Confidential
Procurement Advisory
2PKC Advisory
Overview
Challenging market environment require organizations to optimize costs
and increase business effectiveness and efficiency to remain competitive
Evolution of Procurement Function
Why Procurement
Advisory?
“The world’s leading global companies are looking to the sourcing and procurement function to do a
lot more than cut the price of supplies. They’re looking for a “trusted adviser” that can help to drive
supplier innovation and reduce supply-chain risk.”
- Forbes
Successful transformation of the
procurement function will enable
organizations to drive continuous
cost savings, mitigate risks, and
raise supply-chain management
transparency
62% of CPOs say their team "does not
have the skills and capabilities to deliver
their procurement strategy.
45% CPOs reported a rise in
procurement-related risk, such as volatility
in emerging markets and geopolitical
uncertainty affecting their supply chain
60% of CPOs admit they do not have a
clear digital strategy, inspite of digital
technology spend in on the rise
–Deloitte 2016 Global CPO survey
“Top procurement organizations spend 25% less on procurement activities compared to an average
company; they operate about 20% more cheaply having 27% fewer employees.”
- Hackett Group
“Low-key”
function in most
of the
organizations
Globalization,
challenging market
conditions and rising
competition
Focus on supply chain
and internal function
efficiencies to increase
firm’s competitiveness
Strategic
department
with active role
as a business
advisor in an
organization’s
strategy
Current Scenario
Implications
3PKC Advisory
Service Offerings and Value Proposition
Creating impact by adopting methodical approach in our diversified service offerings PKC Strength
Procurement
Analysis
Procurement
Strategy
Procurement
Organization and
Design
Procurement
Solutions/
Technology
Procurement
Transaction
Support
Understand objective and
develop approach
Establish quality criteria,
cost range and delivery
Refine and revamp
Procurement Strategies
Analyze roles, responsibilities and
processes
Procurement process development
and optimization
Supplier evaluation and selection to minimize operational risk
Technology enablement
to reduce time and effort
Implement P2P software
and Solutions
E-Sourcing/ Auctions to
maximize cost savings
Design, monitor and
review P2P process
Contract negotiations to reduce cost
Transaction
Management for
efficient functioning
Immense potential for cost savings by conducting thorough analysis of the business processes and
deploying appropriate solutions to reduce expenses and increase return on investment
Spend analysis
Supplier evaluation
Procurement maturity assessment
4PKC Advisory
Procurement Analysis
Savings of more than USD 20million through
categorization of spend, increased visibility on
indirect spend and reduction of spot
purchase for a US based company with 140+
locations
Spend, supplier and category analysis for
savings and efficiency opportunities of a Kuwait
based catering and hotel management company
Spend analysis to understand the global
category spend, gap analysis, stakeholder
analysis for a US based global financial services
company
Detailed cost analysis of a Saudi Arabia based
food processing company resulting in increased
spend visibility
Benchmarking and maturity assessment of
procurement function for a leading It firm based in
India
Our Impact StoriesWe provide a clear picture of the spend by conducting in-depth analysis of
procurement process. This acts as a key enabler to improve procurement function,
transform supply management process and formulate procurement strategies
Our Value
proposition
Spend Analysis
▪ Asset allocation strategy
▪ Company/ sector/ geography
concentration
Tail Spend Management
▪ Enables organizations to achieve
better efficiency and effectiveness
by focusing on analysis of final
20% of the total spend, defined
as the “tail”
Procurement
Maturity
Assessment
Vendor/ Service
Provider
Evaluation
Spend
Analysis
Supplier Evaluation
▪ Enables evaluation and approval
of potential suppliers/ service
providers
▪ Enables cost savings by
measuring, analyzing and
managing suppliers performance
Supplier Audit
▪ Enables risk mitigation by
thoroughly analyzing and
verifying supplier’s products and
processes
▪ Enables to address threats in the
organizations value chain relating
to supplier
Procurement Assessment
▪ Enables organizations to improve
procurement function through
independent detailed assessment
of procurement function
▪ Provides an action plan for
improvement and a baseline to
measure improvement
Benchmarking
▪ Enables measurement of
organization’s acquisition against
industry standards
▪ Enables organizations to
continually develop and facilitate
adherence to industry best
practices
5PKC Advisory
Procurement Strategy
Negotiation strategy with a leading packaging
material supplier resulting in significant savings in
packaging cost of a Saudi based Food and Dairy
company
Achieving 11% annual savings through Low cost
sourcing strategy and inventory
management for a US based company with
130+ QAD location
Demonstrated high focus on Low cost country
sourcing of goods and services, cost
reduction, process optimization as well as
change management for a telecom company
based in US
Spend optimization and preparation of
Procurement Strategy for various functions
such as HR, marketing, facility management, etc.
