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ESourcing made easy. Key facts about SourceWeb eSourcing software and services company Established in 2011 Headquartered in Gurgaon, NCR with regional.

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Presentation on theme: "ESourcing made easy. Key facts about SourceWeb eSourcing software and services company Established in 2011 Headquartered in Gurgaon, NCR with regional."— Presentation transcript:

1 eSourcing made easy

2 Key facts about SourceWeb eSourcing software and services company Established in 2011 Headquartered in Gurgaon, NCR with regional office in Chennai Set up by two young and pedigreed engineers cum management graduates Leadership success at IBM, Sify, BPCL, MapmyIndia, Bain & Company, BNP Paribas, Leo Burnett etc. Significant experience in purchase, finance, operations and automotive domain within the core and advisory team 2

3 SourceWeb has a simple mission 3 To empower businesses to manage their sourcing function in the most efficient way- by widespread adoption of innovative, easy to use, rapidly deployed and cost effective applications SourceWeb represents a paradigm shift in the way eSourcing software is designed and delivered. This is what differentiates SourceWeb from competition

4 What is eSourcing? Simply put, using electronic tools for conducting sourcing activities Suitable for all type of sourcing requirements -Direct material -Indirect material -Capital equipment -Services Incorporation of price as well as non-price factors 4 Market information Get quotes Negotiate prices and choose winning supplier(s) Award work and conclude contract

5 Why is eSourcing beneficial to you and your suppliers? Clear benefits for you… Fast cost reduction and high RoI Improved efficiency and centralization of information Repeatability and audit ability of the sourcing process …and your suppliers Transparency and openness in sourcing Instant feedback and closure through an interactive process Shortening of sales cycle leading to lower sales cost 5

6 These are discrete sourcing processes. One can use eSourcing tools for any one or combination of these eSourcing is easy to do; simple eSourcing tools correspond to various stages of sourcing Search for suppliers of various products and services RFP Create and publish RFIs, RFPs and RFQs Conduct negotiations online Select a supplier, conclude contracts and place order Save money Supplier Registration RFXReverse Auctions Contract Management 6 Click to navigate

7 eSourcing is easy to do; simple eSourcing tools correspond to various stages of sourcing Search for suppliers of various products and services RFP Create and publish RFIs, RFPs and RFQs Conduct negotiations online Select a supplier, conclude contracts and place order Save money RFX These are discrete sourcing processes. One can use eSourcing tools for any one or combination of these 7 Click to navigate Supplier Registration Reverse Auctions Contract Management

8 Supplier Registration enables you to engage existing suppliers and court new suppliers 24X7 8 Always keep finding new suppliers Always on web interface for new suppliers to register themselves Have a ready set of suppliers even before you actively start supplier development Rewards proactive and ambitious suppliers Keep control of the supplier empanelment process Evaluate suppliers with your own supplier evaluation processes and standards Empanel suppliers when they meet ‘your’ standards Supplier enablement Supplier self-service: Get current, accurate and complete supplier information filled by suppliers themselves No capex, operate on an opex model No upfront investments in software and hardware due to SaaS delivery model

9 SourceWeb Supplier Registration is focused on the right features 9 Easy user interface for suppliers to register User friendly interface: Easy intuitive web UI, users not dependent on training Supplier registration wizard: Step by step guidance for supplier registration Custom fields: Define additional customer specific attributes Powerful search engine: Use keywords to search on various fields Exhaustive and customizable supplier registration form Basic and contact details Financial details Standard UNSPSC and customized drill down taxonomy of products and services Catalogues and customer references Government and tax registrations Certifications Attachments uploads

10 eSourcing is easy to do; simple eSourcing tools correspond to various stages of sourcing Search for suppliers of various products and services RFP Create and publish RFIs, RFPs and RFQs Conduct negotiations online Select a supplier, conclude contracts and place order Save money RFX These are discrete sourcing processes. One can use eSourcing tools for any one or combination of these 10 Click to navigate Supplier Registration Reverse Auctions Contract Management

11 RFX is a multipurpose module, with wide usage across departments 11 Request for Information Requesting expression of interest (EoI) and also information from suppliers Understand supplier market dynamics Obtain information so that a common RFP document can be invited Request for Quote Invite formal quotes for purchase items Sealed bids from suppliers invited and evaluated Can use the bids to set up a reverse auction, depending on item type Request for Proposal Invite proposals from suppliers Pre-qualify them for bidding round if they meet the technical & commercials requirements RFI RFP RFQ

