Supply chain-optimization-sco-guide (1)

A Guide to Supply
Chain Optimization
From procurement to asset
management and beyond

2Insight proprietary and confidential. Do not copy or distribute. © 2018 Insight Direct, USA. All rights reserved. 1.800.INSIGHT • insight.com
Now, more than ever, the IT department is tasked with both supporting and growing
the business — a tall order not always accounted for in resource allocation. Although
budgets are on the rise, they’re not rising at a rate fast enough to cover both managing
every day and investing in the future. To succeed, you need to be able to do more — much
more — with the resources you have.
More organizations are taking a comprehensive approach to the IT supply chain, making
a shift toward strengthening all areas of it. Understanding drivers, challenges and best
practices for each moving part of the supply chain can help you ensure more continuity and
efficiency for all lines of the business.
This guide breaks down each of these areas, outlining key roadblocks and what to consider
when driving optimization.
The
changing
role of IT

31.800.INSIGHT • insight.comInsight proprietary and confidential. Do not copy or distribute. © 2018 Insight Direct, USA. All rights reserved.
A path to better procurement
With both efficiency and quality becoming more necessary to the IT supply chain,the procurement process is no longer a
means to an end.Two ideas are driving this shift: First,the technology that an organization procures sets the tone of the
entire company’s IT success in the coming years.Second,with a robust set of products readily available,procurement is
becoming less about those products and more about how efficient the process is.
In ProcureCon IT’s 2017 IT sourcing benchmark report,the five biggest benefits of implementing an effective IT procurement
strategy include increased efficiency,mitigated risk,reduced costs,innovation and improved procurement intelligence.¹
But the procurement process is wrought with many moving parts,and each is vital to driving benefits across all of the above
areas.Let’s look at some common challenges surrounding IT procurement and how to address them.
Section 1: Procurement

Challenge: Driving uniformity and managing access
Organizations are increasingly embracing self-service capabilities to empower modern workers.But offering self-service tools
for procurement comes with its own set of challenges: mainly,driving standardization (a challenge even non-self-service
organizations face).
Preventing users from going rogue and accessing or purchasing items they may not need requires deeper access control and
more flexibility within the procurement platform.Users may not know where to go vendor-wise or which specific machines
or licenses would be most appropriate.
Even worse,buyers may find themselves frequenting online consumer resellers for convenience.Although this is a quick
option,it may create chaotic support inefficiencies downstream and doesn’t offer the benefit of other lifecycle support
considerations,such as deployment,maintenance and asset disposition.This is where standardization becomes key.
Solution: Standardization with flexibility
As procurement tools evolve,they allow organizations to define authorized personnel who can access particular catalogs.
This could be set up as a 1:1 or 1-to-many scenario,which can vary depending on company size.For smaller operations,a
single catalog to which all users have access may be sufficient.For larger companies,getting more granular brings focus to
an otherwise fragmented collection of devices and solutions for many different subsets of roles.
For example,one user group within the organization may be strictly device-based,needing access to a preapproved list
of laptops and desktops.Another user group may need access to a catalog with only networking or infrastructure-related
equipment.This alleviates a related sub-challenge: having fragmented search options for vendors and products,which
exhausts precious time.
A common scenario,especially for those in the Small to Medium Business (SMB) space,entails users having to contact sales
reps for last-minute requests.Due to factors such as approval processes,inventory checks and price sourcing,these requests
are often unable to be filled in a timely manner.Leveraging self-service puts the power in the end user’s hands through
controlled access that gives him or her enough options to feel autonomous.
Driving optimization in the procurement process by including self-service and automation frees up valuable and expensive
resources to focus on more strategic business objectives.

