strategic sourcing & vendor selection
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STRATEGIC SOURCING & VENDOR SELECTION METHODSVENDOR SELECTION METHODS
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Experiences:PT. Reksadaya Indonesia, Managing Partner, 2014 - nowPT. Barakati Jasa Manajemen, Consultant Partner, 2011 - 2013 Islamic Relief Indonesia, Logistic & Procurement Manager, 2006 - 2009PT. Citra Transport Logistic, Assistant Manager, 2003 - 2006PT. Inter-Pacific Bank Tbk., Trade Finance Officer, 1995 - 1999PT. Bank Niaga Tbk., Exim Staff, 1993 - 1995
DENI DANASENJAYA, SE, MM, CNPE
Education background:S2 Magister Manajemen, Program Pasca Sarjana, IPB, 2003S1 Manajemen, STIE Mahardhika, 2001D3 Perbankan, Ilmu Administrasi - FISIP, UI, 1993
Certification:Certified National Procurement Expert (CNPE), LKPP, 2012
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STRATEGIC SOURCING
Strategic sourcing is an institutional procurement process that continuouslyimproves & re-evaluates the purchasing activities of a company. In a productionenvironment, it is often considered 1 (one) component of supply chain management.Sources; Wikipedia, 2014
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VENDOR MANAGEMENT
Vendor management is the activities in procurement for establishing; service, quality, cost, satifaction goals, selecting, & managing third party companies as suppliers/vendors to consistently meet these goals.
The nuances of vendor management is that not all roles are the same. Some that not all roles are the same. Some vendor managers have responsibility for operational day-to-day tasks. Other vendor managers are responsible for outsourcing strategies & governance. Some vendor management roles are responsible for implementing new programs. Others vendor management roles are responsible for training..Sources: Wikipedia, 2014
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STRATEGIC SOURCING
The steps in a strategic sourcing process were defined, as:1. Assessment of a company's current spending (what is bought, where, at what
prices?).2. Assessment of the supply market (who offers what?).3. Total cost analyses (how much does it cost to provide those goods or services?).4. Identification of suitable suppliers.5. Development of a sourcing strategy (where to purchase, considering demand &
supply situations, while minimizing risk & costs).supply situations, while minimizing risk & costs).6. Negotiation with suppliers (products, service levels, prices, geographical
coverage, payment terms, etc.).7. Implementation of new supply structure.8. Track results & restart assessment (Continuous cycle)
Sources:Nishiguchi, Toshihiro, Strategic Industrial Sourcing (New York: Oxford University, 1994
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1. Who we are:ManufacturerServices businessTrading companyGovernment institutionNon Profit Organization
2. Categories of Order:
KEY POINT SOURCING
4. Sources of Vendor :Sole sourcingSingle sourcingMultiple sourcing
5. Environment of Markets:MonopolyOligopoly Regulated market
2. Categories of Order:Repeat OrderProject ProcurementEmergency Order
3. Criteria of Order: ProductServicesCombining of product & services
Regulated marketCompetitive market
6. Nature of Orders:Fixed order or blanket orderInventory based orderDistributed materialsComprehensive orderBack to back order Trial order or transition orderShort terms or long terms order
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7. Planning:Fixed planTentative planWithout plan
8. Charracteristic of Orders:
KEY POINT SOURCING
9. Based on Supply Positioning Models:CriticalBottleneckLeverageRoutine
8. Charracteristic of Orders:ValueVolumeComplexityPeriodsResult basis
10. Based on Scope of Operation Models:Manufacturing / Project / Technical / Main OperationsAdministration / Operational Support Marketing Support / Commercial Partnership
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THE NEW SUPPLY POSITIONING MODELS(REVISED FROM KRALJIC PORTFOLIO PURCHASING MODELS, PETER KRALJIC, 1983
BOTTLENECK Low profit impact High supply risk
Low to medium sourcing difficulty Low to medium level in switching cost & risk
Cost compare to risk & safety Medium level visibility Regulation mandatory
Product/services related to HSSE, QC, & supporting asset
CRITICAL High profit impact High supply risk
High sourcing difficulty High level in switching cost & risk
Long terms contract Strategic cost effective Executive visibility
Competitive Advantage Product/services related to; materials & main asset
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Expenditure
Great % of Items = Small % of Value Small % of items = Great % of Value
ROUTINE Low profit impact Low supply risk
Low sourcing difficulty Low level in switching cost & risk
Low level visibility Cost effective focus Transactional focus Minimise effort
Product/services related to office supplies & supporting needs
LEVERAGE High profit impact Medium supply risk
Medium to high sourcing difficulty Medium to high level in switching cost & risk
Executive or Medium level visibility High tollerance in budget Focus on services level
Maximize profit & benefit Product/services related to management &
marketing
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ORDER CATEGORY BASED ON OPERATION MODELS
9.a. Manufacturing / Project / Core Activities:Raw material purchaseMain asset purchase MRO (Maintenance, Repair, & Operations) 3rd Party Logistics
b. Operational & Admin Support:
c. Marketing Support / Commercial Partnership:
Promotion MaterialPPRM (Public Relations, Promotion, & Media) MICE (Meeting, Incentive, Conference, & Exhibition)b. Operational & Admin Support:
