Many e-negotiation programs fail because their data is not well researched in advance of the execution stage.
Category discovery is the basis of any quality implementation of an e-negotiation strategy. It is essential that this process be supported by the company’s executive management because they hold the key to unlocking access to data sources across the enterprise. This process will include working with all category managers, buyers, other procurement knowledge workers and anyone that participates in sourcing to uncover what you don’t know in support of your Requests for Information (RFI), Proposals (RFP) and Quotations (RFQ).
The first step in this process is the understanding of where the data is hiding and in most companies large and small it is. Here’s a list to get you started. Data discovery generally comes from two sources; Internal and external.
Examples of Internal and External Data Sources
3. General Ledger
4. Detailed P&L
5. Purchase Orders
7. Detailed Vendor Listing
8. Product List by Vendor
10. Product cut sheets
11. Copies of orders
13. Supplier Websites
14. Annual Reports
If you’d like some help with your category discovery and have a GL you’d like analyzed, please contact a SafeSourcing Customer Services Project Manager.
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