Challenge: Gaining visibility into purchases
In a DeltaBid study of more than 500 procurement professionals,the need for accurate data was frequently cited as a top
challenge.According to survey results,“Market research,benchmarking and spend analysis appear to be the areas where
data is lacking.”2
This is likely due to organizations’growing reliance on software and tech tools within the supply chain.
Procurement pros are also increasingly pushing for vendor consolidation and more strategic vendor management.Without
continuous data to reveal which suppliers and products are in use for which user groups,driving long-term value and
efficiencies for the business becomes increasingly challenging.After all,your organization can only manage what it can
measure.
Solution: The power of data tools
Organizations should look to integrate data analytics tools into their procurement portals that provide reporting and
tracking to help plan future purchases.Additionally,the ability to view carrier information and invoice history and data,
preferably in real time,will offer a full line of sight into the complete procurement process.
According to ProcureCon IT’s benchmark report,50% of IT procurement leaders say they’re already experimenting with big
data technologies to improve procurement performance,and 47% are heavily invested in spend analytics.¹
When considering data analytics integration,it’s important to aim for a wide range of data consumption,from both a
macro and micro perspective.Having all of the data available at your fingertips paints a holistic picture of the procurement
process — while more granular data allows your organization to hone in on specific habits,commodity types and business
units as necessary,and see how these are affecting the big picture.
Aside from achieving vendor consolidation,data tools empower procurement to have more educated pricing conversations
with publishers and manufacturers.
“[My biggest procurement
challenge is] finding credible,
granular internal data.”
— Supply Chain Manager for the Americas

Insight proprietary and confidential. Do not copy or distribute. © 2018 Insight Direct, USA. All rights reserved. 61.800.INSIGHT • insight.com
Challenge: Shifting away from
manual processes
Even traditional procurement challenges such as reducing costs
and mitigating risks are still secondary to driving efficiencies.In
fact,increasing efficiencies is cited by procurement leaders as the
primary benefit of an effective IT procurement strategy.¹
By far,the biggest roadblock to efficiencies in business is a lack of
automation.Many procurement pros still rely on traditional methods
to conduct business.A typical process for procuring IT might include:
• Conducting searches for products on numerous catalogs
• Obtaining quotes from multiple vendors
• Forwarding quotes to end users
• Asking for approvals via emails or telephone
• Adjusting as needed,depending on user feedback on
products or pricing
Solution: Achieving automation
and consolidation
Manually approving business transactions is time-intensive,so the
IT procurement process becomes smarter,quicker and easier by
adding automation wherever possible.Procurement solutions that
automate manual tasks and consolidate platforms are gaining
momentum due to their ability to help users:
• Define Service Level Agreements (SLAs) upfront.
• Automatically route to supervisors based on dollar amounts.
• Tailor approval workflow scenarios to the business.
• Alert vendors automatically for configuration,delivery
and shipment.
And that’s exactly how automation can help with the approval
process.Automated procurement,or e-procurement,can also
generate reports in real time,track shipments and seamlessly
integrate into the business.This can speed deployment,streamline
reconciliation and help automate common bottlenecks of the
procurement process as a whole.
According to ProcureCon IT,72% of businesses are already
experimenting with e-procurement solutions to optimize
procurement performance — making it the most popular solution
next to big data and spend analytics.¹
Because shifting to a fully automated environment can be a large
investment,hybrid models can also be introduced based on user
environments and business priorities.Over time,your organization
can continue to implement automation as needed.
Procurement beyond process: Driving
real business value
Today,optimizing the supply chain to add value to your business
involves more than just accelerating the“check out and go”mantra
of procuring technology.Although many e-procurement solutions
are available on the market,finding holistic solutions that cover
multiple lines of business provides the greatest long-term value for
procurement performance.
Having a strong e-procurement strategy can help you plan for the
future and make smarter investments in innovation.Customizable
solutions such as Insight’s e-commerce platform allow you to
optimize your return on investment and speed time to value.Other
benefits of the Insight solution include:
• Consolidated hardware and software usage via a
single platform
• Greater visibility into technology investments at every
stage of the lifecycle
• Self-service capabilities that empower modern end users
and offload other teams
• A streamlined approval process through tailored workflows
• Tracking and reporting on all information through
customized fields
• Simplified reconciliation through seamless
business integration
Insight
success story
Insight worked with an
organization to create tailored
approval workflows, along with
a custom catalog to empower
end users. Together, our teams
helped the client reduce SLA
length from 29 days to 10 days.
Insight proprietary and confidential. Do not copy or distribute. © 2018 Insight Direct, USA. All rights reserved.

