ESourcing made easy. Key facts about SourceWeb eSourcing software and services company Established...

eSourcing made easy

Key facts about SourceWeb

• eSourcing software and services company

• Established in 2011

• Headquartered in Gurgaon, NCR with regional office in Chennai

• Set up by two young and pedigreed engineers cum management graduates

• Leadership success at IBM, Sify, BPCL, MapmyIndia, Bain & Company, BNP Paribas, Leo Burnett etc.

• Significant experience in purchase, finance, operations and automotive domain within the core and advisory team

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SourceWeb has a simple mission

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To empower businesses to manage their sourcing function in the most efficient way- by widespread adoption of innovative, easy to use, rapidly deployed and cost effective applications

SourceWeb represents a paradigm shift in the way eSourcing software is designed and delivered. This is what differentiates SourceWeb from competition

What is eSourcing?

• Simply put, using electronic tools for conducting sourcing activities

• Suitable for all type of sourcing requirements-Direct material

- Indirect material

-Capital equipment

-Services

• Incorporation of price as well as non-price factors

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Market information

Get quotes

Negotiate prices and choose winning

supplier(s)Award work and

conclude contract

Why is eSourcing beneficial to you and your suppliers?

Clear benefits for you…

• Fast cost reduction and high RoI

• Improved efficiency and centralization of information

• Repeatability and audit ability of the sourcing process

…and your suppliers

• Transparency and openness in sourcing

• Instant feedback and closure through an interactive process

• Shortening of sales cycle leading to lower sales cost

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These are discrete sourcing processes. One can use eSourcing tools for any one or combination of these

eSourcing is easy to do; simple eSourcing tools correspond to various stages of sourcing

Search for suppliers of

various products and services

RFP

Create and publish RFIs, RFPs

and RFQs

Conduct negotiations

online

Select a supplier, conclude contracts

and place order

Save money

Supplier Registration

RFX Reverse Auctions

Contract Managemen

t

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Click to navigate




RFP


and RFQs


online


and place order

Save money

RFX


7

Click to navigate


Reverse Auctions

Contract Managemen

t

Supplier Registration enables you to engage existing suppliers and court new suppliers 24X7

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Always keep finding new suppliers• Always on web interface for new suppliers to register themselves• Have a ready set of suppliers even before you actively start supplier

development • Rewards proactive and ambitious suppliers

Keep control of the supplier empanelment process• Evaluate suppliers with your own supplier evaluation processes and

standards• Empanel suppliers when they meet ‘your’ standards

Supplier enablement• Supplier self-service: Get current, accurate and complete supplier

information filled by suppliers themselves

No capex, operate on an opex model• No upfront investments in software and hardware due to SaaS

delivery model

SourceWeb Supplier Registration is focused on the right features

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Easy user interface for suppliers to register• User friendly interface: Easy intuitive web UI, users not

dependent on training• Supplier registration wizard: Step by step guidance for supplier

registration• Custom fields: Define additional customer specific attributes• Powerful search engine: Use keywords to search on various fields

Exhaustive and customizable supplier registration form• Basic and contact details• Financial details• Standard UNSPSC and customized drill down taxonomy of

products and services • Catalogues and customer references• Government and tax registrations• Certifications• Attachments uploads




RFP


and RFQs


online


and place order

Save money

RFX


10

Click to navigate


Reverse Auctions

Contract Managemen

t

RFX is a multipurpose module, with wide usage across departments

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Request for Information

• Requesting expression of interest (EoI) and also information from suppliers

• Understand supplier market dynamics

• Obtain information so that a common RFP document can be invited

Request for Quote

• Invite formal quotes for purchase items

• Sealed bids from suppliers invited and evaluated

• Can use the bids to set up a reverse auction, depending on item type

Request for Proposal

• Invite proposals from suppliers

• Pre-qualify them for bidding round if they meet the technical & commercials requirements

