Sourcing/Procurement
Ramp up supplier information management: Companies like Oracle are using Aravo solutions to automate and streamline the supplier information lifecycle. Results: Better management of the supplier information that enterprise systems rely on to execute accurate transactions and provide decision support. Aravo Solutions, Inc. (2003; San Francisco, CA; www.aravo.com)
Enable buyers to act as gatekeepers for better business practices: Food companies are using solutions from Ariba to ensure suppliers enforce stringent safety standards. Results: Incorporating environmental compliance into RFP proposals and using these criteria for supplier performance evaluation empowers procurement staff to act as guardians of the companies' regulatory compliance and their brands' reputations. Ariba, Inc. (1996; Sunnyvale, CA; www.ariba.com)
Use technology projects to formalize procedures: A client of BravoSolution used the project to adopt the enabler's sourcing platform to align procedures internally and with its supply base. Results: Cost savings of about 90 percent for the tender prep process, 80 percent cut in the cycle time to produce awards and reports, plus purchase cost savings. BravoSolution (2000; Milan, Italy; www.bravosolution.com)
Leverage scorecards for supplier improvement: A retailer uses Core Solutions to collect data on vendor performance and generate KPIs that its executives can view across any time period. Results: Reduced claims, reduced costs on expedited shipments, delivery schedules met and a compliant supply chain. Core Solutions (1995; Hong Kong; www.coresolutions.com)
Tap into group purchasing organizations: More than 100 companies use the GPO Corporate United to leverage their combined spend for indirect goods and services and take part in category best practice groups for benchmarking. Results: Substantial hard cost and process savings. Corporate United (1997; Cleveland, OH; www.corporateunited.com)
Leverage open-source e-procurement solutions: Thousands of companies have downloaded Coupa's free open source solution for a risk-free introduction to e-procurement's basic capabilities. Coupa recently launched an enterprise version of its solution and will soon announce a SaaS offering, too. Results: A broader spectrum of SMBs can now take advantage of e-procurement's benefits. Coupa Software (2006; Foster City, CA; www.coupa.com)
Saving greenbacks by going green: By using the Green Product Selector from Dolphin Safe Source, one midsize company realized that it was significantly overspending and that its chemicals varied widely in hazard level. Results: The company expects to reduce its overall MRO chemical spend by 30-40 percent and reduce the hazards its chemical present by an average of 60 percent across use categories. Dolphin Software, Inc. (1991; Lake Oswego, OR; www.dolphinsafesource.com)
Borrow a purchasing department: One Fortune 500-sized client engaged DSSI to manage its indirect procurement, including through DSSI's Web-based technology. Results: 18 percent piece price reduction on its MRO buy across locations early in the implementation. DSSI LLC (1999; Southfield, MI; www.directsourcing.com)
Apply e-sourcing technology to "unconventional" categories: When this global company needed a travel and expense automation solution, it used the FlexRFP from EC Sourcing Group to automate the bid process. Results: Demonstrated that a reverse auction can add value for many areas of spend given sufficient qualified competition for the requirement. EC Sourcing Group, Inc. (2001; Morristown, NJ; www.ecsourcinggroup.com)
Start with the data: A large chemical company came to Emptoris because they considered their spend data beyond repair. With Emptoris Spend Analysis, the company was able to analyze $6 billion dollars of spend made up of 3.7 million transactions in 33 currencies. Results: The company went on to save over $40 million in one year. Emptoris, Inc. (1999; Burlington, MA; www.emptoris.com)
Fuel savings by switching to high-octane e-procurement: Ameren Corporation is implementing electronic invoicing with key suppliers through Enporion, while a major global electronics company is using Enporion to enable simpler end-user buying. Results: For Ameren, savings of more than $5 per invoice; for the electronics manufacturer, reduced maverick spend, better financial terms negotiated with suppliers. Enporion, Inc. (2000; Tampa, FL; www.enporion.com)
Pass the e-procurement test: More than 3,000 educational entities use solutions from eSchoolMall to automate traditionally paper-based procurement processes. Results: Public funds saved for use on critical educational programs. eSchoolMall (1999; Horsham, PA; www.eschoolmall.com)
Globalize the procurement of contingent workers — I: Customers of Fieldglass are deploying the enabler's solution to multiple sites in different markets to take a more international approach to managing contract labor and services. Customers ensure compliance with local laws and practices in each locale while improving decision support driven by a single view across divisions and world areas in one company. Fieldglass, Inc. (2000; Chicago; www.fieldglass.com)
Automate supplier collaboration: Varian Medical Systems has deployed a solution from FusionOps to automate its supplier collaboration and direct material procurement processes. Results: Improved customer delivery performance and change-order responsiveness. FusionOps Corporation (2001; Sunnyvale, CA; www.fusionops.com)
Embrace bid complexity: When Brunswick needed a more effective way to collect and analyze complex award scenarios for global ocean freight, the company's sourcing team tapped Iasta to process 6,000 bids from 20 suppliers on 1,800 line items covering 600 freight lanes and three container types. Results: Ability to identify the best award scenario based on allocation and limit constraints rather than purely on lowest possible price. IASTA (2000; Carmel, IN; www.iasta.com)
Seek out solutions providers with a culture of customer intimacy: Some of the world's top companies across a variety of sectors use IQNavigator's on-demand services procurement software and managed service programs to better manage their services spend. But with each customer taking a unique approach to its services spend, IQNavigator works to understand precisely how the customer will use the software, how they will achieve benefits, and how they will define success, to ensure that the customers establish best-practice processes that match their business. IQNavigator (1999; Denver; www.iqnavigator.com)
Bring in outside help: Rather than build an internal competency, one manufacturer brought in K2 Sourcing to review its truckload routing guide. The client viewed weekly management reports and made final selections. Results: Savings above 25 percent, carrier base halved. K2 Sourcing, Inc. (2003; Belgium, WI; www.k2sourcing.com)
Drive compliance with end-user-friendly solutions: When ServiceMaster tapped an e-procurement solution from Ketera, user-friendliness was a key requirement for the company, which had 45,000 employees using disparate systems at 1,000 locations. Results: A 98 percent compliance rate, minimizing maverick spend and driving conservative cost savings of 3 percent for spend through the system. Ketera Technologies, Inc. (2000; Santa Clara, CA; www.ketera.com)
Adopt uniform procurement program: A global firm turned to The Martini Group to deploy an international standard solution across the firm's worldwide offices, leveraging a customized Web-based procurement tool. Results: Worldwide purchasing savings in the range of 47 percent, with combined first year savings of $3.7 million. The Martini Group, Inc. (2003; Irvine, CA; www.martiniglobal.com)
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