Strategic finance, leasing &
warranty options
Tech spending doesn’t always mean you should purchase
the equipment you need outright,especially if cash flow
forecasting is a concern.In many cases,a good strategy
to manage cash flow includes IT leasing,as opposed to
purchasing.This makes the procurement process easier,
allowing businesses to use an Operational Expenses (OpEx)
model rather than incur Capital Expenses (CapEx).
Many companies struggle to balance the need for new
technology with budget constraints.Cash flow impact is
frequently top of mind for organizations that want to invest in
innovation but need flexible options to stretch their costs over
multiple budget cycles.
Major benefits of IT leasing include:
• Modern equipment: Leasing rather than purchasing
technology equipment empowers you to use the
latest and greatest devices.Many leases span 12 to
36 months.This means more access to the most
modern equipment every one to three years,without
having to reinvest in new technology,simplifying IT
procurement.
• Forecasted expenses: A leasing structure works
on a revolving and set payment plan.Unless your
organization changes the plan by adding or removing
the equipment leased,monthly payments remain the
same and become a predictable part of your bottom
line,in addition to easing the procurement process.
• Minimal upfront costs: Leasing equipment is
often seen as one of the more advantageous IT
procurement strategies because organizations are
typically required to put little to no money down at
the time of the lease’s origination.
Section 2: Finance and leasing
Partnering for success
While finance and leasing have become a standard part
of the IT investment process,here are a few ways to be
more strategic with your partner:
1. Work with your partner to marry your IT lifecycle
with your lease.Aligning the lifecycle process
with the proper payment options provides
predictability and peace of mind.
2. Ensure your partner works with banks that have
the lowest rates in the market.
3. Enlist your partner to outline a wide range of
payment options with potential outcomes.
4. Avoid long-term lock-in by considering month-
to-month options.The IT lifecycle has a short life
span,so flexibility is key.
Insight Global Finance (IGF) offers flexible financing and
leasing services so you can equip your business with the
right technology while managing costs.We can help with
all of your technology financial needs:
• Innovative and flexible financing solutions
• Seamless order/leasing process
• Software payment program
• Master line of credit
• Simplified license renewals and warranties
81%of CIO/CTOs and 79%of procurement staff agree
balancing resources to maintain infrastructure and grow the
business is a pain point for their organization.³

Warranties
Managing a diverse license and warranty ecosystem can
be difficult.Legacy systems for tracking license renewals
mean you run the risk of lapsing coverage.Insight’s
Renewals & Warranty Manager is a value-added
solution that provides a centralized,360-degree
view of your license portfolio.
With a holistic view of software renewals,
customized dashboard views and
detailed,tailored alerts,you’re always
well-informed to avoid surprise costs
or noncompliance.Reporting also
includes budget forecasts for
renewals to help you plan your
fiscal month,quarter or year.

Mastering the hardware lifecycle
As organizations shift to a more consolidated way of procuring,maintaining and replacing technology,traditional IT lifecycle
management is becoming antiquated and inefficient.Driving down order-to-delivery times and streamlining maintenance
are becoming industrywide goals for IT organizations.
Let’s explore some roadblocks to managing the IT hardware lifecycle and how to overcome them with best practices and
other considerations.
Section 3: Hardware lifecycle management

