PECOS makes it simple to identify and assess potential suppliers, and match them to purchasing needs. Using PECOS, organizations are able to make informed decisions on how best to source goods and services, what to source, when to source, and from whom. This leads to reduced cost of supply and increased efficiencies in process and communications with suppliers.
PECOS provides a set of easy to use strategic sourcing functions to investigate potential suppliers on both a local and global basis, run eAuctions, seek requests for information, manage on-line proposals and quotes, and analyze sourcing events and trends in order to gain valuable market insight.
To learn more about the functionality and benefits of sourcing with PECOS please click on the headings below:
Supplier Identification & Qualification
Users are able to research existing suppliers using supplier overview and purchasing information held within the system, as well as previous RFI’s, RFP’s and eAuctions that the supplier has participated in.
Access is also provided to the Dunn and Bradstreet company database that contains over 250 million global suppliers. This database can be used to identify and qualify potential suppliers based on company and product overview, industry codings, financial position, key contacts and over 100 other data dimensions.
Requests For Information (RFI)
The RFI function is used to gather information to assist decision-making for appropriate next steps. It links directly into the eAuction and RFP functions providing a short list of suppliers and creating a seamless bid process.
The RFI function is also useful for:
- Building a database of potential suppliers
- Determining suppliers’ ability to meet specific business requirements
- Conditioning suppliers on expected terms and response formats
- Preparing suppliers for negotiation
- Developing strategies for local and regional sourcing
Requests for Proposal (RFP)
The RFP function has been designed to reduce the administrative burden of running a sophisticated, rigorous RFP project by allowing users to establish and manage these activities collaboratively on-line. All information provided by buyers and returned by suppliers is aggregated in the same place, with a full audit trail to track buyer and supplier activity, and provide transparency of bid process. The solution assists in collating and prioritizing requirement from stakeholders, and provides templated guidance for typical industry questions asked of vendors and interpretation of responses. To create an RFP, users can choose a number of template sections and questions with various response elements including checkboxes, radio buttons, file attachments, text entry, and multi-column questions. Sections and questions can be weighted, with scoring and sensitivity analysis available for each response. Scoring can be automated based on multiple choice responses, or can be updated manually and commented upon by users.
The eAuction capability within PECOS provides a user friendly platform for hosting and reviewing eAuction activities. It can be used to manage ascending (forward) or descending (reverse) bid auctions with hard close or extended close options. It can also run auction formats where bidders quit when their highest or lowest price has been reached. The forward auction capabilities within the solution help companies dispose of unwanted assets and get highest price possible from the market for available capacity. The reverse auction capability helps drive procurement savings by seeking lowest price offer from prospective suppliers. Auction bid lots can be arranged against simple matrices (e.g. price per item) or against more complex matrices (e.g. price per item per region and per configuration). This approach allows open scenario planning rather than second guessing outcomes, and encourages participation by local or specialist suppliers who may not be able to bid on all individual configurations in a lot.
Multiple items are allowable in each lot, eliminating the requirement for Microsoft Excel spreadsheets for offline calculations and providing greater data granularity at the item level.
PECOS eAuction functions are supported by one of the most advanced mathematical auction engines available – resolving one of the major flaws in legacy auction technologies which typically cannot do the math fast enough and provide a user interface intuitive enough to empower bidders to bid on more than a handful of price points in one negotiation. PECOS allows users to run far larger online negotiations than ever before – including auctions with more than 100,000 unique price points with hundreds of bidders competing.
Elcom work with our clients to understand their supply chains and the key determinants that influence them. From this work, we can identify key data and metrics that influence the company, such as exchange rates from current or potential trade regions and commodity prices for key inputs, and take feeds of these into PECOS. These feeds can then be used to plot and map trends and potential forecasts in market activity that may impact strategic sourcing initiatives.