Many spend analysis systems capture data only after the money is gone. Honeywell’s OneSource, by contrast, is like an expanding universe, covering both backward- and forward looking spend data. It gives the company’s commodity managers a way to spot strategic sourcing and spend management opportunities in real time. Powered by an i2 Technologies SRM, Strategic Sourcing platform, OneSource automatically gathers procurement data from 107 (eventually 152) Honeywell locations. Data available for analysis and decision supports span two previous years plus the current year. Each site provides six discrete data feeds: open purchase orders, receipts, rejects, unplaced demand or forecast (demand from MRP system but not yet purchased), supplier master, and accounts payable spend, including off-purchase order MRO spend. The seventh and eighth data feeds capture contract manufacture bill of materials (part list) and component part approved vendor list for businesses doing subcontract spend analysis. OneSource is technology agnostic, meaning Honeywell’s business units do not need to change the way they capture and store their spend data. “Data in a specified format is taken from the systems the site has—from Excel spreadsheets to a vast array of ERP and MRP systems, including Avalon, BPICS, Cullinet, JD Edwards, MacPac, Oracle, SAP as well as some home-grown versions,” says Dennis Lemon, corporate director of supplier quality and health management. That is important for a diversified company like Honeywell, where procurement is decentralised. Data classification and cleansing is done as part of project rollout and continues using data maintenance applications administered by designated sites or business resources. “As deployment has continued,” Lemon says, “data cleansing has identified up to 25% overlap with other sites as new sites are added. Global supplier rationalisation has allowed Honeywell to realize supply base reductions in the 40–50% range.” Page 3 of 4 Typically, according to Lemon, it takes about three months to bring a new site on board with OneSource. A key factor has been the development of a formal process for doing this. “We use a defined process that specifies who we work with and how. We involve their sourcing, IT, and quality people. We help them create data feeds, test, and validate their data, and we train them to use the system. We really nurture them as they begin to use OneSource.” Source: Monczka, Handfield, Giunipero and Patterson. (2015: 45) Questions: 1, Assess the influence of systems analysis in the purchasing process. 2.Evaluate the role of forecasting and requirements planning in the purchasing cycl
Many spend analysis systems capture data only after the money is gone. Honeywell’s OneSource,
by contrast, is like an expanding universe, covering both backward- and forward looking spend data.
It gives the company’s commodity managers a way to spot strategic sourcing and spend
management opportunities in real time. Powered by an i2 Technologies SRM, Strategic Sourcing
platform, OneSource automatically gathers procurement data from 107 (eventually 152) Honeywell
locations. Data available for analysis and decision supports span two previous years plus the current
year. Each site provides six discrete data feeds: open purchase orders, receipts, rejects, unplaced
demand or forecast (demand from MRP system but not yet purchased), supplier master, and
accounts payable spend, including off-purchase order MRO spend. The seventh and eighth data
feeds capture contract manufacture bill of materials (part list) and component part approved vendor
list for businesses doing subcontract spend analysis.
OneSource is technology agnostic, meaning Honeywell’s business units do not need to change the
way they capture and store their spend data. “Data in a specified format is taken from the systems
the site has—from Excel spreadsheets to a vast array of ERP and MRP systems, including Avalon,
BPICS, Cullinet, JD Edwards, MacPac, Oracle, SAP as well as some home-grown versions,” says
Dennis Lemon, corporate director of supplier quality and health management. That is important for a
diversified company like Honeywell, where procurement is decentralised.
Data classification and cleansing is done as part of project rollout and continues using data
maintenance applications administered by designated sites or business resources. “As deployment
has continued,” Lemon says, “data cleansing has identified up to 25% overlap with other sites as
new sites are added. Global supplier rationalisation has allowed Honeywell to realize supply base
reductions in the 40–50% range.”
Page 3 of 4
Typically, according to Lemon, it takes about three months to bring a new site on board with
OneSource. A key factor has been the development of a formal process for doing this. “We use a
defined process that specifies who we work with and how. We involve their sourcing, IT, and quality
people. We help them create data feeds, test, and validate their data, and we train them to use the
system. We really nurture them as they begin to use OneSource.”
Source: Monczka, Handfield, Giunipero and Patterson. (2015: 45)
Questions:
1, Assess the influence of systems analysis in the purchasing process.
2.Evaluate the role of
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