Tag: procure to pay

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Optimizing the Procure to Pay Process and Achieving Savings of over $50,000 for an Oil and Gas Company

What is the Procure to Pay Process?

The procure to pay process is the coordinated action required for procuring goods and services in a timely and cost-effective manner. It involves steps such as requisitioning, purchasing, receiving, paying and accounting for goods and services in sequential order. Here are the key performance indicators vital for the procure to pay process.

Key Performance Indicators for the Procure to Pay Process

Quality

Companies need to have clear set norms mentioned in the contract with penalties to decrease the percentage of substandard products and improve compliance.  For this, companies can measure the defect rate of products and rate their suppliers accordingly.

Delivery

Companies can track the average time taken by a supplier to fulfill a certain order and calculate supplier lead time. Additionally, they can also determine purchase order cycle time and devise strategies to improve the efficiency of their procure to pay process.

Savings

Savings are one of the most important KPIs that companies aim to achieve. It considers cost per invoice and purchase order, spend under management, and procurement ROI. The cost to process purchasing documents or invoices involves a list of variables and is the most disputed KPI in the procure to pay process. The rest two factors are helpful in determining the cost-effectiveness of any organization.

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Optimizing the Procure to Pay Process and Achieving Better Savings

IR35

Spend Analysis : Assessing the Current Spend and Improving Supply Chain Efficiency for a Medical Devices Company – SpendEdge

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments, and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. The company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

The future looks sharp for the medical devices industry. With global economic growth, innovations and an aging population that has a growing need for healthcare, revenue for medical devices is poised for growth. However, in this turbulent environment, companies that can shift their supply chain priorities and better manage spend will be able to deliver significant value. Moreover, the rising need for supply management and strategic cost management have urged players in the medical devices manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical devices manufacturing space to identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. The spend analysis solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

The client, a renowned medical devices company was facing challenges in reducing the cost across the supply chain and managing their tail spend. While public spending has become endemic, the client realized the need to drive more competitive pricing. Moreover, the client’s objective was to adopt spend analysis strategies to identify and optimize their spend areas. Additionally, the client needed to streamline their supply chain management and subsequently maximize profits by leveraging SpendEdge’s spend analysis solutions.

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