Reasons for deploying an integrated Supplier Management Solution

Implications of Poor Data

Pain Points of Supplier Data

What does Supplier Information Management entail?

The Way forward: Deploying Supplier Management solution

How does Supplier Management Add value to your organization?

95% 67% >40%Quality data

important to achieve procurement

objectives

CPO's realize poor data as

barrier to implementation

Costs of an organiztion can be attributed to supplier costs

Identified costs withpoor supplier data

Delayed/ cancellednew IT systems due

to poor data

Confident in their dataquality

Confident in dataprovided by external

sources

0 20 40 60 80 100

Current/ As-is State

High Supplier CostsLack of CompliancePoor Supplier Data

Integrated Supplier Management

Low Cost per SupplierHigher ComplianceMinimize reputational cost

Reduce Internal Overhead

Risk alerting and risk strategy

Achieve Global visibility

Supplier Strategy and Collaboration

Enriched and validated data

Cost of Bad Data

Source: Gartner Research

Legacy Systems Multiple data sources

Manual processes No data validation

Outdated technology

Multiple Users

The impact of poor supplier data across the P2P process takes many forms and each is costly

Manual Supplier on-boarding can cost up to $1MM per year

Duplicate supplier records lead to millions of dollars in

duplicate payments

The ACFE estimates that fraud costs organizations about 7% of

annual revenues

On-Boarding

Automate collection,

maintainance of supplier data

Proactively monitor and roll-up a variety of risks: financial,

political etc

Compliance to Industry specific

and generic requirements

Complete picture from all internal

sources of supplier information

Single point for duplicate free and

validated information

Risk

Compliance

Performance

Master Data

Step 1 Identify potential areas of benefit, savings, and ROI

Accounts Payable- Time savings, Capture early payment discounts

Compliance- Time, Fines/Penalties/Costs

Diversity- Missed revenue for lack of compliance (small business), Time

General- Elimination of paper/scanned documents, Other error reconciliation, Time

Legal- Time spent searching for contracts, Standardized contracts, Decreased cost of liability

Procurement IT- Time, Product Displacement

Risk and Performance- Reputational/brand risk- Costs attributed to delays upon supply chaindisruption reaction, Cost increase due to Tier-n insolvency, Loss of revenue due to supply chaindisruption, Missed opportunities to scorecard supplier

Sourcing- Capture of Rebates, Minimize off-contract spend, Limit increase/cost in suppliersonboarded, Elimination of 3rd Party Data Enrichment

Supplier Master- Loss of revenue due to cycle time of on-boarding

3 Steps for Organizations!

Step 2 Attribute a value to create a data driven value proposition

Contact HICXStep 3

HICX enables the most complex organizations to leverage their Supplier data through its bespoke Supplier

Management solutions built around proprietary state-of-the-art workflows, supplier data models, search

algorithms, web interfaces, integration capabilities.

www.hicxsolutions.com