Twenty-one steps to running high quality Retail e-procurement events and reverse auctions.

May 23rd, 2013

E-Procurement events are incorrectly referred to by many as just reverse auctions or events when they can take on the complexity and function of the entire RFX process.

Todays post is from Ron Southard, CEO at SafeSourcing!

At any rate and regardless of the specific naming convention used there are certain rules which when followed will create higher quality e-procurement events for the Retailer as well as the Supplier?

Following these steps will result in maximizing savings or cost avoidance regardless of market conditions!

The importance of focusing on a clear process will also increase event participation at the supplier level. As a result of paying attention to quality and detail your existing trading partners and potential new sources of supply will respect your process and it will keep them coming back in the future to compete for your business again.

1. Executive sponsorship is mandatory from the C- Suite.
2. Get the entire buying organization together for a kickoff and discovery session.
3. Provide an over view of what you are going to be doing and the impact it can have on the company. Use company financial models.
4. Discuss and agree on success criteria.
5. Every event will not be a homerun. Singles and doubles score runs.
6. Create a fun environment.
7. Consider prizes for the most creative use of the tolls by functional business area.
8. Use scorecards by department with percent of savings.
9. Discuss the meaning and importance of corporate aggregation.
10. Hand out event templates to gather existing product specifications.
11. Put a time requirement on data collection.
12. Gather an accurate list of your present suppliers.
13. Work with your sourcing solution provider to identify a top 100 list of opportunities.
14. Develop a Calendar the events.
15. Prioritize by dollar value, date and strategic value.
16. Conduct department level detailed discovery meetings of 30 minutes to an hour.
17. Investigate existing contract language.
18. Look for auto renewal (evergreen) language roadblocks.
19. Determine alternate sources of supply with your sourcing solutions provider company.
20. Develop an event rules and instruction template and post with each event.
21. Develop a category and event based strategy

Although these steps are not all encompassing, they provide a format for getting started that offers the best opportunity for reduction in cost of goods, expenses and improvement in corporate earnings. Be sure to combine this with a business partner that knows your business.

If you’d like help building your strategy, please contact SafeSourcing.
 
We look forward to and appreciate your comments.

 

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