Breakout Presentation from Elemica's inSIGHT 2013 Conference

1. Score More with
Network Powered
Sourcing
Sourcing Breakout
Session – inSIGHT 2013
Presented by Wayne Boss

2. Overview
What are the challenges with data and
spend visibility for indirect goods and
services
What is Elemica’s solution?
What are the advantages of
network powered sourcing?
What are the benefits for network powered
logistics sourcing?

3. Background
– A strong business case due to process
improvement, inventory reduction and
very high ROI
Elemica’s Supplier Management has focused on Direct Materials
The value proposition for Indirect
Suppliers was not as strong
– Impacts a smaller spend
– Issues with data
– Lower ROI

4. Direct/Indirect Materials
High
# of Suppliers
Low
High $ Value of Transactions Low
Direct Materials vs. Indirect Materials

5. The Problems
Indirect materials have a large
number of suppliers-even for
those companies who have
worked hard to consolidate
their supplier base.
The transactions for these suppliers
are smaller in terms of total dollars.
At the same time they can be
significantly higher in terms of
line items.

6. More Problems
Master data for indirect materials is
less accurate than master data for
direct materials.
Unlike direct materials, many
indirect purchases are not tied to
widely published indexes making it
difficult to know how close your
price is the best price in the market.

7. Elemica’s
Solution

8. The Elemica Supply Chain
Operating Network
Analytics
Universal Business Concepts BI
Applications
Universal Business Concepts RulesApps
Apply
the Right
Process
Derive
Insight
Document
Stream
Document
Stream
Enterprise
Systems of
Record
Enterprise
Systems of
Record
Universal Business Concepts
Network Master
Data ManagementConnectivity
Network
Speak
the Same
Language
Automation
Value
$
Process
Enablement
$$
Market
Insight
$$$

9. The Power:
QuickLink Network
Mapping time
The new QuickLink Network changes the
fundamentals of the game!
On-Boarding
IT resources

10. Transaction Value
$-
$50,000,000,000
$100,000,000,000
$150,000,000,000
$200,000,000,000
$250,000,000,000
2008 2009 2010 2011 2012 2013
Projected

11. The Advantages of
Network Powered
Sourcing

12. The Advantages:
Data, Data, and more Data
As Elemica’s network grows, our data repository grows with it.
Elemica will be in the position to leverage this data for
several possibilities such as comparative pricing
analysis, spend visibility, and supplier discovery.
When utilizing Elemica’s supplier management
products for indirect materials all the key data points
will be captured.

13. The Advantages:
Benchmarking
Information sharing
Elemica will be able to provide benchmarking information for
indirect materials.
Examples of potential opportunities:
• MRO items (bearings, motors, belts, safety and personal protection equipment)
• Temporary labor rates
• IT equipment
• IT contractor rates
• Fleet costs
Collaboration
Benchmarking Opportunities

14. The Advantages:
Spend Visibility
Many companies need better tools to understand what and
where their indirect purchases are conducted.
As your transactions increase through the QuickLink network,
Elemica will be able to assist you to gain insights into how your
company spends its dollars.

15. The Advantages: Supplier
Discovery
Access to new suppliers and their profiles
Commodities offered
Duns number
Geographies served
Contact information
Short company overview

16. Logistics
Sourcing

17. Logistics Enhancements
Benchmarking possibilities for logistics:
Full truckload
Rates
Transit times
Accessorial charges
Ocean freight
Rates
Transit times
Lane optimization
Backhaul possibilities
Combined shipments

18. Wrap Up
The foundation is built to
support you.

19. Questions/
Comments
?
?
?