CommerceHub Deploys Its First Ever RFP Within 24 Hours With Sourcing Dojo

Summary

CommerceHub, an eCommerce services company, was able to quickly and easily deploy its first ever RFP process using Sourcing Dojo. Prior to implementing the software, the company relied on spreadsheets and emails to manage its RFP process, resulting in a lack of efficiency and cost savings.

With the new Director of Procurement, Sӧren Petsch, in place, the main focus was to streamline CommerceHub’s sourcing activities and reduce costs. In addition, the new automated processes needed to be fast, easy to understand, and easy to use so that the procurement functions would be seen as an enabler, not a blocker within the organisation.

Requirements

• Cloud-based RFP software
• Low barrier to entry
• Speed of deployment
• Minimal training overhead

Having researched eSourcing vendors and running a formal RFP with those shortlisted, CommerceHub selected Sourcing Dojo due to its ease of use, ability to be deployed quickly and the software’s pay-as-you-go option.

Key Outcomes

The impact of using Sourcing Dojo resulted in

• Cost savings of 30-40%
• RFP deployment took 24 hours
• Excellent data export capabilities
• User-friendliness negated need for training

Read on for the full case study or Download PDF

Challenges

Streamline sourcing activities

With no sourcing software in place and a reliance on spreadsheets and emails, CommerceHub’s formal RFP process was almost non-existent. Typically, departments evaluated only one or two vendors before presenting a ‘vetted’ solution to the procurement team.

However, with a new Director of Procurement in place, the main focus was to streamline CommerceHub’s sourcing activities and help reduce costs. In addition, the new automated processes would need to be fast, easy to understand, and easy to use so that the procurement function would be seen as an enabler, not a blocker, within the organisation.

To understand how the company was able to rapidly adopt and deploy an entirely new RFP process using Sourcing Dojo, we asked CommerceHub’s Director of Procurement, Sӧren Petsch, to share his experiences.

It started with the Green Monster!

As is common, CommerceHub had previously relied on sending emails to suppliers with all renewal information kept in a spreadsheet that they called ‘The Green Monster’. The spreadsheet was not accurate or consistent in terms of data points, it truly was a case of garbage in, garbage out!

With a MBA from University of Chicago and 20 years business experience, of which 12+ years have been spent in procurement roles within retail, banking, consulting, Sӧren is more than acquainted with eSourcing solutions including SAP Ariba.

At CommerceHub, Sӧren’s key objective was automating existing processes to make them faster and more efficient. As a true professional, Sӧren researched eSourcing vendors on g2.com, made initial contact with each supplier, then ran a formal RFP with those short-listed.

The Solution

Why Market Dojo?

When selecting suppliers for the RFP, Sӧren remembered, more than a year ago, hearing a podcast with a Market Dojo customer who spoke very highly about Sourcing Dojo and how easy it was to use. He also recalled the company being featured on Dr Elouise Epstein’s Spider Map as a ‘quick sourcing’ platform. This made Sӧren want to find out more.

Did Sourcing Dojo deliver?

Sӧren’s main requirements for a RFP tool were that it would not require a lengthy system integration, that it was easy to execute (as he had only one other team member), and easy to learn (due to the limited experience within the company of running RFPs through a tool).

So, did Sourcing Dojo deliver on this? In a word, yes!

“From the time we bought our Sourcing Dojo licence, to the time we had the RFP up and running, it was 24 hours. Then it was launched externally within another 24 hours. I couldn’t imagine doing anything faster than that.” says Sӧren.

He goes on to say, “Both how the data came back and the platform functionality, with the message board, were super easy. Also, the testing capabilities, for example driving the data from different user profiles, was just fantastic.”

Results

The impact of Sourcing Dojo to CommerceHub

Cost savings were undeniably the immediate tangible benefit and, for CommerceHub, Market Dojo’s pay-as-you-go option is perfect.

On the RFPs that had run at the time of this case study, the impact to the business was between 30-40% discount. Or to put it another way, Sӧren says, “What we can save is between 20 and 50 times the cost of Sourcing Dojo (£500/month). Ultimately, you guys pay for yourself numerous times over.” 

Aside from these benefits, Sӧren likes the software’s ease of use and that the RFP data can be downloaded in a clean, well-formatted Excel file that he can share easily with stakeholders.

Does size matter?

Having previously led procurement teams of 28 people—eight direct reports and 20 consultants—Sӧren now has a team of two, himself included. Moreover, his other team member had no previous background in procurement and as a result had never used a RFP tool.

But it’s true what they say, size doesn’t matter as Sӧren believes that with Market Dojo his team of two get just as much done in the same amount of time, if not more.

“No training was needed [to use Sourcing Dojo], even for my team member, who was able to build a RFP and jumpstart her experience.” says Sӧren. “I think that’s truly fantastic.”

Is Sourcing Dojo a viable alternative to SAP Ariba?

During his 12+ years of using other procurement tools, including SAP Ariba, and running RFPs, RFQs and RFIs, Sӧren has not found any functionality in these alternatives that is missing from Sourcing Dojo. All the functionality that he would expect is there and it’s incredibly easy to use.

He goes on to say, “In 10+ years of using Ariba, I have not once been able to build my own RFP. With Market Dojo I could do it.”

Sӧren regularly recommends Sourcing Dojo to other procurement professionals and those who have historically worked with SAP Ariba have a hard time believing that Sourcing Dojo has so much functionality. “When I recommend Market Dojo to other procurement professionals they don’t believe me about how easy it is.” says Sӧren.

Full marks for Market Dojo

How does Sӧren rate Market Dojo’s software and customer service?
“10 out of 10! You get five stars out of five.”

Download PDF to share this customer story – or Request a Demo with the team

About CommerceHub

CommerceHub is one of the world’s largest, most trusted commerce networks, connecting over 18,000 retailers and brands globally to transact more than $50 billion in gross merchandise value (GMV). Customers rely on CommerceHub’s software solutions to reach and convert more shoppers, expand margin, and enhance the online shopping experience through drop ship, marketplace, digital advertising, and delivery management.

Founded in 1997, CommerceHub serves some of the world’s top retailers, including The Home Depot, Macy’s, Best Buy, Dick’s Sporting Goods and more.