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Innovative Procurement Strategies for Thriving in a Networked Economy Ariba Commerce Summit – October 2014
Amy Fong
Senior Director, Procurement Executive Advisory
The Hackett Group
Ariba Commerce Summit
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This document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the
disclosure of which would provide a competitive advantage to others. As a result, the reproduction, copying, or
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without the prior written consent of The Hackett Group.
Copyright © 2014 The Hackett Group, Inc. All rights reserved. World-Class Defined and Enabled.
Challenges and Priorities: What Keeps Procurement
Executives up at Night?
Capabilities: How can we Leverage Supplier Network
Technology to Address Key Procurement Challenges?
Outlook: What Lessons and Trends are Emerging
from Supplier Networking?
Agenda
Innovative Procurement Strategies for Thriving in a Networked Economy
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The Hackett Group A leader in organizational effectiveness and best practice insight
Mission
Hackett is an IP-based Global Advisory and Consulting firm helping clients implement and
sustain World-Class business performance across General and Administrative Services
Hackett’s Value:
We formulate strategies based on our proprietary repository of Certified Hackett best practices
and competitive insights
We design and implement sustainable performance improvement solutions
Results
Our efforts have delivered 20%-40% in sustainable cost savings and over $25 billion of
improved cash flow for clients across the globe
Hackett Group Solutions:
Finance
Enterprise Performance Management
Human Resources
IT
Procurement & Sourcing Supply Chain
Operations, Strategy, and Marketing Performance
Working Capital
Global Business Services/ Outsourcing
Workforce Solutions
Technology Implementation Oracle, SAP,
Hyperion,
Kronos, and Business Objects
97% of the Dow
Jones
Industrials
73% of the
Fortune 100
88% of the Dow
Jones Global
Titans
73% of the DAX 30
45% of the FTSE
100
35% of the CAC 40
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Enabling World-Class: Hackett’s Solution Portfolio Benchmarking, Advisory, Business Transformation
Membership Advisory Insight into World-Class Performance
Benchmarking Assess World-Class Performance
Business Transformation Consulting Transforms Performance
Deliverables
Peer & world-class comparison
performance metrics
Detailed analysis
Stakeholder survey
Executive presentation
Benefits
Objective comparison to peer group
and world-class performers
Quantify performance gaps
Uncover hidden costs
Prioritization of improvement
initiatives
Deliverables
Strategic direction
Detailed business case
Initiative plans & detailed designs
Implementation of best practices
Benefits
Reduced cost
Working capital optimization
Enhanced service delivery
Business insight
Sustainable benefits
Speed of solution delivery
Merger integration
Risk mitigation
Deliverables
Best practice research
Advisor access
Best Practice Intelligence Center
Peer interaction
World-Class Progress Report
Benefits
Identify the strategies and practices
employed by Leaders
Validation of current initiatives
Determining what’s possible (World-
Class Performance Metrics)
Process implementation support
Continuous best practice adoption
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Value
Evolve the Service Value
What do we aspire to be?
Where is time actually being
spent?
What does want
Procurement to do?
Performance
Capability
Business
Requirements
(and investments)
Procurement Value
Procurement Suppliers
Requirements & Spend
Spend / Supplier Value
Recalibrate the Service
Execution
What is the level of
efficiency and
effectiveness?
How well is Procurement
delivering?
How are my peers
doing?
Redevelop the Service Capability
What capabilities do we have
today or need to acquire to
change?
What capabilities are
strongest? weakest?
What barriers hinder
evolution?
Supply Assurance
Purchase Cost Reduction
TCO Reduction
Demand Mgt
Value Mgt
1. Lagging
2. Achieving
3. Exceeding
4. Leading
Building an agile procurement organization requires a focus on Value, Performance, and Capabilities
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Value Proposition of
Procurement Services
Role of
Procurement
Right goods /services at the right time & place
Right goods and services AND
at the right price
Shift from lowest price to Total Cost
of Ownership
Reduce demand activity, complexity
and variability
Increase business value derived
from spend
Supply Assurance Buyer / Planner
Negotiator
Supply expert (SCM,
SPM), team leader,
project manager
Spend/ budget consultant &
relationship manager
Trusted business advisor and
change agent
Purchase Price Reduction
Total Cost of Ownership
Demand Management
Value Mgmt.
