E-Procurement Report

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  • Topic: Procurement, Technicolor, Purchasing
  • Pages : 7 (2140 words )
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  • Published : April 8, 2013
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CARTIGNY Thomas
DAILLY Nicolas
de MENOU Guillaume
DUQUESNE Quentin
THIROT Claire
E-Procurement report
Management of information systems
IESEG

CARTIGNY Thomas
DAILLY Nicolas
de MENOU Guillaume
DUQUESNE Quentin
THIROT Claire
E-Procurement report
Management of information systems
IESEG

What business is the organization in?

Technicolor SA, formerly Thomson SA and Thomson Multimedia, is a French international provider of solutions for the creation, management, post-production, delivery and access of video, for the Communication, Media and Entertainment industries. On January 27, 2010, the company changed its name to Technicolor, re-branding the entire company after its American film technology subsidiary. Technicolor's headquarters are located in Issy les Moulineaux, near Paris. Technicolor operates under three main activities servicing a variety of global markets: * Entertainment Services: Entertainment Services develops and offers video-related technologies and services for the Media & Entertainment industry. It includes Creative Services (content production, preparation and creation), Film Services and DVD Services (physical media content distribution), Digital Cinema (digital media content distribution) and PRN (Premier Retail Networks. * Digital Delivery: Digital Delivery increases the Group's capability to capture the growth resulting from the shift to digital distribution. Hardware & software technologies for delivery platforms. * Technology: Technology comprises Intellectual Property licensing, R&D and MediaNavi. The Licensing business is responsible for protecting and monetizing the Group's Intellectual Property portfolio and generates most of the Technology revenues.

What products are bought via e-procurement ?
In Thomson company purchase are divided in two parts. Like in a lot of companies there is the production purchase which contains all the purchase directly related to the product. It includes for instance raw materials or semifinal products, for Thomson we have plastic or electronics components. The other part is the non-production purchases for instance transport, energy, patent, software, investments. The Thomson E-procurement project, named Easy Source contains all the production purchase but not all the non-production ones. Only 80% of this one is included in the process, for instance purchase like license, guaranty, and clients marketing. The purchase of this product aren’t automatized with the e-procurement because they aren’t really purchase, they need specific management.

What savings were realized ? (financially)
Thomson launched a process to save some purchasing costs. This optimization process will focus on production purchases and on non-production purchases as well. Indeed non-production purchases represent 30% of Thomson’s profit. The goal is to decrease purchasing costs with the E-procurement. In the future, Thomson wants to continue the efforts about the costs reduction. Through the Spring program, the company wants to increase the collective performance with drastic objectives about direct and indirect production costs reduction. The Spring program is made up of two important initiatives. The first one is a purchases central location in charge of negociations about volume effects: KeyMRO. The second one is a tool for the management of the relation Suppliers-Suppliers Relationship Management (SRM): Easysource. It is a platform whose function is to manage the E-procurement. Thanks to this program, internal costs of local solutions development are avoided. Moreover, still thanks to Easysource, there is a reduction of the cost of suppliers base management.

Besides, a customer can ask for a product catalogued in the market place or for a product not catalogued in the market place. In the first case, the product will be expensive and will cover a very small part of non-production purchases (10%). In the second case, the product won’t be costly...
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