CETS (Consultancy, Expert, Training, & System Development)FLA (Formalities, License, & Agencies) OSGS (Operational Support & General Services) TALC (Travelling, Accomodation, Leisure,& Catering)Office suppliesSupporting asset purchase
Conference, & Exhibition)Talent ServicesMerchandising PurchaseSub-ContractingCSR scheme campaign
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KEY POINT SOURCING
13. Pre-Sourcing Information:Whatever to procureLikes what to procureHow much to procureWhen to procureWhere to distributeHow many the expenses
11. Specification Methods:By brandBy technical specificationsBy design / engineering drawingBy function & performanceBy forecasting methods How many the expenses
14. Goal Setting: Order fulfilment Quality / services levelSustainabilityThe best prices
By forecasting methodsBy standardization based
12. Types of Product:Standard itemsLimited items CustomizedMade by orderRegulated product
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KEY POINT SOURCING
17. Vendor Selection Methods:QuotationsTendering ProcessDirect PurchaseCollaborative Purchase
15. Vendor Criteria:GeneralistSpecialist Distribution levellingCanvasingPartnership
18. Operations & Admin Process:Involving user & whole teamInvolving 3rd party expert Done by Procurement/ Purchasing team only
Partnership Subsidiary company Community based
16. Sourcing Locations:Domestic: in the same regionDomestic: within the countryOverseas: global sourcing
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Preference: brand new product, trend, demand changing, & old usage product Purchase moment: starting periods (launching), mid periods, & end periods(maturity)Product information: desain, spesifikasi, features, versi/seri, compatibility, & technologyLicense policy: restricted license to inventor & OEM, general license in competitive markets, open sources licenseMarket popularity: population of user, other consumer preference, limited utilization
PRODUCT LIFE CYCLE
utilization Handicap: user rejection, generation gapAfter sales support & after discontinue periodsUpgrade option & new generation series Trade-in program & re-cycle option
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DISTRIBUTION LEVELLING
NoDistribution
LevelStatus Business Activities
Volume of Order
Market Segmentation
1 Principal Copyright owner
- Licensed owner- Brand owner- Original Equipment
Manufacturer (OEM)
High B to B
2 Manufacturing
Production maker
- Main producer- Assembly- Tool manufacturer
High B to B
3 Distributor Grocery - Main distributor Medium - B to B3 Distributor Grocery seller
- Main distributor- Sub distributor- Grocery
Medium - B to B- B to C
4 Sole agent Authorized seller
- Agency sales- Restricted sales territory
Medium B to B
5 Trading company
Reseller - General product offer- Added value services
Medium to Small
B to B
6 Retail Reseller - Modern market- Traditional market- Store outlet- Canvasing sales- Multi level marketing
-Small - B to C- C to C
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Calon Vendor harus setara, satu level, & sama kemampuannya, dalam hal:1. Status badan hukum & peringkat perusahaan (kecil/menengah/besar)2. Klasifikasi bidang & sub bidang produk atau jasa yang di tawarkan3. Setiap vendor & kelompok usahanya hanya boleh menjadi vendor untuk 1 (satu)
kategori produk & jasa saja, tidak boleh melakukan upaya dominasi atau kartel, terkecuali ada kebijakan strategic partnership sourcing dari Top Management
4. Peringkat kualitas produk & jasa (grading), garansi, & after sales services5. Pemenuhan prasyarat standarisasi, sertifikasi, regulasi, prosedur, & standar
APPLE TO APPLE COMPARISON
5. Pemenuhan prasyarat standarisasi, sertifikasi, regulasi, prosedur, & standarkerja
6. Kapasitas finansial (laporan keuangan, rekening koran, & laporan pajak) 7. Prasarana, infrastruktur, & teknologi yang digunakan/dimiliki8. Kompetensi & kualifikasi SDM 9. Status supply & demand, serta kemampuan untuk memenuhi order 10. Pengalaman bisnis dalam menjual produk/jasa yang serupa atau menangani
proyek yang serupa
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Tahap pertama, dilakukan kategorisasi sourcing sbb: Material atau Non Material Main Activities atau Supporting Activities Supply Positioning Models
Kemudian di buat 5 level klasifikasi Supplier/Vendor: Level 1 : Kategori umum, misal; 3rd Party Logistics Level 2 : Kategori khusus, misal; Transportation Services Level 3 : Bidang, misal; Land Transportation Services
SUPPLIER/VENDOR CLASSIFICATIONS
Level 3 : Bidang, misal; Land Transportation Services Level 4 : Sub bidang umum, misal; Transportation of Goods Level 5 : Sub bidang khusus, misal; Transportation of Dangerous Goods
Bagaimana jika terjadi kondisi sbb: Harus memilih antara vendor lokal, vendor nasional, atau vendor internasional Volume, nilai, & frekuensi order rendah, harga vendor specialist akan lebih mahal,
atau mereka tidak bersedia jika menerima order dalam jumlah yang kecil Tidak ada vendor specialist di lokasi pembelian Hanya ada general trading atau vendor berklasifikasi umum yang dapat menjadi
vendor di lokasi pembelian Adanya regulasi dan/atau tuntutan yang mempersyaratkan memilih vendor lokal
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DISKUSIKAN DALAM KELAS/KELOMPOK
1. Presentasikan klasifikasi sub bidang supplier/vendor, yang saat iniberjalan di korporasi/institusi anda
2. Identifikasikan kendala yang anda hadapi saat ini dengan metodeklasifikasi vendor tersebut
CASE STUDY
3. Apa solusi yang anda usulkan untuk mengatasi kendala tersebut
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