Procurement must evolve its own value proposition and that of the supply base to create more “Bang for the Buck”
VA
LU
E
+ Role of
Supply Base
Innovative / Flexible
Aligned / Loyal
Operationally Excellent
Priced Fairly
Reliable, Solvent
Every Major Service you Perform has a Value Evolution!
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Top 5 Trends Cited by Hackett Clients
1. In 2014, procurement’s first priority was to expand its scope/influence.
2. This requires procurement to reinvent its value proposition and revisit how
success is monitored, measured and reported on.
3. Supplier networks, master data management (MDM), and analytics are key
enablers... but the strategy is to reconfigure (versus replace) existing tools.
4. Organizations continue to search for the right combination of outsourcing, in-
sourcing, offshore and onshore work. Procurement organizations are selectively
using outsourcing for supply market intelligence and supporting/maintaining
master data and legacy applications.
5. There’s a real shortage of great procurement talent out there. To adapt,
procurement leaders are taking a hard look at redefining the required
competencies (and measurement tools) to move from optimizers to innovators.
2014 Procurement Trends – Hackett Key Issues Study
Source: Enterprise Key Issues Study, The Hackett Group 2014
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Priorities for Procurement Technology – Collaborative Tools and Self-Service are increasingly important to procurement executives
14%
17%
21%
21%
24%
31%
31%
38%
41%
41%
52%
55%
55%
Acquire other technology or servicesdirectly within the function without…
Acquire cloud-based businessapplication services directly within…
Invest in mobile technology
Invest in data storage and datamanagement infrastructure
Implement Procurement pointsolutions with functionality not…
Move more Procurement processesand/or business units to the…
Implement more Procurementfunctionality/modules to the…
Roll out web-based and self-servicetools for third parties (e.g.,…
Maintain existing technology platformand minimize new investment
Invest in collaboration technology(including social media,…
Implement BI/analytics applications
Roll out web-based and self-servicetools for internal employees
Establish data stewardship,standardize master data and…
Key takeaways
• Self-service and collaboration tools for
procurement executives are gaining
steam... but the strategy is to reconfigure
(versus replace) existing tools.
• Supplier networks are a good example of
where these reconfigure/recalibrate efforts
will be focused
Source: Enterprise Key Issues Study, The Hackett Group 2014
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
29%
21%
22%
32%
25%
36%
11%
11%
30%
14%
29%
18%
11%
4%
11%
7%
11%
Collaborate on demand forecasts
Network with peers to share risk andperform. info on specific suppliers
View supplier credentials (insurance,compliance, tax forms)
Measure and track supplierperformance
Maintain supplier master data(items/catalogs, contracts, pricing)
Identify new suppliers and marketopportunities
Current
Limited Use Moderate Use Significant Use
23%
31%
8%
15%
23%
12%
38%
27%
50%
31%
35%
42%
15%
19%
31%
38%
31%
31%
In 2-3 years
77%
76%
89%
84%
89%
85% 65%
61%
57%
56%
43%
40%
Source: Enterprise Key Issues Study, The Hackett Group 2014
Future Changes in Procurement Technology – Usage of supplier networks will continue to evolve over the next 2-3 years
Definition: Supplier networks refer to any system used to exchange data electronically between buyers and
suppliers using a common standard; also a web-based trading community that connects trading partners and
provides a platform for collaboration -- including but not limited to supplier discovery, e-procurement and e-invoicing
Challenges and Priorities: What Keeps Procurement
Executives up at Night?
