About Kelly Deacon

Mrs. Deacon joined Intesource in 2006 with experience in both client services and advertising. Kelly spent 5 years at Continental Promotion Group (CPG) managing targeted marketing initiatives for major retailers. Prior to her work at CPG Kelly worked 3 years in the advertising industry with one of the most recognized names in the restaurant industry. Kelly heads up the marketing team and is responsible for managing client relationships, sales support, and marketing strategy. Kelly has a Bachelor of Science degree in Business Marketing from Oregon State University.

10 Questions To Ask Before You e-Source

Posted on May 15, 2012 by Kelly Deacon

E-Sourcing is a powerful procurement tool, but as every category manager knows, it’s not always the best approach. So how do you determine when to use e-sourcing as opposed to an alternative sourcing method? Consider the following:

How long has the incumbent supplier had the business?
If the answer is multiple years an auction will help validate that not only is the best pricing being provided, but also the best available quality and service.
Are you satisfied with the quality, service, and delivery of product from the incumbent supplier(s)?
If not, consider an online RFP or RFQ to evaluate alternatives.
Is a past supplier anxious to get your business back?
A reverse auction is a very effective way for the prior provider to compete with your incumbent, as well as other potential vendors, for your business.
How many other suppliers are in the marketplace? How many of those suppliers have been asking for a shot at your business?
More vendors mean increased competition in the auction environment. Suppliers who have been trying to get a foot in the door may be willing to reduce costs to get the business.
How many suppliers are in in the marketplace?
You can invite as many suppliers as you choose, but remember to only invite those you will actually consider doing business with. Occasionally suppliers who initially express interest may not have a full understanding of your criteria and expectations. These vendors can be identified and eliminated before the actual sourcing event.
Has a supplier indicated their company does not participate in online bids/negotiations?
There may very well be some vendors who decline to participate, however it only takes two suppliers who really want your business to result in a competitive auction.
Have you been notified of a price increase?
In a rising market auctions can be used to reduce or deflect an increase, or in some instances get even better than current pricing.
Has the market taken a recent dip since your last negotiated pricing?
This is a good time to consider auctioning the category in order to lock in reduced pricing.
Is the category volume significant enough to be an incentive for the suppliers to participate?
Volume incentives as related to supplier participation will vary based on category. Suppliers will typically participate and provide competitive pricing when there is a win-win situation that warrants their involvement.
Is the category small, but could be a driver in the suppliers obtaining additional business?
In some cases, the volume could be relatively small but getting the business would mean a foot in the door. Suppliers may consider this as an incentive to participate and provide competitive pricing.

When in doubt you can always begin with a Request For Information (RFI) to gather data. You may find the next logical step is to bring the item or service to bid. By putting the information in front of potential suppliers you’ll find answers to your questions. You’re not obligated to award the business. At the very least, you’ve validated that you have the best pricing, quality, and service available to you today.

Contact Intesource for more information on how our services team can assist in gathering the information discussed in this post.

What other questions do you ask when evaluating spend for e-sourcing?

Category Highlights: Benefit Consulting Services

Posted on May 3, 2012 by Kelly Deacon

In a recent reverse auction an Intesource partner addressed the complex area of benefit consulting services – with great success.

Event Highlights:
Five vendors quoted on 22 items including general consulting, compliance matters, claims audits, senior credentialed actuary, compliance specialist, and clinical medical consultant.

A total of 149 quotes were collected in the span of 21 minutes.
The buying organization achieved savings of $131,380 or 45.9% – over $25k more than the reserve price.

What complex spends have you tackled recently?

RFI: The most underrated tool in procurement

Posted on April 19, 2012 by Kelly Deacon

The Request For Information or RFI, a seemingly simple data collection tool that can be a procurement professional’s best friend.

RFI’s have come to play an important role as risk and transparency remain top of mind for business leaders everywhere. RFI’s have become a means to efficiently gather the important facts that will enable buyers to make the best decision for their company and in turn, their customers.

The most common uses for an RFI in procurement are:

Gain a better understanding of categories
Gather and evaluate supplier capabilities
To better understand internal stakeholders requirements

RFI’s can be executed prior to, during, or after negotiating terms and can be applied to any or all participants. The results can give procurement professionals valuable information about their vendors beyond the terms being negotiated.

