Check Out the Answers to Questions You Care About the Most

What is Cirtuo even about?

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Cirtuo is on a mission to strengthen strategic approach in procurement, with support of our unique software and methodology. To make that happen, we’ve designed a software which provides step-by-step guidance through category and supplier management framework.

The analyses in Cirtuo provide a 360-degree overview of your categories and suppliers, establishing a data-driven foundation for the strategic activities.  It means establishing full control of your spend but also executing the whole-length analysis, strategy development, and clear initiatives plan.

In Cirtuo, we believe that harvesting the full benefits of digital transformation in procurement will only be possible if it is followed by a strategic transformation. Therefore, our ultimate goal is to encourage procurement experts to think bigger than digitalization, and move on to an extensive strategic approach.

Cirtuo drives you to look beyond sourcing by bringing new value through stakeholder mobilization, risk mitigation, proactive market approach, and a clear strategic path for your categories and suppliers. As a final result, Cirtuo’s procurement transformation will turn strategic thinking into routine for your procurement organization.

What is the best way to start with Cirtuo?

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We recommend you to start with Category Management, or with Procurement Development. It is also possible to combine both at the same time, since these activities support one another.

Starting with Category Management:

The initial project consists of practical introduction to Cirtuo category management methodology, and software training.
For the project, select several categories and your key procurement professionals. Cirtuo will deliver initial workshops – 3 workshops, 2 days each, within the first three months since the project start.
The workshops are designed in a way that they engage the participants in applying category management methodology, while simultaneously getting to know the software.
Procurement professionals (e.g. your Category Managers or Lead Buyers) will practice on their own categories during the workshops, as they will summarize their purchase knowledge and create strategies.
In a short period of time, we are able to transfer a considerable amount of know-how, which is essential in both mastering the Cirtuo software, and familiarizing with category management methodology.

As a result, the workshops provide your procurement department with:

  • Cirtuo software technology, Category Management module
  • Strategic insight into procurement
  • Category analysis – spend analysis, risk analysis, supply market analysis etc.
  • Clearly defined business requirements
  • Defined category strategy
  • Strategy validation meetings with internal clients
  • Defined initiatives for the future
  • Savings / financial benefits tracking

After the workshops, most of our clients opt for a 2-4 training days follow-up in the first year to ensure the proper usage of methodology and software.

Starting with Procurement Development:

In order to assure full alignment of procurement department with your business, start with procurement assessment.
Initially, we agree on the questions for an online assessment. We offer a 100 predefined, best-in-class questions, which are customizable upon your request. Next, you choose the procurement stakeholders and procurement employees which will participate in the assessment.
After that, approx. 2 weeks are given to participants to complete the questionnaire, after which Cirtuo and your procurement leadership team analyze the answers, summarize the results and develop a procurement strategy. The analysis doesn’t take longer than a week, which ensures that the assessment is prompt and efficient, enabling you to quickly carry on with your regular business.

The final outcome is:

  • A confirmed state of procurement department
  • Gap analysis between needed and existing procurement practices
  • Clear business requirements resulting from company, or business unit strategy
  • Procurement goals aligned with business goals
  • Defined procurement strategy
  • Transformation plan for your procurement department
  • Defined KPIs which support strategy implementation and procurement development

If needed, the results and the initiative plan can be presented to the management and / or to the selected procurement stakeholders. Ideally, after executing the procurement assessment, you could start introducing category management.

What do you mean by strategic procurement?

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To understand the game of strategic procurement, it is important to remember its three main elements: category management, supplier management and risk management. The ultimate goal of every CPO is to combine these elements in a way that yields maximum value for their company.

However, most procurement experts only play midfield, i.e. their sole focus are costs and operational concerns. That is why Cirtuo strengthens the midfield first. It is done with a simultaneous strike on three fronts – raising strategic competences of procurement, structured category management, and digitalization.
After that, it is time to move on to offense, or in procurement terms – supplier management. Successful supplier management results in you becoming your suppliers’ customer of choice. That means obtaining superior performance, innovations, exclusivity, and guaranteed capacity in difficult times.
Finally, Risk Management serves as a defense mechanism which eliminates market surprises that could cause your team to lose.

In other words, Cirtuo expands your game. A successful CPO should act as a coach, always assessing whether it’s the right time to introduce cost reductions, or to turn to value creation or risk management.

Basically, Cirtuo offers a digital, analytic and value & results-oriented approach, capable of bringing your procurement game to an enviable level.

For more information on specific tools, check out Cirtuo’s methodology.

What is the impact of Cirtuo on procurement?

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Cirtuo will provide you with a strong strategic overview that allows you to step away from constant firefighting activities that are present in operational/tactical procurement. Our methodology opens doors to procurement breakthroughs. While many procurement functions have reached a ceiling as far as their contribution is concerned, Cirtuo provides them with the necessary evolution to a mature, strategic level.

Cirtuo’s impact is measurable directly through the software.

