Perfect Group Purchasing Integrated
Spend rationalization studies, by large manufacturers; have shown that the internal management costs of a "one-time buy" indirect non-core item can be excessive, with little or no return from savings achieved. Many of these large manufacturers, who have studied this population of spend, acknowledge that much of it was simply pushed to the supply chain, based on requester information provided on the requisition, paying list price, with little attempt to generate a competitive landscape and drive lowest total cost.
How much can Commerce One BPO Integrated Supply Services save you?
Studies have shown, the "one-time", non-core, procurement event can be as much as 25% of manufacturers total spend. The internal management of that segment of spend, by the fortune 500 manufacturer, usually results in:
The engineer spending too much of his/her time searching for the "one time" buy and often time locking in the deal with a single source, prior to procurement professional involvement.
The professional procurement buyer getting involved too late in the process, spending too much time fulfilling, with no visibility to the competitive landscape creating little negotiation leverage.
Days spent by the Finance department setting up a supplier in your ERP system, knowing that 66% of the time, they will never return to that supplier for a second transaction, incurring set-up costs which can exceed $700/transaction.
All told, the internal cost of the search, placement, and supplier set-up, for what will most likely be a single, non reoccurring event, can run in the hundreds of dollars and consume several valuable days. Commerce One Integrated Supply Services can offer you documented savings in a category of procurement you would rather not have your valuable internal resources spend time on.
How We Do It
- Take advantage the key strengths of our leveraged procurement services:
Economy of scale, process efficiency and procurement expertise. Commerce One BPO integrates to our clients ERP system, creating a "buyer less", "touch less", "paperless", environment for the "one time buy", yielding optimal process efficiency, and maximum economy of scale.
- Save money with leveraged procurement:
Let's face it; most of our clients might buy a $15K oscilloscope once every five years for their quality assurance lab. We may buy that same oscilloscope 15 times in one year because we are supporting 15 different quality assurance labs across our client base. That "one time" buy for you, is a strategic leveraged buy for us and you reap the savings benefit.
- Save time finding the products you need:
Our search and sourcing and knowledge management technologies, which accesses a data repository of over 20,000 qualified supplier relationships and millions of SKUs, significantly increases the probability of finding an item or service fast, and the various suppliers who provide that item, streamlining the ability of the procurement buyer for creating the competitive landscape.
- Save time managing spend:
There is an old saying, "If you can't measure it, you sure can't manage it". Our comprehensive spend management tooling and reporting structure will measure and manage this often ignored segment of non-strategic spend, allowing for tangible savings return.
- Save time and money via analysis:
The ability to "measure and manage" allows us to turn data into useful information and Identify issues and opportunities. Our spend analysis technologies, built by procurement experts, provides unprecedented access to data, transforming that data into useful information, creating actionable knowledge about your non-core spend.
The Results
- Annual Integrated Contracts
A $4 billion dollar manufacturing company contracts Purchasing Services to manage spend categories accounting for $14 million in non-core procurement spend. About 50% of that $14 million is fulfillment spend and 50% source able spend.
This $14 million represents over 9,000 transactions with 1,200 separate suppliers.
Save 9% on cost of goods for source able spend
Save 50% process savings on fulfillment spend
Earn our customers 300% ROI and one less headache.
One Time Buys
Do you need an expensive or hard to find part or piece of equipment? Commerce One BPO Purchasing Services can help by: Leveraging our vast data repository of one time buys which was developed by engineers and procurement professionals over the past decade.
- OEM spare part purchasing
We can often time go right to OEM, by-passing, the distribution channel, or the system integrator for the item
- Example
We saved 49% on a mercury lamp for a photolithography stepper by purchasing the lamp from the lamp manufacturer instead of going back to the company who builds the stepper.
- Leveraged Purchasing
We will have leverage for all of our clients, that each of our clients on there own, may not have.
- Example
We saved 14% on 3 units of a logic analysis system by leveraging our relationship with the largest manufacturer of test and inspection equipment; because we buy more of that equipment for our high
Storeroom Management
Storeroom management is offered as an optional component of our integrated supply services. Commerce One BPO Procurement Service Provider model, integrated with inventory management tooling, achieves a lower "Total Cost of Ownership" on inventoried supply.
"Immediate" adhoc fulfillment services counter
e-Catalog for "repeat buy" tooling and MRO
Storeroom management is offered as an optional component of our integrated supply services.
Extensive manufacturing experience
Procurement Services tooling bridged to "best in class" process methodology
On-site "hands-on" service, backed with an off-site dedicated client team.