12 Supplier/ Vendor RFX, simplifying management of your RFPs 12 III WhereHosur How much50K When9 week Quote Item 1$9.5 Quote Item 2Rs875 WhereSanand How much10K When6 week Quote Item 1$11 Quote Item 2Rs925 WhereNoida How much20K When3 week Quote Item 1$18 Quote Item 2Rs1100 WhereDelhi How much35K When5 week Quote Item 1$21 Quote Item 2Rs1000 WhereHosur How much50K When9 week Quote Item 1$9.5 Quote Item 2Rs875 WhereNoida How much20K When3 week Quote Item 1$18 Quote Item 2Rs1100 WhereSanand How much10K When6 week Quote Item 1$11 Quote Item 2Rs925 WhereDelhi How much15K When1 week Quote Item 1$17 Quote Item 2Rs1200 IIIIIIIV Where Delhi SanandNoidaHosur How much 15K 10K20K50K When 1 week 6 week3 week9 week Quote Item 1 $17 $11$18$9.5 Quote Item 2 Rs1200 Rs925Rs1100Rs875 Buyer/ purchaser Simplifies RFX management for any product/ service Manage suppliers, publish RFX, invite bids & evaluate at the click of a mouse III IV

13 SourceWeb RFX focuses on usability and support, and has the right number of features Usability Create partial forms- save drafts Step by stem wizards to create RFX and create RFX response Export forms and responses to excel, word, PDF Use existing RFX as templates for re-use Batch downloads of attachments Industry category master Global location maser “Unit of measurement “master Multiple time- zones support Multiple currency support Features Dynamic form creation RFX accessibility- private/ open Deadline- hard/ soft My Suppliers- buyer’s supplier network Edit published RFX Summary of changes in tracked mode Change privacy and deadline of a published RFX Add and delete suppliers from published RFX Un-submit supplier responses Retract RFX Reminders to suppliers Auto/ manual close RFX Live response status Live response tabulations- quotes, questionnaire responses, by supplier etc. Support & service 13 12x5 support Onsite support Remote debugging FAQs SSL enabled website- https:// Audit trail Auto expiry of password authentication Strict access control rights management Firewalls Intrusion detection systems IP Block Antivirus Disaster recovery Backup policy Security Guided on- boarding/ self registration Search and respond to public RFX Notify intention to respond Request resubmission of response Summary of changes of republished RFX BuyersSuppliers Common Dashboards Profiles System notifications Private messaging List of pending actions for easy tracking 13

14 14 ParametersManual processSourceweb RFX Efficiency Time taken per RFXTime consumingAutomated and fast RepeatabilityEvery process starts from scratchRepeatability in a click ErrorsError proneNo manual errors Commercial benefit Cost per RFPExpensive- less RFXs per person Economic- same person can handle more RFXs Supplier networkFew bids, local participationHigh, global participation Purchase priceHighPrice reduction over time Organizational effectiveness AuditNo audit trailAudit trail created at every action Record keeping Records seldom kept- no automatic record keeping Automatic record keeping Data securityAlways suspectAssured data security Employee on-boardingLengthy trainingQuick onboarding due to ease of use Organization impact Keeps status quo, intelligence housed in employees who may leave Progressive, intelligence instituted within the organization Supplier enablementNo suppler modernization and enablement E-enablement and process enablement of suppliers Environment impactPaper intensivePaperless The benefits of using SourceWeb RFX are easy to see, quick to achieve and measureable 14

15 SourceWeb RFX has the highest level of internet security https://- SSL enabled website which ensures secure transmission of data between user’s machine & server Strict access control policies, rights management Use of latest firewalls Intrusion detection system Antivirus Audit Trail, IP block, etc. Disaster management system Auto expiry of password, authentication 15 SourceWeb places a huge amount of emphasis on security, and has adopted world’s best and most stringent security standards

16 Sourceweb RFX is quick and easy to deploy Receive the welcome kit in a secured file from SourceWeb Use the given login credentials to login to https://www.sourceweb.in for the first time Change the password at first login You are good to go. Start saving. Call us for any help 16

17 eSourcing is easy to do; simple eSourcing tools correspond to various stages of sourcing Search for suppliers of various products and services RFP Create and publish RFIs, RFPs and RFQs Conduct negotiations online Select a supplier, conclude contracts and place order Save money These are discrete sourcing processes. One can use eSourcing tools for any one or combination of these RFX 17 Click to navigate Supplier Registration Reverse Auctions Contract Management

