Sourcing Functional Requirements for a Services Division. Transforming Digitally

Copyright ©2007 Al-Fahad & Co.. All rights reserved.
Consulting Services.
Managing the Implementation & Transformation of KNPC
General Services Department
Deliverable
Sourcing Functional Requirements
November 18th 2007

2 KNPC – Managing the Transformation of General Services
Contents Page
1. Introduction & History 3
II. System Functional Assessment 8
III. Recommendation 15
IV. Guide for Automation 19
V
Functional Requirements Specification
21
VI.
Example of how to leverage spend results to
negotiate a contract
46

1. Introduction

The objective of this document is to formulate the high
level requirements
It is the objective of this document to identify high
level functional requirements. That will be used to
set the stage for the automation of those intensive
activities of the sourcing processes.
Thus, To provide opportune Information that is
accurate, valid and easily accessible to support
analysis and therefore expedite the decision making
process.

In the Design Phase, three main process streams were
recommended
Three processes streams are recommended that would address the Strategic
Sourcing Process Chain. Each Stream would be managed and executed by
experts in their respective fields. The Process Model was recommended and
developed to support a customer focused identity.
• A brief description of each Process is defined below:-
– Sourcing: is in simple terms the process of identifying cost saving / efficiency
opportunities, evaluating potential suppliers, negotiating supplier contracts
and starting the supplier relationships to achieve corporate goals. To
elaborate further on the definition of sourcing: it is the subset of procurement
its strategic context. Sourcing sets the stage for the entire company’s
purchase of direct and indirect materials, and involves high-level, company-
wide approaches to:
• Obtaining materials and services
• Identifying and evaluating potential suppliers to meet those needs
• Negotiating and implementing contracts with selected suppliers
• Monitoring and improving ongoing supplier relationships (contract
management)

The three main processes of phase 1 were Sourcing,
Contract Management & Order fulfillment
– Contract Management: the process of managing contractors requires
significant development beyond the administrative part to managing,
monitoring, and developing supplier performance to drive the highest quality
of the supply side of the service.
– Internal Order Fulfilment: simplifying process, enforcing business rules, and
extending process to all end users community will be key in taking services to
the next levels of quality and customer satisfaction. Process requires order
process automation and assessing the business case for implementing a
contact centre.

The sourcing process lies on top of the order fulfillment and the
contract management processes.
Demand Side (internal Customers) Supply Side (Contractor)
Customer Centric Process Model
Internal
Order Fulfillment
Contract Management
Take Orders for
Suppliers
Take Orders for
Services
Follow-Up on
Orders
Fulfillment
Manage &
Address Customer
Complaints
Define SLA
Internally and
Communicate Ext
Develop
Sourcing
Strategy
Collect
Requirements
Develop & Maintain
Sourcing
Database
Analyze Spend
And identify area
Of improvements
Measure Quality
And Satisfaction
Conduct Sourcing
Cycles
Supplier
Balance
Scorecard
Manage
Supplier
Relationship
Manage & Report
Supplier
Performance
Manage Quality
And develop
Suppliers
Sourcing

II. System Functionality Assessment

Maximo’s assessment shows that it’s mainly a transaction-
based application system
– The Current application Maximo serves as a transaction based application
that also provides comprehensive exposure to serve GSD final Report
objectives for identifying Sourcing Strategies.
– However such comprehensive complex queries that refer to historic data for
manipulation can create a performance load on the Database. It is therefore
recommended in our proposal that such queries are run on a self contained
Data ware house.
– It has been noticed that enhancements have already taken place such as the
introduction of KPI, Self Service module in Maximo and E-tendering portal
recently created by ISD.
– The Current eAM – Maximo has a comprehensive suite of Modules and sub-
modules that can be utilized by GSD to address many of their requirements.
As we will notice in the next Slide GSD is in fact utilizing many of the Maximo
capabilities.

Maximo provides several applications covering different
functional areas.
Cognos
The Following is an overview of the current Existing modules in Maximo. The
highlighted sub-modules are what is currently being utilized by GSD.

