the way we do itBusiness Process Outsourcing

Spend Insights 360° Drive Procurement Cost Savings

An organization’s spending, particularly in a decentralized organization, is highly obscured with limited visibility of how money is spent. This poses a challenge to identification of cost saving opportunities, which, in turn directly impacts an organization’s bottom line.

Top challenges faced by CXOs for driving Spend Analytics include: • Decentralized and heterogeneous data sources• Poor visibility of spend• Lack of necessary resources and methods for spend analysis

Spend Insights 360° helps clients:• Improve visibility and

compliance

• Reduce maverick expenditure

• Reduce Spend management costs

• Capitalize on opportunities in price discovery, categorization and payment term optimization

Aberdeen research has shown that enterprises have been able to achieve a 5 - 20% cost savings for each new dollar of spend brought under management.

Value Chain & MethodologySpend Insights 360° is a holistic product that offers specific actionable insights through artificial intelligence based classification driving granular visibility of the expenses incurred.

Powered with comprehensive multi-dimensional drill down capabilities, this solution helps identify cost saving opportunities for procurement, while optimizing prioritization.

Methodology

Standard Data Templates

Visibility

Provide Insights and Recommend Actions based on the above visibility

Development of Action Plan post alignment with stakeholders

Stakeholder Alignment

Extract, Transform & Load Data

Categorization &

Normalization

Dashboards & Drill Downs

Visibility

Overview of Spend Distribution

Insights Into Root Cause

RecommendedActions

Achievable SavingsOpportunity

Insights Actions Impact

Comprehensive view of spend by

CategoriesComplianceRegionsSuppliers

Supply base distribution

Transaction base overview

Spend trend

Payment terms distribution

Insights across key procurement performance areas such as:

Supply-base managementTransaction ManagementProcurement Process

Performance against internal benchmarks/industry standards

Proposing solution-oriented actions such as:

Tail spend managementPO ConsolidationMaverick spend reductionCategory profiling

Prioritization of initiatives

Reduction in vendor management cost & transaction cost

Improved compliance

More spend under management

Robust negotiation levers

Value Chain

Spend Classi�cation

5 - 30% savings

PO Compliance

5 - 7% savings

Processing Cost

$40 - $120 savings/invoice

Price Variance3 - 10% savings

Term Normalization3% savings

Supplier Rationalization1 - 3% savings

Advantages

Ready-to-use Solution

Artificial Intelligence-based

Spend Classification

Insights Driving Actions and Savings

Case Study

Customer & Scope:One of the world’s leading specialized chemical companies, operating in 90 plus countries collaborated with Capgemini and performed Spend Analysis in five countries, with• Totalindirectspendof$276Million• Over9Millionlinetransactions

Outcomes: • Defined opportunities for PO consolidation for vendors; led to potential cost

savings of €370,000• Identification of opportunities for invoice consolidation leading to a reduction of

€660,000 in transaction costs• Isolated vendors eligible for placement under PO, thereby increasing PO

compliance by 6%• Identification of opportunities to create catalogs, enabling enhanced cost

comparisons for 38% of indirect spend• Vendor isolation, accounting for 35% of early payments, when transferred to

on-time payments resulted in an increase in overall Days Payable Outstanding (DPO) by three days

• Defined list of employees who did not submit claims against advances over the last six months. Following up on these claims may release $4,000,000

Customer & Scope:One of the world’s leading Consumer Product companies, operating in 90 plus countries with:• Anannualspendof€14billion• 2.2milliontransactions• 80,000plusvendors

Outcomes:• Global visibility of indirect spend categories• Spend Portfolio Dashboard supporting twelve global IP commodity managers for

improvements in category management• Supplier rationalization at a global level helped identify and avoid maverick spend.

This enabled identifyingsavingsofapproximately€2mbyconsolidatingthesupplierbasethatresultedindemandaggregation,volumediscountandreducedtransactioncosts

Success StoryLeading agribusiness company identifies €1M savings opportunity through Capgemini Spend Insights 360°

Success Story Global consumer product company identifies €2M savings through Capgemini’s Spend Insights 360°

AboutCapgemini

With more than 130,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion.

Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want.

A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

The information contained in this document is proprietary. ©2014 Capgemini.All rights reserved. Rightshore® is a trademark belonging to Capgemini.

the way we do itBusiness Process Outsourcing

Learn more about us at

www.capgemini.com/bpo

Analytics Offerings leading to world class outcomes

Eliminate Revenue

Leakage from Existing Business

Minimize Direct Cost

Minimize Indirect Cost

Minimize Interest and Effective Tax

Rate

Tax Compliance, Controls and

Corporate Citizenship

Regulatory Controls and Compliance

Mitigationof Finance,Operations

andIT Risk

Organic Growth and Entry into

New Markets

Integrated and Effective Inorganic Growth

Increase in Working Capital

Unlock Value from Long Term

Assets

MinimizeCost of Capital

Revenue Analyticsto increase revenue and reduce leakage

Insights 360 RevenueOrder

Insights 360 - Working Capital

Receivables Payables Inventory

Insights 360 CashAssets

Insights 360 SpendCOGS*SG&A*Workforce

DDO Network DesignLogistics

Duplicate Payments Recovery Solutions

Savings Maximizer Solutions

Insights 360 – Control

Governance, Risk and Compliance (GRC)

Controls Monitoring Continuous Transaction Monitoring (CTM)Audits

Q-Budget

DDI* Price and PromotionCategory and Shopper

Sales Force Effectiveness and Compensation Planning Solutions

DDO* - TP andPricing

Forecasting Solutions

Expense Analyticsto help reduce

wastage and improve margin

Working CapitalAnalyticsto help improveCash Flow

Control Analyticsto help reduce

business risk

DDI* - Demand-Driven InsightsDDO* - Demand-Driven OperationsCOGS* - Cost of Goods SoldSG&A* - Selling, General and Administrative Expenses

Horizontal Analytics Offerings

Vertical Analytics Offerings

MDM Record-to-Report

Analyze-to-Action

Predictive Models

Service Layer

Outcomes

Process Layer

ApplicationLayer

InfrastructureLayer

CloudPrivate

Public Hybrid

Subir Sarbabidyasubir.sarbabidya@capgemini.com

Divya Kumardivya.a.kumar@capgemini.com

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