The FULLSTEP approach for sourcing optimization projects

Discover how FULLSTEP's methodology and solutions will help you deliver cost savings to the bottom line by at least 10% the first year. Discover how we define the sourcing and procurement model that best fits your organization, and how FULLSTEP's software is the perfect tool to adapt to your solution.

A common mistake, when implementing a sourcing optimization project – or any other business-process optimization project for that matter - is to address the selection of the software separately from business-process re-engineering.

Selecting a solution that is configured to the process model ensures an efficient implementation. The challenge is to focus on the design of a model that best fits the organization and then choose and implement systems that will adequately support the newly designed model. Our methodology was conceived to face that challenge.

FULLSTEP is a consulting company specialized in sourcing and procurement services and software. Our eSourcing solutions give procurement professionals and their suppliers the best-in-class tools to build productive and successful relationships. The quality of our consultants - experts in procurement operations and change management - ensures successful implementations, and very high customer satisfaction and success rates.

Any company that is looking at transforming their sourcing and procurement operations should be convinced of one fact: “the best solution is a solution designed specifically to meet my needs; it has to be MY solution”. That means that only a solution based on a model defined, adapted, and tailored specifically for your organization will be the best solution for your company.

FULLSTEP will help you define the model that best fits your company before implementing any technological solution. Sourcing Optimization Projects at FULLSTEP start with a thorough analysis phase where our consultants get to understand your organization and know your people, by meeting and interview your key company players. Teams are built and relationships established to make sure smooth cooperation and collaboration is achieved. We must get to know you and understand your needs; you must get to know us and understand our capabilities, and together, as a team, we should define the winning model.

Through interviews with stake-holders and analysis of existing figures and procedures, the team will draw the map of the existing procurement function.

The goal will be to evaluate the critical characteristics of the sourcing and procurement function, comparing your company's current performance, against market best practices.

Fig. 1: Example of GAP analysis graphic representation of negotiation process

Gaps will be identified, as well as strengths and weaknesses of the current operations, helping us draft a SWOT analysis to be used as a basis for discussion.

The analysis must cover from the position of the sourcing and procurement organization in the company, to the structure of the organization, resources and capabilities, as well as existing processes and all the related systems, IT sourcing and procurement tools already deployed and in use in the company.

In team discussions the identified and presented existing gaps between the current operations and best practices should be reviewed, discussed and challenged until consensus is reached; and participants of the joint team acknowledge the results of the analysis.

Once the areas with greatest improvement potential are identified, levers must be designed to shorten the existing gaps and improve operations. Again this must be the result of joint team effort, where all participants agree on priorities, plans, timings, targets, and expected results.

The analysis must cover the whole process: from need to payment; covering need definition; expense or investment approvals; RFPs and negotiation; the decision making process, as well as procurement, supply monitoring and tracking; finishing with acceptance of delivery; and transfer to administration for clearing and payment.

Special attention should be made to systems and IT coverage of the whole process; since control, efficiency, productivity and knowledge management will greatly depend on the quality and characteristics of the set of tools deployed.

The FULLSTEP Platform tools will be used to complement your existing IT infrastructure. If your company has tools deployed to handle some of the processes, and those tools are doing the task in an efficient way, they should not be removed or challenged, and only complimentary tools should be deployed, and integrated, to achieve a tight and efficient information management system to support your cost management function.

Putting all this into place can bring great benefits to the organizations, not only in savings - that can be estimated at around 10% when comparing a company before and after the deployment of an optimized sourcing and procurement model - but also in productivity, efficiency and most important of all, control and improved knowledge management.

The right model with the right tools will help you prepare you company for current challenges and those that lie ahead.