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Purchasing BPO Overview

Purchasing BPO Overview. 1. www.procexcellenz.com. Table of Contents. India Team. Service Architecture. Solutions. Marketing Mix. Operating Framework. Manufacturing & Sourcing in 2020. 2. www.procexcellenz.com. India Team. 3. www.procexcellenz.com. Services Architecture.

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Purchasing BPO Overview

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  1. Purchasing BPO Overview 1 www.procexcellenz.com

  2. Table of Contents India Team Service Architecture Solutions Marketing Mix Operating Framework Manufacturing & Sourcing in 2020 2 www.procexcellenz.com

  3. India Team 3 www.procexcellenz.com

  4. Services Architecture • CORE Process • Commodity-wise reshaped Sourcing Strategy with a 3 to 7 year outlook • Integrated solution to identify and develop Suppliers and Parts • End-to-end Program management & delivery • ENABLING / GOVERNING Processes • Support infrastructure for Ongoing improvement and management of Supplier processes • Supplier conditioning to World-class standards of Excellence (or) to Client norms • Change and Issue management at Supplier facilities 4 www.procexcellenz.com

  5. Suite of Solutions Develop a 3 to 7 year Transformational Road map Plain components re-sourcing from Source A to Source B Support Enabling & Governing processes Complete Outsourcing of the Purchasing & Supply Chain functions Manage Time, Cost & Resource challenges for the Client’s Supplier focussed initiatives Provide IT solutions for real-time Customer and Supplier collaboration communication & reporting 6 Sigma rigour applied to addressing the Client’s CCRs Project Management rigour in implementation On-the-ground support to drive Supplier Excellence initiatives End-to-end Purchasing support for the India Supply Base On-site support to drive Program completion Supplier Training, 6 Sigma & Lean VST 5 www.procexcellenz.com

  6. Marketing Mix 6 www.procexcellenz.com

  7. Operating Framework TECHNOLOGY ENABLEMENT SUPPLIER MANAGEMENT SUPPLY BASE CUSTOMER BASE LOGISTICS & DISTRIBUTION MANAGEMENT Direct 3PL Provider 7 www.procexcellenz.com

  8. Manufacturing and Sourcing in 2020 • Study involving 152 respondents in 8 countries • Sector spread of the study • General Manufacturing (40%) • Automotive, Aerospace & Defense (16%) • High Tech (20%) • Industrials : Chemicals, Steel, Medical Devices (24%) • Geographical spread of the study • US (18%) & UK (18%) • Germany (17%) • France (13%) • Sweden (12%) • Netherlands (11%) • India (8%) & China (3%) • Dimensions of the study • Engineering and R&D • Manufacturing • Supply Chain & Logistics 8 www.procexcellenz.com

  9. Engineering and R&D Supplier Collaboration • 50% predict higher collaboration with Suppliers • More collaboration required when Outsourcing is involved 9 www.procexcellenz.com

  10. Engineering and R&D Product Lifecycle Management • 25 to 50% levels of product lifecycle shrinkage expected • Shrinking lifecycles will put inevitable strain on Supply Chains • Supply Chains must be Lean, Responsive and Flexible 10 www.procexcellenz.com

  11. Manufacturing Globalization • Manufacturing will be for Global markets. A shift from manufacturing in one country to multiple countries expected • Proximity to raw materials and consumers, labor wage differentials, forex dynamics etc. will be key drivers 11 www.procexcellenz.com

  12. Manufacturing Subcontracting • With 56%, the balance is tipped in favor of subcontractors to help develop products for the future • The standardized products will be subcontracted while specific products will be made internally • Regular visits or a Local Management Team will remain while IT based Management & Reporting Systems deployment will increase 12 www.procexcellenz.com

  13. Manufacturing Low-Cost Labour • Manufacturing and Sourcing from cost-effective countries will increase despite partial erosion of the labor cost advantage • Logistics, distance, travel time, customs regulations, open market issues, accessibility, geopolitical stability and local expertise leadership could also be other determining factors • China and India will still continue to be preferred destinations 13 www.procexcellenz.com

  14. Supply Chain & Logistics Overseas Suppliers • An increased reliance on Overseas Suppliers is expected in the future • 40% wish to involve and collaborate with Suppliers right from the Concept to the Development process • 60% of companies expect to be sourcing from more countries in the future than today • Closer relationship management envisaged . Co-location of Suppliers alongside Customers to increase. 14 www.procexcellenz.com

  15. Supply Chain & Logistics Cost of Commodities • General agreement exists that Cost uncertainties or escalations could drive increasing complexity into our Supply Base positioning • Given the picture, proactive action to normalize Cost risks will be imperative. 15 www.procexcellenz.com

  16. Supply Chain & Logistics Coping with complex Supply Chains • Deployment of more sophisticated and capable IT or Web based systems will be the global norm to improve real-time information visibility and communication • Acute Talent shortage foreseen in the area of Supply Chain management and IT integration • 70% predict the overwhelming use RFID technology as a key enabler 16 www.procexcellenz.com

  17. Supply Chain & Logistics Supply Chain Disruptions • Global Supply chains will have a diverse set of attendant risks • Companies must be capable of managing Business Risks by recognizing, analyzing and preparing to manage the vulnerabilities • Multiple options to mitigate these risks exist. Foresight and relevant action is the key. 17 www.procexcellenz.com

  18. Thank You !! 18 www.procexcellenz.com

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