Some of the features Intesource partners enjoy related to RFI’s are:

A questionnaire library for hosts
An answer library for vendors
A simple means to evaluate responses through an array of scoring methods
Side-by-side comparisons for easy analysis
A Survey tool which can be used independently of an e-sourcing event
Management of the entire RFI process (i.e. Q/A and follow up calls)

How have you used an RFI to increase efficiencies in your procurement process?

e-Sourcing Obstacles: The Fear of Change

Posted on April 17, 2012 by Kelly Deacon

Change is inevitable. Unfortunately, for some people change is uncomfortable, and for others it may be downright frightening. In a recent blog post 5 reasons people resist change , Julie Rains addresses the fear of change – one of the biggest challenges in e-sourcing. Based on the five beliefs about change outlined in the article I’ve added an e-sourcing perspective to ease the transition from the tried and true to the new and unfamiliar.

1. Productivity will plummet and stress will skyrocket

Fear: The worry being that the extra time and effort required “will certainly detract from productivity, output and peace of mind.”

Fix: E-Sourcing has won over countless buyers who have cut hours, even days, from the sourcing process. The proof is in the pudding. Provide real world examples of how an initial investment in learning new technology and processes can lead to significant improvements down the road.

2. Embracing change means admitting past mistakes

Fear: The savings that can result from an e-sourcing event can be intimidating to buyers who may worry the new process will reflect negatively on their past performance.

Fix: Take the focus off the person with reassurance that proposed changes reflect technological advances. As Rains puts it, “Emphasize the need for continuing renewal, not as an indictment of the past, but as a strategy for ongoing success.”

3. Failures are not occasions for learning

Fear: Being comfortable with a particular process includes understanding possible outcomes and reasons for success or failure.

Fix: Provide training and education to be able to interpret results and pin point potential issues. In many cases automating the e-sourcing process simply means the price collection process is more efficient and effective – all other factors are consistent with traditional means of sourcing (i.e. market conditions, quality assurance measures, supplier vetting, and so on).

4. Difficult problems arise from change

Fear: Veering from the status quo can uncover weaknesses and vulnerabilities. Rains points out that the side effects of change may involve handling unfamiliar situations and dealing with consequences that one cannot predict or control.

Fix: “Acknowledge that unpredictable things may happen”, says Rains. But by doing your due diligence at the onset of the e-sourcing project the likelihood of problems arising is greatly diminished.

5. Preserving status…is key

Fear: In the article Rains refers to preserving status with colleagues and employees, however in the case of e-sourcing it’s the desire to maintain relationships with longstanding suppliers.

Fix: A common misconception is that business must be awarded to the low bid. In actuality, the host typically awards on a variety of factors including price, quality, and service levels. The host may choose to stick with the incumbent, usually at a markedly lower cost, or they may select to award to a new vendor. An online auction simply brings transparency to the market. For tips on dealing with incumbent suppliers read ‘The Lowdown on Incumbent Supplier Participation’.

According to Walter Anderson, “Nothing diminishes anxiety faster than action.” Becoming comfortable with anything comes with practice. The good news with e-sourcing is results can come quickly and can have a powerful impact on a department or entire organization, which makes a pretty good case for change.

Category Highlights: IT Hardware & Services

Posted on April 11, 2012 by Kelly Deacon

Our partners successes are our successes! In one recent reverse auction the host organization partnered with Intesource with the goal of standardizing their computer equipment across the enterprise. Intesource provided e-negotiation assistance as well as guidance and suggestions on new areas of opportunity on an on-going basis.

Event Highlights:
Three vendors quoted on 23 items* encompassing a wide range of IT hardware and services including desktops, laptops, tablets, docking stations, and warranties.

A total of 246 quotes were collected in the span of 43 minutes.

Savings of $7,237,450 or 35.7% was achieved on a current spend volume of $20,262,100.

*Items
Group 1: Equipment
Desktops (three types)
Laptop and Docking Stations (three types)
Tablet and Docking Stations

Group 2: Optional Services
1 Year extended warranty for Laptops
2 year extended warranty for Desktops
Warranty Registration
Asset Tagging of all devices
Assistance with creating images
Imaging of all devices
BIOS Updates and Changes
Priority Support
Bulk Packaging of Devices
Device Stocking
Shipping (Palletized)
Shipping (Single Device)

Boosting Buyer Buy-In

Posted on February 21, 2012 by Kelly Deacon

Are your e-sourcing efforts stalled? Here are three strategies to bolster participation and help you reach the next level:

Mandates: Set clear expectations up front and make e-sourcing part of the procurement process. Examples include:

Any purchase over a certain dollar amount ($50,000, for example) must be reviewed by the auction team
Each buyer must complete a minimum number of events per year as a performance metric
Build auctions into the financial goals of the department

Group Recognition: This is a great way to shine a positive light on spend owners who are hosting e-sourcing projects.

