Supplier Sourcing & Demand Management

Target operating Model SSC vs. BPO

Expected SSC implementation impact on reduction of total Finance cost
Process Standardization and Harmonization	Service Delivery Model	Technology Multipliers	Operational Optimization	Decision Acceleration
0-5%	20-25%	0-10%	5-15%	0-15%
Process mapping and maturity assessment Process taxonomy, target operationg model and internal control framework Standard policies, procedures and instructions	Consolidation of operations Location optimization and labor arbitrage Process ownership structure Performance management framework Language neutralization	Process automation ERP optimization Self-service	Process-based organization Benchmarking and analytics Six Sigma, lean initiatives Continuous improvement Best practice deployment	Global Master Data Management Business Intelligence Reporting Factory Data mining and modeling

Contractual framework for strategic goals tactical business objectives
Committed savings and gain-share mechanisms on achieved business results
Access to workflow and automation technologies tailored for the process
Strong process ownership and performance measurements
Well developed knowledge management procedures and access to country specific expertise
Benchmark process solutions and large scale transformation experience
Global delivery landscape optimising operating model and cost per transaction.

Expected BPO impact on reduction of total Finance cost
Process Standardization and Harmonization	Service Delivery Model	Technology Multipliers	Operational Optimization	Decision Acceleration
5-8%	15-30%	0-15%	8-12%	2-5%
Process mapping and maturity assessment Process taxonomy, target operationg model and internal control framework Standard policies, procedures and instructions Harmonization compliance measurement	Consolidation of operations Global delivery and labor arbitrage Strong governance model Process ownership structure Performance management framework Language neutralization	Process automation Business platforms and point solutions Cloud solutions ERP optimization Self-service Mobility solutions	Process-based organization Benchmarking and analytics Business Value Delivery framework Six Sigma, lean initiatives Continuous improvement Center of Excellence Best practice deployment	Global Master Data Management Integrated technology solutions Business Intelligence Reporting Factory Data mining and modeling Real-time and online dashboards and portals