Check Out the Answers to Questions You Care About the Most

What is the best way to start with Cirtuo?

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We recommend to start either with Category Management or with Procurement Development, or drive both activities in parallel as both activities support each other.

Starting with Category Management: Select several key categories and up to 15 procurement professionals for the initial project. Cirtuo will coach and support you in the introduction of its unique and proven methodology and introduction to the software. We deliver 3 workshops, 2 days each, within the first three months of the cooperation. Procurement professionals (e.g. Category Managers, Lead Buyers) practice on their own categories during the workshops. The workshop outcome leads to a developed analysis, category strategy and initiatives. This expert coaching for the procurement team has been proven as the most effective approach since we are able to transfer considerable know-how in a short period of time. The initial project consists of 6 workshop days, as described. We then recommend making a 2-4 coaching days follow-up in the first year to ensure the proper usage of methodology and software.

Starting with Procurement Development: Initially, we agree on the best practice questions to use for the online assessment. We offer a predefined 8-chapter questionnaire, which is customizable upon your request. Then Cirtuo consultants explain the procurement stakeholders (the procurement team and optionally – internal clients) how to answer the questions. Approx. 2 weeks are given to complete the questionnaire and then Cirtuo and your procurement leadership team analyze the answers, conduct the analysis and develop a procurement strategy as well as a transition plan for procurement. If needed, the results and the initiative plan can be presented to the management and / or selected procurement stakeholders.

What do you mean by strategic procurement?

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To put it in a simplistic football metaphor, Cirtuo expands your game. Most procurement functions traditionally only play midfield, i.e. their sole focus is always cost reduction and operational concerns. That is why Cirtuo strengthens the midfield first. And in procurement that is done with a strike on three fronts – digitalization, structured Category Management and raising strategic competences. Then it is time to move on to offense which in procurement terms means Supplier Management which keeps incumbents and new suppliers in check and value driven. And finally, Risk Management serves as a defense mechanism that eliminates market surprises that could cause your team to lose.

Basically, Cirtuo’s strategic procurement is a digital, analytic and both 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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The impact is measurable and the best part is that you can measure it through Cirtuo software. Cirtuo specializes in Category/ Supplier/ Risk Management and Procurement Transformation supported by an extensive strategic digital tool oriented towards:

  • savings generated by new-found knowledge and insights
  • relationship-building procurement
  • mitigating market, financial and supply risks
  • supplier management innovation
  • business expectation alignment
  • advancing procurement as a crucial success partner

So, basically all of these benefits come from Cirtuo’s 4-step methodology which provides tools for analysis, strategy, initiatives and results. And you can track every single one of them and present them to procurement stakeholders, suppliers and internal clients alike with advanced reporting options.

Cirtuo will provide you with a strong strategic overview which will allow you to step away from constant firefighting activities that are present in operational/tactical procurement. Cirtuo’s methodology and strategic coaching opens doors to procurement breakthroughs, from well-researched alignment with business requirements and the needs of internal stakeholders to systematic knowledge of market fluctuations and suggested category and supplier strategies. 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.

Our category tree / spend data classification needs to be somewhat improved – should we start with Cirtuo or sort this out first?

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The category tree / data classification needs to reflect the business needs and capabilities of the procurement organization. It should be developed the right way in terms of priorities, competences, organization, processes, methods and tools. Therefore, building a category tree that is as optimal as possible should be made a strategic activity.
With the help of Cirtuo’s Category Management methodology, the procurement team will be able to build that optimal category tree as a result of an iterative and inclusive process. Most of our customers did not have an optimal tree before starting the project with Cirtuo.

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

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Spend visibility is the basis for successful strategic procurement. If you don’t know what you are buying, how can you analyze it and develop a strategy? Spend analysis represents a detailed overview of your company’s spend. Based on the uploaded spend data, Cirtuo provides a detailed slice&dice through the spend cube.

  • Fully functional spend analysis, which allows any perspective on procurement spend data for items, categories, suppliers, business units or locations
  • ABC analysis, the top x analysis and historical developments overview
  • Comparison of spend data through different time periods
  • Various filters and sorting options allow a slice & 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 existing Category or Supplier tree in the software
  • Mapping rules that manage the mapping process

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 can prove 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 clients’ needs
  • Risk matrix based on probability of occurrence and risk impact is available
  • Historical tracking of risk identification and assessment
  • Execution of a risk mitigation plan through strategies and initiatives

How do we track savings in Cirtuo web-tool?

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Cirtuo allows users to enter and track savings. Savings are entered manually within strategic initiatives or as tactical, one time savings.

Savings tracking includes:

  • Savings overview from 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)
  • Filtering and sorting of savings entries according to category, responsible person, DOI, location, savings type etc.

What types of reports are available in the software?

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The software includes a unique real-time presentation generation / reporting module. Users can easily build templates for standard reports or create ad-hoc reports. The reports always pull real-time, actual data from the software database. This feature eliminates the need for manually assembled PowerPoint slides or MS Excel reports and improves the efficiency of reporting to management.

Is it possible to integrate Cirtuo with an ERP system?

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In Cirtuo strategic software there are several data types, which are pulled from an ERP system, e.g. spend data, different KPIs, supplier rating data. Data needs to be prepared in a specific format – Cirtuo will provide you with templates. Once the data is arranged and exported from the ERP system in csv format there is an option for:

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

In Cirtuo’s experience of supporting strategic and tactical procurement, most customers manually upload data either on a monthly, quarterly or yearly basis.

Where is the data stored and is it safe?

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In the development of Cirtuo software, only the best practices and development standards for secure web applications are used, primarily OWASP Application Security Verification Standard. Cirtuo development team members are certified ISO 27001 internal auditors. Cirtuo is in the process of reaching full ISO 27001 compliance by the end of 2017.

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

Can you implement a two-factor authentication for our users?

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Yes, on your demand we can offer a two-factor authentication (with an additional device, such as a special USB key) for all your company’s users.

What if our 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 clients’ premises is possible with a VPN tunnel for maintenance and updates, with shared responsibility for business continuity and performance.

How does the pricing model look like?

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Regarding software: There is an annual license fee which applies on an unlimited number of users in your company. The pricing model enables you to add new users to the system during the license period. The core module is Category Management and it is the basis for the license. All other modules, e.g. Supplier Management, Procurement Transformation, Project Management are seen as extra and incur a minor (in terms of percentage) upgrade of the basic license fee. Also some extra features like Spend Mapping, Non-Linear Parametric Pricing, Supplier Evaluation are charged as a minor upgrade to the basic license fee.  

Regarding coaching support: The delivery is charged as coaching days at market price level for top management consultants. For details on pricing, please contact us directly at info@cirtuo.com

Are change requests in 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 standard features, understand them well and eventually decide for changes or development of new features.

What does a business agreement with Cirtuo include?

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The business agreement (the contract) between your company and Cirtuo consists of two documents:

  • Business agreement – regulating duration of the contract, service level agreement ensuring prompt and efficient support to your company, financial agreement, termination of the contract, etc.
  • End user license agreement – regulating your rights to use the software, its availability, assuring confidentiality and integrity of your data and all of its transformations, as well as protection of Cirtuo’s intellectual property rights.

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

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Before concluding Cirtuo usage, you 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 you all your company’s data stored in the database.

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