Strategic Sourcing Assessment

Strategic Sourcing Presentation Assessment – Instructions & Evaluation Criteria

Prepare a 3-5 PPT slide presentation (More than 5 slides are not allowed) that covers the following criteria:

1. Sourcing Approach (how you would recommend the client approach related to this project scope)

2. Requirements Gathering for the Project (how you would approach gathering requirements related to this project scope)

3. RFx Structure / Execution Approach (what approach you would take to the development/execution of the project)

4. Evaluation (how you would evaluate suppliers relating to the project execution)

5. Contracting (what contract considerations you would recommend for consideration)

You will be graded upon your ability to articulate the points listed above, the ability to provide a cohesive and structured flow to the presentation as well as client readiness / cleanliness. Specifically, the below will be the evaluation criteria:

1. Sourcing Approach (your approach is clearly defined and carried throughout the document)

2. Requirements Gathering for the Project (you have given clear indication of how and what requirements would be gathered)

3. RFx Structure / Execution Approach (your execution approach is consistent with the rest of the presentation, it provides pertinent details)

4. Evaluation (it is clear how you will evaluate suppliers in a manner consistent with your strategy)

5. Contracting (you have provided a baseline for terms and conditions to be considered)

6. Client Facing / Readiness (a presentation that is ready to present to and facilitate a conversation with our client, the content contained in the presentation should stand alone when reviewed by a client, this would include formatting / spelling / grammar / presentation visuals)

Strategic Sourcing Presentation Assessment – Client Case Study

A US National automotive parts & services company has 350 store locations throughout the US. Company is divided into 3 regions, Eastern, Central & Western. The National Facilities Director is looking to do a sourcing event for the Janitorial Services and Supplies across all stores. She is facing several challenges including,

· Extremely fragmented & at times very local supply base

· Lack of visibility into spend data break-down (services & supplies)

· Lack of detailed location specific data (square footage, types of surfaces etc.)

· Little coordination between headquarters (based in the Eastern region) and the store general managers

· Minimum wage might be going up in several regions

· Stores own some janitorial service equipment and there is also a central contract in place with the largest supplies supplier

· There are inconsistent brand and specifications of the supplies used at various locations, and environmental/quality control programs are not in place at every location

She is hoping to consolidate the supply base as much as possible while increasing the service levels, leverage supplies spend, get a better contracting structure in place (central versus local), get visibility into spend along with detailed breakdown & lower cost.

Current situation:

1. Largest number of stores (around 50%) are in the Eastern region, Western region (~30%) and remaining are located in Central region.

1. 45 different suppliers (mostly local or regional at best)

1. Detailed spend data is not available. Download of local work orders is available but is unreliable. Only high-level total spend per location available.

1. Total yearly spend is estimated to be $14.5M for services and supplies.

1. Coverages includes:

4. Perform cleaning for all types of surfaces and rooms at specified frequencies.

4. Some locations have day porters for fixed number of hours per week.

4. At some locations, the suppliers bring all the needed equipment and supplies; whereas, at some locations the company provides the equipment and supplies.

1. SLA’s differ for each supplier and store location.