Challenge: Overloading your in-house teams
Because many companies are beginning to view IT as a strategic function,in-house teams are being tasked to focus more
on core initiatives.As the speed of business continues to advance,organizations that manage their hardware lifecycles in-
house are falling behind.
Solution: Bringing focus to the lifecycle through outsourcing
With more focused expertise and consistent implementation of best practices,the entire hardware IT lifecycle can be
streamlined.Here are the stages of the hardware IT lifecycle after procurement,and how outsourcing can help create
efficiencies.
• Building and integrating: Organizations of all sizes can benefit from a standardized warehousing and
provisioning plan.After you make a hardware purchase,products need to be configured to meet the specific needs
of the infrastructure and end users.A managed service provider with the right capabilities can understand and
deliver for your environment.Insight offers data center and end-user device configuration; asset tagging,kitting
and staging; image creation and management; and basic and custom imaging.
• Deployment: This stage is the actual product rollout that will either fall under the category of an initial
installation or an IT refresh.Managed service providers can handle all of the logistics involved,as well as
coordinate shipping and delivery.In addition,it’s important to seek options for flexible project scheduling and
reporting.Many outsourced providers such as Insight consider it a best practice to develop standardized processes
and governance for each party’s role in the project.This ensures measured delivery and accountability across the
board.
• Maintenance: Once products are installed,they’ll inevitably need support.This include repairs,as well as IT asset
management and inventory control.If a product does need repair,an outsourced provider can determine whether
it should be exchanged and handle details pertaining to the repair or replacement,if applicable.Look for warranty
repair and asset centralization options that fit most needs.
• End of life: This may be the most overlooked area of the product lifecycle.After assets have been retired,they
should be moved out of your valuable workspace and off the books.Assets can be remarketed for maximum
financial return,or they’ll need to be properly disposed of and recycled,with guarantees that meet data security
and environmental requirements.In the case of a lease,lease-end processing is an important consideration that
can create unnecessary costs if not managed correctly.

Challenge:
Multivendor complexities
Keeping up with every phase of the IT asset lifecycle has
long been an arduous process that can drain precious
time and resources.While outsourcing is a good solution,
many organizations opt for multiple vendors to handle
each stage of their lifecycle.One vendor may handle
configuration,another deployment,another ongoing
maintenance,another disposition and so on.
Although this approach may be accepted by company
traditionalists,multivendor methods are no longer
sustainable in a world where consolidation is becoming
key to driving efficiencies.Organizations working with
more than one partner may struggle to keep up with
a multitude of invoices,touchpoints,schedules and
differing IT methodologies.The more layers of complexity
in the lifecycle,the harder it becomes to bring harmony to
each part or address issues when they arise.
Solution:
Consolidate with a single partner.
Investing in a single source of truth can ensure everything
is handled from start to finish,reducing complexities and
increasing efficiencies — as well as line of sight into the
business.
When selecting a partner,a few key areas should be
considered:
• If the technology you procure comes from
different vendors,a vendor-agnostic partner
will be best at handling a variety of technology
types.
• Every asset has a shelf life.If possible,ensure
the SLAs from your partner can exceed
industry standards so that you maximize your
investments.
• As your business grows,partners who can also
scale offerings to meet your needs will add
stability to your business.
Balancing the IT lifecycle
with disruption
Following all of the above lifecycle steps and best
practices can be challenging for internal IT directors,
buyers and project managers.Both end users and
upper management expect procurement and IT to
provide modern devices,applications and connectivity
to employees with seamless ordering,inventory and
updates — all with cost-effective pricing.
Solutions such as Insight’s Lifecycle Services offer a
single,streamlined way to handle all moving parts of the
hardware lifecycle.From planning and deployment to
overall IT asset management and ongoing support,our
holistic approach to IT can help boost efficiencies and
shift your organization’s focus to innovation,as opposed
to maintenance.

