State of Flux eSourcing Support Services

Contents
1. Introduction 2. eSourcing service models

3. Commercials
4. Appendix

State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

Working in partnership with eSourcing market-leaders, State of Flux provides support services and strategic consultancy around eSourcing.
We are software agnostic and have experience of using a number of eSourcing solutions. By adopting a best practice approach to eSourcing, we have the skills to operate any chosen software. Our experienced eSourcing team have worked with numerous public and private sector clients over the last five years. In that time, we have managed over 150 eSourcing initiatives with a combined value in excess of 1.5 billion. In addition, we have supported multiple platform selection programmes; assisting organisations in understanding how eSourcing supports a best practice sourcing process and thus identifying the best fit platform. We offer two operational models of support: eSourcing Programme Management - This model is supported by a robust change management initiative. For this long-term, strategic model, State of Flux provides an on-demand eSourcing service. Clients can either tailor the change programme to upgrade the teams eSourcing skills, or outsource eSourcing services to State of Flux as a trusted and flexible provider. eSourcing one-time Project Management Clients can choose to leverage our sourcing and eSourcing knowledge by implementing State of Flux eSourcing services on a short-term, tactical, one-by-one event management basis. This model is appropriate for both large, complex projects or straightforward projects.

Different eSourcing support options are available for both models depending on your key objectives, support requirements and deliverables this includes an advisory role and eSourcing training. In transition programmes, this is carefully designed for knowledge transfer. This presentation focuses on our service support options. We would be happy to discuss any of our eSourcing Programme Management or the additional eSourcing services that we provide and can offer tailored proposals.
State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

State of Flux eSourcing support options are designed to support procurement professionals / category managers as they run through the seven-step strategic sourcing process
Set Up Investigate Develop Strategy Test Market Place Negotiate Implement Develop Supply Chain

PREMIUM
GOLD SILVER BRONZE
ACTIVITIES
Run mobilisation workshop Identify business requirements and opportunities Define scope, project plan and stakeholder Map Conduct data gathering Analyse consumption Complete Internal investigation Complete supply base analysis and conduct supplier capability analysis Complete category research eRFI support, Management & Scoring

STANDARD
Supply Market Review
Specification Review Identify and evaluate strategies including potential risks Sourcing Strategy

Develop, build and load RFP/RFQ.

Develop pricing, scoring and operational model Pre-qualify suppliers

Define negotiation strategy Develop eAuction solutions Supplier training

Pre-Contract checklist Contract with Supplier Handover Contract drafting

Voice of the Vendor Voice of the Customer Supply Management System

Market & Business Requirement Risk Assessment

Ethical supply chain, supply chain risks and/or Tax in the supply chain analysis

Manage supplier questions Supplier training Review and score responses

RFx Evaluation & supplier selection Post Negotiation Debrief Evaluation & supplier selection

Transition of Supply

State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

State of Flux support options offer different level of support depending on your key objectives, support requirements and deliverables
Support Option 1. Premium The premium option is designed to support procurement professionals through the seven step strategic sourcing process. In this model we run the end to end sourcing process. 2. Gold The gold option offers support from mid-way through the investigation step. The Sourcing Manager is responsible for collecting the data, specifying the scope and setting up the project. Duration Benefits The premium package offers full sourcing process support bringing State of Flux extensive experience in eSourcing best practice, market and category knowledge and time reduction of the sourcing cycle. With the gold package, State of Flux will provide the sourcing manager with extensive experience on developing sourcing strategy and conducting RFIs, RFps/RFqs and eAuctions. The silver options provides the sourcing manager with sourcing strategy expertise and eRFps/eRFqs best practice. With the bronze option, the sourcing manager will benefit from State of Flux knowledge on eRFps/eRFqs and eAuctions bringing expertise and reduction of the time needed to complete the market testing and negotiations. The standard option offers full eAuction support bringing State of Flux large eAuction expertise and reduce considerably the negotiation step timelines. Commercials

35 days

28,000

28 days

22,400

3. Silver The silver option offers support from strategy development. The Sourcing Manager is responsible for collecting the data, specifying the scope, setting up the project and investigation.
4. Bronze The bronze option offers support market testing. The Sourcing Manager is responsible for setting up the project, investigating the market and developing the sourcing strategy. 5. Standard The standard option offers support running the eAuction. The Sourcing Manager is responsible for developing the sourcing strategy and preparing all documents.
State of Flux Ltd 2010

20 days

16,000

17 days

13,600

9 days

7,200

NB: All options include support in developing the lotting strategy and conducting the eAuction event. More details on the different options can be found in the appendix.
4

