Category Sourcing Services

global sourcing decisions through

software based Category sourcing services

SAVE WITH EASE

Alternate Suppliers Input Cost Models Price Benchmarks and Forecasts

why do customers need Category Sourcing Services?

How can I validate Today sourcing managers are expected to

supplier information create an impact on the bottom line of
available on internet
How can I find their organizations. They develop sourcing
and other public
alternative suppliers
information sources? strategies, identify alternate suppliers
to reduce cost or
break cartels? and specifications and negotiate with
How can I get accurate suppliers. In the process, they take a lot of
price information and decisions every day. Like any other
forecast that can help
you in supplier business decisions, these decisions have to
negotiation and be backed by data. Data that is accurate,
contracting?
specific and relevant to their projects.
This is not an easy job.

I don't have the time

and resource for
category
management and
analysis!

An Overview to Category Sourcing Services

Zycus with its Category Sourcing Services offering enables sourcing managers to confidently take decisions
with the aid of superior supply market intelligence. This highly customized supply market research and
supplier discovery service helps sourcing managers to realize higher savings and lower supply risks by

Robust sourcing strategies

Better category management
Optimum negotiation leverage
Superior supplier discovery and management

Suppliers

Market
Forecast Drivers

Components of
Input Cost Probable
Analysis
Category Substitute
Sourcing
Services
Market News Risk
& Updates Assessment

Category
Analysis
 Accurate market information that help you decide

Supplier Discovery through extensive profiling

Global sourcing is a need of the hour. It helps organization create competitive advantage, but if not done correctly can
lead to disaster. Imagine if you end up buying from a supplier who is using child labor or is a financially non viable and
ends up defaulting on your order. There are lots of parameters that you need to consider and validate lot of information,
even before building your “long list” of suppliers. Zycus Category Sourcing Services helps you discover suppliers based
on many criteria and parameters. Some of them are listed below.

Suppliers that can

Specific criteria like Specific Geographies
provide alternative
capacity, manpower, including China, India,
products or
technology Eastern Europe and
substitutes to the
capabilities, vertical other low cost
existing products in
expertise etc. countries
use by customers

No. of
No. of Prodn// Capacity Total Sales
Supplier Name Location (HQ) Listed on USP Employees Contact
Service sites (MT) (US$)

$313.473
Aceto Corp New York Nasdaq 30 224 +1-516-6276000
million
Jayant Agro-organics
- National Stock sophisticated applications
Mumbai , India 1 43000 $138.36 million 500 91-22-66970470
Ltd. Exchange of India of Castor-based products
National Stock Largest Glycerine Exporter and
Godrej Industries Mumbai India 2 1176000 $183.5 million 2000 022-25194388
Exchange of India Manufacturer of Glycerine in India
21 (Stocking $331 million 101 -
JLM Chemicals Inc Tampa, US -- 81200 Producer of acetone and phenol 813-632-3300
locations) (2006) 500
Amsterdam,
Akzo Nobel NV The Euronext Amsterdam 300 $22.08 billion 60000 +31 20 502 7555
Netherlands
XETRA Level 1, Berlin,
Düsseldorf / Frankfurt, Dusseldorf,, Innovation in 3 products
Henkel Group 52 7311000 $20 billion Laundry and home care,cosmetics and 53000 0049-211-797-0
Germany Stuttgart, Hamburg, Munich,
Adhesive technology
Hanover Stock Exchange

Symex Holdings Victoria, Australian Stock Exchange –

100000 $122.72 million 211 +61 3 9251 2311
Limited Australia SEATS

Input Cost Analysis

Typical Cost Structure - US vs China
Another question that category managers ask
Competitive Advantage
before they embark on global sourcing 100%
Freight
projects is “How much am I really going to 75% Materials
save at the end of this project”. This is Labor & Outside Processing Cost
50%
because the supply chain components and Manufacturing Overhead Input Cost
25%
dynamics change significantly depending upon S,G & A Analysis-
0.0 FASTNERS
geographical location and category. New cost China
Operating Income
U.S.
components like freight, taxes can add to the China U.S.
complexity. Competitive Advantage 5 5
Freight 8 8
Materials 8 17
Zycus helps you to analyze all the input cost
Labor & Outside Processing Cost 2 20
drivers and build an accurate Input Cost Model
Manufacturing Overhead 45 50
as a part of Category Sourcing Services S,G & A 5 0
deliverable. Operating Income 27 0
Accurate market information that help you decide

Supplier Profile – Financial and Risk Analysis and ratings

It is important to understand the financial Liquidity ratios Profitability ratios
health of your potential suppliers before Linde Ag
1.4
you start creating the long list for 1.2 0.3
Praxair, Inc.

1 0.25 Air Water Inc

selection. It is also important that you
0.8 0.2 Air Products
keep assessing and evaluating the 0.6 0.15 and Chemicals,
0.4 0.1 Inc
financial health of your suppliers and 0.2 0.05 Airgas, Inc.
0 0
industry, so that you can take corrective Current ratio Quick ratio Net Return Return Taiyo Nippon
Profit on on Sanso
decisions before it is too late. Zycus Margin Assets Equity Corporation
provides you a comprehensive financial Air Liquide

analysis of suppliers of your choice.

Price Trends and Price Forecast

Getting accurate commodity price data, Price Forecast for Refined Glycerin

benchmark and forecast helps sourcing 3000

managers identify sourcing strategies and 2500

2150
hedge against future price rises. Zycus' 2000 1985 2470
Category Sourcing Services service helps 1650
1500
you with the price history and forecast
1000 880
along with supply and demand data and 660 770
500
forecasts. In the end, you take a better
decision. 0
2005 2006 2007 2007 2008 2009 f 2010 f
(1st Half) (2nd Half)

Zycus Advantage
With Zycus Category Sourcing Services, you can get all this information as per your specifications, requirements and
timelines. Zycus with its robust delivery processes and robust web mining and data aggregation technology can really
cut the delivery time significantly. Our emphasis on primary research and QA makes sure that the market scan is
complete and accurate. In all, Zycus' advantage helps you get the best market intelligence in the shortest possible
time and at a highly competitive cost.

Web crawling and spidering technologies Zycus esourcing technology

Parts libraries Technology Data mining

Advantages of
Category
Domain Expertise
Sourcing Specific customer requirement
Delivery & Support Process
Category
Expertise
Services Customized
Emphasis on primary research
Insight
Data Expertise QA and Validation

To know more about the solution, please contact your account manager or write to information@zycus.com
About Zycus

Zycus is the world’s leading provider of Spend Management solutions to

Global 1000 companies. Zycus' solutions suite, comprising of eSourcing
and Actionable Spend Analysis tools, combine cutting-edge technology
and domain expertise to enable greater user adoption and sustainable
savings. Zycus’ solutions facilitate greater process planning, control
and increased corporate alignment of Spend Management initiatives.
Innovation & Ease of use is at the core of every Zycus offering. Zycus’
Spend Management solutions help procurement departments of Global
1000 companies Analyze, Plan and Source through an intuitive and
objective driven process. With proven Spend Management
deployments across the globe with over 100 implementations, Zycus’
solutions have emerged as global favorites.
Zycus has over 250 employees spread across its offices in North
America, Europe and Asia Pacific.

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