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SSG Introduction
- 1. Introduction to SpendSmart Group
- 2. Agenda About SpendSmart Group Purchasing Options What We Offer You Becoming a Member 2009 © SpendSmartGroup.com | proprietary & confidential
- 3. About SpendSmart Group Founded December 2008 Small Cap ($1b revenue and under) clientele Commodity sourcing experience Fortune 100 spend management experience Financially stable 2009 © SpendSmartGroup.com | proprietary & confidential
- 4. Traditional Purchasing Lack of automation (manual purchasing being done) Can’t justify cost vs. benefit of implementing an eProcurement system Most indirect spend categories go un-sourced Focus is on most important direct materials categories Low-hanging fruit Constrained by lack of resources Indirect may not be a core competency 2009 © SpendSmartGroup.com | proprietary & confidential
- 5. What We Do SpendSmart Group hosts a community of manufacturers that leverage their indirect material sourcing spend while harnessing the power of procurement technology. Multiple Supply Categories Requisition, Approval, and Accounting Efficiencies 2009 © SpendSmartGroup.com | proprietary & confidential
- 6. Value Proposition Sourced / negotiated supplier contracts Purchase authorization workflow Electronic Req to P.O. automation Accurate, updated catalog and buying portal Leveraged Member’s category spend Savings in categories range from 5% - 56% 2009 © SpendSmartGroup.com | proprietary & confidential
- 7. How SpendSmart Group Works By combining purchasing forces, members drive greater savings Suppliers Members SpendSmart Group Offers Sourced / Negotiated supplier catalogs Purchase authorization workflow Electronic Req to P.O. authorization Accurate, updated contract pricing and eCatalog Members place their order on SpendSmartGroup.com; one purchase order is processed. The SpendSmart Group system expedites your order to relative suppliers for fulfillment Supplier fulfills the order, sends directly to members. All suppliers send invoices to SpendSmart. SpendSmart sends you ONE invoice for all purchases 2009 © SpendSmartGroup.com | proprietary & confidential 1 2 3
- 8. Categories Offered $ 380,000* of annual spend for a small firm $ 1,400,000* for a medium size manufacturer __________ 20% * savings lost on average due to uncontrolled spending Indirect materials account for: *Havens & Company 2009 © SpendSmartGroup.com | proprietary & confidential Profile boxes/enclosures, conduit, data communications, fittings/fasteners, fuses, lamps/ballasts, lighting, motors, maintenance items, signals, tools/test equipment, wire, wiring devices Bathroom supplies, cleaning agents, chemicals, cleaning items, facility maintenance, odor control, mops/brooms/brushes/dust pans, paper towels, waste receptacles/trash can liners bearings, power transmission, material handling, linear motion, fluid power, accessories: batteries, castors, shims, steel balls, trolley wheels, wearing compounds, abrasives, welding and sheet-metal supplies office supplies, binders, desk/wall accessories, filing & storage, ink, toner cartridges, labels, label makers, pens & accessories bags, corrugated boxes, film, interior packaging, mailers, packing list envelopes, pallet protection, strap, tape eye protection, ergonomics, head/face protection, fall protection, hearing protection, respiratory protection, hand protection, emergency response, protective clothing, footwear, facilities maintenance Laptops , Tablets, Desktops, Workstations, Servers, Storage, Networking , Printers, Ink and Toner, Electronics, Software & Accessories, Services, Solutions Office equipment & furniture: workstations, training tables, easels, seating, carts, notebook carts, security products, projection screens, mounts
- 9. Differentiation / Advantages 2009 © SpendSmartGroup.com | proprietary & confidential How Are Companies Buying Now? Typical Client Process Grainger- type Integrators SpendSmartGroup.com Surf multiple sites Call vendor Create 1 requisition per vendor Get Requisition approved Maybe get 3 quotes Accept Price and send PO One vendor site Carry high inventory Robust web site ordering Great distribution Can not carry all needs High overhead = High prices Exacerbates problem Provide labor on site Provide inventory control Provide substitutions of OEM parts Source only from parent company Cost plus+ model One site for multiple vendors Robust ordering catalog (B2C buying experience) No inventory or labor Utilize strengths of suppliers stock and distribution Low overhead Sourced and leveraged volume for best pricing Purchasing/sourcing consultation System efficiencies and B2B controls = No procurement efficiencies = Expensive = Even more expensive = Spend smarter
- 10. Benefits Continued… 2009 © SpendSmartGroup.com | proprietary & confidential Member Services Online Chat, 800#, On-Demand Tutorials, FAQ’s Suppliers Top-Tier Suppliers in each category Web-Based Buying Portal No software to purchase, web portal accessible from anywhere in the US Increased Bottom Line Have your purchasing team focus on more important strategic initiatives Avoid Software Expenses SpendSmart Group continuous improvements and upgrades are FREE and available real-time Improve Controls and Reliability Your indirect spend is now controlled with SpendSmart Group’s workflow system, giving management the ability to understand indirect materials spend Request Additional Categories SpendSmart Sourcing Team is continually adding new categories, submit your request at any time
- 11. How fast can I see an ROI? 2009 © SpendSmartGroup.com | proprietary & confidential Case Study Client Description Leading US based organic food manufacturer Situation Decentralized purchasing No strategic sourcing done on indirect items Req-to-check was done via manual entry No spend visibility by line item including what, quantity, and how much paid Cost centers applied to invoices manually Multiple checks being cut for multiple suppliers Solution SSG conducted an apples-to-apples comparison on products for cost savings analysis SSG provided crib crawl comparison for substitutions of commercially equivalent products Provided reports to management for cost savings opportunities Provided inventory and preventive maintenance suggestions for purchasing improvements Provided additional catalog sourcing categories specific to client’s needs Results Accurate catalog pricing for items that they purchase, with savings New workflow tool that exposes plant managers to spending approvals Cost centers applied to invoices for better accounting efficiencies along with reduction of check writing Tax savings Yearly subscription fee was paid back with first order placed Savings in categories ranges from 5% - 56%
- 12. 3 Easy Steps to Join Step 1 Step 2 Step 3 Member supplies a “market basket” of typical indirect items, about 10-15 of your re-occurring items for each sub-category SpendSmart Team will then provide a Cost Analysis Report showing you how much you can save for each sub-category of spend Member setup: the SpendSmart Team will designate buyer log-ins, input cost centers, and set-up your requested authorization approval tree 2009 © SpendSmartGroup.com | proprietary & confidential
- 13. www.SpendSmartGroup.com (office) 866-944-9553 x: 705 (cell) 773-818-7875 [email_address] To Join: 2009 © SpendSmartGroup.com | proprietary & confidential