Capabilities: How can we Leverage Supplier Network
Technology to Address Key Procurement Challenges?
Source
Purchase
Pay
Manage
Outlook: What Lessons and Trends are Emerging
from Supplier Networking?
Agenda
Innovative Procurement Strategies for Thriving in a Networked Economy
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Source-to-Manage in a Networked Community – What information is exchanged with suppliers and other trading partners?
Supplier
Community
Requisition
and PO
Processing
Supplier
Scheduling
Supply Data
Management
Receipt
Processing
Accounts
Payable
Supplier
Management &
Development
Pay Purchase Source Manage
Sourcing &
Supply Base
Analysis
Sourcing
Execution
Trading Partners /
Service Provider
Compliance
Management
Catalog
Requisition ASN
Delivery
Schedule
Self-service
Inquiry
Invoice
Market
Intelligence
Purchase
Order
Order Change /
Cancellation
Order
Confirmation
Risk
Assessment
Certifications Sourcing /
eRFX
SRM /
Performance
Supplier
Qualification
Contract
Supply Chain
Finance
Payment
File P-card
Requisition
Partnering /
Collaboration
Sarbanes Oxley
IRS, OFAC
Diversity
Workforce
Audit
Hazmat
Item/Catalog
Dynamic
Pricing
Payment
Terms
Data
Enrichment
Barcode /
Label Data
Level 2 / 3
Data
Card Issuer or Network SIM
Provider
Financial
Institution
Regulatory
Authority
E-payment
Dynamic
Discount Shipment
tracking
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Strategic Sourcing
The Gap
Not transactional, but
still managed through
transactional buying
channel (if at all)
Spend Importance
(magnitude, risk, business outcomes)
Recurrence
of Spending
High
(Highly
Recurring)
Low
(One-off,
ad hoc)
High
(Strategic)
Low
(Tactical)
Tran
sact
ion
al
Bu
yin
g
Sourcing – There’s a gap in traditional procurement approaches, leaving “tactical” spend poorly supported
Purchase Pay Source Manage
Catalog or rate-based
lower-value goods and
services (e.g. print,
temp labor, promotional
items, etc.) – “three bid”
process
Large, predictable
purchases of goods and
services (e.g. telecom,
advertising, recruiting
services, etc.)
Critical, non-recurring
spend (e.g. custom
software, special
marketing campaign,
specialized training, facility
refurb, one-off M&A
services, etc.)
The problem: Critical project purchases being underserved (IT, HR, Finance / Corp. Service, Marketing &
Sales, Capital Equip & Services). This results in lost savings and longer cycle times.
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Establishing a Tactical Buying Desk with supporting “Rules and Tools” is the most commonly employed practice
67%
67%
56%
39%
33%
22%
0% 10% 20% 30% 40% 50% 60% 70%
“Buying Desk” group to handle specific tactical purchase transactions routed to them
eSourcing tools (ex. eRfX, eAuctions)
Established business rules or “triage” process for request routing
Multiple language requirements to manage tacticalsourcing activities
Workflow tools
Guided buying
Tactical Sourcing Capabilities (% of respondents – multiple answers allowed)
Correlation to Purchased
Cost Reduction Savings
Medium
Medium
High
High
Source: Tactical Sourcing Survey, The Hackett Group 2011
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The evolution of networked Supplier Discovery and E-Sourcing tools makes tactical buying easier
“Consumerized” experience for casual buyers
– Supplier Networks facilitate easier buyer-seller discovery and collaboration
– Self-service, fast and with minimal (if any) support required from software provider
– Improved matching algorithms to find more relevant suppliers
Light-touch with software-as-a-service (Saas)
– Quickly deployed to start conducting market research and seller identification
– Supplier-funded marketplaces lower the barriers to entry for buyers
Supplier networks have grown in breadth and depth
– More supplier information is available than ever
– Not just supplier self-reported information but also community references and ratings
