Accelerating Sourcing to Reduce Costs & Capture New Benefits

© 2017 Supply Wisdom and Neo Group Inc. Proprietary (www.neogroup.com | www.supplywisdom.com)
BEYOND DATA & ADVICE
TO OUTCOMES
ATUL VASHISTHA
Chairman
+1.617.830.1664
atul@neogroup.com
+
ACCELERATE CONTRIBUTIONS
FROM SOURCING

• Supplier & Location Risk
• Country
• City
• Supplier
• Supplier and location data
• Real-Time and Continuous Alerts
• Analytics & Guidance
• Cloud-based Subscription
• Custom Research
SOURCING DATA & RISK MONITORING
Since 1999, we have advised and supported
clients in optimizing corporate and business
functions through the sourcing levers of
automation, analytics and global talent
• What to Source
• Where to Source
• Who to Source To
• How to Transition & Manage
• Sourcing Check & Benchmarks
• Governance Design & Setup
• Governance as a Service
• Support Resources
• Global Model
ADVICE & GOVERNANCE SUPPORT
Since 2012, providing real-time and continuous
risk monitoring of suppliers and locations
globally
2© 2017 Supply Wisdom, Neo Group Inc. Proprietary (www.neogroup.com | www.supplywisdom.com)

HOW DOES ONE MAXIMIZE OUTCOMES?
Reduce costs & build new capabilities!
ACCELERATE SOURCING
© 2017 Supply Wisdom, Neo Group Inc. Proprietary (www.neogroup.com | www.supplywisdom.com)

THESE ARE SPECIFIC
IDEAS YOU CAN IMPLEMENT
TO ACCELERATE SAVINGS & JUMP
START NEW CAPABILITIES
AND IF YOU NEED HELP,
EMAIL ME
(ATUL@NEOGROUP.COM)

5
FROM PEOPLE TO OUTCOMES
COMPANIES MOVING TO MANAGED SERVICES AND TRANSACTIONS
Instead of leveraging just staff augmentation engagement models, leverage a managed services model, especially
for application support and maintenance, infrastructure support services and predictable business processes.

6
WORKFORCE DOWNSIZING
SUPPLIERS FIRING MORE THAN HIRING
Source: Economic Times and Future Think
Many suppliers are facing decline in their growth rates due to process improvement, automation, move
to digital, increased onshore resource needs, insourcing etc. These are opportunities to harness savings.

7
FROM MANAGEMENT TO GOVERNANCE
MANAGING PEOPLE TO ENABLING GOOD PRACTICES
Management refers to the routine decisions and
administrative work related to the daily operations of
the organization. Management decisions should
support or implement goals and values defined by
governing bodies (such as a Steering Committee) and
documents (such as the bylaws).
Governance refers to oversight and decision-making
related to strategic direction, financial planning,
and bylaws- the set of core policies that outline the
organization's purpose, values, and
structure. Governance decisions should provide
guidelines for management.
Significant savings are being lost due to a lack of disciplined vendor governance. Don’t just manage, govern.
Leverage tools like Sirion Labs and governance support services provided by companies like Neo Group.
Do you do annual health-checks? Ask us how to do this.

8
CONTRACT MATTERS
KEY TERMS WITH A HIGHER FOCUS TODAY
SECURITY CYBER
INSURANCE FLEXIBILITY
INNOVATION
Contracts do matter. They enable
better planning and governance.
Today’s market environment and needs
are increasing the attention to contract
clauses around data security, cyber
incidents, cyber insurance, flexibility in
scale, ability to change delivery
models in mid-contract, innovation
pools, gain sharing, automation,
ownership of IP, operating level
agreements etc. The options available
require not just legal advice but
practical business terms too.
Ask us how to do this.

9
FROM PEOPLE TO TOOLS
LEVERAGING THE RIGHT SOURCING ROLE RELATED TECHNOLOGIES
If you are still using spreadsheets and email to monitor and manage your suppliers, think again!
Tools like Supply Wisdom and Rapid Ratings provide real-time alerts and data to better manage risk, while
Sirion Labs and Enlighta are a system to track service levels, invoices, contracts and resources.

