Confidential

Procurement Advisory

2PKC Advisory

Overview

Challenging market environment require organizations to optimize costs

and increase business effectiveness and efficiency to remain competitive

Evolution of Procurement Function

Why Procurement

Advisory?

“The world’s leading global companies are looking to the sourcing and procurement function to do a

lot more than cut the price of supplies. They’re looking for a “trusted adviser” that can help to drive

supplier innovation and reduce supply-chain risk.”

- Forbes

Successful transformation of the

procurement function will enable

organizations to drive continuous

cost savings, mitigate risks, and

raise supply-chain management

transparency

62% of CPOs say their team "does not

have the skills and capabilities to deliver

their procurement strategy.

45% CPOs reported a rise in

procurement-related risk, such as volatility

in emerging markets and geopolitical

uncertainty affecting their supply chain

60% of CPOs admit they do not have a

clear digital strategy, inspite of digital

technology spend in on the rise

–Deloitte 2016 Global CPO survey

“Top procurement organizations spend 25% less on procurement activities compared to an average

company; they operate about 20% more cheaply having 27% fewer employees.”

- Hackett Group

“Low-key”

function in most

of the

organizations

Globalization,

challenging market

conditions and rising

competition

Focus on supply chain

and internal function

efficiencies to increase

firm’s competitiveness

Strategic

department

with active role

as a business

advisor in an

organization’s

strategy

Current Scenario

Implications

3PKC Advisory

Service Offerings and Value Proposition

Creating impact by adopting methodical approach in our diversified service offerings PKC Strength

Procurement

Analysis

Procurement

Strategy

Procurement

Organization and

Design

Procurement

Solutions/

Technology

Procurement

Transaction

Support

Understand objective and

develop approach

Establish quality criteria,

cost range and delivery

Refine and revamp

Procurement Strategies

Analyze roles, responsibilities and

processes

Procurement process development

and optimization

Supplier evaluation and selection to minimize operational risk

Technology enablement

to reduce time and effort

Implement P2P software

and Solutions

E-Sourcing/ Auctions to

maximize cost savings

Design, monitor and

review P2P process

Contract negotiations to reduce cost

Transaction

Management for

efficient functioning

Immense potential for cost savings by conducting thorough analysis of the business processes and

deploying appropriate solutions to reduce expenses and increase return on investment

Spend analysis

Supplier evaluation

Procurement maturity assessment

4PKC Advisory

Procurement Analysis

Savings of more than USD 20million through

categorization of spend, increased visibility on

indirect spend and reduction of spot

purchase for a US based company with 140+

locations

Spend, supplier and category analysis for

savings and efficiency opportunities of a Kuwait

based catering and hotel management company

Spend analysis to understand the global

category spend, gap analysis, stakeholder

analysis for a US based global financial services

company

Detailed cost analysis of a Saudi Arabia based

food processing company resulting in increased

spend visibility

Benchmarking and maturity assessment of

procurement function for a leading It firm based in

India

Our Impact StoriesWe provide a clear picture of the spend by conducting in-depth analysis of

procurement process. This acts as a key enabler to improve procurement function,

transform supply management process and formulate procurement strategies

Our Value

proposition

Spend Analysis

▪ Asset allocation strategy

▪ Company/ sector/ geography

concentration

Tail Spend Management

▪ Enables organizations to achieve

better efficiency and effectiveness

by focusing on analysis of final

20% of the total spend, defined

as the “tail”

Procurement

Maturity

Assessment

Vendor/ Service

Provider

Evaluation

Spend

Analysis

Supplier Evaluation

▪ Enables evaluation and approval

of potential suppliers/ service

providers

▪ Enables cost savings by

measuring, analyzing and

managing suppliers performance

Supplier Audit

▪ Enables risk mitigation by

thoroughly analyzing and

verifying supplier’s products and

processes

▪ Enables to address threats in the

organizations value chain relating

to supplier

Procurement Assessment

▪ Enables organizations to improve

procurement function through

independent detailed assessment

of procurement function

▪ Provides an action plan for

improvement and a baseline to

measure improvement

Benchmarking

▪ Enables measurement of

organization’s acquisition against

industry standards

▪ Enables organizations to

continually develop and facilitate

adherence to industry best

practices

5PKC Advisory

Procurement Strategy

Negotiation strategy with a leading packaging

material supplier resulting in significant savings in

packaging cost of a Saudi based Food and Dairy

company

Achieving 11% annual savings through Low cost

sourcing strategy and inventory

management for a US based company with

130+ QAD location

Demonstrated high focus on Low cost country

sourcing of goods and services, cost

reduction, process optimization as well as

change management for a telecom company

based in US

Spend optimization and preparation of

Procurement Strategy for various functions

such as HR, marketing, facility management, etc.