– The size of the networks have grown substantially (e.g. more than 190 countries on a single network)
Improved sourcing decisions
– Manage complex bid optimization
– Run tender events and make better supplier selections
– Migrate from tactical procurement to strategic sourcing when necessary
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Hosted &
Managed
Internally
Hosted
Internally
Managed by
Service
Hosted &
Managed by
Service
Hosted &
Managed
by Supplier
(Punch Out)
Hosted &
Managed
by Supplier
(Search Agent)
Internal
Catalogue
Support
Resources
Internal User
Acceptance
Supplier
Onboarding
Overall Cost of
Ownership
Compliance to
Agreed Pricing
Highest Lowest Level of Enablement
Purchase Pay Source Manage
Purchase – The e-Catalog strategy must be aligned with the organization's objectives to be successful
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
$8.57
$10.82
$22.82 40%
14%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
High Medium Low
Indirect E-Catalog Spend vs. Order Processing Cost
Process Cost per Order
Percent of Indirect Spend on E-Catalog
Order Processing Cost: Requisitioning & PO Processing (Labor + Outsourcing)
Source: P2P Performance Study, The Hackett Group 2013
$2.84
$3.32
$3.75 90%
53%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$2.50
$2.70
$2.90
$3.10
$3.30
$3.50
$3.70
$3.90
High Medium Low
Order Automation vs. Invoice Processing Cost
AP Process Cost per Invoice
Order Automation
Automated Orders: Orders that require no (or minimal) intervention from a buyer
(e.g. system generated, e-catalog)
Purchase Pay Source Manage
Order automation strategy drives greater activity through e-Catalog and achieves lower costs as a result
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
80%
70%
45%
82%
75% 70%
90%
53%
15%
20%
30%
40%
50%
60%
70%
80%
90%
High Medium Low
Order Automation vs. Spend Visibility and Invoice Match Rate
Spend Visibility at Line Item Level
First Pass Match Rate
Order Automation
3.79%
5.95%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
High Adoptors of E-Catalogs
Low Adoptors of E-Catalogs
Indirect E-Catalog Adoption vs. Average Negotiated Cost Reduction
Lost to Non-Compliance
57%
Automated Orders: Orders that require no (or minimal) intervention from a buyer
(e.g. system generated, e-catalog)
Source (left): P2P Performance Study, The Hackett Group 2013
Source (right): Procurement Benchmark, The Hackett Group 2014
Purchase Pay Source Manage
Order automation also drives higher levels of spend visibility, first-pass yield, and contract compliance
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Invoice-to-Pay technology should complement a Channel Strategy that simplifies P2P execution options
System
Receipt
Entry
Automated
Inventory/
MRP
Pcard or
Travel
Card
Requisition
Requisition to Transmit
No
System
Req
Invoice
Approval
(Workflow)
Order Transmit Order Receive
No PO
(Invoice
Only)
Receive
Invoice
Invoice to Pay
Charge
Card
eInvoice
Pay
1
2
3
4
5 Catalog (Internal and
External)
Non Catalog
(Text Based)
Charge Card
Non PO
Automated
Requisition
(Inventory)
Channel
Automated
(no touch) Automated
(no touch)
SC
(text
based)
Electronic
Payment No System
Receipt
Work
Order
System
SRM
Sourcing
Cockpit
7
Manual
ERS (no
invoice)
Maintenance &
Repair
Non-System
Ordering
Shopping
Cart
Auto
Ordering
SAP ME21N
Requisition
Process
Pull From
Stock On Hand
Goods Done
SC
(Catalog)
6
Recurring
Payments
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
AP automation strategy should balance transactional efficiency with the ability to enable a broad base of suppliers
1 Based on organizations with high percentage of transactions through dominate strategy
Source: P2P Performance Study, The Hackett Group 2013
$2.22
$4.24
$6.85
E-invoicing Invoice Captureand Imaging &
Workflow
Paper
AP Process Cost per Invoice (labor & outsourcing)1
Difficulty of
Enablement
20,314
9,484
7,459
E-invoicing Invoice Captureand Imaging &
Workflow
Paper
AP Invoices Processed per FTE
