9 steps to e-sourcing success

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 >>

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This content was based on information presented by an Intesource partner at the Intesource annual conference - Innovation. Interested in learning more? Click here.

(800) 475-2149info@Intesource.comwww.Intesource.com

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.