[Audio] Indirect E2E Procurement Workflow Kickoff Kovitha.
[Audio] Current State: No standardized process for gathering information; storage is decentralized and disorganized. Multiple platforms and tools are used inconsistently across regions for supplier communication and sourcing documentation. Project Proposal Problem Statement Manual validation and data aggregation are persistent issues across the entire process flow. Supplier DDQ Award Business Benchmarking Bid Analytics Create Sourcing The current Indirect E2E procurement process lacks standardization and centralization, resulting in fragmented information management, inconsistent use of platforms across regions, and heavy reliance on manual validation and data aggregation. RFx in Scout Update PR/ Create PO Intake Email, Scout Scout Email Ariba/SAP Future State: Automation System Integration Process Standardization Leveraging AI for due diligence and bid analysis can significantly Increased standardization in gathering information and documentation can improve operational efficiency. Integrating systems (Fairmarkit with Ariba/SAP) will streamline workflows, reduce manual effort, reduce duplication of effort. and shorten cycle times. Supplier DDQ Create PR/PO Award Business Benchmarking Bid Analytics Create RFx in FMKT GenAI Intake Ariba/SAP Fairmarkit & AI Agent.
[Audio] Proposed Strategic Indirect Procurement Lifecycle End-to-End Process and Innovation Opportunities End-to-end Indirect Procurement Core Workflow Optimized via Fairmarkit GenAI Optimized via Fairmarkit GenAI Optimized via Fairmarkit GenAI Optimized via Fairmarkit GenAI Supplier Create Bid Benchmarking Award DDQ RFx Analytics Business Update PR/ Create PO GenAI Intake Automatically Facilitate automated Analyze supplier bids using cost Validate supplier integrity through generate RFx event Integrate award back into SAP to or manual financial, compliance, update PR or Evaluate supplier bids in Fairmarkit and select winner based on value, Receive and review purchase requests from end users via Fairmarkit or other risk reviews before in Fairmarkit from request details and create PO negotiations with suppliers for terms facilitate AR intake channels models/cleansheet for competitive and transparent pricing CLM initiation specifications and pricing generation and approval Agentic AI Orchestration Bid Analytics Should Cost Benchmarking Enable and streamline H2H bid comparison and analysis Advanced Reporting & Cost Savings Tracking Real-time dashboards with automated workflows for procurement analytics Leverage multi-agent AI for automated DDQ financial and compliance reviews efficiently Apply standard models to benchmark bids for optimal pricing and value assessments Innovation Workflow.
[Audio] Roadmap FY26 FY27 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov GenAI Intake Form (All) RFx Configuration (All) Suppliers Prep Suppliers Prep Onboarding Onboarding (CN, TW, Core (MY,SG,IN, US) JP) Bids Analytics Benchmarking Go-Live (MY, SG, IN, Go-Live (CN,TW, JP) US) Supplier DDQ Development | Deployment (MY) Supplier DDQ Expansion (US) Supplier DDQ Expansion (APAC) Innovation Advanced Advanced Dashboard/Reporting Automation Development (TBD) Dashboard/Reporting Automation Feasibility Region SPOC SPOC Region SPOC Global Gautam Reddy China Vicky Lu/Penny Zhao Malaysia Suki, Revineesh Singapore Angela Goh India – HYD Vishakha Saini Japan Tanabe India – MSTI Ankhi US Tim Roberts Taiwan Vivian Li GPCOE Haejin, Newton (DDQ).
[Audio] Current Assessment Project Objectives Process Platform/Tools Pain Points Sourcing Intake Email/Teams Supplier Due Diligence Scout Bid Analytics Ariba Excel No standardized process for gathering information; storage is decentralized and disorganized. Process Standardization Increased standardization in gathering OneDrive or Local Drive information and documentation can reduce duplication of effort. Create RFx Emails Award Business Scout Update PR/Create PO Ariba System Integration SAP Integrating systems (Fairmarkit with Multiple platforms and tools are used inconsistently across regions for supplier communication and sourcing documentation. Ariba/SAP) will streamline workflows, reduce manual effort, and shorten cycle times. Supplier Due Diligence Scout Create RFx Excel Bid Analytics Ariba Automation Update PR/Create PO SAP Manual validation and data aggregation are persistent issues across the entire process flow. Leveraging AI for due diligence and bid analysis can significantly improve operational efficiency..