Maximo Serves as a Data Source for Spend Analysis and
Contract Evaluation
The Maximo application capability to address a “Sourcing Automated Solution”
as Defined by the recommended re-engineered process mainly serves to
address the Data Source Required For activities such as Spend Analysis and
evaluation of Contract Activities and Supplier Assessment to some degree.
– As per the existing modules defined in Maximo - EAM, there is no module
per-say labeled as ‘Sourcing’.
– Sourcing is the model based on best practices proposed by Deloitte to cater
for the Re-engineered process model to support a customer focused
identity. It is an extra supporting functional layer that touches on “the
maximo transactional database”. (Refer to Sourcing Layer Diagram)
Maximo stores a lot of relevant information on Purchase Requisitions, Purchase
Orders, Contracts, Item Transactions, Supplier. These will all form the basis
of Information that will be used for determining the Sourcing Strategy for
GSD.

The Contracts and Purchasing Modules of Maximo enable
the Sourcing layer
Cognos
Sourcing Layer

GSD is using DTR’s Maximo application mainly for
Stationary
• Utilization of the DTR in Maximo by GSD is averaging 255 / Month. Approx
12 / Day.
• DTR’s are raised by end users for Stationary mainly. All other services are
mostly manually done; but all Contract payments and Invoice Payments are
done via Maximo. (i.e. Non-Stationary Requests are done manually and
when Invoice Arrives they are entered in Maximo.)
Desk Top Requistions
Average 255 / month
0
100
200
300
400
500
600
2004-05
2004-07
2004-09
2004-11
2005-01
2005-03
2005-05
2005-07
2005-09
2005-11
2006-01
2006-03
2006-05
2006-07
2006-09
2006-11
2007-01
2007-03
2007-05
2007-07
2007-09

The Commercial department is handling most of the
Sourcing initiatives
• The Commercial department does not Catalogue Non-Stocked Items. Users
in some cases request Commercial to add the item in the Catalogue. Where the
DTR is not used this would therefore lead to utilizing the Petty Cash Request
Process. This would then lead to a Purchase Order and Items requested. These
types of requests do not have Item level codes that could be used further in
Spend Analysis.
• A portal has been created for end users and Suppliers for E-Tendering process.
This has been launched in April 2007. And only tenders less than KD 5000 are
being submitted and a Bidding system as such is already implemented.
– This provides a further benefit for GSD in that the suppliers can now submit
their Quotations Online and thus this creates a competitive environment and
provides more leverage for GSD to negotiate with Suppliers.
– The Gap however lies in that the supplier still has to confirm GSD orders
manually. (Via Fax.) Currently GSD send Purchase Orders via Fax or email
and the supplier acknowledges PO via a Fax.
• Currently Spend Analysis is being done by Commercial on a ad-hoc basis and is
insignificant as the results of Spend are more of a statistic. There is no formal
process in place for ensuring Spend Analysis Activity is a recurring process
whereby the outcome is used for Re-evaluation of Contract Specifications.

III. Recommendation

We recommend Spend Extraction, and Service Quality &
Product Measurement sub-processes be automated
It appears
Reference to Develop & Maintain Spend Sub process.
Currently Commercial Department are responsible for Spend Analysis and as such they
rely on reports from MAXIMO for conducting the Analysis. Running Queries / Reports
from Maximo on Spend will suffice only if one were to do an itemized / Category
Analysis from On–Contract Transactions that are in Maximo.
Off-Contract Transactions done Via the Petty Cash Process do not have itemized Codes
and are not Categorized that can be used for analysis. Hence manual effort for Data
Mapping and Cleansing is required. However the extraction of Data for Off-Contract
Spend can be to some extent Automated. The percentage of off-contract is yet to be
determined.
Reference to Analyze Spend process.
To Address a Thorough Spend Analysis the Extraction of the relevant Data for
Conducting Spend Analysis from Maximo and Off-Contract Transactions needs to be
merged into a Spend Repository for Analysis by Excel (Pivot Tables, or a BI Tool such as
COGNOS that is already available at ISD)
Reference to Measure Product and Service Quality.
Maximo does not have a facility to prepare Electronic Surveys. Hence automation is
required to address collecting Survey Data into a repository, that will be accessed via
the portal for End Users to Answer. Using an Analysis Tool as a mechanism to evaluate
surveys.

