Accelerated sourcing and procurement operations

• US 20040162763A1
• Filed: 02/19/2003
• Published: 08/19/2004
• Est. Priority Date: 02/19/2003
• Status: Active Grant

• Current Assignee: Accenture Global Services Limited (Accenture PLC)
• Original Assignee: Accenture Global Services GmbH (Accenture PLC)
• Inventors: Soneja, Vivek, Zagata, John, Hoskin, Glenn W.
• Granted Patent: US 7,302,405 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 10/103 Workflow collaboration or project management
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/0204 Market segmentation
• CPC Class Codes: G06Q 30/0253 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

Disclosed is an accelerated sourcing and procurement framework for developing and managing procurement operations. The sourcing and procurement framework, includes sourcing, contracting, vendor management, back office operations, and performance reporting, and can be combined with the management of the physical flow of good. The present invention provides for compliance with specific rules or regulations, includes the strategic, operational and financial components of procurement, can be implemented on an accelerated timeframe, develops a single procurement source, and is formulated in a manner that allows for complete or partial outsourcing.

Claims

1. A sourcing and procurement framework for developing and managing procurement operations in an accelerated manner, including developing and implementing a catalog of procurement items, and interrelated and interdependent business processes, the sourcing and procurement framework comprising:

a sourcing operations task set containing related tasks for developing a strategic overview of a client'"'"'s spend profile, supplier base, supplier industry dynamics and cost of ownership models;

a negotiation and contracting task set containing related tasks for developing contractual relationships with vendors;

a managing vendors task set containing related tasks for developing enhanced vendor capabilities;

a back office operations task set containing related tasks for managing the procurement of the procurement items; and

a performance reporting task set containing related tasks for reviewing and reporting the performance of the vendors, a procurement team, or a client'"'"'s spend activity.

2. The sourcing and procurement framework of claim 1, further comprising a managing the physical flow of goods task set containing related tasks for providing a single conduit between suppliers and purchasers, providing warehousing services, and providing logistical services.

3. The sourcing and procurement framework of claim 1, wherein the sourcing operations task set further comprises:

a data collection and analysis task for collecting and analyzing the spend data of an organization to determine the spend profile and spend dynamics;

a segment purchases task for analyzing procurement items to determine how to logically segment purchases;

an industry analysis task for analyzing an industry to determine competitive pressures impacting supply markets of commodities to be sourced;

a total cost of ownership model task for determining a total cost of ownership to procure a given item;

a spend category strategy task for analyzing a client'"'"'s business need associated with a particular commodity;

a supplier analysis task for analyzing supplier capabilities and financial stability; and

a request for information task for submitting a request for information to a potential vendor.

4. The sourcing and procurement framework of claim 1, wherein the negotiation and contracting task set further comprises:

a request for proposal task for submitting a request for proposal to a vendor;

a prepare fact based negotiation packages task; and

a negotiate value propositions task.

5. The sourcing and procurement framework of claim 4, wherein the negotiation and contracting task set further comprises a conduct on-line auctions task for obtaining bids from vendors.

6. The sourcing and procurement framework of claim 1, wherein the managing vendors task set further comprises:

an implementing vendor agreements task; and

a monitor vendor performance task.

7. The sourcing and procurement framework of claim 6, wherein the managing vendors task set further comprises a develop supplier programs task.

8. The sourcing and procurement framework of claim 1, wherein the back office operations task set further comprises:

an order management task for managing orders made from a catalog of approved items;

a receipt verification task for verifying receipt of approved orders;

a matching, validation, and approval task for approving orders;

a vendor payment task for paying vendors for approved orders;

an invoicing task for invoicing a client for payments made on approved orders; and

a catalog development and maintenance task for maintaining a catalog of approved items.

9. The sourcing and procurement framework of claim 1, wherein the performance reporting task set further comprises:

an order status task for reviewing current outstanding orders;

an inventory levels task for reviewing inventory levels of previously procured items;

a budget and financial analysis task for analyzing the procured items with an assigned budget;

a vendor performance task for reviewing vendor performance with a vendor; and

a compliance monitoring task for monitoring compliance with approved procurement processes.

10. A sourcing and procurement method for developing and managing sourcing and procurement operations in an accelerated manner, including developing and implementing a catalog of procurement items, and interrelated and interdependent business processes, the sourcing and procurement method comprising the steps of:

developing a strategic overview of a client'"'"'s spend profile, supplier base, supplier industry dynamics and cost of ownership models;

developing contractual relationships with vendors;

developing enhanced vendor capabilities;

managing the procurement of procurement items; and

reviewing and reporting the performance of the vendors, a procurement team, or a client'"'"'s spend activity.

