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Strategic sourcing improves profitability

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Strategic sourcing improves profitability

  1. 1. Strategic Sourcing contributing to the bottom line through purchasing
  2. 2. We all want to increase shareholder value www.TacticaCommerce.com 2
  3. 3. Strategic Sourcing vs. Tactical Buy Sourcing Internal Industry, Sourcing Team Requirements Market, Strategy Supplier s Contract Award Options Price & Creation Analysis Quality Data Contract Contract Negotiation Compliance www.TacticaCommerce.com 3
  4. 4. e-Sourcing improves profitability by lowering total cost and reducing supply risks. Better Customer Experience Lower Total Costs Reduce Supply Risk • Price • Product innovation • Service levels • Specifications • Policies + • Market management • Implementation • Quality = • Productivity • Delivery • Speed • Supplier financial stability • Social/environmental liability Improve Bottom Line
  5. 5. e-Sourcing lower costs and contributing to profitability directly in quantifiable way.
  6. 6. You got to address the spend, not just reducing purchasing expenses. 0 100 200 300 400 500 600 By reducing the Annual Spend Volume company spend by 15%, saving of $ 75MM is Improved Annual Spend achieved Volume $75 MM Saving from Startegic Sourcing Procurement Processing Even if reducing the Expense procurement expense by 50%, saving of only Improved Procurement $5.5 is achieved Processing Expense Saving from Process Improvement $5.5MM
  7. 7. Platform, Services and Information Software Platform Services Information Comprehensive and Program Management We help customers flexible sourcing Services helps augment and extend functionalities enable companies build skills, their own knowledge effective sourcing accelerate results, strategy mitigate risks and drive adoption
  8. 8. Sourcing Platform www.TacticaCommerce.com 8
  9. 9. Identifying savings opportunities Cooling Fan Hard Drive Extruded Aluminum (18%) (12%) Heat Sink Power Supply (10%) (18%) Auxiliary Device Injection Molded Plastic Controller (19%) (12%) PCB (25%) Passive Components (12%) Shielded Injection Printing/Packaging CD Drive Molded Plastic (15%) Interconnect Products Savings shown are average savings, not savings estimates. (12%) (19%) (22%)
  10. 10. Supply Management is a critical business activity alongside ERP and CRM Suppliers Customers Enterprise Customer Supply Chain Resource Relationship Management Planning Management BUY MAKE SELL
  11. 11. Who is Tactica?  Strategic Sourcing expert in Asia founded Tactica provides e- in 2004, Sourcing software service for professional sourcing  Offices in Hong Kong, Shenzhen, Kuala managers to Lumpur and representative in Tokyo automate the entire sourcing process. Sourcing cycle times  Tactica helps reduce procurement cost and Buyer efficiency through a powerful e-Sourcing platform can be improved by with best practices, achieving an average 60% by automating savings of 5 - 30% within only 2-4 weeks the entire sourcing process time.
  12. 12. Case Study The Company is one of the world’s largest manufacturer of home appliances company. Commodity Spend Saving Volume Total Spend SMD LED 4.70 Mil 2,270,511 $ 150 Mil NI-CD 12.43 Mil 697,985 MLCC Sourcing 9.62 Mil 96,000 Double side 15.64 Mil 3,901,449 DS RF BD 18.32 Mil 961,712 Addressable Double side (HS Main) 22.18 Mil 25,907,748 Spend Buzzer 1.93 Mil 87,523 $27 Mil Microphone 9.65 Mil 1,085,481 Screw 1.78 Mil 1,503,675 Saving Clamshell 0.49 Mil 588,242 $5.4 Mil Double side (BS PCB) 5.82 Mil 449,241 Poly bag 0.87 Mil 216,568
  13. 13. Talk to us www.TacticCommerce.com Chee-Wee LOKE Vice President cwloke@tacticaCommerce.com TacticSource | Sourcing TacticBuy | B2B Procurement TacticQuote | RFQ

Hinweis der Redaktion

  • My name is Chee Wee …
  • If you are the CEO of a company
  • Let’s talk about procurement . . .
  • Let’s drill down a little bit deeper . . .
  • If you take out all the slide . . .
  • A very senior from P&G …
  • Let’s Talk about strategic sourcing and adoption . . .
  • The sales guy . . .
  • This is how we position the sourcing solution . . .

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