Supply ChainManagement

IBM Global Business Services

Supply Chain Management—Procurement Services

Gaining competitive advantage through effective enterprise spend management

Supply Chain Operations

Product LifecycleManagement

Supply ChainPlanning

Logistics

Supply ChainManagement

Supply Chain Enterprise Applications

Supply Chain Strategy

Procurement

An on demand supply chain for a realtime worldThe role of the supply chain is changing as it moves from a static, cost-centric model to an evolving, integrated model. Organizations are focusing on the supply chain to help transform their businesses by:

• Altering the way they think,

organize and execute

• Looking at business processes

horizontally rather than vertically

• Integrating processes within and

beyond the enterprise

Companies are moving toward a dynamic, realtime supply chain model that features key characteris-tics of an e-business on demand™ enterprise. An on demand supply chain is supported by applica-tions that enable realtime informa-tion visibility inside and outside the enterprise. It can respond to changes in market conditions faster than traditional supply chains and uses realtime information to sense shifts and redirect resources. An on demand supply chain is adaptable and can enable you to seize market opportunities based on actual demand and market conditions. With an on demand supply chain, you can optimize existing investments to increase productivity and business flexibility, and extract greater value from data to drive business innova-tion. Plus, you can take advantage of variable cost structures to align costs with revenue and share risk across a network, rather than concentrate it in a single enterprise.

Organizational change issues, lack of supplier readiness and catalog enablement problems frequently prevent many establishments from using e-procurement systems to their full potential.

The compelling value achieved through effective procurement practices is often much harder to achieve than many companies realize. Capturing productivity im-provements requires access to spe-cialized expertise, enabling technol-ogy and a sound strategy that can be deployed across and beyond the enterprise. IBM Supply Chain Man-agement - Procurement Services leverages IBM’s broad range of ca-pabilities, including strategy, process improvement, enablement services and technology, to help you secure better prices and achieve greater ef-ficiency, tighter control of spend and improved service levels.

New trends. New solutions.Existing economic conditions and fierce competition are forcing organizations to seek new ways to reduce costs and enhance profit-ability and cash flow. Businesses are feeling the pressure to improve procurement effectiveness, and a focus on strategic sourcing and hosting offerings is becoming a popular first step. E-procure-ment point solutions are fading, yet companies still want to protect procurement investments. To ef-fectively analyze and manage total procurement spend, companies need basic as well as comprehen-sive information, and visibility into purchasing spend and behaviors. Enterprises need operational and supplier performance measure-ments to know how they are doing, yet many lack expertise in strategic sourcing and the ability to effec-tively manage supplier relationships.

Putting best practices to work for youIBM’s approach to effective supply chain procurement practices builds on your past efforts and investments. Our strategy covers three focus areas: business transformation, to help you change existing procure-ment practices using best-practices business processes and leading technology; core business applica-tion solutions, to help you improve business efficiency; and enterprise integration, to help you reduce costs and increase productivity.

IBM offers the following capabilities to help you better manage enterprise spend:

• Procurement strategy

• Procurement opportunity

assessment

To help you build an on demand supply chain, IBM brings a wide range of capabilities to your en-terprise. IBM can assess your on demand maturity, prioritize which on demand initiatives could have the greatest impact on shareholder value and implement off-the-shelf or customized on demand solutions. And IBM can effectively manage non-core procurement activities on an outsourced basis, so you can focus on your core business. IBM Leveraged Procurement Services is an IBM-hosted, on demand solution that can help you realize rapid return on investment by helping you rein in maverick spending and save time on customized supplier enable-ment. IBM professionals can help you implement direct procurement relationships with suppliers through customized use of IBM strategic sourcing expertise. And IBM works closely with you to develop a framework that complements your sourcing and procurement opera-tions, and that helps you capitalize on the efficiencies of conducting business via the Web.

• Procurement process

reengineering

• Strategic sourcing

• Procurement application

implementation

• Supplier enablement

• Supplier relationship management

• Procurement transformational

outsourcing

• Procurement application

management services and

hosting services

Leveraging lessons learned for big benefitsIn addition to completing hundreds of successful customer engagements, IBM went through its own procurement transformation, across multiple divisions. Reorganizing procurement infrastructure for effectiveness, enhancing professional skills, improving governance and compliance with procurement policies, instituting sound business processes and building a unified technical architecture enabled IBM to save US$42 billion in managed spend.

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IBM Global Services Route 100 Somers, NY 10589 U.S.A.

Produced in the United States of America 07-06 All Rights Reserved

IBM, the IBM logo, e-business on demand and e(logo) business on demand lock-up are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both.

Other company, product and service names may be trademarks or service marks of others.

References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

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Confidence in global supply chain solutionsWith professionals in more than 160 countries globally, IBM Business Consulting Services is among the world’s largest consulting services organization, providing clients with business process and industry expertise, a deep understanding of technology solutions that address specific industry issues, and the proven ability to design, build and run those solutions in a way that has the potential to deliver bottom-line business value. Detailed industry knowledge and extensive, strategic relationships with leading and emerging supply chain applica-tion vendors—including SAP, Ariba Inc., Perfect Commerce, Oracle and Emptoris Inc.—allow us to develop customized supply chain solutions that are designed to address your unique requirements. Known for innovative thinking built on focused business and technology research, IBM is committed to helping you fuse business insight with technology to drive lasting economic advantage.

Learn moreFor more information on IBM Global Business Services and Supply Chain Management Services, please contact your IBM sales representative, or visit:

ibm.com/bcs/supplychain