Operational procurement

We manage operational procurement. For example, your procurement department performed a tender-contractual work for a certain category and signed a contract with a supplier on more favorable terms. At first glance, everything is fine: now the company will start saving millions. But after a while, it turns out that the actual savings are less than the estimated ones. The reason is that the category is managed by department managers, administrators, secretaries. They have no time to go into details of the contracts and follow the execution. We take over operational procurement process, and not only achieve the planned savings, but also increase them.

We will ensure that your company does not waste away the savings achieved through optimization. We will assist in document management.

companies are outsourced on a regular basis

300%

ROI on the service

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We take for outsourcing operational purchasing in 77 categories

IT & telecom

— Fixed-line telephony
— Data transfer
— Managed Print Services (MPS)
— IT hardware
— Software
— Technical support
— Consulting and outsourcing
— Data center services

Raw materials and packaging

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Administrative services

— Courier service
— Office supplies
— Travel services
— Fleet management
— Safety and security
— Legal services
— Mobile communications
—Renting offices, commercial and industrial premises
— Document storage
— Transport for the personnel

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Marketing

— Oil & Gas and petrochemicals
— Car industry and agricultural industry
— Retail and HoReCa
— Banks and financial companies
— Pharmaceutical companies
— Telecommunications — FMCG
— Heavy and light industry
— Transport and logistics companies
— Marketing research
— Service quality surveys
— POS materials and textiles
— Development of promo-sites, corporate identity, presentations

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Capex & MRO

— Industrial equipment
— Spare parts
— Tools
— Maintenance and repair of equipment

Transport and logistics

— Long-distance and international transportation
— Consignment storage - fuel and lubricant materials
— Customs brokerage services
— Cargo insurance

HR

— Overalls and personal protective equipment
— Recruitment services
— Outsourcing: third-party services
— Personnel insurance
— MICE: meetings, programs, conferences, training

Construction and operation

— Maintenance of engineering systems
— Construction and erection works
— Utilities: electricity, gas, water, etc.
— Cleaning
— Furniture
— Repair and maintenance works
— CCTV, anti-theft equipment

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The companies come to us when it is necessary to

Our advantages in operational purchasing

Set of works on procurement

We are the only Russian company to provide outsourcing in operational procurement. Other companies consult on the process, but do not implement it, do not monitor contract execution and document management.

Motivated to get the result

Payment for our services is split into 2 parts – fixed and variable. The second part depends on the amount of extra savings that we achieve under the current contract with a supplier.

Methods and tools

We developed methodology and tools specific to each category. We work faster and better than employees of initiating departments, who have no experience in operational procurement.

Full payback of services

Our services are paid back by achieving the planned savings, additional reduction in costs, preventing fraud, saving human resources and process optimization.

Examples of outsourcing in operational procurement

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MOBILE COMMUNICATION MANAGEMENT

International manufacturer of insulation materials

Issue: according to the plan, upon sourcing introduced, the cost of mobile communication should be reduced by 4.1 mln rubles per year. In fact, a year later, the savings amounted to 2.1 mln rubles. Lost profit – 2 mln rubles. The reason – incorrect operational support

After the operating purchasing was transferred to outsourcing, the planned savings were achieved, and an additional 300 k rubles were saved.

Figures before transferring operational procurement to outsourcing for a period of 12 months

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estimated cost reduction after sourcing	actual cost reduction	amount of lost savings	operating support costs
4.1 mln rub	2.1 mln rub	2 mln rub	320 k rub

Figures after transferring operational procurement to outsourcing for a period of 12 months

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estimated cost reduction after sourcing	actual cost reduction	amount of lost savings	outsourcing costs
4.1 mln rub	4.1 mln rub + additional 300 k rub	0 mln rub	750 k rub

DOCUMENT MANAGEMENT SERVICE

Major retail chain of mono-brand stores

Issue: the company overpaid 32% of the value of goods/services delivered in terms of income tax and unrecovered VAT. Accounts receivable due to the lack of closing documents – 143 mln rubles. There are 2,546 suppliers in the database and half of them have no contacts details.

After the transfer of document management to outsourcing, the closing documents were received for 82.8 mln rubles. Contact details of 598 suppliers were found. Tax savings amounted to 25.8 mln rubles.

Before transferring document management to outsourcing

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receivables due to lack of documents	tax savings	number of suppliers without contacts	fixed costs of document management	success fee
143 mln rub	0 mln rub	1148 pcs.	1.2 mln rub	0 rub

After transferring document management to outsourcing for a period of 20 months

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closing documents received for the amount of	tax savings	number of suppliers without contacts	fixed outsourcing costs	success fee
82.8 mln rub	25.8 mln rub	550 pcs.	1.9 mln rub	2.25 mln rub

To Heads of Business Units

We decrease the workload on the employees

Procurement and document management are non-core operations for the initiators. They are not additionally paid for it. There is no reward in case of savings. It is beneficial for them when there are people to hand over the operational purchasing to, and to get focused on the core tasks.

We save budgets

We know how to save – we have experience in reducing the cost of operational purchasing in different categories. Owing to the savings, the manager can perform additional tasks for which there was not enough budget before.

We solve disputable situations

If contract execution fails, we solve the problems. The employees are not distracted from their work. As a result, the entire department works better and performs its tasks faster.

We perform document management

We take the burden of collecting closing documents from suppliers, handling requests and orders in SAP/1C systems from your employees’ shoulders. We submit closing documents in time allowing for income tax reduction and VAT refund

To Procurement Directors

We take on current tasks

We take the routine tasks off the procurement department. They do not need to get distracted by operational purchasing and settlement of claims. They work with strategic tasks. As a result, the department efficiency improves.

We implement planned savings

We ensure that the planned costs get in line with the actual ones. With us, the company will not lose its savings obtained during sourcing.

We deal with suppliers

Operational buyer prevents irregularities on the side of suppliers and initiators, solves problems. Suppliers do not inflate prices, become loyal and ready to special conditions for the recurrent sourcing projects.

We collect statistical data

Every month, we provide reports and statistics. When implementing new sourcing projects, the managers have data necessary for sourcing. There is a baseline for calculating savings and efficiency of procurement department.

To CFOs and Chief Accountants

We decrease costs

We reduce costs for a selected category. We achieve the characteristics stated in sourcing and bring additional savings of 5-7%. We reduce the taxes through collecting documents required for tax return.

We bring discipline

We bring discipline at all process stages in operational procurement: procure-to-pay. Orders and requests are created on time in SAP/1C system and are submitted for payment.

We facilitate work of accountants and financial controllers

We provide closing documents. Prices, amounts in invoices and contracts are in line. No additional verification by financial controllers is needed. No need to be afraid of inspections, it is easy to conduct an audit – all the documents are available.

Prevent fraud and errors

Contracts are executed consistently. Costs do not grow. Initiators buy what is foreseen by the contract. Vendors supply right products and according to the terms and conditions specified in the contract.