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Strategic Sourcing
   contributing to the bottom line
        through purchasing
We all want to increase shareholder
value




www.TacticaCommerce.com               2
Strategic Sourcing vs. Tactical Buy


    Sourcing                Internal     Industry,   Sourcing
     Team                 Requirements    Market,    Strategy
                                         Supplier
                                            s


    Contract                Award        Options     Price &
    Creation                             Analysis    Quality
                                                      Data




   Contract                Contract
  Negotiation             Compliance




www.TacticaCommerce.com                                         3
e-Sourcing improves profitability by lowering total
cost and reducing supply risks.


                                                                    Better Customer
                                                                      Experience
 Lower Total Costs          Reduce Supply Risk
          • Price                 • Product innovation
     • Service levels
     • Specifications
        • Policies
                        +
                                 • Market management
                                    • Implementation
                                         • Quality
                                                                =
      • Productivity                    • Delivery
         • Speed               • Supplier financial stability
                             • Social/environmental liability
                                                                    Improve Bottom
                                                                         Line
e-Sourcing lower costs and contributing to
profitability directly in quantifiable way.
You got to address the spend, not just
reducing purchasing expenses.


                            0      100        200        300      400   500     600
                                                                                      By reducing the
   Annual Spend Volume
                                                                                      company spend
                                                                                      by 15%, saving
                                                                                       of $ 75MM is
  Improved Annual Spend
                                                                                         achieved
         Volume



                                                                              $75 MM
    Saving from Startegic
          Sourcing

 Procurement Processing                   Even if reducing the
        Expense                          procurement expense
                                         by 50%, saving of only
   Improved Procurement                     $5.5 is achieved
    Processing Expense

    Saving from Process
       Improvement              $5.5MM
Platform, Services and Information

  Software
  Platform
                           Services                 Information




 Comprehensive and       Program Management          We help customers
   flexible sourcing          Services helps        augment and extend
functionalities enable   companies build skills,    their own knowledge
  effective sourcing       accelerate results,
        strategy         mitigate risks and drive
                                adoption
Sourcing Platform




   www.TacticaCommerce.com   8
Identifying savings opportunities

                                                              Cooling Fan Hard Drive       Extruded Aluminum
                                                                (18%)       (12%)               Heat Sink
                                                                 Power Supply                    (10%)
                                                                    (18%)




                                                                 Auxiliary Device      Injection Molded Plastic
                                                                   Controller                    (19%)
                                                                      (12%)

    PCB (25%)                                     Passive
                                                Components
                                                   (12%)



                                                                  Shielded Injection      Printing/Packaging
  CD Drive                                                         Molded Plastic                (15%)
                      Interconnect Products
  Savings shown are average savings, not savings estimates.
   (12%)                                                                (19%)
                               (22%)
Supply Management is a critical business
     activity alongside ERP and CRM


Suppliers                                              Customers

                           Enterprise    Customer
            Supply Chain
                           Resource     Relationship
            Management
                           Planning     Management




              BUY            MAKE            SELL
Who is Tactica?


 Strategic Sourcing expert in Asia founded     Tactica provides e-
  in 2004,                                       Sourcing software
                                                    service for
                                               professional sourcing
 Offices in Hong Kong, Shenzhen, Kuala            managers to
  Lumpur and representative in Tokyo           automate the entire
                                                 sourcing process.
                                               Sourcing cycle times
 Tactica helps reduce procurement cost        and Buyer efficiency
  through a powerful e-Sourcing platform       can be improved by
  with best practices, achieving an average 60% by automating
  savings of 5 - 30% within only 2-4 weeks  the entire sourcing
                                                 process
  time.
Case Study    The Company is one of the world’s largest manufacturer
              of home appliances company.

              Commodity                    Spend             Saving
                                           Volume

Total Spend
              SMD LED                      4.70 Mil          2,270,511

$ 150 Mil     NI-CD                        12.43 Mil         697,985
              MLCC Sourcing                9.62 Mil          96,000
              Double side                  15.64 Mil         3,901,449
              DS RF BD                     18.32 Mil         961,712
Addressable   Double side (HS Main)        22.18 Mil         25,907,748
  Spend       Buzzer                       1.93 Mil          87,523
 $27 Mil      Microphone                   9.65 Mil          1,085,481
              Screw                        1.78 Mil          1,503,675

 Saving       Clamshell                    0.49 Mil          588,242
 $5.4 Mil     Double side (BS PCB)         5.82 Mil          449,241
              Poly bag                     0.87 Mil          216,568
Talk to us


