Best-in-class sourcing and procurement processes generate a lot of talk. However, only a very small number of companies achieve elite status wherein their sourcing and procurement organization delivers the highest possible global effectiveness, whether measured in lower total cost of ownership (TCO), higher working capital, or availability of materials. Know why.
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PROCUREMENT SERVICES Genpact Source to Pay: Smart Processes for Optimizing Spend Organizations battered by the sluggish economy must use every means available to increase margins, reduce risk, and improve cash flow as they look for opportunities for growth. Genpact uses the power of smarter processes, detailed analytics, and targeted technologies to transform the S2P cycle, helping our clients achieve the true potential of their sourcing and procurement organizations to impact these initiatives. Our Smart Enterprise Processes (SEP SM ) approach provides clear insight into end-to-end S2P processes, driving higher value, better controllership and compliance, better optimized working capital, and greater availability of materials and services. The resulting “intelligent” enterprise is well equipped to seize competitive advantage through greater responsiveness to vendors and customers, agility in meeting market change, and greater effectiveness in managing organizational spend. Taking S2P to Its Full Potential The silo approach to procurement across geographies, functions and processes used by many companies limits visibility into end-to- end processes, and too many focus solely on process efficiencies rather than driving greater overall effectiveness. Fragmented spend and use of technology without process rigor often results in inaccurate forecasting and poor visibility into organizational spend, while process gaps and inadequate technology tools can lead to compliance issues with regard to approvals and contracts.
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P R O C U R E M E N T S E R V I C E S
Genpact Source to Pay:Smart Processes for Optimizing Spend
Organizations battered by the sluggish economy must use every means available to increase margins, reduce risk, and improve cash flow as they look for opportunities for growth. Genpact uses the power of smarter processes, detailed analytics, and targeted technologies to transform the S2P cycle, helping our clients achieve the true potential of their sourcing and procurement organizations to impact these initiatives. Our Smart Enterprise Processes (SEPSM) approach provides clear insight into end-to-end S2P processes, driving higher value, better controllership and compliance, better optimized working capital, and greater availability of materials and services. The resulting “intelligent” enterprise is well equipped to seize competitive advantage through greater responsiveness to vendors and customers, agility in meeting market change, and greater effectiveness in managing organizational spend.
Taking S2P to Its Full Potential
The silo approach to procurement across geographies, functions and processes used by many companies limits visibility into end-to-end processes, and too many focus solely on process efficiencies rather than driving greater overall effectiveness. Fragmented spend and use of technology without process rigor often results in inaccurate forecasting and poor visibility into organizational spend, while process gaps and inadequate technology tools can lead to compliance issues with regard to approvals and contracts.
Genpact’s long heritage of Lean Six Sigma underlies our proprietary Smart Enterprise Processes (SEPSM), which takes a holistic, enterprise-wide view of the S2P life cycle to eliminate many of the challenges keeping S2P functions from performing at their best. SEPSM benchmarks S2P processes against industry best-in-class and provides clear linkages between process drivers and business outcomes. Founded firmly on science, SEPSM takes common processes and transforms them into smart processes through a combination of rigorous process execution, reengineering, industry-specific analytics that drive performance, and focused IT solutions to improve workflow and access to information. This end-to-end transformation of S2P processes focuses on key business outcomes:
• Reduction in total cost of ownership (TCO)• Optimizing working capital• Higher availability of material and services
The Keys to Helping You OutcompeteThe intelligent enterprise is one that not only competes, but outcompetes. Genpact’s Indirect Source to Pay solution combines a wide spectrum of end-to-end service offerings tailored to your specific business needs, from low value/less complex to high value/highly complex services designed to boost your competitive advantage. All are built on our science-driven SEPSM methodology for S2P, which enables you to benchmark your S2P performance and transform it to best-in-class through:
• An enterprise-wide view across functions and geographies and granular mapping of S2P processes• Over 30 S2P performance measures and 100+ performance drivers• A compendium of over 200 leading practices and a toolkit of 9 diagnostics tools• Continuous business improvements achieved by eliminating non-value added activities• Optimizing existing IT and ERP investments
This combination of smarter processes, smarter analytics, and smarter technologies drives faster and smarter decisions, greater responsiveness to market change, better customer and vendor relationships, and an overall more intelligent enterprise.
Proven Solution, Proven ResultsThe intelligent enterprise focuses on results. Genpact’s S2P SEPSM methodology improves efficiencies and effectiveness that increase process performance between 2-5 times in terms of addressable spend visibility, working capital requirements and cost savings.
• Genpact transformed a Fortune 100 IT software company’s source to pay function and helped achieve savings of over $160MM.
• For a leading energy company, Genpact provided spend analytics and sourcing for their key indirect spend categories, delivering 35% improvement in spend visibility and increased compliance.
• Genpact has completed 14 source-to-pay SEPSM assessments with identified business impact of over $200MM. Key clients include:- Large pharmaceutical company: Genpact identified
improvement areas in the client’s S2P process and is currently implementing a 2-year transformation plan with estimated $35MM savings and $300MM cash flow impact.
- Global automotive manufacturer: Opportunities of $10MM were identified through adoption of e-Procurement, better workflow, spend analytics, eRFX and e-Auction technology.
- Fortune 100 IT software company: Genpact identified up to $40MM in TCO reduction opportunity, achievable through increased spend under management, contract visibility and compliance, organization realignment and usage of technological platforms.
- Global financial services company: Genpact is driving procurement transformation towards best-in-class procurement processes through a one-time assessment to understand process maturity, which created a transformation roadmap that is under execution. It uses a combination of shared service center establishment, analytics, process reengineering and technology interventions to drive over $40MM in benefits.
30+ clients, over 7,000 people, global reach with 10 delivery centers and support in 11 languages
Over $25 Bn spend, 5MM purchasing transactions and 37MM invoices processed annually
Process compliance levels of 4.37 Sigma, the highest in the industry
Strategic and technology partnerships with leading procurement service providers
World-class academy for training and developing sourcing and procurement professionals
Global delivery team: 25% located onshore or near-shore
Consistently recognized as a top procurement BPO provider by:
Industry analysts: Everest (Star Performer), Nelson-Hall (Top 5 global/US provider), Gartner and IDC
