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9
Capability Overview

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Capability Overview

1

Our Proposition

The eSourcing Group works to help executives understand the value of procurement and that procurement tools and processes are a natural part of business. Procurement technologies, when paired with ‘process improvement’ and ‘staff development’ deliver step changes in procurement productivity and effectiveness.

Our perfect customer has multi-dimensional issues that align well with our blended ‘software and services’ approach. Our ‘solution suite’ addresses and supports both individuals and departments to help you evolve into a strategically effective resources for your company.

Figure 1.0 Tactical to Strategic – The Organisation

Decentralised

Reactive Transactional Transformative

Centralised Centre-led Integrated CategoryManagement

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ssorganisational adoption rate

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Tools:• Fax/Phone/Email• Spreadsheets

Process:• Subjective-based

Objectives:• Individual, ad-hoc

Tools:• P2P• RFI/Auctions/Surveys• Decision Optimisation• Outsourcing/BPO

Process:• Standardised byProcurement

• ProcurementTransformation

Objectives:• Drive suppliers to the

lowest cost• Pipeline Development• Fund future

procurement investments

Tools:• Spend Analysis• Supplier Management • Contract Management

Process:• Best Practices embedded

in Centres of Excellence• Category Management

Tools:• Supplier Performance

Management• Risk & Trend Analytics• Executive Dashboards (BI)

Process:• Aligned KPIs• Talent Retention Strategies

Objectives:• Increase operating pro�ts • Support growth strategies

Objectives:• Increase spend under

management• Centralised Strategy vs.

Centralised Control

The following graphic outlines the transformational process our clients make as they progress towards Integrated Category Management. Each client starts at a different point on ‘the curve’ but they all learn to utilise increasingly more sophisticated tools and technology to deliver strategic objectives and year-on-year benefits.

32

What the eSourcing Group can do for you?

The eSourcing Group provides tailored solutions for a variety of business-critical Supplier and Cost-Management issues faced by many organisations around the world. Our experienced practitioners have capabilities spanning a broad range of industries, technologies and categories. We can help you lower your organisation’s overall costs associated with Acquisition, Operations and Management

by utilising effective sourcing and purchasing strategies, proven processes and the latest technologies.

It is essential that Procurement Professionals operating in any business sector have the skills to address the ‘business basics’ that can give a competitive edge, such as reducing costs and eliminating waste, while at the same time enhancing their ability to invest prudently, provide

When sales can’t deliver, procurement can. Saving 1% from your annual spend will deliver the same impact on your EBIT as increasing revenue by 20%!

flexibility and reduce risk. Whether you are operating in buoyant or depressed market, these core competencies are vital to ensuring the survival of your company.

We deliver ‘Operational Excellence’ and ‘Technology Enablement’ through consultation, training and implementation across three service lines:

1. Business Consultancy

• Analysis and Reporting • Business Process Design and Re-engineering• Compliance and Governance Audits• Complexity and Optimisation Diagnostics• Reviewing, Recommending and Implementing

Technology Enablers

2. Sourcing Services

• Outsourced, Facilitated and Managed Services• eRFx / Auctions / Surveys• Decision Optimisation• Contract Authoring and Management• Supplier Performance and Relationship

Management

3. Learning & Development

• Up-Skilling and Change Management Programs• In-house and Open Training• Digital and Online Media• Cert IV and Diploma (AQF) Qualifications

4 5

Business Consultancy

Our Business Consultancy practice supports companies to achieve operational excellence by providing solutions to Supplier and Cost-Management issues.

Our clients prefer the eSourcing Group because they see our experience in ‘top tier’ Management Consulting and hands-on Line Management exposure as a valuable combination. We have a first-hand understanding of the challenges and opportunities associated with rallying an organisation and ultimately achieving desired results.

Developing the right client capabilities and transferring skills is a crucial part of all our engagements and provides the basis for lasting, positive outcomes.

We deploy experienced teams who are all experts in their field and who have worked in the industry as senior professionals. Everyone is hands-on, deeply involved in the business and effective decision-makers.

The eSourcing Group has the capability to rapidly assess manufacturing or service industry supply-chains,

developing and implementing improvement strategies that positively and permanently impact ‘the bottom line’.

We believe in working side-by-side with our clients in uncovering facts, developing solutions and transforming operations. While our approach is based on solid analysis, our focus is on getting things done and designing sustainable and relevant business processes.

Our team works closely with our best-in-breed Technology Solutions providers to deliver the most effective enablers for your business processes.

6 7

Sourcing Services

Procurement individuals and organisations face the significant and common pressures of the need to lower costs and drive savings. They are also more tactical in nature and are driven by the need to better position themselves strategically not only within the enterprise (re-focussing personnel on more strategic activities) but also against their competitors.