We also recommend manual forms for DTR be phased out
and revision of DTA rules to enforce DTR utilization in Real
Time.
After having assessed the current Maximo Application, had a review of the
current existing Desktop Requisition Application and gathered some
statistics on DTR’s raised; we recommend the following:
GSD should utilize the MAXIMO application to the maximum possible,
identify and address the root cause as to why Requisitions are not raised
in Real Time. (Such as change DTA rules if necessary)
⚫ Work with ISD to take a refresher course on the Maximo 6
Capabilities, in order to support the Sourcing Process.
⚫ Eliminate the Manual forms for DTR’s for Stationary Requisitions as
this allows the End Users to utilize this manual form for quick
requests of stationary and thus creates duplication of work and does
not provide accurate Information for Workflow efficiency of GSD. This
eventually affects the GSD KPIs.

Maximo inherently supports the recommended
customizations
⚫ The new version 6 of Maximo is flexible enough for customization to suite GSD
requirements. The current existing DTR in Maximo is being utilized, a self-
service DTR module is available, however in order to gain full benefit DTR
should be used in Real Time to see the full benefit.
⚫ The GSD cataloguer needs to ensure that Mainly Stocked Items and Non-
Stocked Items ( that are ordered frequently) are all updated in the Catalogue
with Images if possible for the end user request the proper item. This will,
down the line eliminate the need to manually enter Spend Data relevant to
Spend Analysis due to Direct Charge Purchases.
⚫ A review of approval authority for Stationary Items needs to be reviewed.
⚫ The Introduction of an Automated Spend Extraction / Cleansing & Analysis
application
⚫ The introduction of a Web-based Survey On-line application that shall be used
for internal as well as external customers. (For External Customers for Supplier
Assessment). Such tools are available on the Web.
⚫ The Introduction of a Workflow tool to structure the Sourcing process

IV. Guide Lines for Automation

The following guidelines will be used to benchmark the
process automation requirements for the following systems
for this type of services:
– Web based access to allow access at any time and from any where
– Simple steps and user friendly without many fields to fill in during the order
process. (Customization of existing DTR Module)
– Intelligent engine to enforce business rules during the order initiation
process.
– Catalogue based where all services and supplies are included and presented
in simple language for average user to understand.
– Titles of Pre-built reports, to be aligned with sub-process outputs. And
where possible schedules of reports to be run at pre-defined dates.
– Note: The already Existing application “MAXIMO Ver 6.2” is currently in the
rollout stage. As such we strongly endorse that GSD utilize the reporting
functionality of the application where possible to address the Requirements
documented herewith.

V. Functional Requirements
Sourcing Process

The sourcing process produces multiple deliverables

The main sourcing sub-processes produce deliverables that
the automation would accelerate
Over View of Recommendation for Automation Applications
The Sourcing Process involves Intensive activities where lots of data is
collected and used for Analysis resulting in the following deliverables:-
– Commodity Supply Market Report
– Final Requirement Document
– Quality Review Report
– Consolidated Spend Report
• Automation for the majority of the processes defined in Sourcing
Processes are candidates for the use of KNPC – DIMS Workflow
application.
• The Development of the following applications shall be introduced for
the Automation of the Sourcing Process.
– Developing and Maintaining Spend Database (extraction / Cleansing of data)
& the Analysis of The Spend Data.
– The Creation and Analysis of Surveys / Questionnaires

The automation process will be subject to tuning after
rollout
Future Plans for rolling out Automation of Processes
• Once the process is rolled out, implemented, and measured for its efficient and
effectiveness, and bottle necks identified; GSD will be in a better position to
further request from ISD such customization requirements, to address the need
if be for a more streamlined automation.
• This however requires that the process is in implementation stage for at least 6
to 12 months. In order for a full cycle to be completed.
• Until the need arises we strongly recommend the use of a workflow
collaboration / content tool to address exchange of soft copies of documents
shall be introduced as a tool to support the process. (e.g. DIMS, that is
currently rolled out at KNPC)

Automation occurs in the upper stream of the Sourcing
process
Sourcing Process Automation
• Whereby Data relevant to Spend Information will be extracted form Maximo for
Analysis. Automated Surveys will be conducted for measuring the Product
& Service Quality as well as conducting a Market Analysis.
• The objective is to end up with a Sourcing Strategy Document. The SSD is
derived form the following reports: Commodity Supply Market, Final
Requirements Document, Quality Review Report, & Consolidated Spend Report.
Overview of Process and Areas to be
Automated