10
SOURCING RISING TO THE OCCASION AS AN ADVISOR
NEW OPERATING MODELS
Sourcing teams should be advisors.
This is not limited to locations and
supplier selection and contracting.
Sourcing team should help business
decide on:
- Operating models
- Automation options
- Analytical capabilities
- Engagement models
- Technology choices
- Future options etc.
If sourcing does not possess this skill,
leverage advisors or build it

THIRD PARTIES ARE CRITICAL TO BUSINESS
HOW DOES ONE MAXIMIZE OUTCOMES?
MORE OPPORTUNITY…

WHERE ARE THE NEXT SET OF OPPORTUNITIES?
THIRD PARTIES ARE CRITICAL
DATA COST RISK AUTOMATION

THIRD PARTY PROGRAMS NEED A NEW LOOK
NOT JUST TRANSACTIONS, LEVERAGE INSIGHTS
INDUSTRIALIZE
DATA TO ACTION
LEVERAGE DATA
SPECIALISTS TO
INDUSTRIALIZE
INSIGHTS TO ACTION 13© 2017 Supply Wisdom, Neo Group Inc. Proprietary (www.neogroup.com | www.supplywisdom.com)

14
INDUSTRIALIZE DATA ANALYTICS
FROM PROCESSING TO REAL-TIME ACTIONS
Source: MuSigma
Identify areas where
analytics will have a bigger
impact than just low cost
labor. Identify data streams
that will benefit from
ongoing analytics rather
than episodic efforts that are
done quarterly or annually.

BEYOND SAVINGS TO PRACTICES
INDUSTRIALIZE
DATA TO ACTION
LEVERAGE DATA
SPECIALISTS TO
INDUSTRIALIZE
INSIGHTS TO ACTION
ENABLE
BENCHMARKING
TO DRIVE
SAVINGS & NEW IDEAS
15

16
KNOW YOUR MARKET
BENCHMARKING BEYOND LOW-HANGING FRUIT
Role Experience Level Tier I
Project Manager
Architect
0 to 4 years
4 to 8 years
8+ years
0 to 4 years
4 to 8 years
8+ years
Lo Hi
Median
Tier II
Lo Hi
Global
Lo Hi
$73 $121$83 $66 $73 $76 $118
$66
$86
$80 $130$99 $72 $80 $86 $130
$72
$90
$72 $89$79 $65 $80 $78 $90$72 $80
$72 $100$82 $65 $80 $86 $117$72 $91
$115 $128$121 $80 $115 $110 $125$104 $116
SUPPLIER A SUPPLIER B SUPPLIER C
$70 $78$74 $63 $70 $70 $102
$63
$80
$80
$80
$80
$87
$77$72
$90
$78
$100$85
$105
$70
$75
Too often companies
either don’t
benchmark or limit it
to pricing.
Benchmark not just
pricing but expand it
to practices and
solutions.
What are your peers
doing?
Access resources like
SourcingBoard.org

BEYOND RISKS TO OPPORTUNITIES
INDUSTRIALIZE
DATA TO ACTION
LEVERAGE DATA
SPECIALISTS TO
INDUSTRIALIZE
INSIGHTS TO ACTION
ENABLE ANNUAL
BENCHMARKING
TO DRIVE
SAVINGS & NEW IDEAS
LOOK AT RISKS
AS OPPORTUNITIES
EARLY DECISION
SYSTEMS MAKE
THE DIFFERENCE

18
THINK OF RISK AS OPPORTUNITIES
NEED FOR REAL-TIME & CONTINUOUS INTELLIGENCE
Source: Supply Wisdom
THE FIRST ONE GETS THE OYSTER, THE SECOND ONE GETS THE SHELL
Disruptions to
operations is rising.
Do you have an early
warning system?
Opportunities are
emerging? Do you
have an environment
scanning capability?
Services like Supply
Wisdom enable you
to identify
opportunities and
risks early and act
faster!

