Making Spend Management Easy for Plexus
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- Angela Fletcher
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1 Making Spend Management Easy for Plexus
2 A Snapshot A leader in providing electronics design, manufacturing and aftermarket services to companies with mid-to-low volume, higher complexity products, Plexus has been delivering comprehensive Product Realization solutions for more than 35 years. System/Process(s) prior to Zycus? Internal tools ERP system and excel based Zycus Solution Implemented Spend Analysis and Commodity Price Tracker
3 Three Keywords for Plexus' Experience with Zycus Ease of Use: It just takes users a few hours in the tool before they become familiar with the environment and comfortable running reports on their own. Responsiveness: Plexus continues to experience a high level of attention, regular updates on the progress, and utmost flexibility from the Zycus team in meeting their unique needs. Customer Support (Technical & Functional): Plexus receives quick and ubiquitous customer support which Zycus is famous for. The proactive customer surveys also help the Zycus-Plexus team to bridge any gaps before they become alarming. Key Business Challenges Need for Commodity classification Strategies around specific commodities Need for Vendor normalization Supplier management Lacking Capabilities for user friendly data extraction/analysis Inconsistent global spend reporting Manual effort to update Lacking in following tracking and reporting capabilities Quick generation of analysis Multiple dimensions/measures Global spend visibility
4 Why Zycus Plexus selected Zycus for its ability to Provide multiple solutions like Spend Analysis Reporting, Supplier Information Management, Contracting Management, Commodity Cost Tracker etc. Support consolidation and automation of all the manual work and reporting Increase spend visibility across geographies Data Access Control groups (DACG), Weekly refreshes, Delegated Single Sign On (SSO) login/adfs (Active Directory Federation Services). Zycus' ianalyze (Spend Analysis) & icost (Commodity Price Tracker) helped Plexus with comprehensive and competitive insight into total costs across product lines and life cycles through Specialized commodity dashboards Specialized market sector dashboards Overview of preferred spend for executives More holistic understanding and tracking of spend, thus providing a greater ability to leverage this information strategically Procurement Vision Zycus has a very important role in the sourcing organization. Having the ability to provide detailed spend reports based on different factors such as region, supplier, customer, commodity etc. is essential in understanding the progress toward specific targets and the development of new strategies. For Plexus, understanding the spend history plays a key role in the development of a strategic approach moving forward. An added ability to pair the information they pull from Zycus with other data sets helps them in fulfilling their key responsibilities within the sourcing organization.
5 Zycus Advantage Business Impact and Improvements Delegated SSO provided via ADFS (Active Directory Federation Services) Centralization of data Consolidation and Ease of Use as a result of single platform and repository Total Spend Analyzed $2.5 bn annually (last 3 years) Average usage for last 3 months 19 Total registered users 121 Savings Opportunities Unlocked after Indirect Spend Inclusion Now that Plexus has in place, a consistently aligned commodity code structure to classify spend, they are well positioned to begin developing reports to gain an understanding and to build a strategy around savings opportunities for these commodities. The biggest opportunity that Zycus' Spend Analysis has offered the Plexus' indirect spend team was in developing reports to gain insight into their suppliers' supply chain programs. Percentage reduction in Turnaround Time Change in weekly refreshes from 3 to 1-2 days. Ideally having the weekly refreshes completed over the weekend to ensure weeklong data consistency when users access the tool at the start of the work week. User Experience The intuitive drag and drop feature has been positively received at Plexus with several positive remarks from users It helps reduce the risk of errors while creating reports.
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