Purchase Pay Source Manage
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An end-to-end automation strategy also drives savings from increased capture of early-payment discounts
Early Payment Discounts Taken as a
Percent Of Spend
0.015%
0.164%
Non Top performer Top Performer
Early Payment Discounts Taken as a
Percent Of Those Available
79%
69%
High Adoptors of E-Catalogs
Low Adoptore of E-Catalogs
Source (left): P2P Performance Study, The Hackett Group 2013
Source (right): P2P Performance Study, The Hackett Group 2011
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Dynamic Discounting Strategies (Percent of all Participants)
42%
30%
19%
14%
None planned at this time
None currently in place but are implementing or currently evaluating
Allow suppliers that are setup on standard net payment terms with no discount toelect an early payment discount once the invoice is approved for payment
Take a pro-rated portion of a discount if paid before net term but after discountterm (e.g. payment term is 2% 10 Net30, if paid on day 20 take a 1% discount)
Source: P2P Performance Study, The Hackett Group 2013
Buyer
Supplier
Dynamic Discounting Overview
Technology
Platform
1. Invoice
2. Approval3. Timing decision
4. Discount payment
Purchase Pay Source Manage
With a supplier network, organizations can more easily pursue Dynamic Discounting to drive added savings
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Internally gathered performance data
Financial results
•Merger, acquisition activity
•Credit ratings
Pricing/benchmarking
•Price variance % - external
benchmark
Global trade
•Restricted party alerts
•Customs compliance issues
Regulatory
•Criminal check alerts
•EPA violations
Receiving, quality control systems
•Delivery time variances
•Number of rescheduled deliveries
•Receipt variances
•Reasons for receipt rejection
Customer returns
•Return reason
•Quantity returned
Compliance and automation data
•Procurement cycle time
•Labeling accuracy
•EDI compliance
•ASN accuracy
Support feedback
•Feedback score
•Issue
Pricing accuracy and benchmarking
•Price variance % - internal benchmark
•Invoice accuracy %
Surveys results
•KPI calculations
Externally gathered performance and risk data
Supplier networks are increasingly being used as a platform for enabling supplier performance and risk management
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The use of niche risk software and business intelligence platforms are on the rise
Q5.4 How extensively do you rely on each of these technology tools to support your risk management efforts today vs. expected within two to three years?
50%
84%
9% 19%
56% 50%
23% 19%
41%
25%
42%
22% 19% 9%
47%
25% 27%
13%
31%
16%
31%
34%
34% 38%
17%
6%
44%
34%
26%
25% 39%
16%
31%
19% 20%
6%
FutureCurrentFutureCurrentFutureCurrentFutureCurrentFutureCurrentFutureCurrentFutureCurrentFutureCurrentFutureCurrent
Microsoft OfficeHome-grown/custom-built
solutions
Financial riskcontent providers
Governance, riskand compliance(GRC) software
ERP solutionSpendmanagement
suites
News aggregatorsBusinessintelligence (BI)
solutions
Purpose-built/niche supply risk
software
Current High Current Medium Future High Future Medium
The tools being used today and in the future to support risk
management efforts
Fastest
growing
Most used
today
Source: Supply Risk Management Study, The Hackett Group 2014
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The ability to segment suppliers by risk category, criticality, or other user-defined fields are key features
65%
58%
58%
58%
52%
48%
45%
29%
32%
26%
32%
23%
32%
35%
29%
45%
3%
16%
10%
16%
13%
13%
23%
19%
3%
3%
3%
3%
6%
Risk segmenting
Risk analytics
Risk prioritization
Alerting
Risk scoring automation
Supplier risk scoring surveys
Third-party inputs/data feeds
Risk dependency
High / "Must Have" Medium Low Not important
Q5.3 Please rank the importance of each feature below when selecting a supplier risk management software solution.
