book

Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing

by Joe Payne, William R. Dorn

November 2011

Intermediate to advanced

446 pages

13h

English

Wiley

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Cover
Series
Title Page
Copyright
Dedication
Preface
WHAT THIS BOOK WILL DO FOR YOUWHO WE AREHOW THIS BOOK IS ORGANIZEDBEGINNING YOUR JOURNEY
Acknowledgments
Introduction: What Is Indirect Spend, and How Does One Manage It?
THE TYPICAL SCENARIOSCOLLECTING MEANINGFUL SPEND DATACLARIFYING THE SCOPE OF WORKIMPLEMENTING CHANGE DESPITE OFFICE POLITICS
Part One: The Process
Chapter 1: An Introduction to Strategic Sourcing
VISIBILITYOBJECTIVITYPROJECT MANAGEMENT TOOLIN SUMMARY

Chapter 2: Data Collection and Analysis
WHAT IS DATA COLLECTION?WHERE TO START?DEALING WITH DECENTRALIZED DATA SETSSPEND ANALYSISSPEND ANALYSIS TOOLSKICKING OFF THE PROJECTSEND-USER INTERVIEWSLINE-ITEM DETAIL AND GETTING THE MOST FROM YOUR SUPPLY BASESUPPLIER INTERVIEWSANALYZING CONTRACTS AND PRICING AGREEMENTSTHE FINAL ANALYSIS: BUILDING A BASELINEIN SUMMARY
Chapter 3: Conducting Research
TYPES OF COST-SAVINGS OPPORTUNITIESUNDERSTANDING THE CATEGORYIDENTIFYING SUPPLIERSUNDERSTANDING THE SUPPLY CHAINUNDERSTANDING CURRENT MARKET CONDITIONSUNDERSTANDING THE FACTORS OF COSTREVIEW OF TECHNOLOGIES, PROCESSES, PRODUCTS, AND SERVICESCOLLECTING MARKET INTELLIGENCE THROUGH THE RFI PROCESSIN SUMMARY
Chapter 4: The RFx Process
USING THE RFI TO BEGIN THE SOURCING PHASEDEVELOPING YOUR SOURCING STRATEGYGOING TO MARKETGENERATING THE RFP AND RFQSUPPLIER SELECTION AND SCORECARD CRITERIAADMINISTERING THE RFx PROCESSREVERSE AUCTIONSALTERNATIVES TO THE RFx’THE IMPORTANCE OF FLEXIBILITY AND CREATIVITY IN THE SOURCING PROCESSIN SUMMARY
Chapter 5: Scorecarding Suppliers
MEASURING VALUE: DEVELOPING SELECTION CRITERIATHE QUANTITATIVE ANALYSIS: EVALUATING THE BID PORTION OF SUPPLIER PROPOSALSTHE QUALITATIVE APPROACH: DEVELOPING THE RFP MATRIXREFERENCESTEAMWORK AND OBJECTIVITYTECHNOLOGY’S ROLEIN SUMMARY
Chapter 6: Negotiations
KNOWING WHAT TO NEGOTIATENEGOTIATION OPTIMIZATION: DEVELOPING FINAL TARGETSGETTING TO “NO”WHAT NOT TO DOIN SUMMARY
Chapter 7: Get It in Writing
ESSENTIAL COMPONENTS OF A CONTRACTATTACHMENTSCONTRACT MANAGEMENTMAKING THE BEST USE OF YOUR LEGAL TEAMCONTRACTING PITFALLS AND LANGUAGE TO AVOIDWORKING OUTSIDE OF A CONTRACT: PRICING AGREEMENTS AND HANDSHAKESIN SUMMARY
Chapter 8: Implementation and Continuous Improvement
THE CHALLENGES OF IMPLEMENTATIONOVERCOMING CHALLENGESMONITORING IMPROVEMENTS AFTER IMPLEMENTATIONSAVINGS AND COMPLIANCE BEST PRACTICESCONTINUOUS IMPROVEMENT INITIATIVESIN SUMMARY
Chapter 9: What Not to Do During a Strategic Sourcing Initiative
CREATING OVERLY COMPLEX OR LONG RFPSMORE IS LESSLETTING THE SUPPLIER WRITE THE RFP FOR YOURFP SPAMMAKING THE SUPPLIER PUT SKIN IN THE GAMEIN SUMMARY
Part Two: The Tools
Chapter 10: The Importance of Market Intelligence
THE TYPES OF MARKET INTELLIGENCECOMPONENTS OF SUCCESSBREAKING DOWN THE COMPONENTSIN SUMMARY
Chapter 11: Tools to Assist You in Gathering Data and Expediting the Sourcing Process
TRADITIONAL INDUSTRY PUBLICATIONSGROUP PURCHASING ORGANIZATIONS IMPORT RECORDSPUBLISHED INDEXES AND REPORTSTHE WEBSOCIAL NETWORKINGRESEARCH REPORTS AND WHITE PAPERSELECTRONIC SOURCING TOOLSCONSULTANTSSELECTING A PROCUREMENT SERVICE PROVIDERIN SUMMARY
Chapter 12: Increasing Stakeholder Engagement
WHAT IS A STAKEHOLDER?WHO ARE THE STAKEHOLDERS?THE VALUE BROUGHT BY STAKEHOLDERSIN SUMMARY
Part Three: Examples from the Field