Simplifying and optimizing software asset management
From everyday office applications to point-of-sale software to robust client management systems,software is a vital
business component in every industry.Managing it properly results in three key benefits:
1. Cost efficiency
2. Licensing compliance
3. Optimized resources
Some common challenges arise along the way.Let’s look at them in more detail.
Section 4: Software lifecycle management
73% of
organizations
say nearly
all of their
applications
will be Software
as a Service
by 2020.4

Challenge: Controlling costs
Software expenses are an unavoidable part of operations,
but inefficient software management often leads to
overpurchasing licenses or paying for support or upgrades
for unused software.
Solution: Gain visibility and
centralized control.
Deploying Software Asset Management (SAM) tools can
help bring efficiency and expose opportunities for cost
savings.Unused licenses or excessive license purchases
can quickly drive unnecessary costs.Additionally,overused
licenses can push your organization out of compliance.
SAM can be messy and time-intensive if not managed
efficiently.To optimize software investments and avoid
extraneous costs,you need to effectively manage software
cycles with minimum impact on IT resources.
License recycling means removing a software license
from one user or device to allocate for another.Often,this
happens when a team member leaves and a license is re-
allocated to a new employee.License recycling also occurs
during a device refresh — software is removed from retired
machines and installed on new computers.
Reclaiming unused licenses is known as license
harvesting.For example,your business may own 300
licenses to serve all of your employees,but your staff is only
250 strong.That means you’re paying for 50 licenses above
your needs.You can see how easily improper software
license management can impact your IT budget.
Not taking advantage of volume pricing or purchasing ad
hoc can also drive up costs.
What triggers an audit?
A request for an audit evaluation
doesn’t automatically mean a
business is out of compliance.
Some publishers, such as Microsoft,
schedule audits with all of their
clients at least once every two to
three years. Here are common
reasons for receiving an audit
request:
• Routine scheduled audit by
software company, especially
end of year
• Publicized merger or
acquisition
• Individual report to the
Business Software Alliance
(This could be from a past
or current employee who
questions your company’s
compliance.)

Challenge: Falling out of compliance
Maintaining licensing compliance and being audit-ready is an important component of proper software management.
Publishers can request an audit assessment at any time,and failing an audit could result in heavy fines.
There are a few reasons why a business may risk falling out of compliance or fail an audit.Licensing rules can change.
Customers often don’t have the resources to keep up with these changes,or may lack an accurate understanding of their
entitlements.Without awareness of its agreements,a business may overpurchase licenses to play it safe,or under-purchase
without realizing it.
Solution: Centralize licenses and entitlements.
Tracking,managing and ensuring compliance with license terms for myriad software agreements is unwieldy at best and,
at worst,a potential source of unbudgeted liability.Large or small,any business can suddenly find itself under scrutiny of a
software publisher audit.Legacy processes for managing licenses,entitlements and consumption are not only inefficient;
they’re risky.
To gain an accurate view of consumption and be audit-ready,you need to consolidate your licenses and entitlements.For
example,the Enterprise Licensing Dashboard from Insight is a cloud-based offering that provides a high-level management
interface for your current licensing position.All of your entitlements can be imported into the dashboard,regardless of
brand,making it a simple and effective reconciliation tool.
The Enterprise License Dashboard can help you achieve:
• Visibility into under-/over-license position
• Continuous license compliance,entitlements & consumption
Enterprise License Dashboard
Publishers often change or update agreements.To keep up with the changes and mitigate risk,some organizations
outsource to a software asset management consultant.SAM consultants continuously review licenses and monitor client
environments.As objective third parties focused strictly on compliance,SAM consultants can recognize potential red flags
and perform cross-references with your organization’s assets and software installations to validate continued compliance.
Standard Enterprise License Dashboard
(hosted)
Premium Enterprise License Manager
(hosted/on premises)
Dashboard reporting portal for over-/under-spending
on licenses
Includes dashboard reporting plus integration with
workflow, license keys, software downloads, catalog
integration, etc. This can be customized at any level.

