Source to pay
Get ready for the one-vendor model
If you are looking to professionalize your procurement process, you could consider outsourcing your procurement tail. A source-to-pay outsourcing approach allows you to concentrate on your core procurement – the critical and strategic component. We take care of your procurement tail, typically accounting for 60% to 85% of your orders by quantity, and achieve cost reductions of at least 20%.
Let go of your tail and purchase upstream
Do you consider strategic purchasing to be an essential process for your success? Would you agree that purchasing is much more than price negotiations and contract reviews? Do you believe that relatively small gains in purchasing lead to impressive gains in sales margins? Then get ready to purchase upstream, opt for the one-vendor model and drastically reduce your administrative burden while cutting your procurement costs.
Spend and maturity analyses come first
Outsourcing your procurement tail with a source-to-pay model starts with a full analysis of your procurement portfolio, including orders, suppliers and their interaction, according to the Kraljic matrix. This analysis phase also evaluates the workload, data enrichment of your product specifications, price maturity, a DuPont analysis and your resourcing potential. The results will reveal clear insights into how to optimize purchasing processes and reduce costs.
Just one single invoice every month
As soon as the source-to-pay project becomes operational, most of your suppliers disappear from your processes, daily operations and information systems. For a typical large manufacturing company, this means an immediate reduction from 7,500 to 1,800 suppliers or fewer.
We take over the entire operational process, from sourcing through procurement, order processing and order fulfilment right up to payment. So all you have to handle is a single consolidated invoice, sent weekly or monthly via e-invoicing (PDF, XML over the Tungsten Network, X12, EDIFACT, etc.) and, if legally required, a paper copy.
Local operations all over the world, payment included
Our global source-to-pay operation for your procurement tail, typically accounting for 60% to 85% of your orders by quantity, is run from 15 offices in five continents, servicing 194 countries. This makes it perfectly possible to purchase locally while managing all the processes centrally using our Microsoft Dynamics software platform.
E-procurement comes next
Within a year of starting the project, we bring a fully customized e-procurement catalogue online in a secured web shop to which only you have access. This includes your complete file, with full product specifications, list prices, net prices, volume reductions, delivery times and your purchase history for all the products of your procurement tail. We can even display real alternatives from public online shops such as Amazon.com and through Google Shopping to offer you potentially lower prices. Wherever you choose to buy, we will always take care of order fulfilment and payment.