BlendedModel
Global eProcure’s blended service model is a “unique” approach in the industry wherein we partner with our clients on a long-term basis (typically 2 to 5 years) and bring together the right-sized combination of our consulting, technology, outsourcing and low cost country sourcing expertise to deliver real savings to our clients’ bottom line. The typical realize savings target for such engagements, typically range from $10 to $100 million on an annual basis. The model can be proven through a pilot before undertaking a long-term program. Many of our clients such as Kellogg, McCain, Saint Gobain etc. have opted for this model after evaluating several alternatives.
Why a Blended Model?
Many clients have indicated that in the traditional consulting model, 20 to 50% of the savings identified through the engagement are never realized. This occurs not necessarily due to the failings of the consulting partner but rather because many clients do not have the sustainable internal capabilities to carry out the processes in a structured and disciplined manner after the consultants leave. Similarly, we have heard of dissatisfaction among customers who completely outsourced their procurement to either traditional outsourcing firms or some of the emerging offshore firms. The traditional firms have the expertise to realize savings however, due to the cost structure, most the savings flows to the bottom line of the outsourcing firms rather than to the clients. Offshore firms have the right cost structure but often lack the necessary commodity and strategic sourcing expertise to realize significant savings.
Since most clients have internal resources with deep commodity or sourcing expertise, we realized the importance to truly partner with them, blend their strengths with our strengths, blend onsite consulting with a virtual global workforce, and blend technology with outsourcing to form a unique model that will allow us to achieve maximum results for our customers.
Elements of the Blended Service Model
Consulting
For strategic clients, Global eProcure commits its most senior resources to provide overall program management. These individuals, with approximately 15 to 20 years of experience across a wide range of commodities and services and deep experience in delivering large scale programs, help each client create a business case, conduct a long term opportunity assessment, and provide overall supervision on the execution of the program. To learn more about Global eProcure’s consulting services, click here
Technology
Global eProcure leverages the client’s existing investment in technology and will augment any missing pieces. For instance, in a typical program, Global eProcure will bring its state-of-the-art Automated Spend Analytics Tool (SAP certified and easily integrated with ERP systems) to identify savings opportunities across the client’s global spend. Sourcing is conducted with the use of automated RFx and auction tools and contacts with selected vendors are created in client’s existing contract management systems or using Global eProcure tools.
Once the contracts are signed, Global eProcure provides its vendor management solution as needed to measure and track vendor performance against agreed upon KPIs. The client’s existing P2P system or Global eProcure’s P2P Tools are utilized to ensure ongoing compliance. In addition, some clients leverage Global eProcure’s outsourcing services to monitor and track compliance on an ongoing basis. To learn more about Global eProcure’s technology services, click here
Procurement Outsourcing
As a part of the overall program, Global eProcure will use either its own P2P system or the client’s existing P2P systems. Global eProcure’s staff based in Mumbai, India, Shanghai, China and Prague, Czech Republic will carry out the transactional activities as part of the procure to pay process. These transactional activities include:
Processing the requisition through approval process
Order processing and placing orders with preferred suppliers
Managing spot buys in the best interest of the customer
Managing orders for supplier acknowledgment/acceptance and delivery
Invoice processing for on-time payment to suppliers
Managing and resolving supplier issues pertaining to purchase order, invoices, and payables
Procurement help desk
We work in collaboration with our customers to create a successful road map for outsourcing by developing an opportunity and assessment report. Global eProcure has a well-crafted transition approach and methodology that we leverage in transitioning the processes to our delivery centers based in India and Czech Republic. We believe in starting small through a “Pilot” to build trust and incorporate customer feedback prior to ramping up.
The following are a few benefits which our customers can expect while working with us on Procurement Outsourcing initiatives:
Reduced transactional cost
Significant improvements in operational efficiencies
Improved compliance
Greater user and supplier satisfaction
To learn more about Global eProcure’s Procurement Outsourcing services, click here
Savings Tracking Compliance and Tracking
This is a key differentiating factor for Global eProcure and our blended service model. Global eProcure is not only responsible for tracking savings but also responsible for monitoring and tracking vendor and buyer compliance. Global eProcure uses its unique tools and processes to ensure that the identified savings are realized and flow through to the client’s income statement.
Client Deliverables
The output of the Blended Service Model is “realized savings.” Global eProcure is not only responsible for identifying but also implementing and tracking savings and compliance. Our Blended Model is meant for long-term partnerships, we constantly strive to improve realized savings (as opposed to identifying savings) for our customers.
For more information, please email us at info@globaleprocure.com or request our services here
"Sunoco's procurement group has successfully used Global eProcure's eSourcing tools to negotiate with suppliers for various spend areas. The tool is intuitive and user-friendly and Global eProcure's staff has been extremely helpful in providing training and assistance to our buyers and suppliers."
Bob Fleck, Director, Sunoco
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