SmartOptimization^®

SmartOptimization is a powerful platform that helps companies make faster, better business decisions. Its functionality supplements companies strategic sourcing strategies and allows buyers to perform their jobs at higher, more efficient levels. Other advantages include:

• Robust analysis capabilities - SmartOptimization allows users to layer different factors and constraint types so that they can build "real world" award scenarios. These custom scenarios help companies minimize risks by analyzing a wide range of risks associated choosing suppliers. Some risk scenarios could be low-cost country suppliers, new vs. incumbent suppliers and high vs. low product quality issues. The award scenarios can also help companies consolidate their supply base by evaluating costs associated with a small or large supply base. This allows them to optimize the correct number of suppliers that should provide goods and services.
  
  
• Embedded features and functionality - SmartOptimization is not a module-based application. All relevant optimization functionality, such as multiple constraint types and the Freight Bracket Optimization engine, is part of the platform.
  
  
• Simple navigation structure - Iasta designed SmartOptimization to have a navigation structure that is universally recognized and easy to learn. The SmartOptimization platform is structured in a familiar tree-structure. As a result, upon receiving access to the platform, users quickly start building projects immediately.
  
  
• Single sign-on - Our application was built from the ground-up, not through acquisition. As a result, all features work well together and flow from one project phase through the next. Users never need to generate extra, cumbersome keystrokes in order to work with their project data.
  
  
• Control - the Iasta product philosophy is that control should reside with the eSourcing user. The user should determine the best way to analyze bid results. The user can build as many award scenarios as needed and compare them side-by-side. Experienced eSourcing users do not need intervention from an Iasta Sourcing Professional, they can do it themselves.

Users of SmartOptimization can evaluate the impact that various business factors have on a final award. To create a complete award analysis, users can layer different business factors and compare the award scenarios side-by-side.

• Allocation requirements - Allocation constraints allow buyers to decide how much business to award one or more suppliers. For example, a buyer can build an award scenario where 20% of the business goes to an incumbent supplier, 10% goes to a diversity supplier and the remaining 70% of the business goes to the qualified lowest bidder. By adjusting the awarded percentages, the buyer can create new scenarios and compare them to each other. Allocation constraints can be combined with any other available constraint. (See Graphic)
  
  
• Capacity constraints - Capacity (or limit) constraints let buyers set award maximums on items and groups of items. For example, a buyer may want to minimize supply risk and decide to impose a maximum of 45% that any one supplier can be awarded. A buyer can instantly create a new scenario and compare it with other scenarios. Capacity constraints can be combined with other available constraint. (See Graphic)
  
  
• Exclusion requirements - For any award scenario, exclusion constraints enable buyers to prevent a supplier, a supplier location or group of suppliers from providing goods and services. For example, a buyer may exclude a specific supplier location due to poor quality ratings. Or the buyer can force the goods and services to be sourced from specific locations. Exclusion constraints can be combined with any other available constraint. (See Graphic)
  
  
• Qualitative metrics - Qualitative constraints are applied to an item or set of items that are "graded" based on various attributes. Buyers first define the qualitative factors for each set of suppliers or items, and then mathematically rank the attributes (based on a consistent scale). Some examples of qualitative attributes include durability, on-time availability, reliability, customer perceived quality and many more. Qualitative constraints can be combined with any other available constraint. (See Graphic)
  
  
• Rebate opportunities - Many suppliers offer discounts if the buying company meets certain criteria. Examples of discounts include when a buyer orders a certain volume of a specified item, or exceeds a pre-specified dollar value in their purchase. The discount constraint allows buyers to build award scenarios that take into account conditional discounts offered by suppliers. Discount constraints can be combined with any other available constraint. (See Graphic)
  
  
• Freight bracket distribution - Freight bracket distribution automatically optimizes the award decision based on estimated and optimized freight brackets. The freight brackets are established by the bidders and are based on the amount shipped by lane.
  (See Graphic)

Iasta's goal is to improve the effectiveness of every team member who uses the SmartOptimization platform by providing world-class support and service. Designed to be flexible and easily assessable for large or small sourcing teams, Iasta offers Application Support and Sourcing Support Center to assist users with any additional needs they may have so that maximum benefits are garnered.

Iasta's Gold level support provides users with access to:

• Application Support
  Application Support offers assistance with technical trouble shooting, error-resolution, and password issues. Application Support is available via telephone and email.
  
  
• Sourcing Support Center
  Iasta's Sourcing Support Center allows users to contact Iasta's team of sourcing professionals to guide them through current and future projects. Iasta will evaluate the project's specific needs and provide a solid support base for optimizing award decisions. Designated users can receive coaching and mentoring on issues such as configuration of items, establishing attributes and defining constraints.
  
  
• Online Tutorials
  Online Tutorials provide easy to follow instructions on how to use the different features of the software. These online training videos include step by step instructions, along with screen shots and tips, to assist users in learning how to make the most of the platform.

Iasta's SmartOptimization services allow companies access to the right level of optimization expertise, at the right time, at the right price. Iasta augments your team's existing skills and expertise so they can fully realize benefits of online optimization. Additionally, our experienced support team is available for coaching and mentoring support for award scenario building and analysis, or to provide tactical Staff Augmentation support.

The Iasta Consulting Group is available to fully-manage one, individual optimization project (CS-Optimization), or an entire commodity and set of optimization projects. We can help your company obtain higher levels of award management by running post-bid analysis for any of your award decisions. Iasta will use bid data obtained from a SmartSource SRM bid, or any other application.

Iasta's SmartOptimization services should be utilized when:

• There are multiple delivery locations
• The team typically spend weeks of business analyst resources building and editing scenarios
• There are suppliers with capacity constraints
• You award business based on various factors such as geographic considerations, splitting the business, applying limitations to certain suppliers, or minority classifications
• Freight and product costs are blended to obtain a total delivered cost results analysis