The sub-processes automation candidates are the first
three in Sourcing
Candidate
for
Automation
Phase 1 Phase 2 Phase 3
Candidate
Utilization for Workflow /
Collaboration tool such (DIMS)

Spend data cleansing is a key success factor for
automation
Develop and Maintain Spend Database
This process involves the extraction, of Spend Data, the cleansing of the Data,
the mapping of the Data to Spend Categories and loading this Data into a
repository for further Analysis and Reporting. (Note: Queries can be run
directly on the Maximo Database, however our recommendation is to extract
the data into a repository for further query and analysis due to the following):
– Performance of the Maximo will be affected for end users, should queries
run directly from the transactional database. The database is a relational
database where running a query directly requires extraction of data that
needs to be retrieved from multiple tables. Such queries can have a drastic
affect on performance of the application.
– Not all Spend Data is available in the Maximo, hence collation of data from
Manual input needs to be merged to a common repository, via the input
portal.
– Along with running saved reports for Spend, Comprehensive Analysis is
required utilizing a BI Tool and/or Pivot Table in EXECL.
– The advantage of the BI tool is that it provides the end user with a graphical
means to view results and the ability to drill down.

Functional Requirements Sourcing Process
Over View of Spend Data Extraction Process

We have gathered extraction requirements
A.1
The System should be capable of extracting the
detailed Spend Data from the Maximo application and
spend Data that exists in other disparate systems into
a Database that will be used for Cleansing and
Mapping of Item Category Codes.
(Refer to list of Sample fields
required for extraction.)
The Use of a graphical ETL
Extract / Transform / Load
Tool is recommended.
A.2
The system should be capable of running a data
verification algorithm, for identifying Duplication of
Supplier Names, Common Date Formats, Common
Location Codes, Item Classification Codes, during or
after extraction. This is part of the automation for Data
Cleansing.
Data Cleansing is paramount
to having accurate Spend
Analysis and as such
automation of this process
will reduce a lot of manual
efforts
A.3
The System should have the provision of updating or
validating the Correct Masters Data Entry when
utilizing the portal during manual Entry of the Spend
Data. Where possible the Data should be Corrected at
the source as that will reduce the amount of cleansing
that is required in for future Spend Analysis.
For example the Vendor ACC
could appear as “ACC”,
“A.C.C” and “Arabian
Construction Company”.
Without such a conversion ,
a process known as
normalization, ACC would
appear as three different
vendors
Requirement Remarks

A.4
Each Transaction that has item description, will also
have an Item Classification (Category ) assigned to it.
As this will be the basis for Grouping items during
Spend Analysis.
It is recommended that the
UNSPEC standard be utilized
for such classification.
A.5
The System shall have a portal for review of the data
extracted and update / edit provision for data
manipulation. The Same portal shall be used for input
of spend data breakdown from Off-Contract Purchases.
Petty Cash Invoices for Off-
Contract spending do not
have item detailed spend
Data, and cannot be
extracted automatically.
A.6
The portal shall have the facility to extract Off-Contract
Transactions from other Systems and provide the end
user with a user friendly interface for updating or/and
editing the transaction and saving it into the Spend
Database.
For example: To select
transactions from the Oracle
AP module the portal shall
provide the end user to
provide a List of
Transactions that are
relevant to GSD Purchases
for editing and Updating
Requirement Remarks

A.7
The System should merge the Spend Data that is
manually fed via the portal with the Spend Data that is
Extracted Automatically from Maximo. This transaction
should be flagged that is has been manually entered.
If Off-Contract Spending
Invoices are fed into the
Oracle Financials as JV’s
then it is required to identify
these Items purchased off-
Maximo, and have a break
down by Item Category for
Data Input into the Spend
Database
A.8
The System should allow automatic mapping of Item
Category Codes to the manual transactions that are
fed via the portal. The System should interface to the
Item Category Code Master (Catalogue) for up-dating
the Record.
The Petty Cash Requests do
not store Item Code,
Descriptions in the Maximo
or Oracle AP. The AP
transaction will be a lump
sum, that needs to be
decomposed to Item
Category Level for Spend
Analysis.
A.9
The System Shall allow the Records for decomposition
at Item level to be automatically extracted from the
Oracle AP module. Whereby the User will Enter the
Item Categories purchased, from which supplier and
other relevant information that will be used for Spend
Analysis.
The JV’s in the Oracle AP
module do not Store Item
Code, Desc therefore there
needs to be an appropriate
Item Category mapped and
stored in the Spend
Database against each JV
Requirement Remarks

