Name: Procurement - Price Transparency
Uploaded: 2022-03-09
Duration: 6 min 39 s
Description: Procurement - Price Transparency. Leveraging Digitalization of Traditional Costing Processes to achieve Cost Optimization.

Procurement - Price Transparency. Leveraging Digitalization of Traditional Costing Processes to achieve Cost Optimization. 

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Leveraging Digitalization of Traditional Costing Processes to achieve Cost Optimization

Agenda: Price Transparency. 1 Basic Procurement Process flow. 

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5 Price Transparency Process Flow & Pillars

PT Project Focus Area. Procurement Process Flow. Price Transparency. 

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Sharing  specifications & requirements with supplier for Quote

Negotiations between suppliers & buyers for commercial closure

Contract between buyers & suppliers based on agreed prices  &  terms

Procurement Process Flow. Price Transparency. PT Portfolio. 

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Price Transparency project is targeted to help procurement teams, across globe in automizing and standardizing the process of collection and harmonization of the cost details from different suppliers so that data is better  consumed, quantified and benchmarked into a cost saving opportunity for the organization .

Cost Automation Automatic generation of cost books with minimal manual effort

Contracting Integrate prices confirmed between buyer and converter into contracting tools viz. ICAT

Should Costing Arrive at optimal costs considering market rates/ index's

I nnovation costing Innovation items simulation pricing

Dashboard Generation Spend Analytics Cost Benchmarking Opportunity Savings

Support, Growth, Agility & Cost Optimization

Key Insights & Better Supplier Engagement

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Evaluating the templates used across globe

Creating global standard template and getting data

Deciding the framework for tool based on business scenario

Developing logic for data processing and UI/UX

Uploading one time data into Anaplan to kickstart

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Price Transparency : Functional Process Flow

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Price Transparency : Opportunity Savings Report

SPEND ANALYTICS : FG DETAILS
COUABORAÜVt
MANUFACTURNG
1.58bn
6203M 1
49534M 1 31%
Try•gwerKyCM I Os',' '*dated

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Price Transparency : Cost Benchmarking Report

COST BENCHMARKING: COST/TON
C(RIABORATTVt
MANUFACTURM
A. C•VT«

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Price Transparency : Spend Analytics Report

OPPORTUNITY SAVING : RM GLOBAL
COUAN)RATTVE
MANUFACTURNG
85.17M
TOW
453.66M
85.17M 1
13059M 1
237.91M 1

Savings at                  Country / Cluster / Global

s. Procurement Process Flow. Price Transparency. PT Portfolio. 

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Feedback Pending Contracts Invalid contract details

Price Transparency – Contract Integration. Anaplan. 

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Price Transparency – Contract Integration

Price Transparency – Innovation Costing. Costing proce ss of new material i s a tediou s proce ss and involve s multiple intervention by suppliers and procurement team . Supplier s and Procurement Team.. 

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Price Transparency – Innovation Costing

Costing   proce ss  of new   material   i s  a   tediou s   proce ss  and   involve s   multiple  intervention by suppliers and procurement team .   Supplier s   and   Procurement   Team.

Intelligent   P rice   P rediction   for new  material  Reduced Manual Errors  and   Better   result s . Simulator   for  checking   price  variation   acro s s  different  variable s

Defining cost model Cost comp Micro  macro economic  Procurement   Team.

Pr o j e ct b ack g r oun d. E Y Role. Ke y Hi g h li gh ts. 

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The client was  looking to  automate supplier interaction and bring visibility of material price movement to the procurement community. The main objective behind this entire project was - Volatile and uncertain future because of Covid-19 Visibility in Procurement process specifically Material prices  Manual  process impacting forecasting, contracting

“        Leveraging analytics for Supplier Insights, Effective negotiations & opputunity Realization

Developed detailed should costing for to identify various impacts on overall prices Leveraged Analytics to create extensive dashboards to Identify Opportunities readily for Procurement ML Driven analytics that recommendations price for new alternate materials

Financial Benefits  Reduced the  contract creation time from 30 days to 4 days.

Strategic Benefits Build flexibility through leveraging volatility.  Empowered people by simplifying processes

Identified factors impacting price using should costing that resulted in potential  cost savings Developed Opportunity Matrix Automatic linkage into forecasting  Diagonal Comparison of Prices

Procurement - Price Transparency

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