Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing

Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing

by Joe Payne, William R. Dorn
Released November 2011
Publisher(s): Wiley
ISBN: 9780470886885

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Book description

Unique guidance for cutting costs regardless of economic conditions—without reducing headcounts

Successfully reduce costs in the area of indirect spend and watch your bottom line grow. Managing Indirect Spend provides you with the knowledge and tools necessary to get it done with an overview of: the challenges faced when sourcing indirect spend categories; strategic sourcing process; tools that can help drive savings, and examples based on real world experience. This how-to guide clearly covers specific sourcing engagements and provides the details needed to source effectively.

  • Includes sections covering the process, the tools, real-world examples, guidance through specific sourcing engagements and the information needed to source effectively

  • Presents guidance for achieving the object of strategic sourcing: cost reduction

  • Shows how effectively managing indirect costs can provide a huge impact on bottom line growth

  • Covers all areas of Market Intelligence (MI)

    • With tools, real world examples, and workable guidance, Managing Indirect Spend provides insider guidance for big bottom-line growth through effective management of indirect costs.

    Table of contents

    1. Cover
    2. Series
    3. Title Page
    4. Copyright
    5. Dedication
    6. Preface
      1. WHAT THIS BOOK WILL DO FOR YOU
      2. WHO WE ARE
      3. HOW THIS BOOK IS ORGANIZED
      4. BEGINNING YOUR JOURNEY
    7. Acknowledgments
    8. Introduction: What Is Indirect Spend, and How Does One Manage It?
      1. THE TYPICAL SCENARIOS
      2. COLLECTING MEANINGFUL SPEND DATA
      3. CLARIFYING THE SCOPE OF WORK
      4. IMPLEMENTING CHANGE DESPITE OFFICE POLITICS
    9. Part One: The Process
      1. Chapter 1: An Introduction to Strategic Sourcing
        1. VISIBILITY
        2. OBJECTIVITY
        3. PROJECT MANAGEMENT TOOL
        4. IN SUMMARY
      2. Chapter 2: Data Collection and Analysis
        1. WHAT IS DATA COLLECTION?
        2. WHERE TO START?
        3. DEALING WITH DECENTRALIZED DATA SETS
        4. SPEND ANALYSIS
        5. SPEND ANALYSIS TOOLS
        6. KICKING OFF THE PROJECTS
        7. END-USER INTERVIEWS
        8. LINE-ITEM DETAIL AND GETTING THE MOST FROM YOUR SUPPLY BASE
        9. SUPPLIER INTERVIEWS
        10. ANALYZING CONTRACTS AND PRICING AGREEMENTS
        11. THE FINAL ANALYSIS: BUILDING A BASELINE
        12. IN SUMMARY
      3. Chapter 3: Conducting Research
        1. TYPES OF COST-SAVINGS OPPORTUNITIES
        2. UNDERSTANDING THE CATEGORY
        3. IDENTIFYING SUPPLIERS
        4. UNDERSTANDING THE SUPPLY CHAIN
        5. UNDERSTANDING CURRENT MARKET CONDITIONS
        6. UNDERSTANDING THE FACTORS OF COST
        7. REVIEW OF TECHNOLOGIES, PROCESSES, PRODUCTS, AND SERVICES
        8. COLLECTING MARKET INTELLIGENCE THROUGH THE RFI PROCESS
        9. IN SUMMARY
      4. Chapter 4: The RFx Process
        1. USING THE RFI TO BEGIN THE SOURCING PHASE
        2. DEVELOPING YOUR SOURCING STRATEGY
        3. GOING TO MARKET