Chapter 13: Supplier Collaboration
OPENING UP YOUR REQUIREMENTSGIVING SUPPLIERS WHAT THEY NEEDHELPING SUPPLIERS WITH THEIR SUPPLY CHAINCOLLABORATING WITH SUPPLIERS IN SIMILAR INDUSTRIESIN SUMMARY
Chapter 14: Leveraging Supplier Feedback
AVOIDING THE RFP PROCESSMAKING YOURSELF THE IDEAL CUSTOMEREXAMPLES OF LEVERAGING SUPPLIER FEEDBACK SUCCESSFULLYIN SUMMARY
Chapter 15: Data Analysis
EXAMPLES OF OPTIMIZING DATA SETS TO FIND TRENDSDATA ANALYSIS AND COMPLIANCEDATA ANALYSIS AND TARGETING SPENDDATA ANALYSIS AND TRENDINGIN SUMMARY
Part Four: How to Do It
Chapter 16: Office Supplies and the Sourcing Process
UNDERSTANDING THE BASICSSPEND ANALYSISEVALUATING THE COMPETITIVE LANDSCAPEDEVELOPING YOUR SOURCING STRATEGYIMPLEMENTING STRATEGIES BEYOND BIDDINGQUALIFYING SUPPLIERS AND GOING TO MARKETANALYZING AND ASSESSING THE RESULTSCONTRACTING AND IMPLEMENTATIONMONITORING COMPLIANCEIN SUMMARY
Chapter 17: Negotiating Local and Long-Distance Telecommunications Services
SOURCING PROJECT OBJECTIVESTELECOMMUNICATIONS SPENDREVEALING SAVINGS THROUGH AUDITSOPTIMIZATION OF RESOURCESASSESSING THE MARKETPLACEIMPLEMENTING CHANGES IN SERVICEIN SUMMARY
Chapter 18: How Cell-Phone Management Drives Continuous Cost Savings
FINDING THE DECISION MAKERKNOWING YOUR CONSTITUENTSKNOWING WHAT YOU OWNUSAGE: MINUTESUSAGE: DATAUSAGE: FEATURESCONSOLIDATING PROVIDERSCONTRACT MANAGEMENTOWNING THE LINESTHE ONGOING AUDITMAINTAINING YOUR PATIENCEIN SUMMARY
Chapter 19: Getting the Best Small Package Rates
GATHERING THE DATAUNDERSTANDING PRICINGANALYZING THE DATASERVICE LEVEL AUDITGO-TO-MARKET STRATEGIESANALYZING THE BIDSCONTRACTING TIPSSTRATEGIES BEYOND NEGOTIATIONSIN SUMMARY
Chapter 20: Making Sense of MRO Spend
AN INDUSTRY OVERVIEWOBJECTIVES WHEN SOURCING MRODATA COLLECTION AND SPEND ANALYSISRESEARCHGOING TO MARKETCONTRACTINGIMPLEMENTATION, COMPLIANCE, AND CONTINUOUS IMPROVEMENTIN SUMMARY
Chapter 21: Analyzing Shipping Costs
AN OVERVIEW OF FREIGHT COSTSTHE CHALLENGES OF ANALYZING LTL COSTSDEVELOPING YOUR LANE ANALYSISCOLLECTING THE NECESSARY DATAWHERE TO GET THE DATAAGGREGATING AN INBOUND PREPAID FREIGHT HISTORYEVALUATING AND ENHANCING THE LANE ANALYSISIN SUMMARY
Chapter 22: Sourcing Services
USING SPEND ANALYSIS TO SOURCE SERVICESDEFINING THE SCOPE OF WORKDOING YOUR MARKET RESEARCHSERVICE-SOURCING STRATEGIES AND THE SERVICES RFPCASE STUDIESIN SUMMARY
About the Authors
JOE PAYNE, DIRECTOR OF STRATEGIC SOURCINGWILLIAM R. DORN JR., DIRECTOR OF OPERATIONS
About the Contributors
DAVID PASTOREKATHLEEN DALYJENNIFER ULRICHSCOTT DECKER
Index

Content preview from Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing

Acknowledgments

WE THANK OUR EXCELLENT TEAM for taking time out of their lives to help us develop content for this book. David Pastore, Kathleen Daly, Jennifer Ulrich (who was Jennifer Puvel when we started this initiative), and Scott Decker are a group of professionals that anyone would be fortunate to have the pleasure to work with at some point in their careers. We apologize for making them rewrite their sections multiple times.

We thank Alex Howerton, who provided some great suggestions and made our words look more good.

Last but not least, we thank our wives, Jill and Jennifer, who feigned interest when we discussed our project over the last year and a half.

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Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing

by Joe Payne, William R. Dorn

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.