SSAsupplier relationship management > sourcing

8 improve profitability and speed time to market

Reduce cost and risk through sourcingEconomic pressure and a growing focus on costcontainment have contributed to a growing trendtoward outsourcing. Since up to seventy percent of aproducts cost is typically determined during the designphase, opportunities for savings occur in the definitionof products and their components. Even small costreductions during sourcing can yield substantialreductions in the end cost of a product or service.

Sourcing technology offers an opportunity to reducecosts and improve negotiation cycle times. Profits canoften be diluted by overhead costs, cost of sale, andprofit margins, but reductions in procurement coststranslate to dollar-for-dollar increases in profits.Sourcing solutions can represent the best investmentfor simultaneously reducing cost and risk, whileenhancing customer satisfaction and businessprofitability.

Increase savings through total cost analysisSourcing addresses the entire span of businessprocesses within sourcing and provides links toback-end ERP systems to aggregate demand,import product information, publish contracts andeven purchase orders with delivery schedules.Rules-based what-if scenarios, multi- attributecomparisons, and multi-round negotiations canhelp ensure that sourcing decisions are made onthe basis of total cost instead of traditionalpurchase price methods resulting in increasedsavings.

Manage allocation and optimisation of goodswith suppliersSourcing allows you to evaluate potential newsuppliers on price and non-price attributes, auditexisting suppliers with scheduled assessmentsand import vendor rating information and pricingfrom your backend systems.

Sourcing can helpSourcing, a component of Supplier RelationshipManagement, is a complete solution for all yoursourcing needs direct, indirect, capital goods andservices. It helps companies determine the best mix ofsupplier quotes to achieve the lowest total cost. And itfacilitates supplier assessments, RFQ management,allocation and optimisation of purchasing volume, andawarding of contracts to suppliers.

Sourcing provides an automated solution to managethe entire purchasing process and help organisationsachieve the lowest total cost. It works in coordinationwith eProcurement and your ERP system to provide aunified view of requirements, goods and suppliers resulting in improved visibility and ultimately betterpurchasing decisions.

Take a closer look at how this solution can make acritical difference in your organisation.

Automate RFx management from distributionto final contractWith our sourcing solution, you can create multi-variable RFxs. It also allows you to share RFxsfor internal approvals and input, distributeapproved RFxs to potential and existing suppliersand track the entire process with graphicaldisplay.

Sourcing lowerscosts, improvesvisibility andspeeds sourcingcycles.

supplier relationship management

8 sourcing

Manage supplier negotiation through reverseauctionsUse Sourcing to conduct auctions on multiple lines andattributes (i.e. English decreasing).

Decision Support provides total cost analysisSourcing supports buyers need to manage complexsourcing processes by capturing the cost structure ofthe suppliers proposed products or services. It alsoprovides multi-attribute decision making models andwhat-if scenarios to evaluate complex factors andsupport total cost negotiations.

Improve negotiating ability with suppliersWe offer capabilities to support supplier relationshipsincluding: one-to-one negotiations, bidding rooms ormarketplace publishing and supplier cost templates.The functionality follows the entire cycle of sourcingfrom the ability to propose offers to countering andtracking negotiation details.

Facilitate management and routing of contractsUse Sourcing to create contracts based on bid awardsand share contracts internally and externally to obtainnecessary approvals. Complete the contract cycle bypublishing contracts to your back-end system andmonitor consumption and expiry.

Make it Pay.Sourcing helps improve the quality of work andcollaboration, which allows commodity managers andbuyers to concentrate on supplier research andnegotiation to improve quality, cost and overallbusiness performance.

Organisations using Sourcing can expect to:

Decrease sourcing cycle length

Reduce time of product introduction cycles

Improve collaboration with suppliers

Lower supply chain and material costs

Gain spend visibility and economies of scale across

the enterprise

Reduce administrative overhead withinpurchasing organisations

When your enterprise wont wait for better,more cost-effective sourcing, move forwardfaster with SSA Sourcing.

About PRO INITIATIVE.Pro Initiative distributes the SSA Globalproduct range throughout the Pacific Region.Pro Initiative was formed by a consortium offormer SSA Global staff and BusinessProcess Outsourcing specialists. To meet thechanging demands of business today PROINITIATIVE delivers solutions to clients basedon traditional in-house deployments as well asvia ASP and BPO, this provides clients theability to focus on your clients and not worryabout IT infrastructure.

For additional information on PRO INITIATIVEand the innovative range of products andservices pleasecall us on +61 2 9460 9799 oremail info@proinitiative.com.au

Pro Initiative Pty LtdSuite 15, Level 330 Atchison StSt Leonards NSW 2065Australia

T +61 2 9460 9799F +61 2 9460 8577

www.proinitiative.com.au