Operational Sourcing to Max Your Procurement Strategy

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Operational Sourcing to Max Your Procurement
Strategy

• Presented by Kevin McCaffrey
• TITAN Technology Partners

2
What is the Target/Objective of Operational
Sourcing?

• Maximizing Supplier relationships to make
  informed procurement decisions based on relevant,
  real-time information.

3
How does Operational Sourcing help you hit the
Target?

• Supplier Management Cultivate relationships with
  existing and prospective Suppliers
• Relevant Information Create questions specific
  to your overall business needs and weight the
  importance of the responses
• Real-time access to information Suppliers log
  into online portal during specified Event times
• Price Management Negotiate optimal prices
  through volume pricing and effective bid analysis
• Efficiency Consistent, repeatable Sourcing
  Events using bid templates

4
What are the major dimensions of Operational
Sourcing?

• Request for Information (RFI)
• Research potential Suppliers products and
  production/delivery capabilities
• Obtain valuable information about a Suppliers
  industry experience, annual revenues, etc.
• Gather information about a companys
  accreditation, OSHA safety record or ISO
  certification
• Gain general industry knowledge

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What are the major dimensions of Operational
Sourcing? (contd)

• Request for Quote (RFx)
• Ability to leverage previous RFI/RFx information
• Award contracts to single or multiple Suppliers
  from a single Sourcing Event
• User-friendly format with side-by-side layout to
  analyze prices and weighted scoring
• Weigh Supplier responses based on a traditional
  attributes such as price and delivery leadtime
• Expand selection criteria to include a
  combination of
• Header characteristics such as revenues, research
  and development, and quality processes
• Item/Service-specific characteristics such as the
  ability to customize order, start/finish dates,
  or sizes/colors

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Manage Sourcing Events in the Event Workbench
Search for Existing Sourcing Events
Create a New Sourcing Event
Analyze Existing Sourcing Events and Bid History
Cancel, End or Extend Sourcing Events
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Event Header Attributes
Quickly evaluate total score of Supplier/Bidder
responses

• Review Bid Questions side-by-side and evaluate
• Weight/importance of response
• Ideal response
• Side-by-side Supplier/Bidder responses

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Event Detail Attributes

• Review a combination of header
• and detail characteristics
• Sort by actual amounts or
• response scores
• Analyze up to 3 Suppliers at the
• same time

Drill into Event Descriptions to review specific
bid questions, responses, and scores
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Awarding Sourcing Events
After analyzing Bidder/Supplier responses and
scores, you can award contracts at the RFx Line
level (shown) or you can award the contract based
on combined header/detail scores and analysis
After completing the Award(s), the system sends a
message to the winning Bidders/Suppliers using
the preferred contact method, and creates the
Purchase or Blanket Order
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MAX your Procurement Strategy with Operational
Sourcing
Establish and maintain long-term Supplier
relationships Increase efficiency creating
Sourcing events and communicating with
Vendors Get control of spend analytics and
evaluate lowest cost alternatives Gain valuable
industry knowledge Reduce costs and increase
profits
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• Operational Sourcing to Max Your Procurement
  Strategy
• Presented by Kevin McCaffrey
• Oracle Training Practice Leader
• kmccaffrey_at_s2v.com
• 303-327-7941

www.s2v.com/training 888-430-9252