19
RESTRUCTURING OF SERVICE LINES
DECLINE IN CUSTOMER RETENTION
Knowing Information Early is Power. Do you know that:
- Switching Costs are lower
- Faster Transition Times are being enabled due to automation
- Suppliers dramatically changing offerings and capabilities
- Numerous ways to reduce costs dramatically

THE RISE OF MACHINES
INDUSTRIALIZE
DATA TO ACTION
LEVERAGE DATA
SPECIALISTS TO
INDUSTRIALIZE
INSIGHTS TO ACTION
ENABLE ANNUAL
BENCHMARKING
TO DRIVE
SAVINGS & NEW IDEAS
LOOK AT RISKS
AS OPPORTUNITIES
EARLY DECISION
SYSTEMS MAKE
THE DIFFERENCE
USE AUTOMATION
TO INCREASE
SPEED, REDUCE
COSTS, ENABLE
ACCURACY AT
SCALE …

© 1999-2017 Neo Group Inc. Proprietary. www.neogroup.com
The Robotics Capability Spectrum
• High maturity
• Internal ops focus
• Rapid Benefits
• High volume process
• Higher “intelligence”
• More customer-facing
• Longer time to benefit
• Complex query management
Desktop Automation Mini-bots
“Phantom FTE”
Robotic Process
Automation
Digital Assistants Cognitive Computing
SCRIPTING
ASSISTING ACTIVITIES
REPLACING
EXECUTING PROCESSES
DECIDING
ASSISTING DECISIONS
• Basic “Arms”
• Software programming that
consolidates from multiple
sources into a single view to
streamline a process
DescriptionUse CaseBenefits
• Populating a field in one
tool automatically
populates the same field in
multiple other tools
Implement in only a
couple of weeks
20%-50% FTE
• Simple “Bots”
• Applying technology to
automate simple tasks and
activities
• Up-and downloading
documents, mass printing
and email
30% Accuracy
• Virtual “Workers”
• Scheduled engine mimics
execution of manual user’s
repetitive activities without
requiring intervention or
assistance to automate
more complex, yet
predictable processes
• Automatically detecting and
filling missing information in a
CRM system (customer
Relationship Management)
10%-50% Productivity
30% Management Time
• Smart “Hybrids”
• Execute user or client
conversations through a
computer generated
character that can answer
questions or queries and
provide guidance
• Communicating with
customers through the
telephone using natural
language processing
20% ROI Optimization
60% Staffing Optimization
• Cognitive “Brains”
• Systems that gain
knowledge from data as
“experience” and generalize
what is learned from
upcoming situations to
change processes
• Enhancing trading algorithms
using deep learning
25% Faster
Execution
Source: Accenture
AUTOMATION AS THE NEXT VALUE DRIVER
UNDERSTAND THE OPPORTUNITIES
What is your approach
to Automation?
Opportunities are
emerging? Do you
have an environment
scanning capability?
Do you know the
capabilities of pure
play vs traditional
players?
Every renewal or
sourcing effort should
include a solution
redesign to consider
the impact of
automation.
Ask us for a
complimentary briefing

22
AUTOMATION AS THE NEXT VALUE DRIVER
THIRD PARTIES ENABLING THIS FASTER

WHAT WILL YOU DO NEXT?
SOURCE: Stephen Covey
1. Be An Internal Advisor
2. Use the Right Models & Tools
3. Ensure Good Governance
4. Enable Data to Insights
5. Leverage Benchmarking
6. Identify Opportunities, not just Risks
7. Jump on Automation
A GUIDE FOR SOURCING LEADERS

THANK YOU!
REACH OUT!
WE CAN HELP
ACCELERATE YOUR
SAVINGS &
CAPABILITIES
+ 1 (617) 830-1664
www.supplywisdom.com/blog
https://twitter.com/Supply_Wisdom
https://www.linkedin.com/company/neo_group
atul@neogroup.com
BEYOND DATA & ADVICE
TO OUTCOMES
+

Accelerating Sourcing to Reduce Costs & Capture New Benefits

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