for a global financial services company
Our Impact StoriesCost savings are critical for organizations in todays’ market conditions. We help our
clients in undertaking a strategic transformation journey in order to optimize
procurement to drive sustainable and long term savings
Our Value
proposition
Input
Business Unit Data
▪ Strategic Plans
▪ Budget
▪ Capital Projects
Market/ Economic Data
▪ Regional Economic
Forecasts
▪ Supplier Intelligence Data
▪ Category Market
Intelligence
Corporate Financial Data
▪ Earnings/ Growth
Projections
▪ Expense components
▪ Cash Flow Projections
PKC
Procurement
Strategy
OfferingsCategory
Management
Strategic
Planning
Strategic
Sourcing
Low Cost
Country Sourcing
Procurement Strategies
Outputs
Spend Forecast Data
▪ Cash Flow/ Savings
Forecast
▪ Demand Forecast
Operations
▪ Cost of procurement
▪ Efficiency Metrics
▪ Quality & Service
Metrics
Earnings/ Budget
Impact
▪ Capital
▪ Operations &
Maintenance
6PKC Advisory
Procurement Organization and Design
Vendor Master and Vendor Pay Terms
Optimization delivering USD 6 million
annual savings for various multi-national
organizations across multiple regions
Savings of USD 12.6 million through
Procurement plan & process creation,
spend visibility and material performance for a
Global manufacturer
Evaluate Procurement system & Practices
and generate revenues through e-Auction
Transactions & Tender Management
Software for an Indian based e-Procurement and
e-Tendering solutions company
Define, design and deploy Vendor pre
Qualification strategy, preparation of
Approved Vendor List (AVL) and Preferred
Vendor List (PVL) across categories to improve
operating efficiency and drive compliance for a
telecommunication company based in India
Our Impact StoriesWe help clients in developing a robust procurement function by addressing the
growing need for transparency, streamlining and standardizing procurement
operations and processes
Our Value
proposition
Supplier
Profiling/
Screening
Procurement
Plan Creation
Procurement
Optimization
Procurement
Process
Development
Reduce risk and gain competitive
advantage by developing Supplier
Pre-Qualification & Evaluation strategy,
Approved & Preferred Supplier List
Specification: Procurement list
approval process
Selection: Development of vendor
selection criteria
Contracting: Drafting and reviewing
procedure of contract
Control: Development of control
processes of delivery and payment
Measurement: Establishing
performance indicators and KPIs
Design organization
structure, Draft and review
overall procurement function
policies and procedures,
Delegation of Authority
matrix
Analyse procurement
strategies, processes and
technologies to identify and
prioritize savings and
performance
improvement opportunities
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7PKC Advisory
Procurement Solutions/ Technology
Enabled 1450+ Reverse Auction with total
start price of USD 50.6 Millions achieving 9.5%savings on overall spend for largest Indian National
Bank
Improving penetration of e-Sourcing usage for
6% to 25% for a global payment processing
company
Enabled 27+ Reverse Auction earning 5.6%
savings (USD 1.3 million) on spend of USD
23.8 million for largest Indian manufacturer of
Milk and Dairy Processed Products
Implementation of E-Procurement Solutions
including dynamic price engine, cost data
knowledge management system, web
tendering, supplier e-registration process
implementation and catalogue based
buying
Setting up of Procurement Learning
Academy for a global consulting company
Our Impact StoriesWe along with technology partners offers a suite of procurement technology solutions
and services for achieving improved results in terms of better prices on products and
services, increased productivity and enhanced compliance and transparency
Our Value
proposition
Master Data
Management
E-sourcing/
auctioning
Technology Tool
Selection/
Enablement
Contract
Management
Procure to Pay
Solutions
Requisition
Management
Source to Pay
Solutions
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How do you benefit?
