sourcing analytics coe for a fortune 500 pc & printing company

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Sourcing Analytics CoE in Action

Arun KrishnamoorthyDirector - Supply Chain & Pricing Analytics Practice

arun.k@bridgei2i.com

2

Valu

e R

eali

zati

on

Timeframe

Low

High

Commodity

Intelligence

Component & Commodity Cost Forecasting

Forward-Buy & Contract Recommendations

Design Solve Implement Track Value & Learn

• Understand cost drivers of

Memory, Resins and base

metals

• Provide monthly

intelligence to Commodity

managers

Commodity Dashboards Procurement Risk Mgmt

Forward-buy Opportunity Smart Contracting

Build analytics capacity at affordable cost

• Automate commodity

intelligence

• Scale to HDD, Panels,

Rare metals, batteries,

power supplies

• 80% spend had should-

costs

6 Months 12 Months 24 Months 36 Months

> $1bn cost savings by leveraging analytics

• Ability to predict

commodity prices using

drivers understanding

• Predict inflexion points

• Mature process for

intelligence

• Leverage price forecasts

for large forward buys

• Identify opportunities to

bake price intelligence,

rebate mechanisms and

share-of-wallets into a

smart contract offering

for suppliers

+10% Price Forecast

Accuracy

+25% Portfolio Price

Forecast Accuracy

+25% Spend Forecast

Accuracy

Net Impact >100X ROI

The Sourcing Analytics CoE in Action – a Case StudyClient : A global Fortune 500 PC and printing company

Length of Relationship : 3+ years

Thank You