SEZ, Andheri (East), Mumbai, Maharashtra 400 096 Ph: +91-22-66407676