Procurement
Cost
Reduction
Cost driven margin expansion
by lowering expenses, thereby
improving ROI resulting in
enhanced business
opportunities
Time and
Effort Reduction
Automation of entire
budgeting process to
pay functions within the
organization
Enhanced
Transparency &
Effective
Decision Making
Provide organizations
better spend visibility,
audit trails, reports,
analytics, etc.
8PKC Advisory
Procurement Transaction Support
Review of current Contract administration
and management process and identification of
most suited Contract management tool for a
telecommunication company based in Oman
Managed strategic sourcing plans of daily
procurement of tea leaf and natural rubber from
the growers directly through a technology
driven process resulting in net saving of 3-
5% from the existing processes for a leading Tea
and Rubber manufacturing company based out of
India
Handled IT, Facility Management, HR,
Professional Services Outsourcing projects for
a multinational manufacturing company
Vendor management including
identification, appointment and training to
meet service quality levels for various companies
based out of India
Our Impact StoriesWe assist in effectively executing the procurement process by understanding the
complex commercial dynamics of transactions and tailoring each procurement and
transaction to suit the specific business context and objectives of the client
Our Value
proposition
Accounts Payable ManagementTransform accounts payable process to
improve transparency, increase productivity
and maximize savings.
Bid Evaluation and AssessmentRobust specification formulation and
auditable evaluation methods
Contract ManagementIncrease visibility into contracts and their terms
and improve contract management processesTender Process ManagementStreamlining of tender/ bidding process to
increase efficiency and transparency
Purchase Order ManagementImprove requisition to PO cycle and
analyse PO fulfilment
Vendor ManagementActively manage vendor relationships to
control cost, mitigate risk and drive
service excellence
Transaction ManagementReduce operational costs and financial
risks through streamlined, automated
processes
Key
Solutions
9PKC Advisory
Our Technology Associates
Xeeva is a Detroit based company offering intelligent procurement
solutions that deliver sustainable results. The company has presence
in 17 countries globally
Received the Prestigious Supplier Recognition Award from American
Axle & Manufacturing in 2016
Zycus is a Princeton based leading global provider of complete
Source-to-Pay suite of procurement performance solutions for
strategic and operational aspects of procurement.
Mentioned as a recognized leader in Gartner Magic Quadrant for
Strategic Sourcing of Application Suites, 2017
InESS Solutions is a California based supply chain technology
solutions provider of product lifecycle management, hardware and
software supply chain and end-to-end functional processes
Strong customer base including leading multinational companies
across the Globe
Customers in 40+ countries
300+ employees spanning across the globe
Solutions in 18+ languages with all major currencies
Over 15 years experience in procurement solutions
250+ successful deployment across the globe
600+ employees with 1/3rd employees in R&D
150+ engineering and supply chain experts globally
Developed 15+ cloud based IT solutions
Presence in 5 countries
Leader in “The Forrester Wave™: Contract Life-Cycle Management
10PKC Advisory
Subject Matter Experts
Pankaj Jain
SME
Profile Brief
Pankaj has a total work experience of 25 years in areas including strategic &
operational Sourcing, category management, contract management,
procurement operations, vendor relationship management, E-sourcing,
Program & Outsourcing management ., governance, compliance & project
procurement. His experience spans across telecom, e-commerce,
manufacturing and IT sectors
He has worked with Siemens , Motorola , Wipro , L & T & OLX where he was
involved in projects including strategic procurement and sourcing, setting up
procurement functions, risk & compliance management
Specializations
▪ Strategic and Operational Sourcing
▪ Category Management
▪ Outsourcing
▪ Supplier Relationship & Contract Management
▪ Policy, Governance, Risk and Compliance
Education and Certifications
▪ PG Diploma in Int. Business from Devi Ahilya University
▪ MS in Industrial Management from Devi Ahilya University
▪ BS in Mechanical Engineering from Ravishankar University
▪ Certified Manager of Quality & Organizational Excellence (CMQ/OE) from
ASQ USACertified Purchasing Manager (C.P.M.) from ISM USA
▪ Certified Purchasing Manager (C.P.M.) from ISM USA.