[Audio] On-Demand Sourcing – Indirect Inventory FY25-27 Kovitha.
[Audio] Current State: No standardized process for gathering information; storage is decentralized and disorganized. Manual validation and data aggregation are persistent issues across the entire process flow. Project Proposal Problem Statement The current process of using emails to communicate with suppliers and receive quotations is inefficient due to time-consuming back-and-forth communication with stakeholders. Future State:.
[Audio] Micron Confidential Global Expansion Early Impact Since Go-Live and Plan to Scale PLANNING – Phase I PLANNING – Phase 2 Opportunities we see LIVE India Jay Prajapati /Vishakha Saini Malaysia Subashini Japan Nashnani China Shmily Liu/Edward FY25 Active PN: 97 Expand to multi-source for better supplier leverage and inventory diversification FY25 Active PN: 558 FY25 Active PN: 430 Taiwan Shawn Tsai $0.28M Spend Coverage 15 RFQs, 15 Awarded. Avg. 12% Price Reduction for Inventory Materials USD 8.8K Savings* $17.76M Spend Coverage $4.73M Spend Coverage FY25 Active PN: 268 FY25 Active PN: 800 Negotiate direct cost savings and optimize supplier engagement. Singapore Harsha Yadav Global Paige $6.18M Spend Coverage US Kyle Obolsky $56.3M Spend Coverage FY25 Active PN: 53% Supplier Registration FY25 Active PN: 473 FY25 Active PN: 2901 Leverage Fairmarkit's automated bid analysis, auto multi-round negotiation on price increases $8.78M Spend Coverage $22.78M Spend Coverage $ Spend Coverage (negotiated at Global level and extended to other sites) Overall Spend: USD 116.8M Micron Confidential.
[Audio] Legend Autonomous Sourcing Roadmap Indirect Growth and Milestones | FY25 – FY27 FY 2025 FY 2026 FY 2027 Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Bulk RFQ - Regional Inventory PoC [MY] [$6.18M] Indirect Regional Inventory Scaleup Ph 1 [SG $8.78M, TW 56.3M, IN $0.28M ] Custom Indirect Regional Inventory Scale-up Ph 2 [US $22.78M, CN $4.73M, JP $17.76M].
[Audio] Dashboard Development & Expansion Roadmap (FY22–FY26) 1 2 3 4 5 6 APAC COLLABORATION & VISIBILITY ACHIEVED REGIONAL INTEGRATION & ENHANCEMENT & INSIGHTS AUTOMATION & COST EFFICIENCY FOUNDATION FUTURE (MAY 2023) (JUNE 2023) (JULY 2025) (SEPT 2022 -2023) (NOV 2025 – Q3 FY26) CONTROL (AUG 2025) Upgrade: Enhanced Milestone: Dashboard Objective: Plan to establish a Next Step: Initiate joint APAC dashboard with additional Expansion: Added a new tab successfully established. centralized dashboard for easy cost control efforts. Innovation: Launch of OnDemand Sourcing using analytics. for regional visibility. visibility. Action Plan: dashboard insights. Impact: Features: First regional meeting: Early Functionality: Each region can view price Focus: Concept design, data November 2025. PNs created in FMKT for cost New Additions: Aging report increase data and cost savings. Full visibility on Part Number (PN) spend, Supplier spend, and structure, and visibility goals. Target completion: By Q3 FY26. down processes. Material status (Active / Non Improved control over all Usage data. Manager approval required for active items) inventoried items. any price increase before IR creation or updates..