for a global financial services company

Our Impact StoriesCost savings are critical for organizations in todays’ market conditions. We help our

clients in undertaking a strategic transformation journey in order to optimize

procurement to drive sustainable and long term savings

Our Value

proposition

Input

Business Unit Data

▪ Strategic Plans

▪ Budget

▪ Capital Projects

Market/ Economic Data

▪ Regional Economic

Forecasts

▪ Supplier Intelligence Data

▪ Category Market

Intelligence

Corporate Financial Data

▪ Earnings/ Growth

Projections

▪ Expense components

▪ Cash Flow Projections

PKC

Procurement

Strategy

OfferingsCategory

Management

Strategic

Planning

Strategic

Sourcing

Low Cost

Country Sourcing

Procurement Strategies

Outputs

Spend Forecast Data

▪ Cash Flow/ Savings

Forecast

▪ Demand Forecast

Operations

▪ Cost of procurement

▪ Efficiency Metrics

▪ Quality & Service

Metrics

Earnings/ Budget

Impact

▪ Capital

▪ Operations &

Maintenance

6PKC Advisory

Procurement Organization and Design

Vendor Master and Vendor Pay Terms

Optimization delivering USD 6 million

annual savings for various multi-national

organizations across multiple regions

Savings of USD 12.6 million through

Procurement plan & process creation,

spend visibility and material performance for a

Global manufacturer

Evaluate Procurement system & Practices

and generate revenues through e-Auction

Transactions & Tender Management

Software for an Indian based e-Procurement and

e-Tendering solutions company

Define, design and deploy Vendor pre

Qualification strategy, preparation of

Approved Vendor List (AVL) and Preferred

Vendor List (PVL) across categories to improve

operating efficiency and drive compliance for a

telecommunication company based in India

Our Impact StoriesWe help clients in developing a robust procurement function by addressing the

growing need for transparency, streamlining and standardizing procurement

operations and processes

Our Value

proposition

Supplier

Profiling/

Screening

Procurement

Plan Creation

Procurement

Optimization

Procurement

Process

Development

Reduce risk and gain competitive

advantage by developing Supplier

Pre-Qualification & Evaluation strategy,

Approved & Preferred Supplier List

Specification: Procurement list

approval process

Selection: Development of vendor

selection criteria

Contracting: Drafting and reviewing

procedure of contract

Control: Development of control

processes of delivery and payment

Measurement: Establishing

performance indicators and KPIs

Design organization

structure, Draft and review

overall procurement function

policies and procedures,

Delegation of Authority

matrix

Analyse procurement

strategies, processes and

technologies to identify and

prioritize savings and

performance

improvement opportunities

1

2

3

4

5

7PKC Advisory

Procurement Solutions/ Technology

Enabled 1450+ Reverse Auction with total

start price of USD 50.6 Millions achieving 9.5%savings on overall spend for largest Indian National

Bank

Improving penetration of e-Sourcing usage for

6% to 25% for a global payment processing

company

Enabled 27+ Reverse Auction earning 5.6%

savings (USD 1.3 million) on spend of USD

23.8 million for largest Indian manufacturer of

Milk and Dairy Processed Products

Implementation of E-Procurement Solutions

including dynamic price engine, cost data

knowledge management system, web

tendering, supplier e-registration process

implementation and catalogue based

buying

Setting up of Procurement Learning

Academy for a global consulting company

Our Impact StoriesWe along with technology partners offers a suite of procurement technology solutions

and services for achieving improved results in terms of better prices on products and

services, increased productivity and enhanced compliance and transparency

Our Value

proposition

Master Data

Management

E-sourcing/

auctioning

Technology Tool

Selection/

Enablement

Contract

Management

Procure to Pay

Solutions

Requisition

Management

Source to Pay

Solutions

1

2 3

4 5

6 7

How do you benefit?