Cirtuo specializes in Category / Supplier / Risk Management and Procurement Transformation, which results in:

  • Increased strategic competences
  • Understanding business requirements
  • Relationship-building procurement / stakeholder mobilization
  • Savings beyond sourcing
  • Mitigating market, financial and supply risks
  • Becoming your suppliers’ customer of choice
  • Setting clear goals and initiatives for the future
  • Developing category and suppliers strategies
  • Promoting procurement as a crucial success partner on company level

All of these benefits arise from Cirtuo’s 4-step methodology which provides tools for analysis, strategy, initiatives and results. You can track every step of your strategy-creation process and present it to procurement stakeholders, suppliers and internal clients using our advanced reporting options.

What is the best way to approach spend data classification and the category tree? Should we start with Cirtuo, or sort this out first?

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First of all, don’t worry – most of our clients didn’t have an optimal category tree before starting the project with Cirtuo.

Your tree needs to reflect the business needs and capabilities of your procurement organization. It’s important to approach it strategically and develop it in the right way in terms of priorities, competences, organization traits, processes, methods and tools.

Therefore, building a category tree that is as optimized as possible, should be a strategic activity which can be carried out during your Cirtuo project.

Once you enter the strategic process, Cirtuo will help you quickly identify and fill in the gaps in your existing data classification. To support the process, Cirtuo has integrated spend mapping, a functionality which helps your existing ERP data to be mapped to the new strategic structure in the category tree. That means that your ERP data structure can remain unchanged, while you can build a different, strategic data classification in Cirtuo.

The final result is increased data quality, which ensures better analysis and reporting. Ultimately, that leads to better understanding business requirements, which eases finding an optimal strategy for your categories and suppliers.

What is Spend Analysis and what does it look like in Cirtuo?

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The complete control of your spend is the basis for successful strategic procurement. If you are not sure how much you are currently buying, how could you analyze it and develop a strategy? Spend analysis represents a detailed overview of your company’s spend, on item-level. Based on the uploaded spend data, Cirtuo provides a detailed analysis through the spend cube.

The most important functionalities include:

  • Fully functional spend analysis, which allows multiple perspectives on procurement (spend data for items, categories, suppliers, business units or locations)
  • ABC analysis, Top item & Top supplier analysis with historical developments overview
  • Comparison of spend data through different time periods
  • Various filtering and sorting options, allowing a slice and dice approach through procurement data spend cube
  • Different chart types and export of the charts
  • Spend data mapping that aligns the structure of data from the original uploaded file into the structure of an existing Category or Supplier tree in the software
  • Mapping rules that manage the data mapping process

The final product is a complete analytic overview of your spend for your key categories.

How does Risk Management work in Cirtuo?

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Risk management is one of the key prerequisites for successful category and supplier management. Timely risk identification and mitigation is proven to be crucial for successful strategic planning.

Cirtuo Risk management includes:

  • Risk identification, risk assessment and risk mitigation, compliant to ISO 9001:2015
  • List of most commonly found risks for categories and suppliers in procurement, customizable to client’s needs
  • Risk matrix based on probability of occurrence and risk impact
  • Historical tracking of risk identification and assessment
  • Execution of a risk mitigation plan through strategies and initiatives

Cirtuo Risk management has proven to be a sufficient tool for tracking all procurement-related risks, reporting on them, and complying with internal and external auditors’ requests.

How do we track savings in Cirtuo?

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Cirtuo allows users to enter and track savings. Savings are entered manually, either as strategic initiatives, or as tactical, one-time savings. It is also possible to upload savings on category or item level.

Savings tracking includes:

  • Savings overview of strategic initiatives and tactical activities
  • Comparison of realized savings and savings plan for categories and suppliers
  • Savings tracking according to the Degree of implementation (DOI)
  • Performance reports which compare planned and realized savings and spend

Filtering and sorting of savings entries according to category, responsible person, DOI, location, savings type etc.

What type of reporting is available in the software?

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The software includes a unique real-time Presentation module. The module is designed to enable easy creation and update of reports. Users can build templates for standard reports, or create individual customized reports. The reports always pull real-time, actualized data from the software database.

Cirtuo Presentation module allows easy refresh of the reports so that you can quickly create a new, actualized category report with the latest data. The reports can be presented directly from Cirtuo, or easily exported in PDF format. This feature eliminates the need for manually assembled PowerPoint slides, or MS Excel reports, and improves the efficiency of reporting to management.

What does the pricing model look like?

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Cirtuo delivery consists of:  1) software and 2) training / consulting. Accordingly, the client pays the fee for the annual software license, and the fee for delivered software training.

  • The software license is a flat fee and it is paid for the annual license period. The license price remains the same regardless of the number of software users.

The following key features are included in the standard Software license:

  • Category / Supplier management module
  • Project management module
  • Procurement development module
  • Spend analysis on category & supplier level
  • Cost management, cost calculations
  • Risk management
  • Strategy development for Categories & Suppliers (Kraljic matrix, Supplier preferencing, Stakeholder Mapping)
  • Initiatives management with savings tracking (incl. Degrees of Implementation)
  • Supplier performance tracking
  • Strategy and Key Performance Indicators for the procurement function
  • Presentation / reporting module

Apart from the standard features, Cirtuo offers several special features, which offer extra value for Clients and can be purchased optionally (e.g.; Dynamic spend analysis, Spend mapping, Supplier performance evaluation, Supplier satisfaction survey etc.).

