The purchase-to-pay process typically entails thousands of requisitioners interacting with hundreds of suppliers, which results in tens of thousands of points of potential failure. Each time this interaction breaks down, time and money are lost. When a requisitioner fails to use a preferred supplier, can't find an item, or needs to change an order, or if a supplier incorrectly ships or prices an item, end-user frustration increases, time is wasted, and dollars are misspent.

In these matters, TransProcure can help by providing a customer dedicated buying center -- professional buyers who leverage leading tools and best practices to proactively manage day-to-day purchase-to-pay activities, ensuring efficient transaction processing, fewer errors, and ultimately higher compliance and savings realization. With these time-consuming activities left to us, you can confidently focus on more strategic cost-reduction projects.

By leveraging our proven transaction management infrastructure, you benefit from...

Best Practice-based Processes - Regularly updated and maintained procedures with corresponding metrics and service levels that are used to manage and continuously improve results for each customer's buying center.

Highly Skilled Professionals – Buyers/Specialists that use multiple eProcurement systems on a daily basis, trained to support their customers' unique cultures and policies, and knowledgeable and experienced with a broad range of categories and suppliers.

...which can be rapidly tailored to support your unique buying requirements

TransProcure’s Methodology:

Compliance Management - Reviewing orders to drive compliance to policies and preferred suppliers

Order Assistance - Supporting order changes, expediting, and status requests

QA Order - Ensuring data accuracy (e.g., pricing and commodity/account codes) to improve transaction quality and accuracy of purchasing information

Procurement Help Desk - Answering procurement process and policy questions

Content Management - Building and maintaining easy-to-search supplier catalogs

Vendor Maintenance - Coordinating vendor review and adding processes

eProcurement Help Desk - Supporting procurement application and technology questions

With our combination of professional buyers, a transaction-processing infrastructure, and dedication to quality and continuous improvement, we can help you generate great strategic results while saving valuable time, helping you to:

• Significantly increase the spend that is controlled by procurement, driving additional savings.
• Ensure hard-fought sourcing savings make it to the bottom line.
• Provide high levels of internal customer satisfaction, leading to higher adoption and compliance.
• Improve visibility, accuracy, and completeness of spend data.

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Indirect Procurement Out-Tasking

In most companies, indirect procurement is often decentralized which makes it more difficult to build in-house competencies or expertise in any given spend category. In addition, purchasing is often just involved in the transaction aspect or as a “middle man” between end users and suppliers, further hindering deep knowledge within purchasing organization. The decentralized nature of procurement opposes the scale needed at the single company level to justify investments in the best-in-class tools and solutions. This scale hurdle also hinders the adoption of tools and technology that allows using lower-skilled labor in procurement tasks. Indirect procurement out-tasking can solve these problems for corporations by providing expertise across spend categories, economics of scale in best-in-class technologies and solutions, and access to lower-skilled labor.

We often view indirect procurement only as logistics initiative or exchanging electronic transactions with suppliers and marketplaces. Others just see it as a technology initiative.

Technology is only just a smaller percentage of the effort in managing it. In reality, the main focus of indirect procurement is “transformation”. Under this banner, there are many drivers, but the most important are:

• Lowering the number of suppliers and products
• Leveraging the volume toward preferred strategic supplier
• Bringing in discipline for the entire procurement process

To address these drivers successfully, a detailed strategy must be in place incorporating several critical elements.

Process Automation:

• Substitutes the paper intensive manual process and reduce the time to procure.
• Enforces the buying discipline organization wide and avoids “maverick buying”.

Volume Consolidation:

• Large volumes of requirements are quite attractive to suppliers.

Price Negotiation:

• The consolidated volume commitment and electronic buying help company to get deserved discounts on their purchases.

Benefits of Out-tasking Indirect Procurement:

Scale of purchasing – the service provider can aggregate the buys across their clients for a category and negotiate lower prices for their clients

Access to suppliers – the service provider can introduce a client to a multitude of approved suppliers through their networks of customers

Access to more economical labor sources – since service providers aggregate some very specific business processes across companies, they are in a better position to find ways to move those processes offshore or to lower domestic cost-base environments.

Why Transprocure is a Good Candidate for Out-Tasking your Indirect Spend?

Each and every company is a good candidate for indirect procurement out-tasking. However, very few companies have the scale of spend required across indirect spend categories to enjoy the degree and buyer power benefits of an out-tasked solution. Professional and financial services organizations have even more to gain than the physical goods and services, since their entire spend is on indirect materials and services; the whole procurement organization is therefore a non-core and non-strategic asset. Developing a competency in this function is not only challenging, but arguably a strong distraction for management. Product-focused companies also have strong argument for out-tasking indirect materials as their procurement competencies are usually only developed for direct raw materials, components or system.

Our primary and sole focus is on Procurement and strives to provide thought leadership and innovativeness and quality execution in Procurement Services. We provide our clients with procurement and sourcing professionals and consulting resource with project implementation and operational experience with global and regional companies in various industries. Leveraging strategic locations around the globe, we deliver the most scalable infrastructure and human resource in procurement outsourcing operations which is not easily duplicated. Our position in efficient low cost countries gives us the unfair advantage to operate on most advantageous cost offering to our clients - unbeatable by our competition.

The Commodity Approach for Indirect Procurement

Commodity approach is an efficient way of continuous rolling out the categories by imbibing more items under this initiative. This involves clearly differentiating the stakeholders and sustenance guardian within the team. The various stakeholders involve in this initiatives are:

Steering Team – responsible for setting the strategic direction of this initiative.

IT Implementation Team – responsible for setting the e-process for indirect procurement. This will also include activities like package implementation, catalog preparation, setting payment gate way.

Business Enabler Team – responsible for bringing out process change not only within the organization but also for external suppliers.

Commodity Team – responsible for continuously identifying the categories which could be e-enable, projecting the potential savings, timing and the roll out plan.

Case Study:

Business Challenge: Company A, as a Fortune 100 global communications leader, understands that the best way is to go the market place to seek competitive quotes for less frequent purchase products or/and services. This is done by professional buyer who qualifies vendors, select and evaluate vendor’s profile and do risk assessment to ensure a fair price and quality service performances. But, there were many one-off purchases, inflexible vendors’ terms and disagreement over mode of doing business or trade restriction etc.

Solution: Company A wanted to out-source their indirect procurement, who will continuously cut buying cost through critical analysis of spend category, identifying categories to be focused upon, e-enabling the supplier, renegotiating the prices, bringing in more categories under the fold, setting target for savings

Results: As a result of their initiative they reduced their indirect spend cost by 11% and further improve on their purchase cycle time.

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