eSourcing 2013

Information Booklet

Table of Contents
Introduction ................................................................................................................ 1 Strategic sourcing....................................................................................................... 2 eSourcing ................................................................................................................... 3 eAuction ..................................................................................................................... 4 eSourcing training courses ......................................................................................... 5 eSourcing support model ........................................................................................... 6 State of Flux information ............................................................................................ 7

Introduction
Thank you for attending the recent eSourcing Forum held by State of Flux. Following our discussions, this booklet provides further information on the services provided by State of Flux to improve the eSourcing capabilities of your organisation. Headquartered in London with global operations and offices, State of Flux is a leading procurement and supply chain consultancy. We help you deliver sustainable results quickly, through our innovative consultancy, learning and technology solutions. Our strategic sourcing services include: Spend and capability reviews Market intelligence Procurement / category management process design RFx execution eSourcing Supplier selection Savings delivery Competency assessment and training

To find out more about State of Flux and the services we provide, please contact State of Flux on +44 (0)20 7842 0600 or email us at enquiries@stateofflux.co.uk for more information.

Strategic sourcing
What if youre missing out on supplier discounts, paying too much or buying from the wrong supplier?

State of Flux helps you achieve the balance between cost, value and quality with the right processes and suppliers. Our strategic sourcing solutions include: Spend and capability reviews Market intelligence Procurement / category management process design RFx execution eSourcing Supplier selection Savings delivery Competency assessment and training Spend management We help you optimise spend with key suppliers across all categories, focusing time and effort for maximum return. Segmentation We work with you on your segmentation strategy and model so it ensures spend is collected and placed into the market in an optimal manner. Risk reduction Our risk team works closely with insurance companies to identify sources of risk across a number of key drivers, including geographic, supply, environmental and legal.

Procurement efficiency We use our experience of real best practice as used by existing clients, to achieve best in class performance within the procurement organisation. Data loading We help you consolidate contracts and load them onto a centralised online system, providing transparency and control over your contracts and allowing you to mitigate risk and gain value.

Case study When a leading financial services company decided to outsource its global management of desktop PCs and Windows-based servers, it chose State of Flux to support the eSourcing phase of the project. An eRFQ was launched and eight suppliers were invited to participate. Once this 10-day phase was completed, State of Flux developed an eRFP, loaded it into the system and assisted suppliers with training and questions they had about the companys requirements. Relevant portions of the contract which included not only the supply and maintenance of hardware and software, but also a managed print solution and disposal of equipment were put through an eAuction, resulting in savings of over 4 million, or 10%.

eSourcing
Maximising the value of your sourcing process

Whether you are just starting out on your eSourcing journey or are further along the road, State of Flux can help you to negotiate big savings. Why eSourcing? Electronic requests for information, quotation and proposal (eRFx) and eAuctions are now essential tools to the sourcing process. Used properly, they can lead to greater cost savings, efficiency, and transparency. But eSourcing software alone will not deliver these benefits. Concerted effort is required to unlock the full value of eSourcing. State of Flux has worked with numerous clients on eSourcing, conducting hundreds of eRFx and eAuctions with a combined value over 1 billion

What we offer Our eSourcing services include: A full eSourcing diagnostic of your current practices in the areas of people, process and technology to define the key areas for development and change Independent advice on all the major eSourcing software platforms Configuration of the chosen platform to embed best-practice processes Analysis of spend to determine the most suitable categories for eRFx / eAuctions. Structuring eRFx templates and bidding events to solicit the highest-quality responses from suppliers Building and running eRFx events assisting suppliers and internal stakeholders Designing communications and change management plans to increase adoption Language and time zone support for multinational events, plus assistance in locating and qualifying new suppliers Training workshops/courses to educate sourcing managers, internal stakeholders and suppliers

Our models of support We offer two operational models of support: eSourcing Programme Management Long-term, strategic model supported by a robust change management initiative eSourcing Project Management Short-term, tactical model on a one-off event management basis

eAuction
How a web-based negotiation tool can deliver the benefits of eSourcing

Whether you are planning your first eAuction or already have complete eSourcing processes in place, State of Flux can help you achieve best value from eAuctions. Used properly, eAuctions can provide a strong value proposition and deliver measurable cost and performance benefits by: Promoting savings on price Accelerating the negotiation process Allowing parallel price negotiations with a large number of suppliers

Case Study A public sector organisation ran an eAuction for servers and storage using the ITT prices as starting prices. Bid Strategy Seven suppliers participated in the eAuction with three lots and 13 line items in total. Bids were placed on every line item and supplier ranks were calculated on lot total (i.e. only one rank was displayed per lot). Savings Savings of 3,460,000 were achieved, a price decrease of approximately 45%.

