Extended Supply Chain Optimization
With ~ 70 to 75% average organizational costs associated with materials and services sourcing, procurement and inventory
“ Increasing costs and risks to right sourcing, optimal procurement, and inventory with most of the industries spend investment at whopping 70-75% of annual budgets. Continual cost reduction drives in highly violate supply chain will be critical success factor ”
“ A DOLLAR SAVED IS A DOLLAR EARNED ”
CxO’s and CFO’s always self-reflect opportunities… WHERE and HOW!!!
- Spend performance visibility
- Real-Time Inventory hoarding information
- Confidence in partnership
- Achieve industry benchmarks - KPI’s and KRA’s
- Lower Total Cost of Ownership...
Optimization of Category, Sourcing, Procurement and Contract Management
- Qualified Master Data for vendors, customers, materials, and services
- Spend, Inventory and Partner Performance Visibility
- SOPs and Strategy Inventory, Sourcing and Business Partner
- Sourcing Projects and Contracts enabling quality, quantity, value
- Inventory Optimization and Automation
- Business Partner Life Cycle Management covering 360-degree alignment in collaboration and performance management
- Continual Monitoring, Reporting, and Control
- Categorize commodities and services
- Real-time Spend Management using machine learning
- Predict Demand and Future Sourcing using AI
- Optimization of Sourcing Projects execution
- Implementation of full proof and controlled Bid Evaluation systems
- Implement Smart Contracts
- Automation of repetitive procurement processes
- Secure Digital Payments
- Enhance Internal Audits and Controls
Spend Cube
Pioneer Applications
Critical Success Factors
Cost Metrics
Evaluation
Category Management
PiLog’s low investment value analysis will enable Quick Wins to Business Transformations and Digitalization
- Analyze the complete inventory using best practices (ABC, FMSN, VED, XYZ, HML, and SDE) Material Criticality Assessment or Ranking
- Revalidating and updating of Inventory Meta Data parameters of Safety Stock, Re-Order Point, Min. / Max. Levels
- Recommendations on Storage conditions based on industry and OEM recommendations
- Physical inventory process review and recommendation for cyclic, sample, stochastic inventory taking
- Review and update of Picking and Put Away strategies
- Optimization of other value-added inventory services like JIT, KANBAN and Centralized Planning; HUB and Spoke Distribution
- Warehouse Automation
| Key Challenges | Key Opportunities | |
|---|---|---|
| Source to Pay | Availability of right material or service at the right quality, quantity, price, time Adherence to contract compliance | Ways to improve spend visibility and re-categorization Demand amalgamations and sourcing optimization |
| Plan to Inventory | Having an optimum level of inventory for fulfilling a demand Effective and effective management warehouse operations and costs | Optimization of parameters such as SS, ROP, EOQ, Min. / Max. levels etc. Automation and Innovation with JIT delivery, distributed supply chain |
| Business Partner Collaboration | Having the right partners to support and accelerate growth in a bad time Ability to think out of the box with innovative products and services | Improved process of registrations, evaluations, continual monitoring, performance assessment, and end to end life cycle management |
Business Outcomes
- 100% Contract Compliance
- >95% On-time Delivery
- 100% Delivery Quality Compliance
- >98% Order Confirmation
- >95% Quality meeting PO expectations
- 100% Compliance to Regulatory, Safety, and Standards
- Reduce the pricing YoY by 15% A, B, C (Service Criticality)
- Reduce invoicing errors to less than 5%
| Key Result Area | Key Performance Indicator |
|---|---|
| Contract Management | 100% Contract Compliance |
| JIT / ON Time Delivery | 95% On time Delivery 100% Delivery Quality Compliance |
| Order Collaboration | >98% Order Confirmation |
| Goods and Services Quality | >95% Quality meeting PO expectations |
| Design Collaboration | 100% Compliance to Regulatory, Safety, and Standards |
| Sourcing Collaboration | Reduce the pricing YoY by 15% A, B, C (Service Criticality) |
| Invoice Management | Reduce invoicing errors to less than 5% |
As most of the businesses are controlled by Master and Meta Management and thought leaders effective decision with Augmented Predictive Analytics, PiLog Systematic and Innovative Approach help organizations with Kaizen to Transformation !!!
Client Value Management and Success Stories
A Petrochemical Major in KSA has invited PiLog and multiple other consulting leaders to identify the challenges and define problem statements in their Supply Chain Sourcing, Procurement and Inventory factors as their inventory was piling up with YoY increase in inventory hoarding, sourcing, procurement and transportation costs and increased risk of supply chain sustenance…