                                           www.TacticCommerce.com

                                                  Chee-Wee LOKE
                                                        Vice President


                                            cwloke@tacticaCommerce.com




TacticSource | Sourcing   TacticBuy | B2B Procurement                TacticQuote | RFQ

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Strategic sourcing improves profitability

  • 1. Strategic Sourcing contributing to the bottom line through purchasing
  • 2. We all want to increase shareholder value www.TacticaCommerce.com 2
  • 3. Strategic Sourcing vs. Tactical Buy Sourcing Internal Industry, Sourcing Team Requirements Market, Strategy Supplier s Contract Award Options Price & Creation Analysis Quality Data Contract Contract Negotiation Compliance www.TacticaCommerce.com 3
  • 4. e-Sourcing improves profitability by lowering total cost and reducing supply risks. Better Customer Experience Lower Total Costs Reduce Supply Risk • Price • Product innovation • Service levels • Specifications • Policies + • Market management • Implementation • Quality = • Productivity • Delivery • Speed • Supplier financial stability • Social/environmental liability Improve Bottom Line
  • 5. e-Sourcing lower costs and contributing to profitability directly in quantifiable way.
  • 6. You got to address the spend, not just reducing purchasing expenses. 0 100 200 300 400 500 600 By reducing the Annual Spend Volume company spend by 15%, saving of $ 75MM is Improved Annual Spend achieved Volume $75 MM Saving from Startegic Sourcing Procurement Processing Even if reducing the Expense procurement expense by 50%, saving of only Improved Procurement $5.5 is achieved Processing Expense Saving from Process Improvement $5.5MM
  • 7. Platform, Services and Information Software Platform Services Information Comprehensive and Program Management We help customers flexible sourcing Services helps augment and extend functionalities enable companies build skills, their own knowledge effective sourcing accelerate results, strategy mitigate risks and drive adoption
  • 8. Sourcing Platform www.TacticaCommerce.com 8
  • 9. Identifying savings opportunities Cooling Fan Hard Drive Extruded Aluminum (18%) (12%) Heat Sink Power Supply (10%) (18%) Auxiliary Device Injection Molded Plastic Controller (19%) (12%) PCB (25%) Passive Components (12%) Shielded Injection Printing/Packaging CD Drive Molded Plastic (15%) Interconnect Products Savings shown are average savings, not savings estimates. (12%) (19%) (22%)
  • 10. Supply Management is a critical business activity alongside ERP and CRM Suppliers Customers Enterprise Customer Supply Chain Resource Relationship Management Planning Management BUY MAKE SELL
  • 11. Who is Tactica?  Strategic Sourcing expert in Asia founded Tactica provides e- in 2004, Sourcing software service for professional sourcing  Offices in Hong Kong, Shenzhen, Kuala managers to Lumpur and representative in Tokyo automate the entire sourcing process. Sourcing cycle times  Tactica helps reduce procurement cost and Buyer efficiency through a powerful e-Sourcing platform can be improved by with best practices, achieving an average 60% by automating savings of 5 - 30% within only 2-4 weeks the entire sourcing process time.
  • 12. Case Study The Company is one of the world’s largest manufacturer of home appliances company. Commodity Spend Saving Volume Total Spend SMD LED 4.70 Mil 2,270,511 $ 150 Mil NI-CD 12.43 Mil 697,985 MLCC Sourcing 9.62 Mil 96,000 Double side 15.64 Mil 3,901,449 DS RF BD 18.32 Mil 961,712 Addressable Double side (HS Main) 22.18 Mil 25,907,748 Spend Buzzer 1.93 Mil 87,523 $27 Mil Microphone 9.65 Mil 1,085,481 Screw 1.78 Mil 1,503,675 Saving Clamshell 0.49 Mil 588,242 $5.4 Mil Double side (BS PCB) 5.82 Mil 449,241 Poly bag 0.87 Mil 216,568
  • 13. Talk to us www.TacticCommerce.com Chee-Wee LOKE Vice President cwloke@tacticaCommerce.com TacticSource | Sourcing TacticBuy | B2B Procurement TacticQuote | RFQ

Notas del editor

  1. My name is Chee Wee …
  2. If you are the CEO of a company
  3. Let’s talk about procurement . . .
  4. Let’s drill down a little bit deeper . . .
  5. If you take out all the slide . . .
  6. A very senior from P&G …
  7. Let’s Talk about strategic sourcing and adoption . . .
  8. The sales guy . . .
  9. This is how we position the sourcing solution . . .