Not sure if you’re in compliance?
When it comes to software licensing,mitigating risk and ensuring compliance are always top of mind.Insight’s license
reconciliation services can help you break through the complexity of licensing conditions.We’ll conduct an in-depth review
of your current licensing environment and then provide a customized road map to help you pass your next audit without
breaking a sweat.
Challenge: Tracking and recycling licenses is inefficient.
Without SAM tools,software licenses across the enterprise can become elusive,particularly during turnover or device
refreshes.Not having visibility into when licenses were purchased or where they were allocated can often lead to
overspending on new licenses.
Solution: Automate the software lifecycle.
When it comes to hardware,finding used and unused devices is often as simple as scanning the desks in an office space.
Software use,on the other hand,isn’t as easily observed.With devices being retired,employees leaving or joining the
company,and companies growing to a national and global scale,a software license quickly becomes a needle in a very
large haystack.
SAM tools provide total visibility into your software environment.The SAM integration framework built into the Enterprise
License Manager provides a way to track,analyze and manage the full lifecycle of software agreements — empowering you
to track use,reuse and retirement of every license in your portfolio.
Insight success story
Insight worked with an international Fortune 500 company
to simplify its SAM and ensure compliance on a global scale.
Together, we achieved total software asset visibility and
delivered a fully automated software lifecycle seamlessly
integrated with existing systems — plus, reliable security and
scalability to support future growth.

Effective software management: Uncovering real savings
As you’ve probably realized,there’s a lot of overlap when it comes to software challenges,and it all comes down to effective software
management.If you’re currently managing your software assets in-house,you should consider first whether your IT has enough
bandwidth to handle the task sufficiently and,secondly,if it’s the best use of those resources.
Increasingly,businesses large and small are implementing SAM tools and services to help control costs,mitigate risks and gain
accurate data.
SAM tools and services from Insight can help boost your efficiency while staying compliant.When you partner with Insight,you get:
• Compliance and audit support
• Global on-demand reporting
• Dynamic tracking
• Accurate record management
License reconciliation services
Reconciles software license entitlements with installed software licenses and provides
suggestions to mitigate risks
SAM Assessment
Provides a review of your organization’s SAM practice maturity compared to ISO/IEC
19770-1 standards
SAM Workshop
A strategic, customized, on-site SAM consulting engagement with key stakeholders;
evaluates your organization’s current processes, discusses best practices and helps you
develop a road map to achieve your future-state goals
Microsoft®
licensing optimization
services
Establishes and aligns your Microsoft technology and licensing needs
Enterprise License Dashboard
Cloud-based solution that provides a snapshot of your license entitlements and
compliance position via the dashboard
Enterprise License Manager
Dynamic SAM framework that integrates with your existing tools and provides real-time
license management. Tracks, analyzes and manages software assets from procurement to
deployment and retirement
SAM desk
Customized on-site or remote SAM support service; provides a dedicated resource to help
you complete license management activities
Managed SAM services
Provides ongoing management of your software licenses while you retain visibility into
your compliance entitlements and consumption
Insight is your expert connection for licensing solutions that help your
business run smarter.

SAMAssessment and SAMWorkshop
Insight’s SAM Assessment is a critical first step in gaining licensing control through clear,comprehensive and
reliable reporting.An assessment will provide you with a detailed report of your current SAM environment and
recommendations for improvements.
Take it a step further with a SAM Workshop.During this on-premise event,our software experts will evaluate your
software needs,work with you to understand where you want to go and create an actionable road map to move your
business forward.
Meaningful solutions,
delivered your way
At Insight,we simplify the process of procuring,
maintaining and replacing your technology solutions.
By optimizing your supply chain,we help you reduce
the time and money it takes to run your technology —
so you can focus on building your business.
Our strong supply chain optimization and workplace
solutions combined with our data center transformation
expertise and modernized applications keep business
running,foster flexible work environments and put you
at the forefront of innovation.
1 ProcureCon IT. (2017). The Challenges in IT Procurement.
2 DeltaBid. (2016). Top 10 Biggest Procurement Challenges.
3 Insight. (2018). 2018 Insight Intelligent Technology Pulse Survey.
4 BetterCloud. (2017). State of the SaaS-Powered Workplace.
Talk to a specialist to discover how we can help you invest smarter —
so you can manage today and transform the future.

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