Uncover savings and mitigate risk in your supplier portfolio

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Uncover savings and mitigate risk in your
supplier portfolio
Supply Management Solutions

• Supply Opportunity Assessment Sample Report
• DB Proprietary Information provided to INSERT
  CUSTOMER NAME for its internal use only and may
  not be provided to third parties without DB's
  written consent

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Lets look at what a Supply Opportunity
Assessment can show you
Gorman Manufacturing Sample Report
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Entity Matching first uncovered multiple
suppliers that are really the same supplier,
enabling Gorman to identify increased negotiating
leverage
11.3 Billion

• Number of Suppliers

12 Billion
Excludes consist of Inter-company, Taxes and
Personal Payments.
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Corporate Linkage then identified savings
opportunities by applying the D-U-N-S Number to
link individual suppliers with their corporate
relationships
Total Spend Related to Families 4.4 Billion
10,282 Suppliers
Single Location Spend 6.9 Billion 22,325
Suppliers

• Improving leverage by aggregating family spend by
  only 1-3 of 4.4B could yield 44 - 132 Million
  in savings with existing suppliers

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This visibility showed Gormans top suppliers
organized by family linkage
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...as well as the spend detail of their top
supplier and all the family members
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The breakdown of Gorman suppliers by total annual
spend showed highly fragmented spend and an
opportunity for consolidation
Gorman Manufacturing spends less than 10,000
annually with 73 of the Suppliers this
universe of suppliers appears to be highly
fragmented. Can you consolidate?
Percentage of Suppliers
Total Purchases per Supplier
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We enabled visibility of spend and consolidation
opportunities by identifying Product Linkage and
exactly what Gorman is purchasing by SIC codes
DB also has the ability to do UNSPSC
categorization
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and how much they are spending on a specific
industry or commodity and the number of suppliers
they are purchasing from
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as well as exactly who they are buying from
And 13 more suppliers.
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Predictive Indicators helped Gorman reduce
exposure to supplier failure by assessing the
risk associated with their supplier relationships
High Risk
Medium Risk
113 Million
308 Million

• There are 14,066 suppliers with SERs of 7, 8, or
  9
• 9,781 Suppliers, with 87 million in spend,
  became high risk over the past 12 months
• There are 98 suppliers in your database that are
  bankrupt
• DB has identified significant risk in your
  supply base and Gorman should consider a program
  to be put in place for ongoing monitoring of the
  supply base

Low Risk
410 Million
Suppliers scored with a 7,8 or 9 are considered
Higher Risk by DB
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and provided additional insight often times,
surprising insight into a high risk supplier
BROTECH CORP    PUROLITE COMPANY150 Monument
Rd, Ste 202Bala Cynwyd, PA 19004 1,106,551 in
spend Manufactures ion exchange resins  Supplier
Evaluation Risk score of 8 The company and three
of its officers have been charged with violating
the Trading With the Enemy Act of 1917 and Cuban
Assets Control regulations. A fourth official was
charged with making false statements to the
government. Charged in the indictment were Stefan
E Brodie, Donald B Brodie, James E Sabzali and
John H Dolan. The court acquitted Stefan E Brodie
and declared a mistrial. The Company and
remaining officers have reached a plea agreement
with the government, pleading guilty to 1 of the
counts and paying a 250,000 fine.
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We also identified suppliers who are overly
dependent on Gormans business and who may be a
severe risk to their supply chain

36 Million in spend is with suppliers classified
as highly dependent50 of their Total Sales is
with Gorman.
Dependency
36 Million
46 million
748 Million
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and provided additional insight on those highly
dependent suppliers
AQUATECHS DUNS 60-963-1874 Reno, NV 759,055 in
spend 2002 Sales of 1,000,620 76
Dependent Manufactures industrial water
purification equipment. From JAN 01 2002 to DEC
31 2002 annual sales 1,000,620 gross profit
1,000,620 operating expenses 1,042,967.
Operating income (42,347) (net loss) 42,347.
 Submitted JUN 02 2003 by Gary Richardson,
Partner.
OSCO INC DUNS 80-855-2897 Oklahoma City,
OK 1,012,014 in spend 2002 Sales of 1,300,097
78 Dependent Industrial Consulting From JAN 01
2002 to DEC 31 2002 sales 1,300,097 cost of
goods sold 723,176. Gross profit 576,921
operating expenses 484,013. Operating income
92,908 other income 2,340 net income before
taxes 95,248 other tax 19,806. Net income
75,442. Prepared from statement(s) by
Accountant White Co. CPA's, Woodward, OK
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We confirmed the diversity status of their
supplier portfolio the of their business
and the spend associated with these
classifications

Labor Surplus 211 Million
Veteran 8 Million
Small Business 253 Million
Women 25 Million
Non-Diversified 700 Million
Minority 15 Million
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and an understanding of the economic power of
Gormans spend by identifying what state most of
your dollars are spent
Elected 2000
Congressman Mark Kirk
Contact 847.940.0202
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The Supply Opportunity Assessment helped Gorman
gain visibility into their supply base and they
could help you

• Capture short-term quick hit savings to
  demonstrate the ROI
• Build a long-term strategy for driving
  bottom-line savings
• Continue to identify and prioritize savings
  opportunities
• Negotiate based on the total supplier
  relationship
• Deliver recurring savings
• Minimize supplier risk and over dependency
• Maximize the tools value by leveraging the
  information across the organization