A.10
The System shall allow a two stage cleansing process.
An automated cleansing process during / after the
extraction of the transactions from Maximo. And after
the Manual input of the Direct Charge / Off-Contract /
Petty Cash Invoices. As these require Manual
Intervention for input.
Duplication of Item Codes,
(eg. AB C01, ABCO1 ) or
Supplier Names, can be
rationalized at this stage.
A.11
The following is a sample of the fields that shall be
extracted from the Maximo application that will be
used for Spend Analysis. More fields regarding an Item
Transaction shall be also candidate for extraction.
Hence the User shall also have the flexibility of picking
extra fields for extraction.
Date of requisition, Req nu,
Location, Department, Item
Category (UNSPEC), Item #
, Item Desc, Item Qty
Supplied, Item in Stock at
time of Req, Item Cost, Unit
of Measure, Lead Time of
Item, Supplier Name, GL
Code
A.12
The System Shall extract the data to an Access
Database, that will be the Spend Data warehouse
repository for producing Queries, and the source
Database for importing into Excel Spreadsheets.
The Use of a BI Tool. Cognos
can be used for running
complex queries from the
Spend Data Warehouse
Requirement Remarks

A.13
The System shall upon extraction of the transactional
Data from Maximo link with the Master File to pick up
the Item Description, Location, Supplier Name. The
resulting Spend Data base shall have a De-Normalized
Table with meaningful Data descriptions.
Having one Detailed Record
will also speed up the
queries and provide the end
user with a full view of
Spend Information. For the
use of Excel Pivot Tables it
would also be
recommended.
A.14
The System shall prompt the user to select the
Transactions by the following List of Values.
–Supplier Name,
–Departmental Contracts Type (Catering, Office Supplies,
Horticultural, etc,
–Date Range of Transaction From – To.
Only completed Transactions
shall be extracted.
Transactions that have not
completed the approval
cycle shall not be extracted
for Analysis.
A.15
The following reports should be produced but not
limited to:
–Spend by Department
–Spend by Purchasing Method (Contract / Direct Charge)
–Spend by Item Classification
–Supplier, No of Line Items, Average Spend per Item, no of
Orders, Avg Spend per Order, Spend Total
UNSPEC code is
recommended for use for
Analysis
Requirement Remarks

A.16
Initially the Spend Analysis shall be done using the
following tools:-
–Report Queries using ACCESS
–Pivot Table using EXCEL (The Excel Version shall allow the
import of all the transactions for GSD during at least a 3 year
period. Therefore the number of rows allowed by EXCEL shall
be capable to accommodate unlimited rows.)
At a later stage the
introduction of a BI tool such
as Cognos or Business
Obejects can be utilized,
which however requires a
Data Warehouse to be
designed for addressing Drill
down options.
A.17
The System shall keep a track of an audit trail of
Automatic Data Extraction. And a report shall be
available to confirm that Duplication of Records do not
exist. And a report of Unique Data for Certain Fields
shall be produced to confirm Duplication of (eg.
Supplier Names.)
We may have cases where
Supplier Name is stored
differently in the Spend
Database. A Report to
confirm duplications will help
filter such occurrences.
A.18
The System shall provide the facility once the Spend
database has been created to print a report grouped
by GL Code to reconcile with the Oracle AP module
Spend expenditures.
This shall serve as a control
point for ensuring that the
totals match. It is therefore
important that the spend
Data to be extracted have a
cut-off date, that can be
compared with the Financial
Records.
Requirement Remarks

