Advancing strategic sourcing for a UK retail leader
- Building a repository for contracts
- Reducing supplier risk by increasing visibility into contracts
- Improving intelligence around corporate spend
- Enhancing overall savings productivity in procurement
A large fashion retail chain headquartered in the UK was looking at automating the process of meeting their procurement goals. Imagine the challenges in managing spend, sourcing, suppliers and contracts for a regional and global retail company with hundreds of stores.
Obstacles to achieving these goals included:
- Spend data integrity and classification
- Inefficient processes around RFx and eAuctions
- No central repository for contracts
- Lack of visibility into contracts and no risk management
- Managing multiple manual reports
- Lack of linkage between related data sources
Through the implementation of strategic sourcing solutions from Determine, the company addressed all of these challenges through the deployment of spend analysis, eSourcing, contract management and supplier management. Empowered by our technology, procurement is stamping its authority throughout the company.
Before Determine, our processes were literally everywhere. For instance, our procurement contracts were all over the business. Starting with contract management, Determine gave us visibility to see what we had, identify where we have good contracts with suppliers, ensured we have planned purchases and renewals, with good terms and conditions fit for purpose, and that we are using standard templates. All those things you expect from a mature procurement department.” — Sr. Procurement Lead
This Determine customer is currently using these solutions for managing their entire strategic sourcing process:
SmartSource – Sourcing, Contract Management, Supplier Information Management (SIM) and Supplier Performance Management (SPM)
SmartAnalytics – for Spend, Sourcing, Contracts, SIM and SPM
The rollout of the Determine solution commenced with SmartSource Contract Management, followed by Analytics, SmartSource for RFx and e-Auctions. In the most recent 18 months, they’ve started using Supplier Performance Management in key departments.
Today, Determine’s solutions are used predominantly by Procurement managers when it comes to the sourcing side. Governance teams manage the contract solution, where they are responsible for ensuring the data is accurate from an analytics perspective. Supplier relationship management through SIM and SPM are also used principally by the governance team, in collaboration with the procurement team and local business reps.
According to their Senior Procurement Lead, the retailer has gone through a number of structural developments resulting in numerous changes in how they manage the system, mostly the analytics.
The analytics have evolved a lot recently, especially at the taxonomy level, supplier relationship management (SRM) rankings and much more intelligence around the supply base.”
The biggest benefits of Determine’s solutions for the company are in eSourcing and Contract Management, where they provide new efficiency and visibility. For sourcing and analytics this means more spend under management and events that increase the likelihood of identified savings. With contract management and supplier management, they can quickly see the contracts of top suppliers, understand where there are any contract gaps, protect their risk and be disciplined around annual performance reviews of top clients. Additionally, it helps with vendor onboarding, and they appreciate that they can instantly grab a contract when needed.
Today there are plans to increase the usage of the Determine suite, notably the Supplier Performance Module. And of course, as the business strategy changes over time, modifications will continue to be made with the suite to address their needs in strategic sourcing and wider procurement efforts. The company is confident in working with Determine on all these endeavors.