RFI

RFP

RFQ

RFX

Sup

plie

r/ Ven

dor

RFX, simplifying management of your RFPs

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I

II

Where Hosur

How much 50K

When 9 week

Quote Item 1 $9.5

Quote Item 2 Rs875

Where Sanand

How much 10K

When 6 week

Quote Item 1 $11

Quote Item 2 Rs925

Where Noida

How much 20K

When 3 week

Quote Item 1 $18

Quote Item 2 Rs1100

Where Delhi

How much 35K

When 5 week

Quote Item 1 $21

Quote Item 2 Rs1000

Where Hosur

How much 50K

When 9 week

Quote Item 1 $9.5

Quote Item 2 Rs875

Where Noida

How much 20K

When 3 week

Quote Item 1 $18

Quote Item 2 Rs1100

Where Sanand

How much 10K

When 6 week

Quote Item 1 $11

Quote Item 2 Rs925

Where Delhi

How much 15K

When 1 week

Quote Item 1 $17

Quote Item 2 Rs1200

I II III IV

Where Delhi Sanand Noida Hosur

How much 15K 10K 20K 50K

When 1 week 6 week 3 week 9 week

Quote Item 1 $17 $11 $18 $9.5

Quote Item 2 Rs1200 Rs925 Rs1100 Rs875

Bu

yer/

pu

rchase

r

• Simplifies RFX management for any product/ service

• Manage suppliers, publish RFX, invite bids & evaluate at the click of a mouse

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SourceWeb RFX focuses on usability and support, and has the right number of features

Usability

• Create partial forms- save drafts

• Step by stem wizards to create RFX and create RFX response

• Export forms and responses to excel, word, PDF

• Use existing RFX as templates for re-use

• Batch downloads of attachments

• Industry category master

• Global location maser

• “Unit of measurement “master

• Multiple time-zones support

• Multiple currency support

Features

• Dynamic form creation • RFX accessibility-

private/ open• Deadline- hard/ soft• My Suppliers- buyer’s

supplier network• Edit published RFX• Summary of changes in

tracked mode• Change privacy and

deadline of a published RFX

• Add and delete suppliers from published RFX

• Un-submit supplier responses

• Retract RFX• Reminders to suppliers• Auto/ manual close RFX• Live response status• Live response

tabulations- quotes, questionnaire responses, by supplier etc.

Support & service

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• 12x5 support• Onsite support• Remote debugging• FAQs

• SSL enabled website- https://

• Audit trail• Auto expiry of

password• Email

authentication• Strict access

control rights management

• Firewalls• Intrusion detection

systems• IP Block• Antivirus• Disaster recovery• Backup policy

Security

• Guided on-boarding/ self registration

• Search and respond to public RFX

• Notify intention to respond

• Request resubmission of response

• Summary of changes of republished RFX

Buyers Suppliers

Common

• Dashboards• Profiles• System

notifications• Private messaging• List of pending

actions for easy tracking 13

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Parameters Manual process Sourceweb RFXEfficiency

Time taken per RFX Time consuming Automated and fast Repeatability Every process starts from scratch Repeatability in a click

Errors Error prone No manual errors Commercial benefit

Cost per RFP Expensive- less RFXs per person Economic- same person can handle more RFXs

Supplier network Few bids, local participation High, global participation Purchase price High Price reduction over time

Organizational effectivenessAudit No audit trail Audit trail created at every action

Record keeping Records seldom kept- no automatic record keeping Automatic record keeping

Data security Always suspect Assured data security Employee on-boarding Lengthy training Quick onboarding due to ease of use

Organization impact Keeps status quo, intelligence housed in employees who may leave

Progressive, intelligence instituted within the organization

Supplier enablement No suppler modernization and enablement E-enablement and process enablement of suppliers

Environment impact Paper intensive Paperless

The benefits of using SourceWeb RFX are easy to see, quick to achieve and measureable

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SourceWeb RFX has the highest level of internet security

https://- SSL enabled website which ensures secure transmission of data between user’s machine & server

Strict access control policies, rights management

Use of latest firewalls

Intrusion detection system

Antivirus

Audit Trail, IP block, etc.

Disaster management system

Auto expiry of password, email authentication

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SourceWeb places a huge amount of emphasis on security, and has adopted world’s best and most stringent security standards

Sourceweb RFX is quick and easy to deploy

• Receive the welcome kit in a secured file from SourceWeb

• Use the given login credentials to login to https://www.sourceweb.in for the first time

• Change the password at first login

• You are good to go. Start saving. Call us for any help

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RFP


and RFQs


online


and place order

Save money


RFX

17

Click to navigate


Reverse Auctions

Contract Managemen

t

What is Reverse Auction?

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• Real time competitive event helps reach the correct market price quickly

• Price needs not be the only criteria- weights can be assigned to non-price criteria like switching costs, product quality, service quality, reliability etc.

