Creating value through strategic sourcing. supply in demand. creating value through strategic sourcing solutions

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Nora Cannon
8 years ago
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1 supply in demand creating value through strategic sourcing solutions

2 where is the opportunity? WITH A HIGH DEGREE OF CONTROL AND SHORT IMPLEMENTATION TIME STRATEGIC SOURCING SITS IN THE UPPER-RIGHT QUADRANT OF THE CORPORATE OPPORTUNITY MATRIX IT IS WHERE VALUE IS BEING CREATED TODAY FOR BUSINESS DECISION MAKERS. Corporate opportunity matrix < Degree of control Internally focused Externally focused Organisational change programmes Quality programmes Employee empowerment Continuous improvement 5 7% savings 2 3 years Industry co-operation initiatives Joint ventures Utilities Long term contacts, licenses, alliances 2 5% savings 2 5 years Lean production Re-engineering Strategic sourcing Outsourcing Customer segmentation Product line pruning Organisation redesign 15 40% savings 1 2 years Firm structural change Mergers (and mega-mergers) Acquisitions Major product line extensions 20 25% savings 1 2 years Today s CEO is continously challenged in two ways - 1) differentiating their product offering through brand positioning and marketing; and 2) delivering cost savings through product design, supplier development and supply chain management. NEOPONT s rigorous, analytical approach to evaluatinge the product supply chain provides an independent, objective view that often reveals areas of high impact improvements and benefits to clients. Success involves a combination of capabilities from a keen understanding of product development, supply chain dynamics and logisitics, to forecasting models to sophisticated negotiation and people skills. Long term (2 5 years) Short term (1 2 years) Implementation time frame >

3 savings providing a line of sight to cash The average NEOPONT project results in reduced sourcing costs of 15% to 20%. Savings typically WORK OUT TO BE 10 TIMES THE FEES INVESTED OVER THE LIFE CYCLE OF THE PRODUCT... and often supports the achievement of POSITIVE PROJECT CASH FLOW WITHIN 3-4 MONTHS OF THE PROJECT COMPLETION. In the global, flat world businesses operate in where disruptive innovation rapidly alters the rules of the game and the basis for competition. STRATEGIC SOURCING is one such area where COMPANIES CAN BENEFIT within this ERA of business 3.0! FEW INITIATIVES OFFER SUCH BOTTOM LINE BENEFITS SO RAPIDLY AND WITH SUCH CERTAINTY.

delivering savings through strategic sourcing STRATEGIC SOURCING PROJECTS CONDUCTED WITH NEOPONT TYPICALLY OUTPERFORM IN-HOUSE OR OFF-THE SHELF SOURCING SOLUTIONS.

4 delivering savings through strategic sourcing STRATEGIC SOURCING PROJECTS CONDUCTED WITH NEOPONT TYPICALLY OUTPERFORM IN-HOUSE OR OFF-THE SHELF SOURCING SOLUTIONS. Because our singular focus is is sourcing and supply chain management, we have developed sophisticated, yet pragmatic analytical techniques that deliver rapid savings We identify issues rapidly, analyze accurately, promise effectively and act prudently to deliver client solutions. Finally, WE ACT SEAMLESSLY AS YOUR SOURCING AND SUPPLY CHAIN DEPARTMENT Our area of competence SUPPLIER DEVELOPMENT 1) SUPPLIER LANDSCAPE 2) SPECIFIC SUPPLIER RESEARCH SUPPLY CHAIN MANAGEMENT 1) PRICE NEGOTIATIONS 3) VENDOR SCORECARDS EVALUATION 2) VENDOR ORDER MANAGEMENT AND AND SELECTION QUALITY CONTROLS 4) FACTORY AUDITS AND VENDOR 3) DOCUMENTATION MANAGEMENT MANAGEMENT 4) SHIPPING AND LOGISTICS PRODUCT DEVELOPMENT 5) COMPLIANCE 1) PRODUCT REVERSE ENGINEERING 2) PRODUCT EVALUATION WITH KEY COST AND QUALITY METRICS 3) PRODUCT DEVELOPMENT 4) PACKAGING DESIGN

5 A N IN S IG H T IN T O N E O P O N T S B U ILD IN G BL O C K S T O S O U R C IN G S UC C E S S 5 CHALLENGE END-USERS SPECIFICATION DON T GET LOCKED INTO LONG-TERM 1 RELATIONSHIPS Set pricing through free market mechanisms. 2 UNDERSTAND THE INDUSTRY MICRO ECONOMICS Once you know the supplier s business as well as he does, you can collaborate on achieving savings from his cost base rather than his margins. 3 APPLY A SEASONED APPROACH Success demands a high level of analytical, negotiation, and interpersonal skills. It requires an experienced and diligent team to deliver the results over a period of time. 4 CHALLENGE THE MODEL AS WELL AS THE UNIT COSTS Assess which elements of the value chain should fall within the contract and which parts of the process are unnecessary. Evaluate service requirements and their commercial implications and be willing to challenge end-user specifications. The people in your business probably don t understand what it costs to meet the spec requirements they submit and may ultimately alter design or requirements to optimize product performance vs cost.

6 how we work with you? Engage with us to rapidly deliver success 1 2 Contact us via ( ), (SKYPE), (GOOGLE TALK), (PHONE), (FACEBOOK), (TWITTER)....just let us know who you are and when is a good time to talk. We will then contact you within 2 working days for a 20 minute preliminary discussion which will give us an insight on how we can assist you. 3 You will then receive a draft proposal and a clear process that will define the way forward. 4 We will set up a conference call to discuss the proposal which will lead to the next steps.

Contact Us Skype ID: neopont.sourcing G-talk ID: neopontsourcing@gmail.

7 Contact Us Skype ID: neopont.sourcing G-talk ID: (USA) (Dubai)

Chapter 2 INDUSTRIAL BUYING BEHAVIOUR: DECISION MAKING IN PURCHASING

Chapter 2 INDUSTRIAL BUYING BEHAVIOUR: DECISION MAKING IN PURCHASING Chapter 1 THE ROLE OF PURCHASING IN THE VALUE CHAIN The role and importance of the purchasing and supply function in the value chain. The difference between concepts such as ordering, buying, purchasing,