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QUALITY, EXPERIENCE, DELIVERY
SAPSOURCINGBUSINESSPROCESS
Contract ManagementContract Management
Your Contracts Are Your Your Contracts Are Your BusinessBusiness
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Did you know…
90% of enterprises view effective creation, monitoring and management of contracts as either “very important” or “critical” to
their overall business success.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
GlobalCorp’s Business Dilemma
1. IT Hardware costs have spiralled out of control
2. They have multiple suppliers supplying the same items
3. They have a number of different support contracts with different terms and conditions
4. They are not maximising their purchasing power with one large strategic contract and making the most of volume discounts
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
GlobalCorp’s Vision
1. Reduce IT Hardware costs
2. Use one strategic supplier to maximise their purchasing power so they can realise volume discounts
3. Standardise support contracts with the same terms and conditions
4. Monitor supplier performance against the contract
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Solving GlobalCorp’s Dilemma
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Business Process – A Simple Example
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Gain Visibility into Spending
The Sourcing Manager uses his portal to access Spend Analysis by Commodity.
Analyse IT Hardware Spending
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Gain Visibility into Spending
The Sourcing Manager can analyse the
breakdown of Spend by
Commodity.
He sees IT spend is a large portion of the overall spend.
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Gain Visibility into Spending
Drilling down most of the IT
Spend is in Hardware.
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Gain Visibility into Spending
The Sourcing Manager can see that
24% of their ITHardware costs are
coming from purchasing printers.
They are currently being supplied by 11 different suppliers, each with their own support agreement, and with different contract terms.
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Gain Visibility into Spending
Drilling down they can also analyse dollar and
percentage spend by supplier.
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Source More Strategically
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Sourcing Manager creates a project to
source a new strategic printer supplier for
GlobalCorp.
Here he can create and issue an RFP. Then he
can evaluate the responses based on his
score criteria.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Source More Strategically
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The suppliers can enter their responses
online through the supplier portal.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Source More Strategically
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Sourcing Manager can then view the response
online.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Source More Strategically
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The results of all the responses can be
compared.
The top responses can be selected to create a supplier
auction.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Source More Strategically
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
During the auction the Sourcing Manager can see the bids
realtime and view the savings.
Best Info Tech Inc wins the Auction.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Sourcing Manager now creates a Master Agreement
from the Auction.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Sourcing Manager can then select clauses from the RFP as well as
standard clauses from the Contract Library Clauses to generate
the contract.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Contract is then automatically
generated in Microsoft Word.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Contract can then be checked out and
sent to the supplier for review.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The Supplier can review the contract
and request changes.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Once the supplier has reviewed the contract
and added their changes it is sent back and checked into the system.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The contract can then be sent to the
Business Unit for final signoff.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
Once the Contract has been approved by the business unit the
operational contract is generated.
Copyright © 2009 Total Asset Management Solutions Pty Ltd QUALITY, EXPERIENCE, DELIVERY
Create and Negotiate Contracts
Analyse IT Hardware Spending
Source a Strategic Supplier
Generate Supply Contract
The contract is now operational in the
system.
All purchases will now be tracked against the
contract.
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