        4. GENERATING THE RFP AND RFQ
        5. SUPPLIER SELECTION AND SCORECARD CRITERIA
        6. ADMINISTERING THE RFx PROCESS
        7. REVERSE AUCTIONS
        8. ALTERNATIVES TO THE RFx’THE IMPORTANCE OF FLEXIBILITY AND CREATIVITY IN THE SOURCING PROCESS
        9. IN SUMMARY
      5. Chapter 5: Scorecarding Suppliers
        1. MEASURING VALUE: DEVELOPING SELECTION CRITERIA
        2. THE QUANTITATIVE ANALYSIS: EVALUATING THE BID PORTION OF SUPPLIER PROPOSALS
        3. THE QUALITATIVE APPROACH: DEVELOPING THE RFP MATRIX
        4. REFERENCES
        5. TEAMWORK AND OBJECTIVITY
        6. TECHNOLOGY’S ROLE
        7. IN SUMMARY
      6. Chapter 6: Negotiations
        1. KNOWING WHAT TO NEGOTIATE
        2. NEGOTIATION OPTIMIZATION: DEVELOPING FINAL TARGETS
        3. GETTING TO “NO”
        4. WHAT NOT TO DO
        5. IN SUMMARY
      7. Chapter 7: Get It in Writing
        1. ESSENTIAL COMPONENTS OF A CONTRACT
        2. ATTACHMENTS
        3. CONTRACT MANAGEMENT
        4. MAKING THE BEST USE OF YOUR LEGAL TEAM
        5. CONTRACTING PITFALLS AND LANGUAGE TO AVOID
        6. WORKING OUTSIDE OF A CONTRACT: PRICING AGREEMENTS AND HANDSHAKES
        7. IN SUMMARY
      8. Chapter 8: Implementation and Continuous Improvement
        1. THE CHALLENGES OF IMPLEMENTATION
        2. OVERCOMING CHALLENGES
        3. MONITORING IMPROVEMENTS AFTER IMPLEMENTATION
        4. SAVINGS AND COMPLIANCE BEST PRACTICES
        5. CONTINUOUS IMPROVEMENT INITIATIVES
        6. IN SUMMARY
      9. Chapter 9: What Not to Do During a Strategic Sourcing Initiative
        1. CREATING OVERLY COMPLEX OR LONG RFPS
        2. MORE IS LESS
        3. LETTING THE SUPPLIER WRITE THE RFP FOR YOU
        4. RFP SPAM
        5. MAKING THE SUPPLIER PUT SKIN IN THE GAME
        6. IN SUMMARY
    10. Part Two: The Tools
      1. Chapter 10: The Importance of Market Intelligence
        1. THE TYPES OF MARKET INTELLIGENCE
        2. COMPONENTS OF SUCCESS
        3. BREAKING DOWN THE COMPONENTS
        4. IN SUMMARY
      2. Chapter 11: Tools to Assist You in Gathering Data and Expediting the Sourcing Process
        1. TRADITIONAL INDUSTRY PUBLICATIONS
        2. GROUP PURCHASING ORGANIZATIONS
        3. IMPORT RECORDS
        4. PUBLISHED INDEXES AND REPORTS
        5. THE WEB
        6. SOCIAL NETWORKING
        7. RESEARCH REPORTS AND WHITE PAPERS
        8. ELECTRONIC SOURCING TOOLS
        9. CONSULTANTS
        10. SELECTING A PROCUREMENT SERVICE PROVIDER
        11. IN SUMMARY
      3. Chapter 12: Increasing Stakeholder Engagement
        1. WHAT IS A STAKEHOLDER?
        2. WHO ARE THE STAKEHOLDERS?
        3. THE VALUE BROUGHT BY STAKEHOLDERS
        4. IN SUMMARY
    11. Part Three: Examples from the Field
      1. Chapter 13: Supplier Collaboration
        1. OPENING UP YOUR REQUIREMENTS
        2. GIVING SUPPLIERS WHAT THEY NEED
        3. HELPING SUPPLIERS WITH THEIR SUPPLY CHAIN
        4. COLLABORATING WITH SUPPLIERS IN SIMILAR INDUSTRIES
        5. IN SUMMARY
      2. Chapter 14: Leveraging Supplier Feedback
        1. AVOIDING THE RFP PROCESS
        2. MAKING YOURSELF THE IDEAL CUSTOMER
        3. EXAMPLES OF LEVERAGING SUPPLIER FEEDBACK SUCCESSFULLY
        4. IN SUMMARY
      3. Chapter 15: Data Analysis