• Most popular way of conducting negotiations online

• Sellers compete to win the right to supply goods and services

• The price decreases progressively until no more lower bids are received

• Let us take an illustrative example

• Lets say you need to buy steel plates for your upcoming project

• Steel Plates are required in 3 to 12mm thickness

12mm 10,000 Kg

10mm 10,000 Kg

8mm 5,000 Kg

6mm 5,000 Kg

3mm 5,000 Kg

Reverse Auction- how does it work, an example

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Item Qty Min Starting Bid

Winning Bid Winning Bidder

Plate-12mm 10,000 Kg 35.00 35.00 Bidder1





Server Date-Time: 05-Feb 13:00:00

Auction Ends in: 120 Min, 0 Sec

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• Bidders can bid on any item any time

• Bidder must place a bid lower than his own last bid for the item



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22











23











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• A Bid came in last 5 minutes so auction time is extended by another 10 minutes

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Auction Ends in: Auction ended

• No more bids and auction end time has passed. Auction ends

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• You can save between 5-50% depending upon nature of the Item.

Item Qty Min Starting

Bid

Winning Bid

Winning Bidder

Savings(INR)

Plate-12mm 10,000 Kg 35.00 32.00 Bidder1 30,000





Total savings

77,500

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What benefits do I get out of reverse auction?

Save hard cash

• Competitive bidding ensures that price reaches the ‘correct market price’

• Savings between 5-50% are common, depending upon the category

Time is money

• Price negotiation can take months, especially if number of suppliers is large

• With reverse auction, you can discover the right price in as less as 30 minutes

Good suppliersalways like it

• Shortening of sales cycle leading to lower sales cost for suppliers

• Transparency and openness in sourcing- opportunity for non incumbent progressive suppliers

Transparency and audit• Electronic process with

automatic error checking and audit trail

• Trails and reports can be used for audit purposes. Purchase auditors will love you for it

How to do a reverse auction- general guidelines*

Clear specifications• Create very clear WRITTEN specs for

the product/ service

• Attach supporting documents, pictures, test specifications

• Allow time and opportunity to suppliers to ask questions/ clarifications

Market dynamics• Competition for your business should

be high. Suppliers should be willing to compete for your business

• Order should be attractive for the suppliers

• The number of competing suppliers should not be too low

Supplier communication• Important to convey your own

commitment to reverse auction process to suppliers

• Walk the talk by using bids received in reverse auctions to award business

• Reverse auctions benefits good suppliers. Communicate the benefits.

Prequalification of suppliers• Critical ingredient for success.

Prequalify using questionnaires. Can use eRFX tools or do in offline way**

• Ensures suppliers have the capability to deliver and understand the product specifications well

• Helps set start prices

*SourceWeb provides a detailed document on guidelines to doing a reverse auction. Please do not hesitate to ask for the document**SourceWeb provides an extremely easy to use and cost effective eRFX software

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Purchase categories most often sourced using reverse auctions

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Categories Products/ services

Capital Expenditures Office Equipment, Vehicles, Basic Construction, Materials, Architectural and Engineering Services, Furniture etc.

Overhead and Support

Business Travel, Office Supplies, General Insurance, Auto Fleet, Trainings, Travel and Hotels, Insurance etc.

Facilities Utilities, Contract Services Building Maintenance, Outside services- Temp labour, Security, Gardening / Environmental, Janitorial and Property, Waste, Catering etc.

Information Technology & Communication

Mainframe Equipment, System Software, Contract Programmers, Software (Package & Custom), Telecommunications Hardware, Set Top Boxes, Telecom Access, Equipment Rental, Data Processing Services etc.

Marketing and Advertising

Media Space (Planning and Buying), Advertisement, Direct Mail, Commercial Printing, Market Research, Telemarketing, Promotional Items, Public Relations, Promotions and Sponsorships etc.

Others Freight- local, domestic and international, Packing supplies, Perishable goods, R&D/Lab supplies

Why use SourceWeb for Reverse Auction?

