Sourcing and Category Management

Global eProcure utilizes a combination of sourcing strategies to derive the best possible value for its clients. The strategies generally vary by commodity and the business environment of the client. The key strategies that we have deployed in the past are:

Spend consolidation
Leverage spend across business units
Re-distribute volume across suppliers
Consolidate volume across different categories

Demand Management
SKU harmonization
Optimization of life cycle costs
Reduce demand wherever possible
Move demand from a high cost spec to a lower cost spec

Competitive bidding
Compare total cost of ownership
On-line negotiations (eAuctions)
Face-to-face discussions

Relationship Restructuring
Establish/ develop key suppliers
Employ strategic alliances/ partnering
Examine vertical integration or make vs. buy

Low cost country sourcing
Expand geographic supply base
Leverage suppliers in low cost countries

Blended Model

In this model, Global eProcure provides spend analytics, strategic sourcing, and category management services including monitoring of contract compliance. We deliver value by following a rigorous sourcing process leading to contracts with suppliers and then monitoring compliance in order to maximize our client’s realized savings. Beyond the initial strategic sourcing leading to contracting, Global eProcure can provide support in category management, vendor performance management, compliance and reporting. The additional services offered under this model include:

Implementation and Execution
We work very closely with the client’s team and selected suppliers to ensure the rapid implementation of contracts. This requires several working sessions with vendors and client cross-functional teams including the legal department. All contract terms are finalized with key vendors, including key performance metrics. The team communicates the expected performance levels to the vendors.

Savings Tracking and Compliance
The client’s category teams receive monthly or quarterly updates on the savings accrued through the tracking of various POs and invoices (either from the AP systems or directly from the suppliers) or from the information obtained from vendors. We develop a formal savings tracking methodology. If the realized savings fall short of projected or identified savings, a formal analysis of the situation is conducted and an action plan is developed to ensure that realize savings come in line with projected savings.

Supplier Performance Management
By following industry standard supplier performance management processes, we are able to improve our client’s relationship with key suppliers while securing better value from the supply base. We provide a category specific scorecard that includes direct inputs from the client’s category teams to measure supplier performance. The scorecard can be posted using our Vendor Management Tool and shared with suppliers using this secure portal.

Re-negotiations
Global eProcure, as a part of its ongoing category management services, closely monitors the contract pricing with the awarded supplier(s) and studies the trends in the industry throughout the duration of the contract. In cases where the business environment dictates re-negotiation of prices/ contracts, Global eProcure bids out the same category using standard sourcing processes and provides complete assistance during the re-negotiation process.

Catalog Management
Under this service offering, Global eProcure will offer a portal through which clients can punch out to various suppliers catalog with pre-negotiated prices. This offering is appropriate for categories that have high volume of transactions with low dollar value such as MRO.

Transition Management Services
After the strategic sourcing, Global eProcure will ensure that transition to category management is accomplished through a disciplined process as follows:
Design
Transition
Scaling
Continuous Improvement

For more information, please email us at info@globaleprocure.com or request our services here