A.19
Once the Database is ready for use the table shall be
kept in Archive for access for an indefinite period. And
Commonly used Queries shall be stored in a table that
will also be used at a later stage of the sourcing cycle;
(i.e. during contract evaluation). The table name shall
include the query name and run date concatenated.
Such a stored query would
be used for future reference.
An example would be listing
the average cost of an item
purchased from all suppliers.
That can be used as a bench
mark for evaluating future
contracts.
A.20
The end users (Sourcing analyst) will gave the option
to utilize Excel Spreadsheet as a tool to import the
Spend Data into the Sheet for further analysis via the
pivot table.
It is a pre-requisite that a
training course on Pivot
table analysis be conducted
to the End users.
A.21
The users should have the option to publish the results
of Queries/Pivot Table results on the KNPC Intranet for
archive use as a later stage.
Requirement Remarks

We have identified the Automated Survey requirements
Measure Products & Service Quality-Develop Questionnaires
• In this process one of the objectives is to Create and conduct a survey
regarding Products and Services Quality of Vendors Offerings.
• The recommendation is to develop a Web based application for creating On-line
Surveys whereby the results of the surveys will be stored in a database for
further analysis and reporting.
• The Survey shall be used for the following Target Audience:
– Internal - KNPC End Users
– External- Existing Suppliers of KNPC-GSD Products and Services
– Potential Suppliers of KNPC-GSD (Conducting RFI / Evaluation of Suppliers
Products & Services.)
Note: Although the following automation applications are recommended for
GSD utilization and benefit, during design & development of the recommended
application ISD should keep in mind that such tools can be utilized by other
KNPC Divisions / Departments.

Functional Requirements Sourcing Process
Over View of Survey Creation Process
End Users can
participate
In the creation of
Survey
Questionnaires.
That will be
approved by
QA for Master
File Updation

B.1
The System shall cater for an automated Web-Survey /
Questionnaire whereby a template shall be available
for the end users to assist them in a step by step
process for creating the Survey.
B.2
The System shall provide a means that Questionnaires
are selected from a Master File (a catalogue) of
questionnaires that are already created in the master
file, and have undergone an approval process. The
questions can further be categorized, for future
reporting purposes.
Therefore the questionnaire
needs to be created in the
the Master File first and
approved before it can be
used in the Survey
B.3
The System shall have a means to allow users to
create a questionnaire in the master file, which shall
be approved via a Supervisor / Team Leader. Only once
the questionnaires are approved will they be allowed
to be used in Surveys.
Any User who has access
can add such questions. This
will allow end user
participation in the master
file creation. This will create
more open ended questions.
Requirement Remarks

B.4
The System shall utilize a Template as such as a
Control Point (A Catalogue) to ensure Candidate
Questionnaires’ are Reviewed and assessed to prior to
creating them in the Survey. The Review shall have the
option to approve or disapprove (delete survey
questions that are not potential candidates)
The Master file shall also
capture Survey Results
Statistics for future
reference. (eg. Count of
responses, Last used, how
many times the
questionnaire was used, etc)
B.5
The System shall provide user with the option to utilize
a response scale for responding to the questionnaire
along with the option to create open ended questions.
The response Scale can be
created as a template buy
ISD.
B.6
The System shall allow for a provision to attach
documents to the Survey being created. Or an URL link
to be specified.
Spend reports can be
attached to surveys if need
be.
Requirement Remarks

B.7
Upon creation of the Survey the System shall prompt
the user to input the following fields. (Some of which
are can be mandatory required).
–Name & Department
–Name of Survey & Description
–Expected Launch Date & End Date
–Internal or External (if external open to suppliers)
–Option to attach a Report or attachment or URL link
B.8
The next Step in the Creation of the survey shall
prompt the user to select the questionnaires’ that will
be used in the survey. The list of approved
questionnaires shall be available for the user to select
from.
B.9
The system shall then prompt the user to edit or
elaborate more on the Questionnaire’ better to suite
the survey requirement. But only to an extent that is
does not deviate in context from the original question.
Requirement Remarks

B.10
Following the completion of editing the Questionnaires’
the next step shall prompt the user to select a
response scale from the template lists of options
available. Eg:
–Strongly Disagree, Disagree, Agree, Strongly Agree
–Very Satisfied, Satisfied, Average, Poor
The template can be pre-
configured for ISD.
B.11
The System shall then prompt the user to review the
Questionnaire and provide an open ended set of
questions that are optional or required.
Relying on Response Scale
Feedback only form Surveys
does not provide a means to
isolate root cause of
dissatisfaction from
Customers. Hence
requesting comments to be
added will help narrow down
the problem.
B.12
The system shall provide the option of the completed
survey to be reviewed by a supervisor and approved
for publishing on the web.
Requirement Remarks

