Transcript of Strategically sourced indirect commodities
- 1. What our customers buy?What our customers buy? Strategic
Sourcing - Better Way to Buy
- 2. Tactica (Asia) Ltd 2 Country/Region: Asia Pacific Marketing
Materials Translation/Localization Prices were collected for: (1)
Single language only (2) All 9 languages (3) Translation of
frequently used language Negotiation Strategy: 8 qualified
suppliers from 4 countries participated in reverse auction
negotiation Promotional Merchandises Country/Region: Asia Pacific
Web Content Production and Project Management Negotiation Strategy:
Survey (Scoring) followed by Sealed Bids Country/Region: Asia
Pacific Negotiation Strategy: 10 qualified suppliers from China and
Hong Kong participated in reverse auction Eco-friendly jackets,
flashlight batteries, optical glow mouse, business card case,
universal adapters, UBS, sticks, water bottles, etc. Indirect
Commodities # 1
- 3. Tactica (Asia) Ltd 3 Country/Region: Malaysia Outsourced
Payroll Services Outsourced payroll to BPO company. Management fee
per headcount per month were collected. Negotiation Strategy: 3
qualified suppliers participated in multi-round sealed bid
negotiation Temporary Labour Country/Region: India Desktop
Computers Negotiation Strategy: Reverse Auction Reverse auction was
conducted to choose from two brands DELL and HP. Country/Region:
United States Negotiation Strategy: 6 qualified suppliers
participated in reverse auction with non-price factors included
Indirect Commodities # 2
- 4. Tactica (Asia) Ltd 4 Country/Region: Singapore Regional
Training Event Organization Negotiation Strategy: Reverse Auction
with non-price factors (scoring) EAI Software Country/Region:
Singapore, Korea, Taiwan & China Printing Services Negotiation
Strategy: Sealed Bid used to collect pricing information for
various print requirements. RFXs were implemented with new and
incumbent suppliers. Some suppliers are required to provide
distribution and delivery services. Country/Region: Asia Pacific
Negotiation Strategy: Sealed Bid Organize events in Singapore for
annual meeting and training. Enterprise Application Integration
(EAI) software licenses, customization effort and implementation
management. Indirect Commodities # 3
- 5. Tactica (Asia) Ltd 5 Country/Region: Japan New Branding
Negotiation Strategy: Reverse Auction Facility Management
Country/Region: Asia Pacific & Japan Exhibition Booths
Negotiation Strategy: Did not proceed because unable to find
sufficient suppliers that meet requirements Suppliers were
requested to store some materials for future use. Country/Region:
United States Negotiation Strategy: Divided into different RA-RFXs
by category. New signage for newly acquired financial services
company in Japan. -Cleaning & waste management -Furniture
services -Landscaping -Reception and switchboards Indirect
Commodities # 4
- 6. Tactica (Asia) Ltd 6 Country/Region: Hong Kong Office
Furniture Negotiation Strategy: Reverse Auction Interior Office
Fitting Country/Region: Guangzhou, China Negotiation Strategy:
Reverse Auction New furniture and office fitting for office
expansion. Interior Office fitting for new back office facility in
South China. Indirect Commodities # 5
- 7. Success StoriesSuccess Stories
- 8. Tactica (Asia) Ltd 8 Success Story # 1 Data Services Market
Overview Supply Category: Voice and Data Services Buyer: A leading
Investment Bank in U.S. Historic Cost: USD $1.0 M annually
Suppliers: 7 suppliers Market Background: Very Competive Bid
Details Program up for bid: Data Services between 2 major hubs 1
year fixed contract Bid Strategy: 1 Lots but part of a global
sourcing program Rank and Best Bid Results 35 bids received from 7
Telco suppliers approximate 33% savings off historic price
- 9. Tactica (Asia) Ltd 9 Success Story # 2 Cleaning & Waste
Disposal Services Market Overview Supply Category: Cleaning
Services Buyer: N/A Historic Cost: HKD $0.70 M annually Suppliers:
5 suppliers Market Background: Very Competive Bid Details Program
up for bid: Cleaning Services for 3 locations 1 year fixed contract
Bid Strategy: 4 Lots in total, with 1 RFX as conbined lot Rank and
Best Bid 47 bids received from 5 Telco suppliers approximate 18%
savings off historic price Results
- 10. Other ExamplesOther Examples
- 11. 11 Indirect Spend Examples Plant Services 24% Cleaning
& Maintenance Constr./On-site Repair Electrical Repairs
Facility Assessment Hardware Maintenance Janitorial Service Misc.
