sourcing analytics coe for a fortune 500 pc & printing company
TRANSCRIPT
@ 2015 BRIDGEi2i Analytics Solutions Pvt. Ltd. All rights reserved
Sourcing Analytics CoE in Action
Arun KrishnamoorthyDirector - Supply Chain & Pricing Analytics Practice
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