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

The Premium option is targeted at complex or key eSourcing projects and is a fully managed sourcing option
The premium support option will assist the sourcing manager with designing and managing the 7-step sourcing process end to end from gathering requirements through to negotiation and contract drafting.
Support Activities Run mobilisation workshop Specify business requirements, define scope, project plan and stakeholder Map Conduct data gathering and analyse consumption Complete Internal investigation and category research, supply base analysis and conduct supplier capability analysis Provide (e)RFI support, Management & Scoring Provide support in developing strategy in line with the business requirements and conduct risk assessment Construct Bid Conditions recommend lotting strategy Develop pricing model and RFq / RFp Implement RFq / RFp on-line and system launch to suppliers Manage supplier questions Build, launch and manage eAuction Prepare supplier communication plan and issue communications Run supplier training Manage the live event Support the RFx evaluation, supplier selection and negotiation strategy Support the post negotiation de-brief Contract negotiation with Supplier and contract drafting Communications, Road-shows & Presentations Handover

Premium Support the sourcing manager in setting up the project, investigating the market, developing the sourcing strategy, testing the market, running the negotiation via an eAuction and implementing the deal agreed

35 Days

Sourcing Managers Activities Support project set up, data and product / service specifications Manage stakeholders
State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

The gold option will provide an enhanced level of support to the sourcing managers through the main step of the eSourcing process and is targeted to complex projects
The gold support option will assist the sourcing manager designing and managing the sourcing strategy, eRFI, eRFP and eAuction. This support model requires as a dependency that the project set up and market research are complete.
Support Activities Organise and run kick off meeting Provide (e)RFI support, Management & Scoring Provide support in developing strategy in line with the business requirements and conduct risk assessment Construct Bid Conditions recommend lotting strategy Develop pricing model and RFq / RFp Implement RFq / RFp on-line and system launch to suppliers Manage supplier questions Build, launch and manage eAuction Prepare supplier communication plan and issue communications Run supplier training Manage the live event Support the RFx evaluation, supplier selection and negotiation strategy Support the post negotiation de-brief Contract negotiation with Supplier and contract drafting Communications, Road-shows & Presentations Handover Sourcing Managers Activities Support project set up, data and product / service specifications Manage stakeholders

Gold Support the sourcing manager in setting up the RFI and supplier search, developing the sourcing strategy, testing the market, running the negotiation via an eAuction and implementing the deal agreed

28 Days

State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

The silver option is targeted at Sourcing managers who have some experience of eSourcing for easy / mid stream complex events and offers full eRFx management and programming
The silver support option will assist the sourcing manager developing the sourcing strategy and in managing the eRFx and eAuction and designing the strategy. This support model requires as a dependency that all documentation is finalised and available before programming the events. Silver Support the sourcing manager in developing the pricing strategy, testing the market, running the negotiation via an eAuction and implementing the deal agreed
Support Activities Organise and run kick off meeting Provide support in developing strategy in line with the business requirements and conduct risk assessment Construct Bid Conditions recommend lotting strategy Develop pricing model and RFq / RFp Implement RFq / RFp on-line and system launch to suppliers Manage supplier questions Build, launch and manage eAuction Prepare supplier communication plan and issue communications Run supplier training Manage the live event Support the RFx evaluation, supplier selection and negotiation strategy Support the post negotiation de-brief Handover Sourcing Managers Activities Support project set up, data and product / service specifications Manage stakeholders

20 Days

State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

The bronze option is targeted at sourcing managers who have experience of using on-line sourcing platforms and offers eRFx management and programming support
The bronze support option will assist the sourcing manager in designing and managing the eRFx and eAuction. This support model includes designing the lotting strategy but requires as a dependency that the investigation and category sourcing strategy are completed. Bronze Support the sourcing manager in developing the lotting strategy, managing the RFx, running the negotiation via an eAuction and implementing the deal agreed
Support Activities Organise and run kick off meeting Construct Bid Conditions recommend lotting strategy Develop pricing model Provide RFq / RFp templates Implement RFq / RFp on-line and system launch to suppliers Manage supplier questions Build, launch and manage eAuction Prepare supplier communication plan and issue communications Run supplier training Manage the live event Support the RFx evaluation, supplier selection and negotiation strategy Support the post negotiation de-brief Handover

Sourcing Managers Activities Provide project set up, data and product / service specifications Manage stakeholders

17 Days

State of Flux Ltd 2010

1. Introduction

2. eSourcing Support Options

3. Commercials & Timelines

4. Appendix

The standard option is targeted at sourcing managers who have great experience of using on-line sourcing platforms and offers eAuction management and programming support
The standard support option will assist the sourcing manager in managing the eAuction and designing the event strategy. This support model requires as a dependency that the market testing is completed, all documentation is finalised and available before programming the event. Standard Support the sourcing manager in developing the lotting strategy, running the negotiation via an eAuction and implementing the deal agreed
Support Activities Organise and run kick off meeting Construct Bid Conditions recommend lotting strategy Develop pricing model Build, launch and manage eAuction Prepare supplier communication plan and issue communications Run supplier training Manage the live event Support the RFx evaluation, supplier selection and negotiation strategy Support the post negotiation de-brief Handover Sourcing Managers Activities Provide project set up, data and product / service specifications Manage stakeholders

9 Days

State of Flux Ltd 2010