Procurement

Cost

Reduction

Cost driven margin expansion

by lowering expenses, thereby

improving ROI resulting in

enhanced business

opportunities

Time and

Effort Reduction

Automation of entire

budgeting process to

pay functions within the

organization

Enhanced

Transparency &

Effective

Decision Making

Provide organizations

better spend visibility,

audit trails, reports,

analytics, etc.

8PKC Advisory

Procurement Transaction Support

Review of current Contract administration

and management process and identification of

most suited Contract management tool for a

telecommunication company based in Oman

Managed strategic sourcing plans of daily

procurement of tea leaf and natural rubber from

the growers directly through a technology

driven process resulting in net saving of 3-

5% from the existing processes for a leading Tea

and Rubber manufacturing company based out of

India

Handled IT, Facility Management, HR,

Professional Services Outsourcing projects for

a multinational manufacturing company

Vendor management including

identification, appointment and training to

meet service quality levels for various companies

based out of India

Our Impact StoriesWe assist in effectively executing the procurement process by understanding the

complex commercial dynamics of transactions and tailoring each procurement and

transaction to suit the specific business context and objectives of the client

Our Value

proposition

Accounts Payable ManagementTransform accounts payable process to

improve transparency, increase productivity

and maximize savings.

Bid Evaluation and AssessmentRobust specification formulation and

auditable evaluation methods

Contract ManagementIncrease visibility into contracts and their terms

and improve contract management processesTender Process ManagementStreamlining of tender/ bidding process to

increase efficiency and transparency

Purchase Order ManagementImprove requisition to PO cycle and

analyse PO fulfilment

Vendor ManagementActively manage vendor relationships to

control cost, mitigate risk and drive

service excellence

Transaction ManagementReduce operational costs and financial

risks through streamlined, automated

processes

Key

Solutions

9PKC Advisory

Our Technology Associates

Xeeva is a Detroit based company offering intelligent procurement

solutions that deliver sustainable results. The company has presence

in 17 countries globally

Received the Prestigious Supplier Recognition Award from American

Axle & Manufacturing in 2016

Zycus is a Princeton based leading global provider of complete

Source-to-Pay suite of procurement performance solutions for

strategic and operational aspects of procurement.

Mentioned as a recognized leader in Gartner Magic Quadrant for

Strategic Sourcing of Application Suites, 2017

InESS Solutions is a California based supply chain technology

solutions provider of product lifecycle management, hardware and

software supply chain and end-to-end functional processes

Strong customer base including leading multinational companies

across the Globe

Customers in 40+ countries

300+ employees spanning across the globe

Solutions in 18+ languages with all major currencies

Over 15 years experience in procurement solutions

250+ successful deployment across the globe

600+ employees with 1/3rd employees in R&D

150+ engineering and supply chain experts globally

Developed 15+ cloud based IT solutions

Presence in 5 countries

Leader in “The Forrester Wave™: Contract Life-Cycle Management

10PKC Advisory

Subject Matter Experts

Pankaj Jain

SME

Profile Brief

Pankaj has a total work experience of 25 years in areas including strategic &

operational Sourcing, category management, contract management,

procurement operations, vendor relationship management, E-sourcing,

Program & Outsourcing management ., governance, compliance & project

procurement. His experience spans across telecom, e-commerce,

manufacturing and IT sectors

He has worked with Siemens , Motorola , Wipro , L & T & OLX where he was

involved in projects including strategic procurement and sourcing, setting up

procurement functions, risk & compliance management

Specializations

▪ Strategic and Operational Sourcing

▪ Category Management

▪ Outsourcing

▪ Supplier Relationship & Contract Management

▪ Policy, Governance, Risk and Compliance

Education and Certifications

▪ PG Diploma in Int. Business from Devi Ahilya University

▪ MS in Industrial Management from Devi Ahilya University

▪ BS in Mechanical Engineering from Ravishankar University

▪ Certified Manager of Quality & Organizational Excellence (CMQ/OE) from

ASQ USACertified Purchasing Manager (C.P.M.) from ISM USA

▪ Certified Purchasing Manager (C.P.M.) from ISM USA.

