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.
— Fixed-line telephony
— Data transfer
— Managed Print Services (MPS)
— IT hardware
— Software
— Technical support
— Consulting and outsourcing
— Data center services
— 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
— 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
— 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
— Industrial equipment
— Spare parts
— Tools
— Maintenance and repair of equipment
— Long-distance and international transportation
— Consignment storage - fuel and lubricant materials
— Customs brokerage services
— Cargo insurance
— Overalls and personal protective equipment
— Recruitment services
— Outsourcing: third-party services
— Personnel insurance
— MICE: meetings, programs, conferences, training
— Maintenance of engineering systems
— Construction and erection works
— Utilities: electricity, gas, water, etc.
— Cleaning
— Furniture
— Repair and maintenance works
— CCTV, anti-theft equipment
What we do: we review the invoices and their details, we activate or disactivate tariffs and options, we compile expenditure reports with breakdown by cost-centers. We follow-up the policy on mobile communications, arrange payment of invoices. We consult and train users, keep their records. We order and replace sim-cards. We control the employee’s spending. We perform registration of private phone numbers as corporate numbers and vice versa.
Outcome: achievement of planned savings in “mobile communications” category and releaving the employees from non-core functions.
What we do: we search for suppliers and request primary accounting documents from them – invoices, statements, consignment notes. After the receipt, we enter them into registry. We collect, arrange and transfer documents to accounting department. We are involved in keeping the records of all applications and suppliers for which the documents are missing. We request reconciliation statements, if necessary.
Outcome: we take the workload off the employees, decrease the amount of accounts receivable, reduce taxes.
What we do: we consolidate the requests from the initiators and get high discounts from suppliers. We create and introduce changes to purchase orders. We place and track the orders. We monitor fulfillment of contract terms by price, product range, timing. We make savings calculations. We compile statistics on purchases and consumption, arrange payment of bills, handle claims with suppliers.
Outcome: We take off the workload from the employees from routine operations on executing purchases and suppliers’ control. We ensure compliance of orders and invoices to the agreed contract terms and conditions.
What we do: we keep records of all contracts and order forms, arrange the documents to get signed. We monitor services activated and disactivated. We receive invoices from providers and register them. We form payment orders, monitor invoices compliance with contract prices and transfer invoices to payment. If necessary, we require providers to correct the invoices. We conduct all the presentation work with suppliers.
Outcome: we manage to get planned savings in the specific category. We make sure that the suppliers do not violate contract terms.
What we do: we arrange booking of tickets, hotels, transfers, and visas for the employees. We support and inform the users of travel services; we are involved in processing refunds. We monitor vendor’s compliance with SLA and contract terms. We get savings. We do monthly reports for the management. We conduct user surveys, check the registries and TMC reports. We arrange the settlement of invoices.
Outcome: we decrease the workload on the employees in terms of travel management. We check vendors for compliance with contracts.
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
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
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 |
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
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
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 |
We will analyze operational purchases and define options for improving process, cut costs and increase of labor efficiency for your staff.