Reward them for their efforts and encourage them to share their experiences with their peers. Spice things up a bit and make it a fun event – a pizza party, wine tasting, or ice cream social. Keep the focus on the success stories and give participants their moment in the sun.
Celebrate companywide savings thresholds and recognize each e-sourcing event host with a token of appreciation (i.e. a small award, gift card, or gift basket)
Watch a live auction with the entire department – make it a party. Celebrate the success of that event while encouraging others to run thier own.

Individual Recognition: People loved to be recognized for their hard work. A few ideas:

Send out a recap after each e-sourcing event to executive leadership summarizing the results and congratulating the merchant on their success. This serves two purposes; 1) rewarding the host and 2) keeping leadership informed of the program. Encourage leaders to send notes of congratulations!
Recognize category managers who reach a savings threshold, run multiple events, or based on total volume e-auctioned. Acknowledge these individuals with a beautiful trophy at a cocktail party thrown in their honor or even something as simple as a written thank you.

It’s important to remember that consistency is key. Whether you choose mandates, group, or individual recognition be prepared to set and meet expectations. To discuss these or other ideas to help encourage participation and ramp up e-sourcing activity within your organization contact an Intesource account manager.

What approaches have you found to be helpful in keeping employees interested and engaged in your e-sourcing program?

Back To Basics: The 3 building blocks of e-sourcing success

Posted on January 31, 2012 by Kelly Deacon

As e-sourcing initiatives grow and evolve we sometimes lose sight of the most basic building blocks of a great program. Proven time and time again, the following steps will lead to a solid base on which to grow in the coming year.

Planning is key
In any endeavor the best way to reach your goals is to put a plan in place – the same is true for e-sourcing. Once you’ve defined your success criteria, whether it be savings, an increase in volume, or any number of other measures, the next step is to identify the sourcing events that will allow you to reach that goal. Identifying potential e-sourcing projects is easy when you’ve met with category managers. Review results from last year and consider adding new categories to the mix. Evaluate buys you haven’t run before in departments that haven’t run events yet. To sustain momentum meet with buyers monthly to measure progress and make revisions to the plan as necessary.

Executive Support
Arguably the most important element in any strategic sourcing initiative is executive support. The easiest way to improve the bottom line is to cut costs. E-sourcing allows organizations to cut costs without having a negative effect on quality, which is key in today’s ultra-competitive environment. Meet with your executive team at least once a month to brief them on successes and challenges. Send updates via email to communicate milestones and recognize employees who are running events and participating in the process. The brighter spotlight you shine on your successes, the easier it will be to get new players/departments on board and expand the scope of your program.

Celebrate Successes!
Make sure everyone in your organization knows about the company’s e-sourcing wins! Reverse auctions can lead to huge cost reductions, but also point out time savings, process efficiencies, discovering new suppliers, product innovations, and improvements to existing services. Make potential hosts aware of the bevy of potential benefits available to them through e-sourcing. Create excitement and awareness by posting cumulative savings, emailing specific event results, invite an entire department and executives to view a live, online bid projected in a board room or auditorium, reward hosts with recognition, prizes or awards!

Common among all of these strategies to success is gaining visibility and earning trust. By building relationships across the organization you can position yourself as the e-sourcing expert, expand the program, and guarantee e-sourcing success.

Your NEW New Year’s Resolution

Posted on January 27, 2012 by Kelly Deacon

It’s nearly February and how many of us have already lost sight of our New Year’s resolutions? I know I’m guilty. Why not forget about the diets and exercise and make new a resolution that will have an impact on your company’s bottom line! This year set an e-sourcing goal, whether it’s a savings target, bringing new buyers on board, or simply a set number of e-sourcing projects by department. Here are a few ideas to get you thinking BIG for 2012!

Tackle services:
    Linen Services
    Hotel Stays
    Fire Inspection and Maintenance
    Brokerage Service
Break into new departments:
    Marketing – Circular Production
    Construction – New Builds
    Technology – Printers
    Human Resources – Background Checks
Go green!…for less
    Retrofit Lighting
    Reusable Bags
    Old Corrugated Cardboard*

What new e-sourcing strategies will you employ to get the best results yet in 2012?

*Forward auction