Unlike other areas of business-process outsourcing, procurement outsourcing is not an ‘all or nothing’ proposition. In fact, many of our clients begin by engaging the eSourcing Group for expertise on a particular group of Spend Categories to manage delivery of discrete sub-processes such as Sourcing Execution.

The eSourcing Group retains highly-experienced, subject-matter experts who can be drawn-on to provide specific information on a range of categories including:

• Facilities Management• Utilities and Energy• Fleet• Freight and Logistics• MRO• Government Policy and Procedure

• Travel• Professional Services• Information Technology and

Communications• Contingent Labour and Recruitment• Stationery and Office Support services

© eSourcing Group Strategic Sourcing Process

OpportunityAnalysis

MarketAnalysis

DevelopStrategy

MarketEngagement Negotiate Contract &

Implement

ManageRelationship &Performance

RefreshStrategy

pportunityA nalys is

Market A nalys is

DevelopS trategy

Spend Analysis

Demand Analysis

Category Pro�ling

Data Validation

Market Analysis

Total & Life CycleCosting

Supplier and BuyerPerception Analysis

StakeholderAnalysis

DevelopSpeci�cations

Develop EvaluationCriteria

DesigningCommunication

Plans

Develop SourcingStrategy

SupplierDiscovery

Develop RFx andDistribute

Bid Evaluation

Options & CostModelling

NegotiationPlanning

eAuction

Fact-BasedNegotiation

Review Risk & Variations

Award/RegisterContract

CommunicateArrangements

TransitionManagement

Service LevelAgreements

ContractCompliance

VendorManagement

PerformanceRating Schemes

Maximise Value

Bene�ts Tracking

Benchmarking

CategoryInnovation

Next GenerationOutcomes

The eSourcing Group’s outsourced procurement services are outlined below in our ‘Strategic Sourcing Process Model’. Any combination of service components can be delivered by our team either on-site, off-site (utilising our proprietary process and systems) or any other in-house solutions.

8 9

Learning & Development

Investment in Learning and Development (L&D) is essential for your organisation’s survival. Upgrading the skills and competencies of your personnel is a critical component of business growth and change. Our L&D approach is focussed on developing and reinforcing the knowledge, skills and abilities required to fully capitalise on the work of individuals within their specific environments. Our experts work with you to define ‘learning needs’ in light of the changes that will occur in regard to roles, processes and technology.

We assess the existing ‘learning infrastructure’, identify any capability gaps and address these through appropriate

C-Suite InfluencingProcurement

People, Profit &Planet

Making ContractsWork for You

SupplierRelationship

Management

SourcingStrategy

SupplierAppraisal &Evaluation

Countering SalesTechniques

Coaching forSuccess

FacilitationSkills

InfluencingStakeholders

PracticalNegotiation

Skills

Introduction toNegotiation

Introduction toProcurement

PerformanceManagement

Practical RiskManagement

SpecificationWriting

Basics ofContract Law

Contributing toBusiness Case

Bid Evaluation

Reducing Total Cost

Contract Drafting

UnderstandingSupply Markets

ContractManagement

CategoryManagement

AdvancedLevel

DevelopmentLevel

IntroductoryLevel

Managing People Managing Procurement Managing the Business

training. To assist us we have a suite of tools focussed on profiling and building the knowledge, skills and abilities required by Procurement Practitioners to fully realise their potential to contribute to the business. The tools include:

• Skills Gap Test

• Training Needs Analysis

• Procurement Maturity Profiling

Visit www.skillsgapanalysis.com for your free assessment.

We work with you to develop a Personal Development Program that aligns your capability with ‘best practice’.

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We then offer you a range of carefully designed development programs for Introductory, Management and Leadership levels. These programs feature various learning strategies that include interactive workshops, role play, case studies, group participation and group projects to name a few. We understand people want fewer lecturers putting them to sleep, preferring high-quality presenters keeping them entertained and educated. The eSourcing Group delivers effective programs using five proven tactics: crafting the fundamentals, getting to know the group, being storytellers not lecturers, using passion and sparking discussion.

Why work with the eSourcing Group?

As a specialist Procurement Consultancy practice, we have a distinctive market presence that is founded on:

• An appreciation of how markets operate

• An understanding of the different ways in which we can interact with those markets

• Commercial awareness to recognise the Risks and Opportunities

• Effective interpersonal behaviour

The eSourcing Group has developed a set of distinctive and coherent tools, techniques, principles and methodologies that focus on the buyer/seller interface. This intellectual property has been developed from the experience of working with both buyers and suppliers in ‘blue chip’ companies all over the world.

The eSourcing Group has:

• Classified hundreds of millions of dollars in spend

• Developed and deployed ‘best-practice’ sourcing and procurement processes and tools

• Market-tested dozens of categories

• Delivered tens of millions of dollars in savings

• Designed and implemented Sourcing, Contracts and P2P Technology Solutions

Our people have worked directly and indirectly with some of Victoria’s, Australia’s and the world’s most recognised organisations. Please contact us for further information – see www.esourcinggroup.com for details.