But eAuction software alone will not deliver these benefits. To obtain best value from eAuctions, a clear and ethical process must be followed. How we can help State of Flux experts provide advisory services including: eAuction software selection support to ensure best fit to your sourcing process and organisation eAuction training to ensure the sourcing team is fully equipped with the right eAuction tools and process knowledge

Alternatively, clients can leverage our eAuction knowledge through our standard eSourcing support option. This includes: Recommending lotting strategy and developing pricing model Constructing bid Conditions Preparing supplier communication plan and issue communications Building, launching and managing eAuction Running supplier training Managing the live event
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eSourcing training courses

Strengthening your procurement team to maximise the benefits of eSourcing

State of Flux eSourcing training courses help procurement professionals maximise the value of eSourcing tools using valuable insights and techniques. Electronic request for information, quotation or proposal (eRFX) and eAuctions are now essential sourcing tools. Used properly, they can lead to significant cost savings, efficiency and transparency. But eSourcing software alone will not deliver these benefits. Getting the best possible return requires a concerted effort to embed new processes and techniques within the procurement team and educate both business stakeholders and suppliers about your eSourcing programme. How we can help State of Flux offers flexible, tailored training courses to educate sourcing managers, internal stakeholders and suppliers. Examples include: Introduction to eSourcing: Based on best practice, this course explores eSourcing approaches and methodologies with a particular emphasis on eAuctions. Role playing games: These simulations help procurement professionals understand the rationale and criteria that suppliers use during an eAuction. Negotiation training: Interactive exercises provide an overview of the key negotiation phases, as well as how this knowledge can be used to control negotiations and counter opposing strategies frequently used by suppliers.
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State of Flux can provide face to face or WebEx training sessions for ad-hoc training courses or full training programmes. Training benefits You can leverage the knowledge gained from these courses to achieve numerous benefits: Adopting eSourcing best practice will optimise the use of time and resources and can reduce the sourcing cycle time from weeks to days. Sourcing managers will learn how to identify which projects are suitable for eAuctions and how to select auction strategies that result in a fair negotiation and market price. The proper use of eSourcing platforms will ensure that online processes are conducted fairly for all parties. In addition, using eSourcing tools will enhance and automate reporting capabilities.

eSourcing support model

How State of Flux can tailor eSourcing solutions to meet your business needs

Our support models We offer two operational models of support: eSourcing Programme Management Long-term, strategic model supported by a robust change management initiative and an on-demand eSourcing service. Clients can tailor the change programme to upgrade the teams eSourcing skills, or outsource eSourcing services to State of Flux on a managed service basis. eSourcing one-time Project Management Short-term, tactical model. Clients can choose to leverage our sourcing and eSourcing expertise on a one-by-one event management basis. This model is appropriate for complex and simpler projects.

How we can help State of Flux helps you achieve the balance between cost, value and quality with the right processes and suppliers. We offer five different eSourcing support packages:

How do you know youre getting 100% from your suppliers?

Headquartered in London, UK and with global operations and offices, State of Flux is a leading procurement and supply chain consultancy. We help you deliver sustainable results quickly, through our innovative consultancy, learning and technology solutions. Our services include: Supplier relationship management Strategic sourcing Contract lifecycle management Supply chain risk management Spend and capability reviews Market intelligence Procurement / category management process design RFx execution eSourcing Supplier selection Savings delivery Competency assessment and training Contract lifecycle management We help you realise the potential of good contracts that manage risk and deliver maximum value. Current process diagnostics Process design System selection / configuration Contract loading and data cleansing User training Auditing

State of Flux works with multinational companies and major public sector organisations, delivering procurement and supply chain solutions tailored to their needs. Supplier relationship management We help you achieve maximum value out of your supplier relationships. SRM programme process and design Voice of the supplier programmes 360 supplier / buyer reviews SRM change management Supplier performance management SRM learning and development SRM system

Supply chain risk management We support you to identify and effectively manage risk throughout the supply chain. Process design and implementation Market and supplier risk research IT-enabled risk management and training

Strategic sourcing We help you get the balance between cost, value and quality, with the right processes and suppliers.

Contact State of Flux on +44 (0)20 7842 0600 or email us at enquiries@stateofflux.co.uk for more information. www.stateofflux.co.uk srm.stateofflux.co.uk