9 steps to e-sourcing success
DESCRIPTION
This guide was designed to provide the essential steps for management of a successful e-sourcing program from the perspective of a program manager.TRANSCRIPT
9 Steps to Success in e-Sourcing
This guide was designed to provide the essential steps for management of a successful e-sourcing program from the perspective of a program manager.
The responsibilities to the left are just some of the tasks the Intesource full-services e-sourcing team are carrying out in support of the program.
1. Setting Goals & Staying on TrackSharing best practices
2. Educating Category ManagersPerforming an on-site category review
Creating an event calendar
3. Collecting Information for BidsBuilding event based on planner
Suggesting strategy & supplementations
Performing supplier research
4. Approving BidsRequesting approval from stakeholders
Sending invitations to suppliers
Training & preparing suppliers to bid
5. Running EventsMonitoring live events
Solving supplier bid question
Sending reports & analysis after event
6. Collecting SamplesRequesting samples for stakeholders
7. Awarding BusinessSending award & non-award letters
8. Scorecarding Results
9. Categories to Focus onAnalyzing & providing recommendations
Setting Goals & Staying on Track
Set annual program goals
i.e. Minimum 10% increase in volume
each year by department
Create a plan for each department complete with calendar of events and goals
Meet with stakeholders
Annual: Review the past year’s goals and create new goals for the upcoming year
Monthly: Review progress and adjust plan as necessary
Educating Category Managers
What to expect, the process, category
selection criteria, sample savings,
checklists, guides, and more
Collecting Information for Bids
1) Collect event information and fill out event planner
2) Ensure all information is included and accurate
3) Use completed information to build the online sourcing event
Approving Bids
Review online bid details with stakeholders to ensure accuracy.
After event is verified, invite suppliers.
Running Events
Program Manager:
View all live events to answer questions and resolve
issues in real time.
Stakeholders:
Watch live event.
Celebrate wins!
Collecting Samples
Samples are a critical step in the process
Request samples before an event to pre-qualify
unfamiliar suppliers.
Request samples after an event to evaluate product
from selected suppliers based on event pricing.
Awarding Business
Stakeholders should finalize award decisions based on price, samples, and quality within 30-60 days from live event.
ScorecardingResults
Scorecard event results by department and enterprise-wide based on actual pricing from awarded supplier, not lowest bidder.
Categories to focus on
1) High spend categories with a minimum of $100K
2) Lower spend categories if savings potential is significant
3) Non-branded goods typically provide the greatest savings
4) Focus on categories with at least three suppliers
5) Validate price increases and take full advantage of price decreases
Download the Market Brief >>
You might also be interested in
how to breakdown the five barriers
to e-sourcing success
This content was based on information presented by an Intesource partner at the Intesource annual conference - Innovation. Interested in learning more? Click here.
(800) [email protected]
Thank you
For more information on the steps outlined or
to learn more about e-sourcing contact us.
This content based on information presented at the Intesource conference - Innovation. Click here to learn more.