Technology Partners

Our technology partners have been carefully chosen as the best-in-breed enablers for their respective functions.

Our clients can access solutions with functionality and pricing that meets the requirements of small, medium or enterprise deployments.

1110

iasta SmartAnalytics enables you to solve the following business problems common to the procurement team:

• Data visibility

• Global collaboration and knowledge about organisational spend

iasta SmartSource is comprised of advanced sourcing software platforms that give your team the agility to deliver cost-savings and bottom-line value.

• Supplier Information Management

• Sourcing: RFx / Auction / Surveys / Template Library / Project Management.

• Decision Optimisation

• Contract Authoring

• Contract Management

• Supplier Performance Management

Ariba is an SAP company, and arguably the pre-eminent technology solution for end-to-end sourcing and procurement.

Ariba delivers solutions for the ‘Networked Economy’. Buying smarter, selling faster and managing cash better in today’s Networked Economy takes responsive and supportive working relationships with your suppliers, customers and financial partners. Ariba’s collaborative business commerce solutions make those relationships efficient, effective and profitable.

Driving high percentages of catalog-based Purchase Order spend streamlines your ‘downstream’ (invoicing) efforts. BuyerQuest’s P2P solution builds on the leading eProcurement solution in the industry to deliver unparalleled functionality in the Procure-to-Pay process.

With all goods and services enabled within a single-interface (similar to Amazon.com), BuyerQuest allows for truly self-service eProcurement. As a direct result, BuyerQuest customers drive On-Contract, PO-based spend for all goods and services. When invoices are processed through BuyerQuest, nearly all invoices match against either a Purchase Order or a contract. If the suppliers’ invoices are in line with the PO / Contract, the invoices flow seamlessly through BuyerQuest for payment.

Comprara is a suite of three, specific, sourcing software tools that enable your business to source and manage Supply Contracts.

Designed and managed by strategic sourcing professionals and built on years of experience in global and Australian markets, Comprara gives you all the benefits of eSourcing, eRFx, Reverse Auctions and Contract Management in a simple-to-use and cost-effective solution.

comprará, the future tense of the verb ‘comprar’: we are going to buy…

12 13

Duopoly

Monopoly

MarketKnowledge

Oligopoly

SupplierPercepons

Distributor

Volunteering

Exploitaon

FundraisingCommodies

Work/LifeBalance

Enthusiasm

BadHabits

ExperiencedHires

SkillsShortage

GraduatesHires

SupplierDiversity

Sustainability

RISK CSR

SMI

POLICY

TECHNOLOGY

TECHNOLOGY INTEGRATION

PROCESS

PEOPLE

Labour

Forex

Consultancy

Training

ProfessionalDevelopment

Conferences

RecognisedQualifica�ons

Logis�csOutbound

OnlineForums

Sales

Obsolescence

Consump�on

Feedback Research

Compe��veAdvantage

PerformanceManagement

Export

MCIPS

FCIPS

Learning &Development

Networking

Staff Turnover

CorporateMemory

AccreditedIndustry

Organisa�on

CPI

Environment

CorporateCulture

Goals

StakeholderDemands

Raw Material

PRODUCT

Value Chain

Expedite

PurchaseOrder

Compliance

Invoice

3-WayMatch

Inventory/Warehouse

P2P

AccountsPayable

ERP AccountsReceivable

DataIntegrity

DataFeeds

DataBusiness

Benefits

GeneralLedger

RealisedSavings EBIT

Triple Bo�om Line

BalancedScorecard

Requisi�on

eProcurement

CentreLed

DecentralisedCentralised

Cost toServe

Fit for Purpose

SocioEconomics

Prototype

ToolingDesign

Concept

Poli�cs

Alignment

Values

Probity

EqualOpportunity

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Iden�fiedSaving

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Master Data

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Logis�csInbound

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ImportLicence

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Ethics

Climate Change

Recycling

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RenewableEnergy

Contractor

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Procurement Complexity A map of contemporary Supply Management

Complexity has become an inevitable burden on global Supply Chains and, with that, a significant drain on profits. Simplicity in business exists when you have exactly the right number of essential components and connections to achieve a successful result. No more, no less.

As companies grow, the processes they use to manage procurement become increasingly sophisticated. This adds to internal costs, but also creates ‘transaction complexity’ for suppliers. In other words, the harder it is to do business with you, the more your suppliers will charge!

It is imperative, for Procurement Specialists to reduce the complexity, not only for themselves internally, but for their external interactions with suppliers. The eSourcing Group has developed an effective diagnostic to identify where the most harmful sources of complexity are hiding within your Supply Chain and can work with you to simplify it.

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Level 5, 356 Collins Street Melbourne, VIC [email protected]+61 3 9018 7222