Direct and in-direct spend on goods and services is one of the largest expenditures for a manufacturing organisation. Etesius find that there are opportunities to reduce these costs through improved business intelligence over purchasing, consolidation of procure to pay processes, conversion to electronic trading and maximisation of payment & rebate discounts schemes across internal business units.
Manufacturing is an extremely process-centric industry. Complex procedures support and integrate production, procurement, logistics and financial administration. To succeed in this challenging market, the cost of processes and operations need to be constantly reviewed and minimised without impacting delivery in order to sustain profitability.
Our reviews in the manufacturing sector have focused on identifying value lost through leakage between sourcing, payments, stock control and the supplier. For example, we have identified opportunities to:
- recover cash lost through supplier contract non-compliance
- inform a broad range of procurement initiatives by consolidation of functions and increasing electronic transactions
- provide substantive management information over supplier activity and performance
- maximise trading terms with suppliers
- identify new leveraged buying opportunities