We reduce procurement expenses by an average of 20%

We perform strategic sourcing – reduce costs, optimize services, making the choice of a supplier transparent and fair. We review the costs by category, analyze prices, consolidate purchase volumes, eliminate the unnecessary services, standardize and reduce the nomenclature. We find suppliers that offer the best conditions in terms of prices, payment, delivery, terms in 77 procurement categories, for example, communication services, cleaning, and transportation. We monitor compliance with the terms of contracts.

With sourcing, you will reduce the costs and unburden your employees so that they can perform the core tasks.

95

projects implemented in 7 years

100%

compliance on projects outcome

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Implemented Projects on Sourcing

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CONSOLIDATED PURCHASES OF CONSUMABLES FOR OFFICE AND RETAIL UNITS

Russia's largest retailer for home appliances

14

mln RUB of savings

Before

  • annual costs: 154 mln. RUB
  • over 8 th. non-unified items
  • 20-days payment holidays
  • prices are not fixed
  • no reporting in place

Now

  • annual savings of 9% or 14 mln RUB
  • one supplier for all locations, and plus a backup supplier
  • unified nomenclature and fixed prices
  • 60-days payment holidays
  • reports and statistics in place
PRINTING SERVICES

Large chain of mono-brand stores, products of international brands

5

mln RUB of savings

Before

  • over 15 different suppliers
  • each service separately: cartridge supply/filling, equipment repair, deliveries
  • non-transparent system of expenditure and pricing
  • 45 invoices per month, complicated paperwork

Now

  • annual savings of 51% or 5 mln. RUB per year
  • 3 invoices instead of 45 – convenience for IT and accounting
  • pay-per-copy system = cost transparency
  • control over print volume
  • SLA – service quality control
MOBILE COMMUNICATION

International cosmetics and perfumes manufacturer

2,5

mln RUB of savings

Before

  • annual costs: 4.5 mln. RUB
  • over 560 active SIM cards
  • lack of a single service manager
  • incorrect billing

lack of extensive analytics

  • work using legacy billing rates

Now

  • annual savings of 55% or 2.5 mln. RUB
  • customizable new billing rates
  • single service manager, single account service
  • reporting, management at the country level
  • prices fixed for 12 months
  • new mobile communication policy

We perform sourcing in 77 categories

IT и телеком

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

Raw materials and packaging

— 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

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

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

CAPEX и 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

The companies come to us when it is necessary to

Get expert estimates

We evaluate business terms and conditions of suppliers; we do prices and costs benchmarking.

Source fast

We help to get savings in 2-3 months when the companies lack their own experts or expertise in a category.

Reduce the costs by 20%

We reduce costs by category. At the same time, production and sales volumes remain at the same level.

Help the Procurement department

We relieve the procurement specialists and give them an opportunity to focus on strategically important projects.

Our advantages in Sourcing

Analytics

We process big data and select optimal solution using our own-developed IT tools.

Market insights

We know the Russian suppliers’ market well, as we work with the same categories for different companies

Procurement Methodology

We use management models adapted for the Russian market and standards adopted by the Fortune Global 500 companies

IT tools

We use the advanced software in eSourcing. We are partners with Scanmarket, the leading solution for purchasing automation

Business Procedure for Sourcing

1

Estimation of potential savings

We set up a meeting, define a category for sourcing and conclude an NDA. We perform express-diagnostics and define the scope of potential savings. Then we sign the contract.

2

Analysis

We perform purchasing operations analysis for 12 months. We calculate the costs for the company. We review the supplier’s prices, demand, specifications. We conduct interviews with employees, suppliers; we define the procurement process, problems, and risks. We compare the current environment with the market, give an estimate of the potential savings. We offer the measures to optimize costs, improve service and procurement process.

3

Implementation

We offer a strategy to work with suppliers – negotiations, tender, two-stage tender with e-auction and other options. We define the parameters for assessment and selection of suppliers. We compile technical and commercial specification, formalize it in the RFPs. We evaluate and compare suppliers' quotations with the market and the current conditions. We give recommendations on which company would be the best to conclude a contract with, and under what conditions. We present the results, get feedback, and introduce corrections.

4

Practical implementation

We sign contracts with suppliers, set a project team out of the supplier’s and the client’s employees. We set up a plan for the introduction and support of the new business conditions. We agree upon savings calculations and monitor the compliance with contracts.

Two-installments payment

1

Fixed part

The fixed part includes non-financial benefits from sourcing:

  • Development of a reliable contract and SLA for suppliers
  • Market review and vendor selection
  • Reduction in time, number of suppliers and costs
  • Case analysis in a category
  • Our developments and methodology
  • Benchmarking compared to other companies and procurement system audit

Outcome: the employees have more free time for the implementation of strategic tasks and projects.

2

Variable part

The variable part is paid from the savings on sourcing.

At the end of the project, based on new contracts with suppliers, an estimated savings from sourcing for 12 months is considered.

One-time payment is the percentage of the estimated amount of savings for the year.

Outcome: after sourcing you save millions of rubles

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Will analyze your purchases for all categories, will identify savings potential and opportunities for process optimization.

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