Risk management: Importance of specific features when selecting supply risk management software
Source: Supply Risk Management Study, The Hackett Group 2014
Purchase Pay Source Manage
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Q2.2 What level of granularity do you segment and report on supply risk today? (multiple selections allowed)
The level of granularity of supply risk segmentation and reporting
68%
56%
50%
26%
26%
12%
Individual supplier level
Product/service category level
Supplier segmentation level (i.e.critical or strategic suppliers only)
Regional level
Item or component level
Other
“Other” write-in responses:
• Business-unit level
• By type of compliance risk
• Commodity level and by manufacturing site
35% of respondents
measure risk at both the
category and supplier
segmentation levels.
Only 14% selected
‘Individual supplier level’
alone. The remainder
selected multiple
segmentation criteria.
Risk is being measured at different levels of granularity across multiple segmentation criteria
Source: Supply Risk Management Study, The Hackett Group 2014
Purchase Pay Source Manage
Challenges and Priorities: What Keeps Procurement
Executives up at Night?
Capabilities: How can we Leverage Supplier Network
Technology to Address Key Procurement Challenges?
Outlook: What Lessons and Trends are Emerging
from Supplier Networking?
Agenda
Innovative Procurement Strategies for Thriving in a Networked Economy
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Fact Check – How are organizations implementing supplier networks and what are the primary challenges being faced?
Issues with leveraging supplier networks
Cost: overwhelming integration costs when it comes to using older EDI-VAN frameworks. High cost of
subscription for suppliers to certain networks.
Coverage: Inadequate supplier adoption. Limited interoperability between disparate global networks. Low levels
of participation make proprietary networks hard to justify
Variability: Too many competing networks to support. Inconsistent application and agreement of data interface
standards
Legacy: Continued use of email and fax. Pre-existing data quality issues were never resolved (ex. outdated
items/specifications, inaccurate prices, incorrect lead times)
18%
24%
24%
33%
0% 5% 10% 15% 20% 25% 30% 35%
We do not use a supplier network
PO/
AP RFx
All 3
AP RFx PO
None
Source: Supplier Networks Webcast – Real-time Poll Results, The Hackett Group 2014
Does your company use multiple supplier networks to support the source-to-pay process?
57% of
respondents
are not using a
single platform
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Looking Ahead – Emerging Trends in Supplier Network Technology
1. Buyer organizations are pursuing broader connectivity strategies with suppliers, peers, and trading partners (banks, outsource
providers, etc.). A greater emphasis on peer-to-peer sharing will support improved supplier discovery and risk assessment.
2. Cycle times for supplier qualification and setup will decrease as more organizations use credentials (insurance, tax) and master data
(items, pricing) pulled directly from the network
3. Companies will need to invest heavily in data cleansing and process re-engineering to take full advantage of network capabilities,
while total synchronization between supplier network and the ERP will remain elusive.
4. Pricing structures are becoming more complex for buyers and sellers to navigate (e.g. volume-based pricing, value-based pricing,
fixed-fee models, “free” networks, etc.); suppliers are passing certain costs onto buyers and will also limit the number of networks they
can support.
5. The business case for supplier networks will continue to improve, but the sale to internal stakeholders may not be any easier in the
current climate (i.e. long list of competing priorities)
6. Leveraging existing connectivity, strategically-paired buyers and sellers will look to adopt common supply chain operations data
standards, tools, and governance structure to drive broader supply chain collaboration and shared demand forecasting.
Questions?
© 2014 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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Phone: +1 770 225 3600
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Phone: +33 1 53 43 0400
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Amsterdam, The Netherlands
Phone: +31 20 301 2210
Amy Fong Senior Procurement Advisor and P2P Program Leader
Phone: + 408-887-7335
1-888-8HACKETT
www.thehackettgroup.com
Contact Information
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