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TransProcure CEO to Speak in Automotive Innovation Forum Asia 2007(June 27-29, 2007 - Millennium Hilton Bangkok Hotel, Thailand)

 
     
 

Procurement Asia Summit 2007 at Singapore Features
TransProcure CEO as Speaker

 
     
 

TransProcure CEO to Present in the 2007 Australia Sourcing and Procurement Summit

 
     
  Procurement and Sourcing Institute of Asia (PASIA) endorses “Indirect Procurement for Services” conference  
     
 

TransProcure Awarded Most Innovative BPO Company of the Year

 
     
  TransProcure CEO to Present in Developing Sustainable Procurement Strategies in Oil & Gas Conference, Aberdeen, Scotland  
   
     
     
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  Procurement Transaction Processing Center  
     
  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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