        1. EXAMPLES OF OPTIMIZING DATA SETS TO FIND TRENDS
        2. DATA ANALYSIS AND COMPLIANCE
        3. DATA ANALYSIS AND TARGETING SPEND
        4. DATA ANALYSIS AND TRENDING
        5. IN SUMMARY
    12. Part Four: How to Do It
      1. Chapter 16: Office Supplies and the Sourcing Process
        1. UNDERSTANDING THE BASICS
        2. SPEND ANALYSIS
        3. EVALUATING THE COMPETITIVE LANDSCAPE
        4. DEVELOPING YOUR SOURCING STRATEGY
        5. IMPLEMENTING STRATEGIES BEYOND BIDDING
        6. QUALIFYING SUPPLIERS AND GOING TO MARKET
        7. ANALYZING AND ASSESSING THE RESULTS
        8. CONTRACTING AND IMPLEMENTATION
        9. MONITORING COMPLIANCE
        10. IN SUMMARY
      2. Chapter 17: Negotiating Local and Long-Distance Telecommunications Services
        1. SOURCING PROJECT OBJECTIVES
        2. TELECOMMUNICATIONS SPEND
        3. REVEALING SAVINGS THROUGH AUDITS
        4. OPTIMIZATION OF RESOURCES
        5. ASSESSING THE MARKETPLACE
        6. IMPLEMENTING CHANGES IN SERVICE
        7. IN SUMMARY
      3. Chapter 18: How Cell-Phone Management Drives Continuous Cost Savings
        1. FINDING THE DECISION MAKER
        2. KNOWING YOUR CONSTITUENTS
        3. KNOWING WHAT YOU OWN
        4. USAGE: MINUTES
        5. USAGE: DATA
        6. USAGE: FEATURES
        7. CONSOLIDATING PROVIDERS
        8. CONTRACT MANAGEMENT
        9. OWNING THE LINES
        10. THE ONGOING AUDIT
        11. MAINTAINING YOUR PATIENCE
        12. IN SUMMARY
      4. Chapter 19: Getting the Best Small Package Rates
        1. GATHERING THE DATA
        2. UNDERSTANDING PRICING
        3. ANALYZING THE DATA
        4. SERVICE LEVEL AUDIT
        5. GO-TO-MARKET STRATEGIES
        6. ANALYZING THE BIDS
        7. CONTRACTING TIPS
        8. STRATEGIES BEYOND NEGOTIATIONS
        9. IN SUMMARY
      5. Chapter 20: Making Sense of MRO Spend
        1. AN INDUSTRY OVERVIEW
        2. OBJECTIVES WHEN SOURCING MRO
        3. DATA COLLECTION AND SPEND ANALYSIS
        4. RESEARCH
        5. GOING TO MARKET
        6. CONTRACTING
        7. IMPLEMENTATION, COMPLIANCE, AND CONTINUOUS IMPROVEMENT
        8. IN SUMMARY
      6. Chapter 21: Analyzing Shipping Costs
        1. AN OVERVIEW OF FREIGHT COSTS
        2. THE CHALLENGES OF ANALYZING LTL COSTS
        3. DEVELOPING YOUR LANE ANALYSIS
        4. COLLECTING THE NECESSARY DATA
        5. WHERE TO GET THE DATA
        6. AGGREGATING AN INBOUND PREPAID FREIGHT HISTORY
        7. EVALUATING AND ENHANCING THE LANE ANALYSIS
        8. IN SUMMARY
      7. Chapter 22: Sourcing Services
        1. USING SPEND ANALYSIS TO SOURCE SERVICES
        2. DEFINING THE SCOPE OF WORK
        3. DOING YOUR MARKET RESEARCH
        4. SERVICE-SOURCING STRATEGIES AND THE SERVICES RFP
        5. CASE STUDIES
        6. IN SUMMARY
    13. About the Authors
      1. JOE PAYNE, DIRECTOR OF STRATEGIC SOURCING
      2. WILLIAM R. DORN JR., DIRECTOR OF OPERATIONS
    14. About the Contributors
      1. DAVID PASTORE
      2. KATHLEEN DALY
      3. JENNIFER ULRICH
      4. SCOTT DECKER
    15. Index

    Product information

    • Title: Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing
    • Author(s): Joe Payne, William R. Dorn
    • Release date: November 2011
    • Publisher(s): Wiley
    • ISBN: 9780470886885