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DATA IS POTENTIAL
Data Driven Sourcing
Seagate Indirect Supply ChainJames Martinson, Dean Halvorson, Alex Davis, John Jones, Eric Pesik
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Seagate Presenter Team
James Martinson – Director Global Indirect CMT
Alex Davis – Category Manager, Global Facilities
Dean Halvorson – Principal CM, Global Chemicals
John Jones – Director of IT Sourcing Team
Eric Pesik – Asst General Counsel
Data Driven Sourcing Seagate Indirect SC
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Team Based Facilitation, 5 Phases:• Insight into the Buy
• Strategize the Event
• Negotiate the Deal
• Execute the Purchase
• Manage the Supplier
Using data to make the best decision
Data Driven Sourcing Seagate Indirect SC
Insight
Define Source Needs
Establish Team
Strategize
Source Strategy & Requirements Definition
Selection Criteria
Supplier Pre-Qualification
Negotiate
RFX
Supplier Selection
Negotiation
Execute
Documentation
Award & Execution
Manage
Implement, Monitor & Improve
Data Driven Sourcing Seagate Indirect SC
Insight
Step Tools
Define Source Needs Checklist
Establish Team RASCI
Kick-off
Dean Halvorson
Data Driven Sourcing Seagate Indirect SC
Data Driven Sourcing Seagate Indirect SC
Source Needs
What does the requestor want?
This process completed yesterday!
What does Sourcing Team need to know?
Who, What, When, Where & Why.
Data Driven Sourcing Seagate Indirect SC
Source Needs
See Back-up for full sourcing checklist.
How to documentWhat to Document:• Detailed Statement of Work
from Requestor
• Drawings, Specifications,
Designs & Procedures
• Recommended Suppliers
• Additional information
Data Driven Sourcing Seagate Indirect SC
eSourcing Software
How many of you use an eSourcing
application?
Data Driven Sourcing Seagate Indirect SC
eSourcing Software
Data Driven Sourcing Seagate Indirect SCRASCI Team Model
ResponsibleIdentifies the team member that is assigned to complete a particular step. The degree of
responsibility is determined by the Accountable team member. There should be only one “R” (R’s
can only be shared under exceptional circumstances).
AccountableDesignates the team member that is ultimately ‘accountable’ for the completion of the step, and
who has the ability to give final approval. There can be only one “A” for a decision or activity and
accountability cannot be delegated.
SupportingResources are allocated to the Responsible team member. Unlike Consulted, who may provide
input to the task, Support will assist in completing the task.
ConsultedIdentifies the team member that must be “consulted’ before a decision or activity is finalized. This
is a two-way communication.
InformedIdentifies the team member that should be notified about the completion or output of the decision
or activity, on an as-needed basis. This is a one-way communication.
Data Driven Sourcing Seagate Indirect SCRASCI Team Model
Data Driven Sourcing Seagate Indirect SC
Kickoff Meeting
• Intro
• Project Overview & Goals
• Roles & Responsibilities
• Training
• ROE
• Confidentiality
• Decision Escalation Path
• Timeline review
• ID Suppliers
• Decision Tool Review
• Process Overview
• Next Steps
• Set regular meeting time
Ground Rules,
Roles
& Process
Data Driven Sourcing Seagate Indirect SC
Insight
Strategize
Step ToolsSource Strategy Problem& Requirements Statement
Selection Criteria Musts &Supplier Pre-Qual Wants
Alexander Davis
Review: How many of
you use a source
selection team?
Data Driven Sourcing Seagate Indirect SC
Problem & Decision Statement
What makes a strategy?
Data Driven Sourcing Seagate Indirect SC
Selection Criteria - Musts
Data Driven Sourcing Seagate Indirect SC
Selection Criteria - Musts
Data Driven Sourcing Seagate Indirect SC
Selection Criteria - Wants
Data Driven Sourcing Seagate Indirect SC
Selection Criteria - Wants
Data Driven Sourcing Seagate Indirect SC
Insight
Strategize
Negotiate
Step ToolsAnti- Formcollusion
Supplier Negotiation
Selection Tracker
Negotiations
John Jones
Data Driven Sourcing Seagate Indirect SC
Supplier Anti-Collusion Letter
Data Driven Sourcing Seagate Indirect SC
How many here use a Selection Criteria Process?
Data Driven Sourcing Seagate Indirect SC
Must Criteria
Move to Negotiation Action Plan
Data Driven Sourcing Seagate Indirect SC
Completing Selection Criteria
Data Driven Sourcing Seagate Indirect SC
Completing Selection Criteria
Move to Negotiation Action Plan
Data Driven Sourcing Seagate Indirect SC
Decision Risk Analysis
Move to Negotiation Action Plan
Data Driven Sourcing Seagate Indirect SC
Negotiation Action Plan
Data Driven Sourcing Seagate Indirect SC
Negotiation Action Plan
90
$10K
Successful Negotiation
Data Driven Sourcing Seagate Indirect SC
Insight
Strategize
Negotiate
Execute
Step Tools
Award & Contract
Execute System
Eric Pesik
ContractRequest
Business Specs
Business Case & RFP
Negotiation & Redlining
ContractAuthoring
Data Entry & Mgmt
Disposition & Renewal
Reporting & Audit
AgreementExecution
Data Driven Sourcing Seagate Indirect SC
Contracts LifecycleInsight Strategize Negotiate
ExecuteManage
Data Driven Sourcing Seagate Indirect SC
Insight
Strategize
Negotiate
Execute
Manage
ToolsSupplier Segmentation
Risk Analysis & Business Continuity
James Martinson
Review: How many in
the audience engage
Legal throughout the
process?
Data Driven Sourcing Seagate Indirect SC
Supplier Segmentation
Supplier Segmentation (Business Reviews)
● Switching Costs
● Technology Provided
● Annual Spend
Risk Evaluation (Business Continuity Planning)
● Single / Sole Source
● Impact to Factory Capacity
● Time to replace
Data Driven Sourcing Seagate Indirect SC
Supplier Segmentation & Risk Mitigation
Insight
Define Source Needs
Establish Team
Strategize
Source Strategy & Requirements Definition
Selection Criteria
Supplier Pre-Qualification
Negotiate
RFX
Supplier Selection
Negotiation
Execute
Documentation
Award & Execution
Manage
Implement, Monitor & Improve
Review – Data Driven Sourcing
Data Driven Sourcing Seagate Indirect SC
Thank YouQuestions & Answers
Data Driven Sourcing Seagate Indirect SC