2. PIONNIER Consulting Services
www.pionnierllc.com
Founded in 2009
Operates as a Research, Consulting and Outsourcing provider for Manufacturing in India
Caters to the automotive, auto component, home appliance, general engineering and retail
companies worldwide
Purchasing activities include
Supplier Collaboration
Strategic Sourcing
Cost Analysis
4. Strategic Sourcing - Activities
www.pionnierllc.com
Spend Management, Pareto analysis
Market supply analysis, supplier scorecard
RFI/RFQ/RFP process
Cost Analysis
Supplier Audits, Quality inspections
Negotiation & contract finalization
APQP and PPAP support
Monitor & control production
Risk Management
Packaging & Logistic support
PIONNIER Strategic Sourcing Services generated over 15% annual savings for the rubber molding category; also
reduced purchasing costs by 5% through supplier consolidation – US$800m manufacturer of compressors
5. Tools - Six Sigma and PMI methods
www.pionnierllc.com
DEFINE MEASURE ANALYZE IMPLEMENT CONTROL
Draft Project Charter Project Risk Impact Complete Portfolio
Analysis
Develop Sourcing
Strategy
Supplier & Category
Performance review
Assign Technical Plan
Owner
Gather VOC’s & VOB’s Complete Supplier
Preferencing
Approval from site
purchasing Manager
Communicate control
plan
Assign Should Cost
Model Owner
Develop RFI , convert
VOC and VOB to CCR's
Complete Day one
Analysis
Complete Risk &
vulnerability analysis
Conduct handoff
meeting
Complete Project Risk
Assessment
Develop Should cost
Model
Analysis of RFQ's Develop and complete
sourcing matrix
Initiate Supplier
Performance
Management
Identify Project
Stakeholders
Issue RFI’s Filter RFI’s Supplier visits Complete/Verify Quick
Wins
Develop VOC & VOB
Requirements
Supplier Evaluation
criteria completed
QCLDM
Validate should cost
Model
Supplier Agreements
Negotiated
Gateway review
Complete Supply Market
Analysis
Develop RFQ’s Scorecard for each
Supplier
Execute Termination of
Supplier Procedure
Complete Category
Spend Analysis
Identify Quick wins Quick Wins Identified /
Implemented
Complete supplier
tooling management
Develop Communication
Plan
Develop Technical Plan Sourcing options
generation /evaluation
Gateway review
Gateway Review Gateway review Gateway review
6. Tools - Should Cost Model
www.pionnierllc.com
Zero based cost analysis:
(i) basic industry model
(ii) process based model
(iii) supplier specific model
Determine the most cost effective
design and manufacturing process
PIONNIER Consulting Services benchmarked purchasing practices and implemented should‐cost models that moved
the client’s supply chain organization from an ‘average’ performer to a ‘best‐in‐class’ performer – INR150m
manufacturer of packaging machines