▪ Certificate Program in Public Procurement from World Bank
Representative experience
▪ Defining the methodology for Spend Analysis reporting and establish category based procurement model for multiple
clients
▪ Lead and Managed spend of US$ 500 Million per year across various categories
▪ Achieved savings of 5 to 7% year on year
▪ Distinction of heading the practice & delivery of: Procurement & Supply Chain Services (BPO, Low cost Sourcing,
Production Planning ,Tendering Services, RFP/PFQ/RFI & Auction Services), IT & e-Procurement Solutions (dynamic
price engine, cost data knowledge management solution, web tendering, procurement intranet, supplier extranet, catalog
based buying) and Procurement Consultancy for a major IT company
▪ First one to introduce forward auction, reverse auction, web tendering, procurement BPO and supply Chain BPO
practices in India
▪ Successfully conducted over 500 sourcing events across 170 categories and achieving an average savings worth 12%
across the category
▪ Provided specialist advice, guidance and service on leading procurement to the departments, Management of potential
risks associate with different sourcing strategies provide insight through the analysis of spend, supply markets and
Savings to multiple clients
▪ Demonstrated high focus on Low cost country sourcing of goods and services, cost reduction, process optimization as
well as change management for a telecom company based in US
▪ Vendor Master and Vendor Pay Terms Optimization delivering USD 6 million annual savings for various multi-national
organizations across multiple regions
▪ Designing and implementing best-in-class contingent work force solutions in terms of quality, cost & service with a cross
functional team across the world for a big global telecom & IT company
▪ Handled IT, Facility Management, HR, Professional Services Outsourcing projects for a multinational manufacturing
company
▪ Lead 4 merger teams integration teams
11PKC Advisory
Subject Matter Experts
Tapas Chakraborty
SME
Profile Brief
Tapas has a total work experience of more than 35 years in manufacturing ,
operations , marketing and specialization in sourcing and making convention
procurement processes to efficient process . He has worked and created
various value additions in his engagements with various sectors .
He has contributed his sourcing knowledge specially in last 15 years purely
with various sectors including Steel, Cement, FMCG, Banks , Infrastructure,
Chemicals, Automobile. Telecom etc.
He has worked with Mjunction Ltd., IMO Communication, B.M. Group,
Marathe Engineering, where he was involved in various sourcing and strategic
planning projects
Specializations
▪ Strategic and Operational Sourcing
▪ E-Procurement Solution Implementation
▪ Category management
▪ Procurement Technology Solutions
▪ Supplier Relationship Management
Education and Certifications
▪ Bachelor of Engineering (Electronics & telecom) from JU, India
▪ Action Cantered Leadership Programme Workshop, Xavier Institute of
Management, India
▪ Certified Tata Quality Management Services Business Excellence
Leadership Program .
▪ Represented PSU Core Committee external expert for implementing e
Procurement in various PSUs
Representative experience
▪ Spearheaded a sourcing team of 150 members for delivery of sourcing activities of 115 clients across India, South East
Asia and Europe
▪ Lead a team of 35 members for implementation of E-Procurement Solutions including dynamic price engine, cost data
knowledge management system, web tendering, supplier e-registration process implementation and catalogue based
buying
▪ Managed strategic sourcing plans of daily procurement of tea leaf from tea gardens and natural rubber from the growers
field directly through a technology driven process resulting in net saving of 3-5% from the existing processes for a leading
Tea and Rubber manufacturing company
▪ Successfully conducted over 5000 sourcing events across 15 broad categories and 120 sub categories with an objective
of reduction in cost of Procurement on an average 20% and procurement cost 7% to 18 % savings across various
category for multiple organizations based in various geographies
▪ Provided specialist advice, guidance and service on leading procurement practices in various departments to multiple
organizations
▪ Provided advice on management of potential risks associated with different sourcing strategies to multiple clients across
various geographies
▪ Provided insights on savings through spend analysis and supply markets to multiple clients across various geographies
Email : [email protected] Website : www.pkcadvisory.com