18 What is Reverse Auction? 18 Real time competitive event helps reach the correct market price quickly Price needs not be the only criteria- weights can be assigned to non-price criteria like switching costs, product quality, service quality, reliability etc. Most popular way of conducting negotiations online Sellers compete to win the right to supply goods and services The price decreases progressively until no more lower bids are received

19 Let us take an illustrative example Lets say you need to buy steel plates for your upcoming project Steel Plates are required in 3 to 12mm thickness 12mm 10,000 Kg 10mm10,000 Kg 8mm 5,000 Kg 6mm5,000 Kg 3mm5,000 Kg Reverse Auction- how does it work, an example 19

20 Reverse Auction- how does it work, an example Server Date-Time:05-Feb 13:00:00 Auction Ends in:120 Min, 0 Sec 20

21 Reverse Auction- how does it work, an example Bidders can bid on any item any time Bidder must place a bid lower than his own last bid for the item Server Date-Time:05-Feb 13:09:50 Auction Ends in:110 Min, 10 Sec 21

22 Reverse Auction- how does it work, an example Server Date-Time:05-Feb 13:20:00 Auction Ends in:100 Min, 0 Sec 22

23 Reverse Auction- how does it work, an example Server Date-Time:05-Feb 14:00:00 Auction Ends in:60 Min, 0 Sec 23

24 Reverse Auction- how does it work, an example Server Date-Time:05-Feb 14:15:00 Auction Ends in:45 Min, 0 Sec 24

25 Reverse Auction- how does it work, an example Server Date-Time:05-Feb 14:56:00 Auction Ends in:4 Min, 0 Sec A Bid came in last 5 minutes so auction time is extended by another 10 minutes 25

26 Reverse Auction- how does it work, an example Server Date-Time:05-Feb 15:06:00 Auction Ends in:Auction ended No more bids and auction end time has passed. Auction ends 26

27 Reverse Auction- how does it work, an example You can save between 5-50% depending upon nature of the Item. 27

28 28 What benefits do I get out of reverse auction? Save hard cash Competitive bidding ensures that price reaches the ‘correct market price’ Savings between 5-50% are common, depending upon the category Time is money Price negotiation can take months, especially if number of suppliers is large With reverse auction, you can discover the right price in as less as 30 minutes Good suppliers always like it Shortening of sales cycle leading to lower sales cost for suppliers Transparency and openness in sourcing- opportunity for non incumbent progressive suppliers Transparency and audit Electronic process with automatic error checking and audit trail Trails and reports can be used for audit purposes. Purchase auditors will love you for it

29 How to do a reverse auction- general guidelines* Clear specifications Create very clear WRITTEN specs for the product/ service Attach supporting documents, pictures, test specifications Allow time and opportunity to suppliers to ask questions/ clarifications Market dynamics Competition for your business should be high. Suppliers should be willing to compete for your business Order should be attractive for the suppliers The number of competing suppliers should not be too low Supplier communication Important to convey your own commitment to reverse auction process to suppliers Walk the talk by using bids received in reverse auctions to award business Reverse auctions benefits good suppliers. Communicate the benefits. Prequalification of suppliers Critical ingredient for success. Prequalify using questionnaires. Can use eRFX tools or do in offline way** Ensures suppliers have the capability to deliver and understand the product specifications well Helps set start prices *SourceWeb provides a detailed document on guidelines to doing a reverse auction. Please do not hesitate to ask for the document **SourceWeb provides an extremely easy to use and cost effective eRFX software 29

30 Purchase categories most often sourced using reverse auctions 30 CategoriesProducts/ services Capital ExpendituresOffice Equipment, Vehicles, Basic Construction, Materials, Architectural and Engineering Services, Furniture etc. Overhead and Support Business Travel, Office Supplies, General Insurance, Auto Fleet, Trainings, Travel and Hotels, Insurance etc. FacilitiesUtilities, Contract Services Building Maintenance, Outside services- Temp labour, Security, Gardening / Environmental, Janitorial and Property, Waste, Catering etc. Information Technology & Communication Mainframe Equipment, System Software, Contract Programmers, Software (Package & Custom), Telecommunications Hardware, Set Top Boxes, Telecom Access, Equipment Rental, Data Processing Services etc. Marketing and Advertising Media Space (Planning and Buying), Advertisement, Direct Mail, Commercial Printing, Market Research, Telemarketing, Promotional Items, Public Relations, Promotions and Sponsorships etc. OthersFreight- local, domestic and international, Packing supplies, Perishable goods, R&D/Lab supplies

31 Why use SourceWeb for Reverse Auction? 31 Extremely easy to use Proactive phone and support Best practices embedded Free guides and resources to help get more out of your events Transparent per auction pricing No ‘percentage of identified savings’ pricing