▪ Certificate Program in Public Procurement from World Bank

Representative experience

▪ Defining the methodology for Spend Analysis reporting and establish category based procurement model for multiple

clients

▪ Lead and Managed spend of US$ 500 Million per year across various categories

▪ Achieved savings of 5 to 7% year on year

▪ Distinction of heading the practice & delivery of: Procurement & Supply Chain Services (BPO, Low cost Sourcing,

Production Planning ,Tendering Services, RFP/PFQ/RFI & Auction Services), IT & e-Procurement Solutions (dynamic

price engine, cost data knowledge management solution, web tendering, procurement intranet, supplier extranet, catalog

based buying) and Procurement Consultancy for a major IT company

▪ First one to introduce forward auction, reverse auction, web tendering, procurement BPO and supply Chain BPO

practices in India

▪ Successfully conducted over 500 sourcing events across 170 categories and achieving an average savings worth 12%

across the category

▪ Provided specialist advice, guidance and service on leading procurement to the departments, Management of potential

risks associate with different sourcing strategies provide insight through the analysis of spend, supply markets and

Savings to multiple clients

▪ Demonstrated high focus on Low cost country sourcing of goods and services, cost reduction, process optimization as

well as change management for a telecom company based in US

▪ Vendor Master and Vendor Pay Terms Optimization delivering USD 6 million annual savings for various multi-national

organizations across multiple regions

▪ Designing and implementing best-in-class contingent work force solutions in terms of quality, cost & service with a cross

functional team across the world for a big global telecom & IT company

▪ Handled IT, Facility Management, HR, Professional Services Outsourcing projects for a multinational manufacturing

company

▪ Lead 4 merger teams integration teams

11PKC Advisory

Subject Matter Experts

Tapas Chakraborty

SME

Profile Brief

Tapas has a total work experience of more than 35 years in manufacturing ,

operations , marketing and specialization in sourcing and making convention

procurement processes to efficient process . He has worked and created

various value additions in his engagements with various sectors .

He has contributed his sourcing knowledge specially in last 15 years purely

with various sectors including Steel, Cement, FMCG, Banks , Infrastructure,

Chemicals, Automobile. Telecom etc.

He has worked with Mjunction Ltd., IMO Communication, B.M. Group,

Marathe Engineering, where he was involved in various sourcing and strategic

planning projects

Specializations

▪ Strategic and Operational Sourcing

▪ E-Procurement Solution Implementation

▪ Category management

▪ Procurement Technology Solutions

▪ Supplier Relationship Management

Education and Certifications

▪ Bachelor of Engineering (Electronics & telecom) from JU, India

▪ Action Cantered Leadership Programme Workshop, Xavier Institute of

Management, India

▪ Certified Tata Quality Management Services Business Excellence

Leadership Program .

▪ Represented PSU Core Committee external expert for implementing e

Procurement in various PSUs

Representative experience

▪ Spearheaded a sourcing team of 150 members for delivery of sourcing activities of 115 clients across India, South East

Asia and Europe

▪ Lead a team of 35 members for implementation of E-Procurement Solutions including dynamic price engine, cost data

knowledge management system, web tendering, supplier e-registration process implementation and catalogue based

buying

▪ Managed strategic sourcing plans of daily procurement of tea leaf from tea gardens and natural rubber from the growers

field directly through a technology driven process resulting in net saving of 3-5% from the existing processes for a leading

Tea and Rubber manufacturing company

▪ Successfully conducted over 5000 sourcing events across 15 broad categories and 120 sub categories with an objective

of reduction in cost of Procurement on an average 20% and procurement cost 7% to 18 % savings across various

category for multiple organizations based in various geographies

▪ Provided specialist advice, guidance and service on leading procurement practices in various departments to multiple

organizations

▪ Provided advice on management of potential risks associated with different sourcing strategies to multiple clients across

various geographies

▪ Provided insights on savings through spend analysis and supply markets to multiple clients across various geographies

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