Retail webinar

The Journey to Retail Sourcing Excellence
How to Become Best in Class with Iasta

Moderator

Copyright © Iasta, All Rights Reserved

Speakers

Page 2 Copyright © Iasta, All Rights Reserved

Our Mission

To be a trusted partner to sourcing
organizations by delivering
unquestioned value in cost reduction,
business efficiency & intelligence.

Core Competencies
• Create purchasing heroes • Promote the entrepreneurial spirit
• Empower sourcing excellence • Hire talented & smart people who enjoy life
• Drive fiscal responsibility through business spend intelligence • Seek excellence without elitism
• Deliver unquestioned value, insight & integrity • Embrace & drive change
• Work smart - execute with speed & perseverance • Honor commitments to customers


Industry Awards & Recognition


Our Growth
• Profitable since April 2001 • ~170 Clients (Global 1000)
• 149% 3-year Growth Rate


Iasta Statistics

SmartAnalytics SmartSource
$75 Billion $35 Billion
in spend since 2002

250,000
Suppliers


Becoming Best in Class – Building Credibility

The Iasta Model


Retail PEST Analysis

Political / Cultural Forces Economic / Budget Forces
Executive team looking for Frozen budgets matched with
Procurement to be catalysts higher expectations. Decline in
of change – GFR vs. GNFR. disposable incomes.

Procurement

Skill / Talent Forces Technology / Resource
Does GNFR have the skills needed Forces
to impact the company’s bottom What tools can Procurement use
line? to make it more effective?


The Iasta Solution Offerings
Executive Analytics
Suite (EAS)

Procurement Retail Sourcing
Transformation Acceleration Center

Fully Managed Opportunity
Projects Assessment


Becoming Best in Class – The Arcadia Story

The Iasta Model


Arcadia - Building Credibility
Retail template &
set-up = higher
adoption

Resources limited;
needed tactical Created a sourcing
model for GFR
support

Initially targeted
GNFR – fully Iasta category
trending data
managed projects


Arcadia – Model for GFR

Monthly Seasonal Core
Monthly Bi-Annual
“We are finding Iasta • Highly promotional • Seasonal • Core products that
SmartSource allows us products products don’t have a
to benchmark previous seasonal pattern
pricing vs. current
pricing. In the near • One-off buys – • Ideally buy to sell • These products
future, we want to do buy to sell out out but some will often represent
more benchmarking of ranges will carry 80% of revenues
our supply base and in over to seasons but may only
particular categories.” contribute 20%.
These should be
-Arcadia Group
targeted for
eSourcing first.


Arcadia - Results
 Reduced risks & increased adoption
 Grew impact in GFR – automatic recognition
 1 FTE managing the full rollout of SmartSource,
working closely with Iasta support
 Grew margins on GFR
 Tackled complex spend areas like freight
 9 projects = up to 7% increase on margins
 Now managing more with less resources
 Procurement impacting more spend
 GFR departments are coming to Arcadia’s team for help
– focusing on core


Iasta Retail Statistics
The Iasta Model


Retail Client Statistics
Retailers have been becoming more strategic in conducting different types of sourcing
projects. For instance, they have been steadily conducting more Sealed Bids and RFx
projects and less auctions.
Retail Retail Retail
Average Average % Average % of
Year
Project of Auction Non-Auction
Count Projects Projects

2008 50 52% 48%
2009 66 34% 66%
2010 90 25% 75%
2011 66 18% 82%

Project Type Avg Savings
Iasta’s Retail clients generate
Online RFx with Offline
savings and track savings in
Component 16.2%
SmartSource using various
project types.
Standard Reverse Auction 16.3%

Sealed Bid 15.7%


Retail Client Statistics

What Iasta products are Retail companies using?

% using Contract Management
25%
Avg # of Contracts per
Database 1,389
% using Supplier Self-
Registration & Profiling 28.57%
Avg # Self-Registered
Suppliers 163


Common Retail Categories

Landscaping:
Corrugated: Stretch film:
Average category savings:
Average category savings: Average category savings:
6-22%
11-32% 19-40%

Thermal Register Tape & IT Hardware (Laptops Janitorial Services:
Ribbon and accessories): Average category savings:
Average category savings: Average category savings: 4-35%
12-25% 10-25%


Spend Analysis
 The ability to gain as much insight into
indirect spend (GNFR) as Retail
companies have into direct (GFR)
 Help improve decision-making for
goods, services and suppliers:
 Consolidate spend data from multiple systems
 Improve spend compliance
 Monitor & asses risks
 Create dashboards to measure “touch points”
 Leverage a spend database to build
opportunity analysis and sourcing pipelines


Retail Classifications for Reporting
 Common classifications for retail:
 Project Type
 Geography
 Merchandise
 Transportation & Warehousing
 Goods Not for Resale
 Benefits:
 Project organization and sorting
 Subdomain-wide reporting based on
categorized projects


Project Management Templates

Track projects from infancy
through the typical 7 stages
of the sourcing process


Sourcing & Spend Visibility with
Executive Analytics: Sourcing Analytics


Effectively Using Decision Optimization

“We were able to
find that we could
award business
about 70-80%
quicker than was
previously done on
a manual
spreadsheet, which
was manual, messy,
and slow.”
-Arcadia Group


Saving Time & Money With Decision
Optimization


Common Supplier Performance
Metrics for Retail
 Compliance
• Sample metric: Return to Vendor (RTV)
 Financial
• Sample metric: Accurate and on-time
payments
“Most businesses should
 Marketing be looking at reducing
• Sample metric: Vendor public image supplier risk. We always
say don’t put all your
 Quality eggs in one basket.
• Sample metric: Defects rate Spread the risk!”
-Arcadia Group
 Supply Chain
• Sample metric: PO shipping on time
 Technology
• Sample metric: Advance Ship Notice (ASN)
accuracy


Supplier Scorecarding Reporting


Sourcing & Spend Visibility with Executive
Analytics: Supplier Registry & Profile
Reporting


Global HQ European HQ

12800 N. Meridian St. Hartham Park
Suite 425 Corsham, Wiltshire
Carmel, IN 46032 SN13 ORP
United States of America United Kingdom

Operations: 317.594.8600 Operations: +44 (0) 870.199.4060
Sales: sales@iasta.com Sales: +44 (0) 1249.700726

eSourcing | wiki eSourcing | forum

www.eSourcingWiki.com www.iasta.com www.eSourcingForum.com

Iasta Alliance Group

www.Twitter.com/Iasta www.LinkedIn.com


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