Managing Indirect Spend

Joe Payne, Director of Strategic Sourcing, Source One Management Services, is an experienced consultant who has helped many companies reduce costs and manage change. He leads a team of project managers and analysts, developing insights into the challenges organizations face when undertaking initiatives to reduce costs in the area of indirect spend. William R. Dorn, Jr., Director of Operations, Source One Management Services, is a certified Six Sigma Black Belt with extensive experience in large-scale projects for Fortune 500 companies and the federal government. His expertise includes business analysis; mechanical and manufacturing engineering; business process reengineering; risk analysis; and technology design, acquisition, and implementation.

Preface xi Acknowledgments xvii Introduction: What Is Indirect Spend, and How Does One Manage It? 1 PART ONE: THE PROCESS Chapter 1: An Introduction to Strategic Sourcing 9 Joe Payne Chapter 2: Data Collection and Analysis 15 Joe Payne Chapter 3: Conducting Research 47 Joe Payne Chapter 4: The RFx Process 63 Kathleen Daly Chapter 5: Scorecarding Suppliers 89 Kathleen Daly Chapter 6: Negotiations 103 Joe Payne Chapter 7: Get It in Writing 121 Joe Payne Chapter 8: Implementation and Continuous Improvement 145 Joe Payne Chapter 9: What Not to Do During a Strategic Sourcing Initiative 167 William Dorn PART TWO: THE TOOLS Chapter 10: The Importance of Market Intelligence 191 William Dorn Chapter 11: Tools to Assist You in Gathering Data and Expediting the Sourcing Process 207 William Dorn Chapter 12: Increasing Stakeholder Engagement 231 David Pastore PART THREE: EXAMPLES FROM THE FIELD Chapter 13: Supplier Collaboration 245 William Dorn Chapter 14: Leveraging Supplier Feedback 255 William Dorn Chapter 15: Data Analysis 263 David Pastore PART FOUR: HOW TO DO IT Chapter 16: Offi ce Supplies and the Sourcing Process 277 Jennifer Ulrich Chapter 17: Negotiating Local and Long-Distance Telecommunications Services 299 David Pastore Chapter 18: How Cell-Phone Management Drives Continuous Cost Savings 315 William Dorn Chapter 19: Getting the Best Small Package Rates 339 William Dorn Chapter 20: Making Sense of MRO Spend 355 Kathleen Daly Chapter 21: Analyzing Shipping Costs 381 Joe Payne Chapter 22: Sourcing Services 401 Jennifer Ulrich and Scott Decker About the Authors 423 About the Contributors 425 Index 427