[Audio] On Demand Sourcing MY Enhancement Previous Outlook Global Expansion Phase 1 MATREQ Dashboard Cost-Saving Workflow High-spend materials and suppliers are identified using dashboard data. Singapore, India , US & Taiwan Spend coverage: USD 88.17 M MATREQ Management Dashboard – Key Challenges Requires multiple SAP transaction codes, making reporting complex and timeconsuming The Category Supplier Manager (CSM) selects PNs for direct negotiation to achieve cost savings. Phase 2 Manual filtering and data combination in Excel increases risk of errors and inconsistencies Info Records (IR) are automatically updated after RFQs are awarded in Fairmarkit. Japan & China Spend Coverage: USD 22.49 M Entire process can take 1–2 days, delaying decisions and reducing operational efficiency MY achievement FY25 Active PN Count : 268 Spend : USD 6.17M Total Savings : USD 113k Average % Savings : 7.5% Business Value: 1. Estimated Cost Saving Outlook (Min 5%):USD 5.8M Total spend 7 region x Minimum target savings 5% 2. Estimated Time Savings (Each region): 89% (210 minutes) Manual state (235 minutes) – After enhancement (25 minutes) Estimated total savings for all region: 7 regions x 210 minutes (savings) = 1470 minutes.
[Audio] Sample Data Analysis : Forecasted Cost Impact for SG Site using MY Site Baseline - Glove 1. Baseline Information (MY Site) 2. (SG Site) Current Condition Item Value Item Value Price per pair (MY Site) RM 0.64 Price per pair (SG Site) SGD 1.04/pair Monthly usage 6,000 pairs Convert to MYR 1.04 X 3.3= RM3.43 Annual usage 6,000 × 12 = 72,000 pairs Annual usage 72,000 pairs Annual cost (in SGD) 72,000 × 1.04 = SGD 74,880 Annual cost (baseline) 72,000 × RM 0.64 = RM 46,080 3. Difference in Cost (Per Pair + Annual) 4. Forecast saving for SG Site Per Pair Item Value Site Value Current annual cost RM 247,104 MY Site RM 0.64 Forecasted cost (MY baseline) RM 46,080 SG Site (converted) RM 3.43 Annual savings RM 201,024 Difference per pair RM 2.79 Savings % (201,024 / 247,104) x 100= 81.3% Annual Site Value MY Site RM 46,080 SG Site (converted) RM 247,104 Annual difference RM 201,024 5. What is the opportunity Gain? We can consolidate the spend and achieve greater savings approximately 80% by leveraging the supplier pool Leverage the BCP by creating more supplier pool Explore VMI model to ensure no impact to operation.
[Audio] ACTIVE USAGE PN COUNT & SPEND - FY25 FY25 Active PN Count : 268 Spend : USD 6.17M Total Savings : USD 113k Average % Savings : 7.5% How Malaysia achieve this Cost Down? Localization Strategy Switching overseas suppliers to local vendors to reduce logistics and procurement costs. Direct Cost Down For High Usage/ Spend Suppliers Pool Use the Dashboard in sourcing events for high-usage PNs. Negotiate direct cost savings and optimize supplier engagement. Consolidation & Economies of Scale Combining supplier volumes across Malaysia sites (MMP & MMY) to leverage better pricing..
[Audio] What extra value can be obtained through this dashboard? ❑ Aging Inventory Control Aging Inventory Dashboard identifies PNs older than 6 months (up to 48 months). Clearing obsolete stock frees up warehouse space and reduces carrying costs. Estimated aging inventory cost: USD 9.4M for Malaysia sites ❑ On-Demand Sourcing Newly introduced On-Demand Sourcing tool triggers sourcing events for high-usage PNs. Helps negotiate direct cost savings and optimize supplier engagement. Integrated with FMKT workflows for faster execution. ❑ Process Efficiency Reduces manual effort by automating Info Record (IR) change tracking, enabling quick detection of price updates without SAP lookups. Facilitates monthly/quarterly reporting for leadership reviews with minimal manual intervention.