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• Extremely easy to use

• Proactive phone and email support

• Best practices embedded

• Free guides and resources to help get more out of your events

• Transparent per auction pricing

• No ‘percentage of identified savings’ pricing

Features of SourceWeb Reverse Auction (1 of 2)

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Technology- Based on robust Microsoft .Net 2.0 and Microsoft SQL Server- Easy to use GUI-Windows Interface- Application and data security through passwords and code obfuscation

- Application and data hosted on servers managed by Amazon Web Services

Settings- Any number of items per auction- Auctions in any currency- Bidders and buyers can be in different time zones- Auto extension- Upload specifications and documents

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Features of SourceWeb Reverse Auction (2 of 2)

Software Features- Instant Smart Notifications for winning bids, new messages, auction status changed, auction extension, auction paused, auction extended

- Send and receive messages from admin during the auction

Buyer- Bidding status for all items in the auction- Ability to pause the auction- Real time bidding graphs - Post Auction reports with

8 Complete auction details and history8 Bidding graphs8 Winning bids and bidders with rank (L1,L2..)8 Auction savings

Bidder- Direct and proxy bidding - Bids can have bid decrement set at item level- Excessive bid variation warning- Next valid bid automatically suggested in bidding window

Step by step guide to a SourceWeb Reverse Auction- a collaborative, methodical processIdentify the product/ service/

project to be sourced

using reverse auction

Create clear written

specifications of the

item

Create an RFQ with

the detailed product

specifications and pre-qualification questionnai

re

Float the RFQ to all potential suppliers. Include as

many suppliers as feasible at this stage

Identify the qualified suppliers based on

your parameters. Communica

te the results to all participants

Communicate your

intention and

commitment to use reverse auction

negotiation to the

eligible suppliers

Send details of the

eligible suppliers

and starting quotes to

SourceWeb

SourceWeb creates the

reverse auction event in

consultation with the buyer

SourceWeb trains the suppliers and the buyer on

the reverse auction module

Suppliers fill a Process

Compliance Form,

binding them to the T&C in the

RFQ document and also

T&C of the event

SourceWeb communica

tes personalize

d login credentials

to all participants

shortly before the

event

Actual event.

SourceWeb personnel on standby to address any real

time issues

Upon completion of auction, detailed report of auction

sent to the buyer on the same

day by SourceWeb

SourceWeb sends thank

you note and

feedback form to all

participants including the buyer

Buyer communica

tes the result to both the

successful and non-

successful participants

Regular procurement processes- contracts, POs etc.

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RFP


and RFQs


online


and place order

Save money


RFX

35

Click to navigate


Reverse Auctions

Contract Managemen

t

Effective Contract Management has huge benefits: risk mitigation, efficiency, governance

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Gain visibility to manage risk and obligations• Achieve compliance and reporting• Prevent missed deadlines and opportunities, unmet obligations,

unenforced rights and overlooking key automatic renewal dates• Avoid contractual penalties and other associated costs due to poor

governanceCentralize contracts to eliminate inefficiency

• Traditional way of contract management is ‘Contract Mismanagement’• Centralized contracts eliminate

• Missing contracts• Contracts not accessible because the contract owner is on ‘leave’• Multiple copies with no clarity on final, executed copy

No capex, operate on an opex model

• No upfront investments in software and hardware due to SaaS delivery model

SourceWeb Contract Management is focused on the right features, not maximum features

Contract filing• Content creation wizard: Step by step guidance for contract creation• Custom fields: Define additional customer specific attributes• Cloning: Copy contracts to create similar documents• Audit tracking: Trace amendments made to the contract for purposes of

compliance monitoring and auditing• Attachments: Attach documents such as addendum, exhibits etc.

User friendly interface: Easy intuitive web UI, users not dependent on trainingPowerful search engine: Use keywords to search on various fields

Alerts: Enable rule based advanced alert notifications to promote timely action by usersTask milestone: Manage milestones of tasks such as due date, priority etc.

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We are happy to help

Konark Singhal Manesh Jain

• Former VP, MapmyIndia

• Ex Management Consultant, Bain & Company

• MBA, IIM Bangalore

• B Tech, IIIT Allahabad

• Instrumental in growing MapmyIndia to the leading navigation player in the region

• Experience of solutioning and management consulting at the highest level. Experience of raising equity at MapmyIndia

• [email protected]/ 9818657760

• Former strategy consultant, IBM

• Ex Project Manager, Sify Software

• MBA MDI Gurgaon (Gold medallist)

• Rich experience in Implementing large IT initiatives delivering business value

• Experience in Product Management and Client facing functions

• Experience in implementing channel management and extra enterprise solutions

• [email protected]/ 989975699738

mailto:[email protected]/

mailto:[email protected]/

ESourcing made easy. Key facts about SourceWeb eSourcing software and services company Established...

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