8/10/2019 Group B9

1/12

Group B9

8/10/2019 Group B9

2/12

Case 1

Yes, it would impact the tender submission. The % weightage would have suppliedinformation critical to understand the buyers requirement clearly.

For instance, if buyer is seeking low cost, basic functionality product (or services) then %weight to commercial parameter would be high.

Absence of complete information would delay the procurement process as suppliers wouldask for the missing information.

Not specifying the weights may result in eluding a perfect buyer-seller match.

On the contrary, buyer would get healthy participation from different vendors regardless oftheir technical and commercial capabilities. Buyer would get a fair idea about suppliermarket.

8/10/2019 Group B9

3/12

CASE 2

8/10/2019 Group B9

4/12

Our Core servicestrengths and

Competitive Edge

E-Procurement Solutionsbest suited for Consumer

products & GoodsIndustries

Business Case for an E-

Purchasing System :Products involved arelarge volume, lowvalue goods eg. foodand beverages,clothing, tobacco andhousehold products.

Sell to body:Corporates

CPG one of the larges

industries in NorthAmerica, valued atapproximately US$2trillion.

Although growth hasslowed in this industry,companies thatprovide CPGs stillbenefit from largemargins and strongbalance sheets.

Eroding brand loyaltyand Rising digitalinfluence on consumeshopping providesgrowth opportunities tup coming players.

8/10/2019 Group B9

5/12

Present day procurement needs

The Purchasing Division buys services and productsin the following categories:

Packaging

Ingredients

Raw Materials

Capital/Construction and Engineering Maintenance, Repair Services and Operations

Legal and Real Estate

Human Resources, Security Services and Office Products

Telecommunications and IT

Marketing, Printing and Promotions.

8/10/2019 Group B9

6/12

E P t t h l i

8/10/2019 Group B9

7/12

E-Procurement technologies

Calculation of the impact of procurement savings on P&L and balance she

Use FINANCIAL SAVINGS MANAGEMENT to align procurement with both bottom- and top-line business pe

Use SUPPLIER MANAGEMENT to obtain and maintain accurate, up-to-date information around supplier creden

Use eSOURCING to take full advantage of global market competition and to maintain strict oversight of susourcing decision-making across increasingly remote global locations

Facility to bookmark favorites, create shopping lists and share them with other users

Self-service supplier portal interface to publish and maintain catalog content

End-to-end catalog life-cycle management for hosted or punch-out catalogs

Guided buying process to simplify user experience and configurable workflow approvals for better co

8/10/2019 Group B9

8/12

Classification of KPIs for benefitsachieved through e-procurement

Hard benefits

Deliver enhancedshareholder value,price saving, processcost reduction

Soft benefits

Less effect on cashflow, individual timefreed up throughefficient process

Intangibles

Cultural change, e-platform, high visibilityof supplierperformance

The above benefitscan also becategorized intofollowing benefits:-

Transactional,compliance,managementinformation, Pricebenefits

8/10/2019 Group B9

9/12

8/10/2019 Group B9

10/12

Market Entry Barriers

High Initial Capital Investment for

CPGFor CPG clients to switch from the

existing manual process to anautomated process can be an

expensive affair and a high initialcapital investment is required.ForSMBs, which has large potential,

E-procurement might not be aviable solution

Low Supplier Resistance

Most of the early e-procurementmodels came with a built-in

barrier to supplier adoptionparticipation and/or transaction

fees (2 percent of the order valueon average), usually to continue

to receive orders on contractsthey already had.

System Integration Issues:An inadequate technologicainfrastructure at CPG Client tsupport e-procurement mighharm the demand. Catalogu

integration is considered as oof the main issues.

Data Security and Authentication:

Data Security is going to be oneof the major decider for the

group to excel in the eprocurement offerings. Level of

resistance in the case ofelectronic payments is crucial

Change Management:

The attitude of the highermanagement and leadership at

CPG will be a high obstacleconsidering the migrationrequirement from manualprocess to eprocurement

8/10/2019 Group B9

11/12

Groups niche

Guided buying : Steering users to right category or suppliers with compliant, capmore accurately, with better usability

Artificial intelligence to automatically classify the users' search term and suggeappropriate category for the search, to ensure easy shopping experience

Support for integration with the legacy system

Support and training facilities.

Calculation of the impact of procurement savings on P&L and balance sheet

8/10/2019 Group B9

12/12