mie solutions presenting automating supplier relationship management
DESCRIPTION
Supplier Relationship Management (SRM) involves defining and managing all aspects of supplier relationships, from information sharing and collaboration to sourcing, negotiating and streamlining purchasing activities.TRANSCRIPT
Automating Supplier Relationship Management
David Ferguson
President
MIE Solutions
Evolution Of Sourcing
“Almost 50% of best-in-class enterprises that source strategically using best practice strategic sourcing techniques report more than four times greater procurement cost savings, better supply performance, and greater profitability than industry peers.”
From: Strategic Sourcing in the Mid-Market Benchmark:
The Echo Boom in Supply Management [206],
Aberdeen Group, December 2005
What is Supplier Relationship Management?
Supplier Relationship Management (SRM) involves defining and managing all aspects of supplier relationships, from information sharing and collaboration to sourcing, negotiating and streamlining purchasing activities.
Overview
• Where have we been? Or are we still in the past.
• What is driving this automation?
• Spend Management - Sourcing Value
• Discussion of Supply Side Relationship Management
• Discussion of Buyer Side Relationship Management
Where Have We Been?
1. U.S. Post Office
2. Phone Calls
3. Faxing
4. Email
We started from responses taking days to responses taking seconds
What is Driving Automation?
1. Lean Manufacturing
2. Outsourcing
3. Off-shoring
4. Shorter Product Lifecycles
5. Global Competition
Contract Manufacturing Market Drivers
Market ConsolidationIncreasing
Competition Locally and Internationally
Intensifying Competition
Due to the intensifying competition in the contract manufacturing market, the abilities to drive operational efficiencies and better customer/supplier relationship management will help companies to stay competitive
Better Buyer/Supplier Relationship Management
Intensifying Competition
Improving Operational Efficiencies
Measuring Supplier Value
1. Price Per Unit (PPU)1. Actual Supplier Cost
2. Total Cost Of Acquisition (TCA)1. PPU + Direct Costs
3. Total Cost Of Ownership (TCO)1. TCO + Indirect Costs
4. Total Value Management (TVM)
Measuring Supplier Value
Suppliers need to convey the message of Total Value Management to improve their position among the buyers of the world.
What is E-sourcing?
E-Sourcing products help companies save money on major spend categories through online negotiation with suppliers, either via a reverse auction or an RFX process.
What is E-sourcing?
E-Sourcing products help companies save money on major spend categories through online negotiation with suppliers, either via a reverse auction or an RFX process.
What is a reverse auction?
A reverse auction is a tool used in industrial business-to-business procurement. It is a type of auction in which the role of the buyer and seller are reversed, with the primary objective to drive purchase prices downward.
http://en.wikipedia.org/wiki/Esourcing
Supply Side Automation
Supply side automation is
1. Letting the buyers of the world know you exist
2. Interacting with buyers efficiently
Who Are You?
Prior to receiving an request for quote or purchase order the buyer needs to know you exist!
Create A Website
• You must have a good web presence so potential clients can find you.
• Submit your website to the major search engines, .i.e. Google, Yahoo, Bing
• Submit your website to the industrial directories on the internet.
Yellow Pages?
The yellow pages is not where you advertise in the age of the internet. Buyers look in Industrial Directories For suppliers.
• http://www.thomasnet.com
• http://www.globalspec.com
• http://www.mie-exchange/idir
How To Get RFQ’s
Sales in the age of the internet has changed drastically which opens up many more ways to acquire potential accounts
Lead Generation
• Telemarketing• Industrial Directories• Silent Auctions, Standard Auctions, Reverse Auctions• Google Adwords• Existing Buyers
Telemarketing
A telemarketer is a person who makes outbound calls to prospective buyers of their products or services.
This is not the most efficient method.
Industrial Directories
There are many industrial directories on the web including
http://www.thomasnet.com
http://www.globalspec.com
http://www.mie-exchange.com/idir
Auctions
Existing Buyers
Existing relationships is one of the most affective ways to get new work.
Organizing RFQ’s
Ways to organize• Request For Quote Log• Prioritizing Request For Quotes• Capture Rates
Prioritize
Prioritize Request For Quotes
Capture Rates
Request For Quote Log
Conclusion
• List 3 or 4 bullet points to review the goals/objectives covered– “Let’s take a minute to review the
take-away points of this presentation.”
Questions?
Thanks
