Managing Indirect Spend - Enhancing Profitability Through Strategic Sourcing

Managing corporate spend is far more complex than conducting RFPs. Learn how the most efficient and effective procurement departments operate, control costs, enforce compliance, and manage indirect spend.
 
Managing Indirect Spend provides executives and procurement professionals with the knowledge and tools necessary to successfully reduce costs with a strong focus on the often-overlooked area of indirect spend. It also offers great value to those procurement and purchasing professionals aspiring to be leaders in the profession, regardless of the spend they manage. It includes an overview of the challenges faced when sourcing indirect spend categories, a detailed dive into the strategic sourcing process, tools that can help drive savings, technologies that drive efficiencies and compliance, and examples of success based on real-world experience. It is a how-to guide that clearly covers sourcing engagements of any complexity and provides the details needed to source effectively. The book is structured into sections covering the sourcing and procurement process, the tools and technologies, examples from the field, walkthroughs of specific sourcing engagements, guidance on building an effective sourcing team, and the information needed to become a best-in-class sourcing organization.
 
Since the initial publication of this book, the procurement profession and the discipline of Strategic Sourcing have matured. Markets have changed, processes developed, trends have come and gone, and technology has experienced leaps and bounds, posing new and interesting challenges for procurement professionals. In addition to covering tried-and-true practices for strategic sourcing, this Second Edition discusses how strategic sourcing has evolved and provides an update on the techniques, tools, and resources available to purchasing groups. This book:
* Includes updated coverage of everything you need to know to source more effectively
* Covers the latest trends in procurement and sourcing, including technology, process improvements and organizational design
* Presents guidance for reducing costs through strategic sourcing, no matter what the economic climate or level of maturity of the existing procurement organization
* Shows how effectively managing indirect costs can provide a huge impact on bott
* m line growth
* Introduces Market Intelligence (MI), including techniques, tools, and resources available to procurement and supply chain management groups
 
With tools, real-world examples, and practical strategies, Managing Indirect Spend provides insider guidance for big bottom-line growth through effective management of indirect costs.

List of contents

Introduction
 
Part One: The Process
 
Chapter One: An Introduction to Strategic Sourcing X
 
Visibility X
 
Objectivity X
 
Project Management Tool X
 
In Summary X
 
Chapter Two: Data Collection and Spend Analysis X
 
What Is Data Collection? X
 
Where to Start? X
 
Dealing with Decentralized Data Sets X
 
Spend Analysis X
 
Spend Analysis Tools X
 
Kicking Off the Projects X
 
End-User Interviews X
 
Line-Item Detail and Getting the Most from Your Supply Base X
 
Supplier Interviews X
 
Analyzing Contracts and Pricing Agreements X
 
The Final Analysis: Building a Baseline X
 
In Summary X
 
Chapter Three: Conducting Research X
 
Types of Cost-Savings Opportunities X
 
Understanding the Category X
 
Identifying Suppliers X
 
Understanding the Supply Chain X
 
Understanding Current Market Conditions X
 
Understanding the Factors of Cost X
 
Review of Technologies, Processes, Products, and Services X
 
Collecting Market Intelligence Through the RFI Process X
 
In Summary X
 
Chapter Four: The RFX Process X
 
Using the RFI to Begin the Sourcing Phase X
 
Developing Your Sourcing Strategy X
 
Going to Market X
 
Generating the RFP and RFQ X
 
Supplier Selection and Scorecard Criteria X
 
Administering the RFX Process X
 
Reverse Auctions X
 
Alternatives to the RFX--The Importance of Flexibility and Creativity in the Sourcing Process XX
 
In Summary
 
Chapter Five: Scorecarding Suppliers X
 
Measuring Value: Developing Selection Criteria X
 
The Quantitative Analysis: Evaluating the Bid Portion of Supplier Proposals X
 
The Qualitative Approach: Developing the RFP Matrix X
 
References X
 
Teamwork and Objectivity X
 
Technology's Role X
 
In Summary X
 
Chapter Six: Negotiations X
 
Knowing What to Negotiate X
 
Negotiation Optimization: Developing Final Targets X
 
Getting to "No" XX
 
What Not to Do XX
 
In Summary XX
 
Chapter Seven: Get It in Writing X
 
The Contracting Phase X
 
Essential Components of a Contract X
 
Attachments XX
 
Contract Management XX
 
Making the Best Use of Your Legal Team XX
 
Contracting Pitfalls and Language to Avoid XX
 
Working Outside of a Contract: Pricing Agreements and Handshakes XX
 
In Summary XX
 
Chapter Eight: Implementation and Continuous Improvement X
 
The Challenges of Implementation X
 
Overcoming Challenges X
 
Monitoring Improvements After Implementation X
 
Savings and Compliance Best Practices XX
 
Continuous Improvement Initiatives XX
 
In Summary XX
 
Chapter Nine: What Not to Do During a Strategic Sourcing Initiative X
 
Creating Overly Complex or Long RFPs X
 
Letting the Supplier Write the RFP for You X
 
RFP Spam X
 
In Summary XX
 
Part Two: The Tools
 
Chapter Ten: The Importance of Market Intelligence X
 
The Types of Market Intelligence X
 
Components of Success X
 
Breaking Down the Components XX
 
In Summary XX
 
Chapter Eleven: Introduction to Procurement Technology X
 
A Brief History of Procurement Technology X
 
The Solution Landscape X
 
Upstream and Downstream Procurement X
 
Spend Analysis X
 
Sourcing X
 
Reverse Aucti

About the author

JOE PAYNE is an industry-recognized expert in supply chain and procurement best practices. He specializes in increasing the value of procurement via innovative solutions and oversees delivery of both services and technology to help companies improve their procurement, supply chain, and financial processes. WILLIAM R. DORN is an operations, procurement, and product management leader. He is a process improvement and technology expert specializing in business transformation. DAVID PASTORE is a strategic sourcing expert and procurement thought leader. He specializes in enterprise-wide spend management and cost reduction programs. JENNIFER ULRICH is an industry-wide authority on procurement, finance, digital transformation, and category management, focused on elevating the role of procurement through enhanced business processes.

Product details

• Authors: William Dorn, William R Dorn, William R. Dorn, Dorn William R., David Pastore, David et al Pastore, J Payne, Jo Payne, Joe Payne, Joe Dorn Payne, Josep Payne, Joseph Payne, Joseph Dorn Payne, Payne Joe, Jennifer Ulrich
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 30.06.2021
• EAN: 9781119762348
• ISBN: 978-1-119-76234-8
• No. of pages: 320
• Series: Wiley Corporate F&A
• Subjects: Social sciences, law, business > Business > Business administration; Rechnungswesen, Accounting, Corporate Finance, Finance and accounting