Mill Service Painting Printer Maintenance Safety Supplies Security
Service Software Maintenance Waste Management Water Treatment
Office Sup./Equip. 29% Carpet Chairs Conference room furniture Copy
Paper Desks Office Supplies Printing Paper Specialty Paper Table
Workstations Professional Services 27% Advertising/Media Services
Audit/Accounting Service Call Center Service Care Coordination Case
Management Services Cognitive Assessment Copiers Credit Service
Engineering Service Health Assessment Human Resource Leasing
Service Legal Services Limo/Van Services Mail Service Marketing
Services Medical Services Outsourcing Service Payroll Service Real
Estate Services Support Service Temporary Service Training
Travel/Transport/Freight 30% Air Travel Hotels Rooms International
Air Freight Roadside Assistance MRO 25% Abrasives Ball Valves
Bearings Cleaners Filters Frames Hoses & Belts Janitorial
Services Light bulbs & ballasts Lubricants Magnets
Packing/Gaskets/Seals Printing/Publishing Safety Supplies Tires
Tools Uniforms Wood & Lumber Packaging Materials 25% Bottles
& Tooling Containers Labels/Overlays Molded Plastics Paper
Tubes IT Equip./Services 24% Accessory Kits Computer Rentals
Computers Computing Storage Data Streaming Database Mining /
Warehousing Hard Drives IT Consulting Key Boards Laptops, Cell
Phones etc. Marketing Software Midrange Computing Modems Monitor
Printer Technology Sourcing Video Cards
- 12. 12 Direct Spend Examples Fabricated Parts 20% Fabricated
Sheet Metal Finished Machine Parts Finished Machine Parts Forged
Steel rolls Machining & Fabrication Modular berths Feed Stocks
29% Cast Iron Copper Deox Aluminum Ferrous Compounds Low end
Plastic Nickel Plastic/Pellets Rigid Glass Stainless Steel Tin Zinc
Electronic/Electrical 30% Cable Assemblies Cables Capacitors
Ceramics Circuit Boards Connectors Crystals Digital Media DRAMS
Electric Motors Electrodes Electrolytic Caps Fiber Optic Cable
Integrated Circuits Magnetic Tape Memory Chips OEM Systems Power
Cords Radiology System Resistors Semi-Conductors
Silver/Films/Resins Transformers Transmission PWB Tuners USB Cables
Wire Harnesses Chemicals/Acids 18% Abrasives Amines Biocides Bulk
Chemicals Chromium Cleaners Corrosive Inhibitors Defoamers Dust
Suppression Ferro Compounds Freeze Conditioning Glycerine Hydraulic
Oil Hydrochloric Acid Hydroquinone Lubricants (oils & Greases)
Manganese Misc. Mill Chemical Mold Powder Molybdenum
Monomers/Polymers Rolling Oils Silicon Sodium Bromide Ingredients
26% Absorbic Acid Aspartine Biscuits Butter Cheese Chocolate Powder
Citrates Citric Acid Cocoa Coffee Coffee Mix Gelatin Milk Nuts Oils
& Fats Oleo Mineral Phosphates Powders PSD Snack Soluble Coffee
Soup Sugar Tea Vanilla Yogurt Sodium Nitrite Solvents/Alcohols
Sulfuric Acid Surfactants/ Fatty acids Zinc Chloride