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    GEP Case Study

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    Wasp_007_007
    This document summarizes an assessment of Vantage Automotive's current procurement performance. It finds that Vantage has room for improvement, including addressing 50% of indirect spending that is currently unaccounted for, transitioning from paper-based to digital invoice processing to reduce costs and errors, and optimizing employee allocation and skills across procurement functions. The assessment also identifies legacy finance systems, non-standardized procurement policies after acquisitions, and call wait times exceeding industry averages as additional challenges.

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    Download as PPTX, PDF, TXT or read online from Scribd

    GEP Case Study

    Uploaded by

    Wasp_007_007
    326 views6 pages
    This document summarizes an assessment of Vantage Automotive's current procurement performance. It finds that Vantage has room for improvement, including addressing 50% of indirect spending that is currently unaccounted for, transitioning from paper-based to digital invoice processing to reduce costs and errors, and optimizing employee allocation and skills across procurement functions. The assessment also identifies legacy finance systems, non-standardized procurement policies after acquisitions, and call wait times exceeding industry averages as additional challenges.

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    This document summarizes an assessment of Vantage Automotive's current procurement performance. It finds that Vantage has room for improvement, including addressing 50% of indirect spending that is currently unaccounted for, transitioning from paper-based to digital invoice processing to reduce costs and errors, and optimizing employee allocation and skills across procurement functions. The assessment also identifies legacy finance systems, non-standardized procurement policies after acquisitions, and call wait times exceeding industry averages as additional challenges.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    326 views6 pages

    GEP Case Study

    Uploaded by

    Wasp_007_007
    This document summarizes an assessment of Vantage Automotive's current procurement performance. It finds that Vantage has room for improvement, including addressing 50% of indirect spending that is currently unaccounted for, transitioning from paper-based to digital invoice processing to reduce costs and errors, and optimizing employee allocation and skills across procurement functions. The assessment also identifies legacy finance systems, non-standardized procurement policies after acquisitions, and call wait times exceeding industry averages as additional challenges.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    GEP Case Study

    Team – CountR
    Team Members:
    Sunil Shingala
    Abhimanyu Singh
    Assessment of Vantage Automotive’ s current
    procurement performance

    ▰ Growth rate = 15.2% ▰ Profit Margin = 3.6%


    ▰ Top 5 car manufacturers in ▰ indirect spend was $1.2 billion
    North America ▰ Un addressable spend= $600
    ▰ 16 manufacturing and million
    assembly line with 38 office ▰ Sourcing employee = 23FTE
    location
    ▰ Operations Employee = 52FTE
    ▰ 3% YoY savings on procurement
    ▰ Total Employee cost = 816190
    budget

    2
    Assessment of Vantage Automotive’ s current
    procurement performance - Continue

    ▰ Invoices Handled:
    PO team =7348 with business cycle of 7 days with 82% of accuracy
    Invoicing team = 16,472 with 78 % of accuracy with 11 day of business cycle
    ▰ 10 core user licenses for the purchase order with $48,000 and 20 the invoicing
    tool with $36,000
    ▰ operators take to attend the call 3 minute against 1.5 minute industry average
    ▰ Improper usage of invoice management system

    3
    Problems, Inefficiencies, Challenges

    ▰ Overall procurement requirements(direct and indirect) are handled by two


    separate functions
    ▰ 50% of the indirect is un-addressable showing improper spending analyzer
    and tracker
    ▰ Inefficient cost optimization and saving as compared to industry standard
    ▰ Paper based invoice processing leading to high processing time and
    inaccuracy
    ▰ Improper allocation and skill utilization of the Employee i.e. Help desk has
    way more employee than the industry standard and skill

    4
    Continued

    ▰ High waiting team(3 minutes) as compared to industry standard(1.5 minutes)


    ▰ No recent tools for managing the finance system as they are still using the legacy system leading to
    wastages of lot of time
    ▰ Compliance management is not up to the industry standard
    ▰ Acquired company still following their existing procurement policies rather than the vantage
    procurement policies

    5
    Thank You

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