Tactica advanced sourcing solution

Tactica Presentation: Advanced Sourcing Solution

April13, 2011

Some of Tactica’s Key Customers

$60 Billion Sourced

More than $6 Billion in Implemented Savings

Copyright © 2011. Tactica (Asia) Limited

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Drivers for Advanced Sourcing

Improve savings, speed, productivity, and scalability for all spend types (even routine)

Tackle complex or unique sourcing challenges

Enable true Strategic Sourcing

Augment general sourcing & procurement suites

– Capture unaddressed or under-addressed spend that falls outside the suites


Tactica ASAP is Best of Breed

Roots in most complex, largest sourcing projects – improves savings and productivity on all spend.

Unlimited support for size and scale

– Tactica ASAP has been used to manage RFPs with 100,000+ line items, thousands of suppliers, and millions of bids.

– Drives ROI for simpler spends (sugar, fats & oils, soap, etc.)

Most robust data collection flexibility

– Non-price bid components, alternative offers, supplier RFI responses, stakeholder preferences, business rules

Total value to the organization is the deciding awards factor

– Analytics that go beyond price, to understand risk, supplier value, quality, service levels, supply chain impact


Tactica Customer Value and ROI

Real-world examples of ROI reported by our customers:

45% in savings, $75 million annually (in-store displays)

30% in cost savings (MRO sourcing)

1 day/week saved in productivity, 15-20% per sourcing event (across multiple general sourcing categories)

50% time reduction for the overall sourcing process (ocean tender sourcing)

30% in cost savings (air freight)

Risk reductions by optimizing suppliers against non-price factors (steel sourcing)


Case Study: Procter & Gamble

P&G Brands touch the lives of 4 Billion Consumers. 23 “Billion-Dollar” Brands.

Began use on most complex sourcing activities in 2003

Other sourcing suites already in place

Gradually expanded to additional advanced sourcing activities

Now adopting across the organization for all e-RFX needs

Time savings of 15-20% per sourcing event – 1 day/week/user

“Tactica has been a valued source of technological innovation for many years." – Rick Hughes, Chief Purchasing Officer, Procter & Gamble

Raw Materials

Industrial Parts

Marketing/ Advertising

Legal

Spend Under Management

Packaging

Chemicals

Transportation (all modes)

Services


Case Study: Reckitt Benckiser

$12.5 billion household, health and personal care company.

Customer since: 2009

Initial projects: Marketing agency services

Growth: Adopted by Marketing organization for sourcing several areas of marketing and media spend.

“Media and marketing-related spends are some of the most elusive targets for formal spend management, but we are creating a very strategic sourcing process using Tactica ASAP." – Ian Hutchinson, Worldwide Media Director, Reckitt Benckiser

Online media

Marketing agencies

TV advertising

Market research

Spend Under Management


Case Study: Bayer

Bayer MaterialScience AG global ocean tender performance improvement.

Customer since: 2009

Initial project: Transportation - Global Ocean Tender sourcing (China)

Growth: Continue to extend/expand Tactica for ocean sourcing.

Benefits delivered: 50% time reduction to manage data and

process: Tender executed in 2 months vs 4.5.

23% in savings over prior bid rounds.

Awarding based on multiple criteria.

Scenarios run in seconds to minutes.

Supports global strategy while considering regional requirements.

One interface to the carriers.

“Tactica lets sourcing teams concentrate on the analysis of differentiated scenarios instead of mainly managing the data and process.”

– Lars Blüthner, Lead Ocean Buyer, Bayer MaterialScience AG

Nearly 80,000 containers in 2010.

4 regions, 3 subgroups, and 3 silent partners.

45 carriers involved.

15,000 bids to manage.

Key Sourcing Stats


Tactica’s Impact on Your Business

Economic:

Drive Additional Costs and Risks Out of Your Supply Chain

Increase Spend Under Management

Sourcing Innovation:

Encourage supplier innovation and creativity

Leverage supply network for new value

Productivity & Strategy:

Improve Buyer Productivity and Efficiency

Complement existing investments to address spend that’s falling outside your platform

Bring “Strategy” back to Strategic Sourcing