11. The sourcing and procurement method of claim 10, further comprising reviewing the sourcing and procurement operations for compliance with applicable rules and regulations by a rules and regulations specialist.

12. The sourcing and procurement method of claim 10, wherein the step of developing a strategic overview further comprises the steps of:

collecting and analyzing the spend data of an organization to determine the spend profile and spend dynamics;

analyzing procurement items to determine how to logically segment purchases;

analyzing an industry to determine competitive pressures impacting supply markets of commodities to be sourced;

determining a total cost of ownership to procure a given item;

analyzing a client'"'"'s business need associated with a particular commodity;

analyzing supplier capabilities and financial stability; and

submitting a request for information to a potential vendor.

13. The sourcing and procurement method of claim 10, wherein the step of developing contractual relationships with vendors further comprises the steps of:

submitting a request for proposal to a vendor;

preparing fact based negotiations packages; and

negotiating value propositions.

14. The sourcing and procurement method of claim 13, wherein the step of developing contractual relationships with vendors further comprises the step of conducting on-line auctions to obtain bids from vendors.

15. The sourcing and procurement method of claim 10, wherein the step of developing relationships with the vendors further comprises the steps of:

implementing vendor agreements; and

monitoring vendor performance.

16. The sourcing and procurement method of claim 15, wherein the step of developing relationships with the vendors further comprises the step of developing supplier programs to encourage enhanced vendor performance.

17. The sourcing and procurement method of claim 15, wherein the step of monitoring vendor performance further comprises reviewing delivery performance, quality and pricing of the vendor.

18. The sourcing and procurement method of claim 10, wherein the step of managing the procurement of procurement items further comprises the steps of:

managing orders made from a catalog of approved procurement items;

verifying receipt of approved orders;

approving orders;

paying vendors for approved orders;

invoicing a client for payments made; and

maintaining a catalog of approved items.

19. The sourcing and procurement method of claim 18, wherein the step of managing orders made from a catalog of approved items further comprises the steps of:

selecting by a submitter an item from the catalog of approved procurement items;

submitting by the submitter a purchase order for the item; and

reviewing the purchase order.

20. The sourcing and procurement method of claim 19, wherein the step of managing orders made from a catalog of approved procurement items further comprises the steps of:

approving the purchase order; and

placing an order for the item with a vendor.

21. The sourcing and procurement method of claim 19, wherein the step of reviewing the purchase order further comprises the step of reviewing the purchase order for conformity with applicable rules and regulations.

22. The sourcing and procurement method of claim 19, wherein managing orders made from a catalog of approved procurement items further comprises the steps of:

rejecting the purchase order; and

notifying the submitter of the rejection.

23. The sourcing and procurement method of claim 18, wherein the step of invoicing a client for payments made further comprises the steps of:

receiving an invoice from a vendor;

matching the invoice to corresponding documentation; and

approving payment.

24. The sourcing and procurement method of claim 23, wherein the step of invoicing a client for payments made further comprises the step of validating the invoice.

25. The sourcing and procurement method of claim 18, wherein the step of developing and maintaining a catalog further comprises the steps of:

developing the catalog;

reviewing the catalog for accuracy; and

correcting any inaccuracies.

26. The sourcing and procurement method of claim 10, wherein the step of reviewing and reporting performance comprises the steps of:

reviewing current outstanding orders;

reviewing inventory levels of previously procured items;

analyzing the procured items with an assigned budget;

reviewing vendor performance with a vendor; and

monitoring compliance with approved procurement processes.

27. The sourcing and procurement method of claim 10, further comprising the step of managing the physical flow of goods.

28. The sourcing and procurement method of claim 27, wherein the step of managing the physical flow of goods further comprises the steps of:

providing a single conduit between suppliers and purchasers;

providing warehousing services; and

providing logistical services.

29. A method for providing outsourceable sourcing and procurement services by a sourcing and procurement team for an organization, comprising the steps of:

developing a strategic overview of the organization'"'"'s spend profile, supplier base, supplier industry dynamics and cost of ownership models.

selecting vendors;

developing contractual relationships with the selected vendors;

creating a catalog of approved procurement items for procurement from the selected vendors;

developing enhanced vendor capabilities;

managing the procurement of approved procurement items;

reviewing the performance of the selected vendors; and

reporting the performance of the selected vendors.

30. The method of claim 29, further comprising the step of reviewing the sourcing and procurement services for compliance with applicable rules and regulations by a rules and regulations specialist.

31. The method of claim 29, wherein the step of managing the procurement of approved procurement items further comprises the steps of:

managing orders made from a catalog of approved items;

verifying receipt of approved orders;

approving orders;

paying vendors for approved orders;

invoicing a client for payments made; and

maintaining a catalog of approved items.