3. Agenda
Procurement leaders face conflicting priorities in 2012
Four trends drive business technology developments
We’re beginning to see their impact on ePurchasing
Summary recommendations
4. Agenda
Procurement leaders face conflicting priorities in 2012
Four trends drive business technology developments
We’re beginning to see their impact on ePurchasing
Summary recommendations
7. Sourcing’s Goals Pull Us In Two Directions
• Number of
Rationalize Expand
Suppliers
• Aggregate demand to get • Expand the bidder pool to
economies of scale Costs increase competition
• Dump financially weak • Diversify, multi-source to
vendors Risk reduce over-dependence
• Focus vendor management’s • Introduce new blood to
attention Performance combat complacency
• Create tight strategic • Search for new sources,
partnerships Innovation anywhere in the world
Answer: Do Both – create tighter partnerships in some areas while
increasing competition in others
8. Agenda
Procurement faces conflicting priorities in 2012
Four trends drive business technology developments
We’re beginning to see their impact on ePurchasing
Summary recommendations
9. Forrester has identified four broad themes
driving business technology trends
• Empowered employees and customers energize leading
organizations.
• Everything-as-a-service (XaaS) offers new technology
acquisition and consumption options.
• The App Internet connects mobile users to near-limitless
information.
• Big data extends our digital horizon and changes the way
we do business.
10. CIOs need shift budget from steady-state
to new initiatives
May 2011 “Forrsights: The Software Market In Transformation, 2011 And Beyond”
11. Businesses cannot, and should not, get all
their technology innovation from one source
Self-
iApps provisioned
Key business
New supplier
applications
search
Core
Collaboration Systems
SRPM
ERP
eSourcing
12. Agenda
Procurement faces conflicting priorities in 2012
Four trends drive business technology developments
We’re beginning to see their impact on ePurchasing
Summary recommendations
15. But a universe of discrete networks is costly
for suppliers, and less effective for buyers
Gallileo
16. We’re now seeing the emergence of global
communities of buyers and sellers
• Scale and reach to be effective
• Unstructured collaboration, not merely transactions
• Sharing information with your peers
18. Agenda
Procurement faces conflicting priorities in 2012
Four trends drive business technology developments
We’re beginning to see their impact on ePurchasing
Summary & recommendations
19. How can you make use of these
forms of unstructured collaboration?
• Idea forums that include key suppliers
• Users’ problems, suppliers’ ideas, voting on which ones to take forward,
workspace for project teams to share information
• Engineering change process
• Consider the impact of proposed modifications before they are put into effect
• Community performance rating
• Aggregate objective and subjective data from your peers to evaluate
prospective suppliers
• Urgent problem resolution
• Creation of ad hoc teams, live web conferencing,
asynchronous messaging
20. What can you do now?
If you’re just starting out… If you’re further along…
• Don’t wait until you have a • Use technology to work
disaster to create the even more closely with
business case for SRPM your key suppliers
• Convert Ptolemaic or • Focus SRPM attention
Copernican supplier based on importance, not
collaboration initiatives into just spend
community programs • Automate analytics
• Start somewhere • Manage improvement
important, but doable processes
Riskier environment – economic, political, environmental; price volatility; Need to drive down costs – by consolidating spend with fewer suppliers, while increasing the bidder poolNeed to co-innovate with suppliers
Riskier environment – economic, political, environmental; price volatility; Need to drive down costs – by consolidating spend with fewer suppliers, while increasing the bidder poolNeed to co-innovate with suppliers
Image:http://clichegal.blogspot.com/
To add or remove rows in the table:Select the table. Your cursor will change to an icon of two lines and an arrow above and below will appear on mouse-over of the baseline of the row.Right-click and select INSERT > ROW BELOW. Or DELETE ROW.To add a row after the last row, you can press [Tab], and the cursor will go to a new row.Highlighting new areas:Select the bracket group from the right bracket. Hold SHIFT and pull cursor down over the next bullet item. Select the previously highlighted text and in the HOME tab unclick the [B] button for bold, and click on the [A]buttonand choose the gray swatch (Gray-50%, Accent 5) second to last in the top row of the palette. Select the text for the newly highlighted area and click the [B] button for bold, and click on the [A]buttonand choose black.
Use of ePurchasing to assist supplier tiering and then monitor performance at an intensity level appropriate to the tier.
Facebook was only effective because it dominated. E.g. half your friends are at party down the road that was advertised on BeboWe wont accept such a monopoly in a B2B context, but we will accept 3 or 4 community platforms, especially if they integrate with each other.
Use of ePurchasing to assist supplier tiering and then monitor performance at an intensity level appropriate to the tier.