ignite 2015 na sourcing breakout session - "using data to make better decisions"
TRANSCRIPT
Using Data to Drive Better Sourcing Decisions
Sourcing Management
14Categoriessourcedover1001mes
17,000Acrossallregions&
commodi1es$28BAcrossallregions
8%Acrossall
commoditytypes
650Acrossallregions&
commodi1es
SourcingeventsSpendAmount
AverageSavings
Experience AggregaAonEvents
Using Data to Drive Better Sourcing Decisions
Data Challenges in Sourcing
• #ofItemsSourced• #ofCommodi1esSourced• #ofBidElementsCaptured• #ofInternalCostFactors• #ofSpecifica1ons• #ofSuppliers• #ofPackageorCondi1onalOffers• DynamicDiscoun1ng• #ofSourceDataSystems
Thisiswhatcausesbasicsourcingtoolstofail,forcingyoutorevertbacktousingspreadsheetsformanualanalysis.
Pressure to Deliver More Value
AccordingtotheSourcingBenchmarkReportconductedbytheAberdeenGroup…50%offirmsstudiedstatethattheyplantoimplementsourcingop@miza@onsolu@ons.
Formanymaturesourcingorganiza=ons,thelowhangingfruit
isgone---thenextfron=erfocusesonmakingsourcing
decisionsbasedontheen=revaluechain
Data-Driven Sourcing Optimization
Illustrative Examples ü Multi-Objective Decision Making ü Supply Chain Tendering
Assuming no constraints, Supplier 1 would be awarded all Products
Illustrative Example 1 Multi-Objective Decision Making
Product Supplier 1 Supplier 2 Supplier 3
A 1000 1140 1130
B 1000 1140 1100
C 1000 1150 1080
D 1000 1150 1100
E 1000 1060 1100
What if?
Bid Winners
1026
990
972
990
954
4932
None of the suppliers have enough capacity to fulfil annual demand?
Each supplier only can fulfil the maximum of 3 products?
Suppliers 2 & 3 give a 10% discount on a contract for more than 2 products?
AssumingnoConstraint,ContractwillbeawardedtoSupplier1
WhatIf
TheWhitestripsbehindthegreyboxesbelowcanbeusedtoselectthetextshownduringthetransi1on.Foryourhelp,thetextiswriNeninthegreybox
OPTIMALSOLUTIONFLOW
Supply Chain Tendering
RawMaterial Logis1cs Produc1on
Flow1
Flow2
Flow3
Sourcing Optimization
Unlimited Flexibility. Fast Analytics. Optimal Decisions.
Solution Demo