Through strategic sourcing many procurement organisations have improved their management of raw materials purchases. The next level of savings opportunities lie in the products and services that have not been tracked through the material master or buyer catalogue. Up to now, it has been almost impossible to deal with this aspect of procurement because it is so difficult to analyse and consolidate…
CCI and Growthcon have developed a new, specialised software that can perform a spend analysis based on descriptions rather than on material master or catalogue numbers. According to Marc Siberbauer of CCI: “With this software, an organisation will be able to analyse all transactions and not just those associated with material master numbers.”
“This software can be used to identify which items to add to the catalogue next, and where the biggest savings opportunities are. It can be used to identify maverick spend and consolidate spend across different business units and purchasing systems,” he says.
“Organisations that wish to take control of their free-text spend should be considering this technology as the tool to drive success.”
He told SmartProcurement that:
“The software is able to:
• identify new procurement cost savings opportunities
• consolidate free-text orders into sourcing groups of similar items and services
• consolidate free-text orders for the same item or service with differing descriptions
• identify free-text orders that should be added to the material master or buyer catalogue
• support the development of an e-procurement catalogue
• analyse spend on services
• identify off-contract spend
• support the clean-up of vendor master data
• match catalogue items across different business units
• consolidate purchase order information across different business units and purchasing systems”
“The system will:
• improve the organisation’s profitability by reducing cost of purchased goods and services
• consolidate spend across different business units and systems to support strategic sourcing and contracting processes
• provide a mechanism for measuring and managing contract compliance
• ensure the organisation gains the maximum benefit from their ERP and eProcurement systems.”
Marc Silberbauer can be contacted at:
COMPETITIVE CAPABILITIES INTERNATIONAL
email: MSilberbauer@ccint.net
Web: www.ccint.net
Cell: +27 (0)83 412 9493