We also recommend predefined workflow for content
management and collaboration be used for exchange of
documents
Workflow based to support online approvals and provide a means for content
management, collaboration. As there is a requirement to create Sourcing
Project based activities in order to have a structured mechanism to monitor
and control the progress of the Sourcing initiative.
Hence a tool is required to address such need. A means to share documents
across the organization for review and approval purposes. Hence the system
should be capable of providing the end user with a facility to create process
names and setting deadlines and assignments. Eventually Validating that the
activity has been completed.

B.13
The System shall notify End Users (for Internal
Surveys) via email that a Survey is out for response. A
hyperlink of the Survey shall be included in the email
for quick access by the end user.
Same can be utilized for the
External Suppliers whom
have provided an Email
Address in their Supplier
Profile Master File in
Maximo)
B.14
The End user will have the option to attach a
document when replying to the Survey.
Should the end user be
willing to disclose his
identity the option should be
available.
Requirement Remarks

We have identified the Work Flow requirements
C.1
A workflow automated should be available for the
Sourcing Process that has the following interfaces:-
–Designers Interface
–Users Interface
–Progress Interface
Three layers are only required: 1 )Process, 2)Sub-process,
3)Activity
The Workflow objective is to
provide a structured
automated documentation of
the progress of each activity
with a process.
C.2
Designers Interface –
To allow the creation of processes, and create and
define activities within the processes. Set Deadline for
completing the Activity. Deleting or modifying the
process of activity.
To allow the creation of
processes & sub-processes.
To define the activities and
participants permitted to
carry out the roles in the
system.
C.3
The system should allow the end user to initiate the
activity by specifying the data associated with the
instance to be created and specifying who should
undertake and validate the activity. It may also involve
setting deadlines.
This is the main interface to
the system. It provides a
means to carry out activities.
The End user will initiate the
activity instance.
Requirement Remarks

We have identified the Work Flow requirements
C.4
The User shall then have the facility to flag the activity
instance has started. His work may involve manual or
automated work using other systems, to get the
activity instance completed and submitting the
completed activity instance for validation.
C.5
The Supervisor should have the means to validate the
activities that have been completed.
C.6
The system should allow an interface to view the
progress of the Process. Who has completed what?
Days / months left for the process? And an audit log of
activity updates should be available for viewing.
A visual means to view
progress of process
completion for activities.
Requirement Remarks

VI. Example of how to leverage
Spend Results to negotiate a
Contract.

Example of how to leverage Spend Results to negotiate a
Contract.
Example of GSD purchasing Cleaning Liquid from different vendors who
supply the in different units of measure. Gallons from one vendor and
Liters from another vendor. So it is important that during the cleansing
process a a tally of Gallons to Liters is compiled or a uniform unit of
measure is used in order that the spend analysis is conducted across
all vendors. Once this data classification and cleansing is completed
enough intelligence can be obtained:-
Insight and visibility into:-
• The total amount of Cleaning Liquid purchased from all vendors in by
all units of measures (Gallons, Liters)
• Amounts by Location,
• Cost by lowers unit of measure (Gallon / Liter) from each vendor.
This level of information can be used to strategically negotiate a contract
with the vendor of the Cleaning liquid. This is just a simple probably an
insignificant example of how spend analysis and the data cleansing
capability provide the insight to reduce costs.

Member of
Deloitte Touche Tohmatsu
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member
firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an
organization of member firms around the world devoted to excellence in providing
professional services and advice, focused on client service through a global strategy executed
locally in nearly 140 countries. With access to the deep intellectual capital of approximately
135,000 people worldwide, Deloitte delivers services in four professional areas—audit, tax,
consulting and financial advisory services—and serves more than 80 percent of the world’s
largest companies, as well as large national enterprises, public institutions, locally important
clients, and successful, fast-growing global growth companies. Services are not provided by
the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member
firms do not provide services in all four professional areas.
As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member
firms has any liability for each other’s acts or omissions. Each of the member firms is a
separate and independent legal entity operating under the names “Deloitte”, “Deloitte &
Touche”, “Deloitte Touche Tohmatsu”, or other related names.

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