JAGGAER Direct Value-based Sourcing

Transcription

1 JAGGAER Direct Value-based Sourcing JAGGAER: DIRECT A COMPLETE CONCEPT FOR MAKING THE RIGHT AWARD DECISIONS WHY JAGGAER? Battle Tested 15+ Years of Direct Material experience All-in-One One platform to grow with ERP Integration Global Footprint Purchasers must leverage the optimum value out of procurement for their organization not just now, but also in the future. Making an award based on purchase price alone can cost you more later on down the line a supplier can fail to live up to expectations in quality or delivery reliability, or get into financial difficulty. To be able to make the best sourcing decision, you need a 360 degree view of your suppliers, with all the right information and analysis maximizing internal knowledge and experience, together with vital information from third parties, and the functionality you need to understand and put it into context. What s more, in a dynamic global market where agility is the decisive competitive advantage, you need all this at your fingertips. TOWARDS FULL COST TRANSPARENCY Value-based Sourcing with JAGGAER takes you from Total Cost of Ownership (TCO) to Total Value of Ownership (TVO), illuminating cost transparency as never before. JAGGAER s functionality enables you to bring the full spectrum of information into your TVO analysis and comprehensively define your award criteria per category. Risk and sustainability ratings enable you to make informed award decisions that are right for your category strategies. For example, you can increase the weighting for risk criteria in your most critical categories particularly crucial in implementing global sourcing, where the risk of supply chain disruption can be highly complex.

2 Evaluation of a supplier s potential tells you if the supplier will be able to provide you with a strategic advantage beyond their short-term asking price. With Supplier Scorecard, you can exploit inhouse knowledge about a supplier to precisely identify their strengths and room for improvement from the perspective of your category strategy. JAGGAER cost breakdown functionality gives you insight into a supplier s overheads, production, and material costs, so that you can see behind the supplier s offer price and respond when their costs change. TVO enables you to see a 360 degree view of your suppliers from the perspective of your category strategy and what is important to your company and compare the true costs of supplier offers for your RFQs, a true cost that goes beyond the quotation. Not only does this functionality enable buyers to perform valuebased sourcing, workflows and automation tailored around you ensure that even inexperienced buyers can implement purchasing the way you envision it. This helps you to achieve a high level of process quality and ensure that awards are made according to the same criteria internationally. ANALYZE YOUR SOURCING PROCESS WITH: SPEND VISIBILITY This innovative module enables professional analyses of purchasing volumes for parts and services, using invoices, data from order processes, material master data, and supplier master data. If you use several ERP systems, you can bring data together from different sources, analyze it, and present it in graphical or tabular form. Bringing new clarity to your spend will enable you to precisely 360 SUPPLIER COCKPIT The 360 Supplier Cockpit gives you the full overview of a supplier, combining category approvals, certifications, order history, performance ratings, supplier development, and much more. With everything you need to know about a supplier in one place, updated using supplierprovided information over supplier self-service, third party content, and information flows from other modules, the cockpit offers you the depth and breadth of information you need while drastically target cost reduction potentials and achieve savings, because you will reducing the amount of effort needed to maintain it. The dynamic interface allows you to choose from over 50 information sources and drag and drop them into be finally able to see how much different parts of your company buy from a supplier. Buyer can create standard reports Analysis of expenditures using criteria generated by the data Invoice and order documents used for maverick spend analysis Easy analysis of utilized terms of payment Role-based access rights to individual spend categories position in the user view. This provides a comprehensive basis for award decisions and supplier development, so you can get the best from your suppliers.er. Quick and easy overview of all information about a supplier Alongside data relevant to procurement, an overview of information about logistics, quality, and financial accounting is available. Save an enormous amount of time by eliminating manual data entry Complete overview of the history of a supplier Optimal negotiation preparations using overview at the click of a mouse

