Strategically sourced indirect commodities

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What our customers buy? What our customers buy? Strategic Sourcing - Better Way to Buy

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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