32 Features of SourceWeb Reverse Auction (1 of 2) 32 Technology -Based on robust Microsoft.Net 2.0 and Microsoft SQL Server -Easy to use GUI-Windows Interface -Application and data security through passwords and code obfuscation -Application and data hosted on servers managed by Amazon Web Services Settings -Any number of items per auction -Auctions in any currency -Bidders and buyers can be in different time zones -Auto extension -Upload specifications and documents

33 33 Features of SourceWeb Reverse Auction (2 of 2) Software Features -Instant Smart Notifications for winning bids, new messages, auction status changed, auction extension, auction paused, auction extended -Send and receive messages from admin during the auction Buyer -Bidding status for all items in the auction -Ability to pause the auction -Real time bidding graphs -Post Auction reports with  Complete auction details and history  Bidding graphs  Winning bids and bidders with rank (L1,L2..)  Auction savings Bidder -Direct and proxy bidding -Bids can have bid decrement set at item level -Excessive bid variation warning -Next valid bid automatically suggested in bidding window

34 Step by step guide to a SourceWeb Reverse Auction- a collaborative, methodical process Identify the product/ service/ project to be sourced using reverse auction Create clear written specifications of the item Create an RFQ with the detailed product specifications and pre-qualification questionnaire Float the RFQ to all potential suppliers. Include as many suppliers as feasible at this stage Identify the qualified suppliers based on your parameters. Communicate the results to all participants Communicate your intention and commitment to use reverse auction negotiation to the eligible suppliers Send details of the eligible suppliers and starting quotes to SourceWeb SourceWeb creates the reverse auction event in consultation with the buyer SourceWeb trains the suppliers and the buyer on the reverse auction module Suppliers fill a Process Compliance Form, binding them to the T&C in the RFQ document and also T&C of the event SourceWeb communicates personalized login credentials to all participants shortly before the event Actual event. SourceWeb personnel on standby to address any real time issues Upon completion of auction, detailed report of auction sent to the buyer on the same day by SourceWeb SourceWeb sends thank you note and feedback form to all participants including the buyer Buyer communicates the result to both the successful and non- successful participants Regular procurement processes- contracts, POs etc. 34

35 eSourcing is easy to do; simple eSourcing tools correspond to various stages of sourcing Search for suppliers of various products and services RFP Create and publish RFIs, RFPs and RFQs Conduct negotiations online Select a supplier, conclude contracts and place order Save money These are discrete sourcing processes. One can use eSourcing tools for any one or combination of these RFX 35 Click to navigate Supplier Registration Reverse Auctions Contract Management

36 Effective Contract Management has huge benefits: risk mitigation, efficiency, governance 36 Gain visibility to manage risk and obligations Achieve compliance and reporting Prevent missed deadlines and opportunities, unmet obligations, unenforced rights and overlooking key automatic renewal dates Avoid contractual penalties and other associated costs due to poor governance Centralize contracts to eliminate inefficiency Traditional way of contract management is ‘Contract Mismanagement’ Centralized contracts eliminate Missing contracts Contracts not accessible because the contract owner is on ‘leave’ Multiple copies with no clarity on final, executed copy No capex, operate on an opex model No upfront investments in software and hardware due to SaaS delivery model

37 SourceWeb Contract Management is focused on the right features, not maximum features Contract filing Content creation wizard: Step by step guidance for contract creation Custom fields: Define additional customer specific attributes Cloning: Copy contracts to create similar documents Audit tracking: Trace amendments made to the contract for purposes of compliance monitoring and auditing Attachments: Attach documents such as addendum, exhibits etc. Visibility and access User friendly interface: Easy intuitive web UI, users not dependent on training Powerful search engine: Use keywords to search on various fields Governance Alerts: Enable rule based advanced alert notifications to promote timely action by users Task milestone: Manage milestones of tasks such as due date, priority etc. 37

38 We are happy to help Konark Singhal Manesh Jain Former VP, MapmyIndia Ex Management Consultant, Bain & Company MBA, IIM Bangalore B Tech, IIIT Allahabad Instrumental in growing MapmyIndia to the leading navigation player in the region Experience of solutioning and management consulting at the highest level. Experience of raising equity at MapmyIndia Former strategy consultant, IBM Ex Project Manager, Sify Software MBA MDI Gurgaon (Gold medallist) Rich experience in Implementing large IT initiatives delivering business value Experience in Product Management and Client facing functions Experience in implementing channel management and extra enterprise solutions 38


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