Procurement Cost Savings through Value creation
Transcript of Procurement Cost Savings through Value creation
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Procurement Process Outsourcing (PPO)SolutionsVALUECREATION
About Tutelam
Who are weAn SCM Company providing Procurement Process Services enabled with IT solutions.Our focus is upon meeting the unique requirements of our clients for processes improvements leading to improved Compliances and Cost savings
60+ years of Collective domain experience & in Demand Consolidation & Procurement
Strong Vendor base in Logistics, F&B, FMCG, Construction, Indirect Purchases and Packaging, etc
One stop service provider ProcurementSupport in Operational excellenceEnhance CompliancesFacilitate cost reductionEasily adaptable commercial (OpEx)
What we doStrengthsBenefitsPartners with Corporates and takes over Indirect spend hence they focus on core areas for processes improvement leading to cost savings
Difficulty in Enhancing efficiency across the value chainStruggling to create maximum shareholder valueUnable to Optimize costUnable to automate purchase data to reflect live inventory & non-inventory to support strategic sourcingNo ABC / XYZ Analysis and No catalogueSo, whats the way out?
Procurement Problems Customers face..54321
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05Spend creep and cost containmentVisibility of realized savingsCompliance to contractsLeveraging technology effectivelyInsufficient skilled resources
Unlock your full potential in procurement by breaking barriers
How does Tutelam support?7
Knowledge
Business Process AdvisoryTransition ConsultancyProcess Migration strategyCategory ManagementConsolidation Management
Services
Process (Tail Spend)SourcingPurchaseAP ManagementPerformance ManagementOnsite people supportOffsite people support
Value AdditionSpend AnalysiseAuctionContract Management
IT Support
IT Support (SaaS)Spend AnalysiseRFXeAuctionContract ManagementeDashboard
Idea
Tutelam Procurement Portfolio9
TutelamAP & Freight Audit & Payment (FAP)(IT Enabled service)
8Spend Analysis (IT Enabled)
1Supplier Identification
2Supplier Assessment & Rating
3Sourcing(e Auction- Reverse, Forward, Spot )
4Contract Management(IT Enabled service)
5Tail Spend Management(Manpower Optimization, Physical support)
6Order Fulfillment(Physical support)
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Sub optimal usage of existing full time expensive resources thus defocused on procurement core tasks
Pressure to refocus personnel on more strategic activities than non-core procurement tasks
Too many vendors for small spend base. Book keeping cumbersome
Solution
challenges
OUTSOURCE to TUTELAM
How do I reduce my procurement operations cost?
How do I improve my efficiency and contract compliances?
Who tracks price, discounts, expiry, renewal & penalty clause of contracts?
Am I paying to suppliers as per contract terms?WHAT WE DO SPECIFICALLY?
Sourcing(eAuctions)
Contract Management(end to end)
Invoice Reconciliation & Payment
Freight Audit & Payment(FAP)
Top 10 reasons for Procurement outsourcingAll sum, awesomeSingle Window sourcingMultiple vendors managementOptimize inbound supply chainReduced admin costEnhanced visibilityTotal Spend savingsDemand ConsolidationReduce Spot buysUsers existing efforts reductionExisting resources reallocatedImproved Compliances
Our PPO Solution15Upstream SourcingDownstream Sourcing
Tutelam SASpend Analysis
Artificial intelligence based automated classificationHandle cryptic, abbreviated and misspelt dataScalable engine provides classification at huge speedMultiple language supportClassify
In-built graphical reporting with ready-to-use spend reports by category, supplier, payment terms, etcPower analysis for ad-hoc reportingSavings opportunity pipeline to generate actionable savingsUser specific dashboards for easy access to relevant informationAnalyze
Identify & calculate market trends of commodities based on underlying cost driversTrack prices of more than 1200 commoditiesMore than 300 cost models available for both commodities & servicesLink external market intelligence to internal spending dataCost
Built-in, standard category & supplier based savings strategiesEasy creation of business constraints for data analysisCreation of addressable spend definitionsAutomate
New Vendor Registration & MaintenanceCategory Specific New Vendor QualificationTender / ITT Templates for Select CategoriesApproved Vendor List ProcessTools & EnablersAnalysis & ReportingVendor Management
Finally, a Single Solution bringing all your fragmented tasks together ensuring compliance
Legal
Regulatory
Ops
QA
SLA
FinanceSOW
LegalRegulatoryOpsQASLAFinanceSOW
How do we support?
Our end-to-end effective contract management paves the way to greater Transparency in procurement and compliances
Have we resonated your thought process?
Post Transformation
Multiple vendorsUsing multiple vendors is always a distracted approach; transactional cost increase; AP processing difficult; reduced chance of volume discounts
Many Suppliers
ConsolidationProcess of eliminating low capacity suppliers in favor of a smaller number of high capacity providers
Reduced Suppliers
PPOTutelam handles consolidated supplier base thus managing cost fluctuation, supplier relations finally leading customer satisfaction
TutelamOutsourcing gives significant improvement
In the end
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Deliverables
Rationalization and reduction of own resources to focus in core strategiesImproved control systems Improved working practicesEconomies of scale providing lower overheadsCustomer service improvementMaximize shareholder value
Finally Clients get...
Customer Delight
Many Intangibles
Process Improvement
What else?
Thank you
1054 | 2nd Floor | 7th Main3rd Block | KoramangalaBangalore 560 034Phone: 00 91 2553 0001 | 2553 0002info@ Tutelam.comwww.tutelam.com