Poor spend visibility leads to underperformance
Accurately measuring, monitoring and managing the procurement cycle can be a serious problem for some organizations. They lack full visibility of total spend across geographies, and business units struggle to ensure that suppliers comply with purchase orders and contract terms.
Other challenges include:
- Poor forecasting mechanisms, leading to excess or depletion of inventory
- Decentralized purchasing, reducing economies of scale
- High maverick and tail-end spend
- Poor vendor contracts and lack of contract visibility
- Disparate procurement processes and data quality issues.
A unified view of spend data improves informed decision-making
Capgemini’s SpendSMART is a spend analytics platform that helps enterprises optimize their spending plans by providing valuable analysis and insights across the entire procurement cycle.
With an intuitive GUI and ease of configuration, SpendSMART offers over 300 industry standard KPIs and over 100 dashboards for multiple industry verticals. The solution has a well-defined modular structure, covering analysis and dashboards for the following areas: Procurement performance and fraud, supplier, invoice, travel & entertainment, supplier ranking and purchase price variance.
For example, our supplier ranking solution uses a linear optimization model with configurable parameters to arrive at a ranking of specific vendors. This well-defined dashboard provides organizations with the requisite facts to select their preferred suppliers, based on the quality of service, on-time deliveries, and optimal costs.
The solution also enables the processing of unstructured data such as social media and third-party vendors data, to evaluate underperforming suppliers. The unstructured data is processed in Capgemini’s proprietary big data platform-IV3-that uses the Hadoop ecosystem.
We leverage an in-depth understanding of procurement spend across organizations, along with strong technical and domain expertise to drive benefits such as:
- A unified view of spend data for informed decision-making
- More comprehensive view of procurement landscape through use of big data unstructured and structured data
- Significant cost savings through reduction in maverick spends, non-preferred suppliers and rush purchase orders, and use of analysis of purchase price variances among suppliers and standard market prices
- Identification of best-fit supplier, through analytical modeling and ranking capabilities
- Fraud detection in procurement through intuitive dashboards.
We have implemented our SpendSMART platform for companies in a variety of sectors and geographies including a leading global medical technology provider and a multinational manufacturing conglomerate.