3 THIRD PARTY CONTENT Increasingly globalized supply chains present exciting opportunities for sourcing while at the same time posing new challenges for risk management and supply chain transparency and exposing procurement organizations to unexpected costs. JAGGAER s partnerships help you stay one step ahead with upto-date information and professional analysis from industry specialists. Dun & Bradstreet s financial and corporate data via Bisnode helps you to assess the financial stability of your suppliers. JAGGAER s partnership with riskmethods means that you can identify vulnerabilities in your supply chain from adverse events such as political risks and natural disasters early on. Analysis from the CSR ratings specialist, EcoVadis, helps you keep track of sustainability and labor ethics in your supply chain. Award decisions based on comprehensive risk profiles including finance and quality data, compliance and sustainability aspects, and political and local risks Integration of this information in downstream processes such as Supplier Scorecard and supplier selection Automatic duplicate check at data registration or change, using the D-U-N-S numbers SUPPLIER SCORECARD Supplier Scorecard enables you to fully exploit your in-house knowledge about a supplier to make the best decision in deciding who to award a bid to and to precisely identify how your suppliers can develop and to incentivize improvement. You can decide which aspects of supplier performance are important to you for which categories and develop category-specific rating models with their own weighting schemes. Not only do these performance rating models help you to evaluate your suppliers and inform future award decisions, you can use them to develop bonus-penalty schemes and communicate them to your suppliers over the portal and in RFQs giving them the incentive to develop into the supply partners you need Aggregated display of hard and soft facts Consolidated and weighted analysis of supplier performance for multiple locations and/or categories Employees from different departments can be automatically brought into the Supplier Scorecard Minimal time spent on manual ratings due to automated reminders based on freely definable workflows Incentive to improve performance for the supplier based on the Supplier Scorecard results visible on the Supplier Portal MASTER DATA Clean master data establishes a clear overview of your supplier base and procurement activities. JAGGAER Master Data Management helps you to clean and avoid duplicates and common sources of error, reducing the costs that can arise from incorrect data and building a system that continuously prevents errors. The option to use D-U-N-S numbers with JAGGAER D&B look-up as a unique supplier identifier means that you can easily avoid misspellings of company names and keep company data continuously up-to-date. The module uses a golden record approach to ensure that data is current and correct, pushing it via a dedicated interface to multiple ERP systems to ensure a harmonized basis for all your information. You can identify your spend better for all your suppliers across multiple locations worldwide, enabling you to target global savings. Keep master data up-to-date and achieve complete transparency of your supplier base across all business units, locations, plants, and (ERP) systems Avoid duplicates and multiple entries using a Golden Record approach by checking and assigning supplier master data with D-U-N-S numbers Reduce time spent on updating data by including and connecting the suppliers (Supplier Self-Services). Display the complete functionality of the SAP supplier base

4 DEVELOP YOUR STRATEGY FOR VALUE-BASED SOURCING WITH: CATEGORY JAGGAER Category Management helps you analyze and categorize spend to define and implement the right supplier strategy for each category so that you can make the best decisions and achieve maximum savings. The module s analytical functionality includes portfolio analyses for categories, as well as holistic comparisons for suppliers. It also has a strategy generator to help you develop the best strategy for your category based on the data. You can then use the results of categoryspecific supplier strategy to compare suppliers in the sourcing process. Communicate category strategy worldwide, and implement and control it consistently Integrated SWOT analyses, upon which you can build specific category strategies Realize additional cost reduction potentials based on individual strategies for each category ROLL-OUT YOUR VALUE-BASED SOURCING STRATEGY USING: ESOURCING / RFQ The key building block of value-based sourcing is an esourcing and RFQ module that enables you to implement purchasing strategies across your corporation, share best practices, dramatically increase transparency, and break silos to significantly increase process quality. In JAGGAER, esourcing boasts outstanding process efficiency and two-way ERP integration. You can use the module to implement category strategy by using standardized processes, approved suppliers, and individual templates which would otherwise be practically impossible in a matrix organization. esourcing can be automated and fully integrated with your ERP system and with up- and downstream processes, so that you can use data for further evaluation and analysis, such as feasibility studies, project enquiries, annual requests and more. Standardize internal processes for categories, departments, locations, and plants Offers can be submitted online or using Excel, based on your templates in your own CI Simple creation of cost breakdowns with drap & drop and TCO analyses Increased transparency for all decisions Offers are automatically transferred into the ERP system (also multi-erp) Complete integration of downstream processes, including approvals, orders, contracts, and inforecords COST BREAKDOWN WITH ANALYSIS Look behind offer prices using the Cost Breakdown and understand the cost structure of your suppliers. With advanced cost-modelling, not only can you see the cost of installation, maintenance, and repair, you can also keep an eye on market cost drivers, and compare price offers against market benchmarks to see if your supplier is making you the best offer. This module enables you to see what effect decreasing raw material costs are having on your purchasing volumes at a glance. You can compare price indices and benchmarks to then proactively approach suppliers in this dynamic market environment with new tenders and claim reductions in material costs. Cost Breakdowns for parts from drawings, as well as indirect materials & servicesgen Increased cost transparency and idenitification of new potentials Monitoring of price developments for raw materials and hourly rates

5 IMPLEMENT YOUR VALUE-BASED AWARD DECISIONS WITH: CONTRACT JAGGAER Contract Management helps you efficiently keep track of contracts, changes, and deadlines, as well as making them available to colleagues in different groups over a web portal, whether they have access to the ERP system or not. The centralized administration platform for contracts, with extensive search capabilities, also sends out reminders and notifications to ensure that no expiry dates or contract extensions are forgotten. This tool ensures that the agreements you have achieved are kept to, so that the cost reductions you have negotiated make it onto your company s balance sheet as actual savings. Access all important contract data centrally Clear management of framework and follow-up contracts Access rights are easy to administrate (read/ write/ no access) Freely configurable reminder system (e.g. contract deadlines) Reduce administration costs Better insights into contract deviations by integrating later processes (PREQ) JOIN THE CONVERSATION on our blog at USA sales@jaggaer.com EUROPE dach_sales@jaggaer.com