IFS SRM. Supplier Relationship Management. Kim Franzen Holmqvist, Senior Business Consultant, IFS Scandinavia

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2 IFS SRM Supplier Relationship Management Kim Franzen Holmqvist, Senior Business Consultant, IFS Scandinavia 2011 IFS

3 IFS SUPPLIER RELATIONSHIP WHAT IS SRM? SRM is to strategically simplify and streamline the procurement process and maximize the relationship with the supplier and get an overall picture of the life cycle. - From spend analysis to the strategic sourcing, contracts, procurement and payment.

4 IFS SUPPLIER RELATIONSHIP THE CHALLENGE Define SRM Strategy to reduce the risks and costs by: more efficient handling / management of supplier-related information access to legal information for choosing suppliers support for the systematic evaluation and analysis (e.g. quotations, quality assessments, etc.) good prior knowledge of the supplier market in the preparation of customer proposals good knowledge of the supplier market to enable the efficient sourcing offset increased ability to negotiate a good price leverage through collaboration with other entities within the group

5 IFS SUPPLIER RELATIONSHIP EFFECTIVE SUPPORT Increased ability to manage the business by: improved overview and traceability of suppliers ownership and corporate structure improved overview of the status (commercial, performance) improved overview of planned and ongoing cases improved process support through checklists and log-support dynamic grouping of suppliers for various reasons to provide tools to manage and overview the offset, export licenses, etc. to provide a tool for effective communication

6 IFS SUPPLIER RELATIONSHIP IFS SRM PROCESS Strategic sourcing Design of policies and strategies Plan supplier development Assortment and Supplier strategies Procurement of long-term agreements / partnerships Tactical purchase Supplier evaluation and improve delivery quality Programmes to reduce the supplier base Re-negotiation / signing of framework agreements Programmes for supplier development Operational purchase Order entry Delivery monitoring Resolution regarding faults invoices, and shortcomings Monitoring the delivery and supplier outcomes

7 IFS APPLICATIONS einvoice MULTI-SITE PLANNING CONSTRAINT-BASED SCHEDULING MAKE TO PROJECT COMPLEX MRO VEHICLE INFORMATION PROCESS AUTOMATION INTEGRATION BUDGET SELF-SERVICE PROJECT REPORTING ENGINEER TO ORDER DEMAND PLANNING SCHEDULING & RESOURCE ALLOCATIONS CASH FLOW RECRUITMENT SERVICE CONTRACT SALES CONTRACT MAKE CONFIGURE ASSEMBLE TO ORDER INVOICING PREVENTIVE MAINTENANCE ACCOUNTS PAYABLE EMPLOYEE DEVELOPMENT & CERTIFICATIONS FIELD SERVICE SUB CONTRACT BATCH PROCESS CUSTOMER SCHEDULES WORK ORDER COLLABORATIVE SOLUTIONS ACCOUNTS RECEIVABLE TRAINING CALL CENTER PROJECT DELIVERY RISK REPETITIVE PRODUCTION CUSTOMER ORDERS OVERALL EQUIPMENT EFFECTIVENESS PERSONAL PORTAL FIXED ASSETS EXPENSE SALES CONFIGURATOR ENGINEERING CHANGE PROJECT PLANNING SHOP ORDER SUPPLIER SCHEDULES EQUIPMENT METERING MOBILE & WIRELESS SERVICES CONSOLIDATED ACCOUNTS TIME & ATTENDANCE WEB STORE ASSET DATA PROJECT BUDGETING COSTING PURCHASING EQUIPMENT MONITORING EVENT GENERAL LEDGER PAYROLL ADMINISTRATION SALES & MARKETING PDM CONFIGURATION PROJECT SHOP FLOOR REPORTING INVENTORY EQUIPMENT SYSTEM INTEGRATION & WEB SERVICES IFS FINANCIALS IFS HUMAN RESOURCES IFS SALES & SERVICE IFS ENGINEERING IFS PROJECTS IFS MANUFACTURING IFS DISTRIBUTION IFS MAINTENANCE IFS BUSINESS ENABLERS BUSINESS PERFORMANCE ACCOUNTING RULES BUSINESS REPORTING ECO-FOOTPRINT DOCUMENT QUALITY CASE BUSINESS MODELER IFS FOUNDATION1 TECHNOLOGY AND ARCHITECTURE

8 IFS SUPPLIER RELATIONSHIP IFS PURCHASING Demand Work Order Purchase Goods Receipt Accounts Payable Forecast RFQ Delivery status RoP Inventory level Purch Req Purch Order Receipt In Stock Supplier Invoice Entr KanBan QA Management General Ledger MRP Project MRP Supplier Schedule Supplier B2B Portal Strategic Sourcing

9 IFS APPLICATIONS SUPPORT FOR STRATEGIC SOURCING

10 STRATEGIC SOURCING PARTS / CATEGORY SOURCING AREA 1 Part Dimensions Product Family Product Code ABC Class COMMODITY GROUP A COMMODITY GROUP B COMMODITY GROUP C COMMODITY GROUP D Lifecycle Stage Commodity Managers

11 STRATEGIC SOURCING SUPPLIERS - PREFERRED SUPPLIER, GEOGRAHPY CODE, SUPP TYPE CODE

12 STRATEGIC SOURCING SUPPLIERS - SUPPLIER RATING

13 STRATEGIC SOURCING APPROVED SUPPLIER LIST

14 STRATEGIC SOURCING PREFERRED AND APPROWED SUPPLIERS Global view of Preferred and Approved Suppliers

15 STRATEGIC SOURCING INTEGRATED SRM CEO Analyze One data source for suppliers information no separate pillars Transparent view of the supplier Role-based information access Everyone in the company working together Sourcing Manager Inventory/Purchasing Manager Front Office Back Office Field Service Enter information Use information

16 IFS SUPPLIER RELATIONSHIP IFS OFFERS INTEGRATED SRM

17 IFS PURCHASING REQUEST FOR QUOTATION SUPPORT Manual Entry Purchase Requisition RFQ RFQ Blanket Quotation Blanket Quotation Approve Quotation Purchase Order Supplier Blanket Parts RFQ Data Quotation information Approval information Suppliers Suppliers

18 IFS PURCHASING SUPPLIER BLANKETS Supplier Agreement Site Site Site Group / Site Level Blanket Agreement RFQ Planned Purchase Agreement Purchase Order Negotiation Active Purchase Order Closed Step pricing & Assortments On-line volume and value update Warning options PRICAT messaging

19 IFS PURCHASING REQUEST FOR QUOTATION SUPPORT (EXTENDED) NEGOTIATION BASE LINE Global consolidated view of Purchase information and required volumes. Generate RFQ s by Sourcing Area/Commodity Code and Volume value Filter of Blanket Quotations by Supplier Line Card Extended support for Analyze and Negotiation with Target Pricing, Best Of Best etc RFQ RFQ Blanket Quotation Blanket Quotation Approve Quotation Supplier Blanket Parts RFQ Data Quotation information Approval information Suppliers Suppliers

20 PERFORMANCE IFS BI SOLUTION

21 IFS APPLICATIONS SUPPORT FOR STRATEGIC SOURCING SUMMARY

22 THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALITY FOR IFS S SOFTWARE PRODUCTS AND TECHNOLOGY. SUCH STATEMENTS OF FUTURE FUNCTIONALITY ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION. IFS AND ALL IFS PRODUCT NAMES ARE TRADEMARKS OF IFS. THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS IFS