  • Training and consulting fees are charged separately according to the Cirtuo Pricing Policy. For details on pricing, please contact us directly at info@cirtuo.com

Is there a risk of vendor lock-in with Cirtuo?

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Being deeply aware of this issue, we have invested great efforts in the past years to make our business model as vendor lock-in free as possible. We believe that Cirtuo cannot be a credible and reputable strategic procurement company meant to empower its clients while being at the same time a procurement problem for your company.

We have designed our business model to make sure that your company uses Cirtuo software only because it makes its procurement significantly better and not because it is bound to it by some technical, legal or organizational difficulty to leave. There are two main points:

  • In a typical 3-year Business cooperation agreement, we have included a possibility of easy exit for your company, at the end of each license year.
  • We have clearly stated in the Business cooperation agreement that all data that your company uploads in Cirtuo software, along with all data transformations, visualizations and presentations belong exclusively to your company, and all data can easily be downloaded in a secure way at any time, including before concluding the Cirtuo software usage.

How does Cirtuo software co-exist with other procurement software your company might have?

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In a strategic sense, Cirtuo software is an end-to-end solution, offering a complete set of features for digital transformation of procurement in a top-down manner. Most of the solutions currently found in the market focus on tactical and operational levels, and if your company uses one already, we will propose to you the best way to coordinate its use with Cirtuo. In some cases, when there is little or no feature overlap, Cirtuo will increase the benefits from other operational software by including them in the context of a larger, well-thought strategy.

In case there is a feature overlap to a certain extent, we can help you with a quick cost-benefit analysis. For instance, if your company has a stand-alone or internally developed spend analysis, savings tracking or risk analysis, in large majority of cases Cirtuo software will prove to be better, all-around and more feature-rich, often for a smaller license price or development cost.

Is it possible to integrate Cirtuo software with an ERP system?

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In Cirtuo software there are several data types which are pulled from an ERP (enterprise resource planning) system, such as spend data, different KPIs and supplier rating data. Data needs to be prepared in a specific format – we will provide your company with templates. Once the data is arranged and exported from the ERP system in the CSV (comma-separated values) format there is an option for:

  • Manual upload through a predefined CSV template – recommended in the beginning
  • Automatic connection to the data e.g. via API (application programming interface), and upload to Cirtuo software.

In our experience of supporting strategic and tactical procurement, most customers manually upload data either on a monthly, quarterly or yearly basis. Our customer support is here to help with the process.

Is Cirtuo GDPR-ready?

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In regard to the GDPR, Cirtuo’s business niche is a favorable one, meaning that processing of personal data is as minimalistic as possible, done only for a specific contractual purpose with your company. All personal data of employees in your company (a minimal set consisting of name, corporate e-mail address and IP/timestamps pair for security reasons) is collected for the purpose of executing the contract with your company and it is not used in a manner that is incompatible with this purpose.

We have reviewed all NDAs (Non-disclosure agreements) with its employees and external experts to ensure that persons authorized to process the personal data have committed themselves to confidentiality, and has informed employees of client companies how we collect and process their personal data and how they can exercise their rights.

If we receive a request from your company’s users, we will act according to its role of the processor and follow the controller’s (your company’s) guidelines as specified by the regulation. In case your company needs proof that we, as your service provider / supplier, are a GDPR-ready company, we will be glad to help with the insight to our GDPR-readiness process.

Where is the data stored, and is it safe?

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In the development of Cirtuo software, the best practices and development standards for secure web applications are used, primarily OWASP Application Security Verification Standard. We are compliant with the ISO 27001 standard and development team members are certified ISO 27001 internal auditors.

For hosting services we use Amazon Web Services (AWS), which includes state-of-the art cloud data infrastructure with all required industry security certificates. We use AWS datacenter in Frankfurt, Germany.

What if your company’s IT policy does not allow a cloud solution?

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Cirtuo software is originally designed as a SaaS (Software as a Service) solution. It allows easy maintenance and reaction in case of change requests. In this way regular updates are also done more easily.

Still, internal hosting on your companies’ premises is possible with a VPN tunnel for maintenance and updates, with shared responsibility for business continuity and performance.

Are change requests in the software charged an extra fee?

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Minor changes, such as changing certain classification elements are included in the license price. New features, that have a potential to become a standard for other customers are charged at lower rates, while new features that are very specific to your company needs are charged at full rates needed for development.

We want to encourage you to primarily use existing feature-rich modules, understand them well and eventually decide for changes or development of new features.

What happens with the data if Cirtuo software is no longer used?

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Before concluding Cirtuo software usage, your company will be advised and have enough time to generate reports for archiving purposes, which is easily done with Cirtuo’s presentation module. After that we will give your company all its data stored in the database.

Upon request from your company we will then delete all your data from AWS servers, as well as from a back-up system and let your company’s security expert monitor the process.

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