empoweringcpo

Compliance Management: Plug Your Saving Leakages

Many procurement functions estimate large savings number when contracts are signed.  They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals.

Some of the obvious fallouts of non-compliance and maverick purchases are:

a)      Very high prices

b)      Risk of losing out on volume discounts and rebates

EmpoweringCPO’s Compliance Management service can deliver on the promises made and make sure you get what you signed up for.

Compliance as applicable to most of the companies can be divided in following 3 aspects:

1)      Compliance to sourcing process

2)      Compliance to the buying process

3)      Compliance to contracts and preferred suppliers

Excellence in compliance within the procurement function begins and ends with spend visibility, to help procurement organization achieve best in class status in all aspects of their compliance program EmpoweringCPO starts with study of “as is process” and can accordingly propose. Examples of some of the initiatives undertaken by EmpoweringCPO for clients for all the 3 aspects is as listed:

1)      Compliance to sourcing process

a.       EmpoweringCPO can actively participate to ensure process compliance during every step of the Strategic Sourcing process

b.      At the last stage of the Strategic Sourcing process EmpoweringCPO can participate to ensure that appropriate clauses are structured and included in the contract

 

2)      Compliance to the buying process

a.       On an ongoing basis EmpoweringCPO can analyze the spend data available and ensure compliance to buying process and guidelines, example keeping track of Off PO spend and proposing methods to improve

 

3)      Compliance to contracts and preferred suppliers

a.       EmpoweringCPO can participate to ensure price and vendor compliance:

                                                               i.      for Non Catalog categories, gaps can be identified and ensured that contracts are modified

                                                             ii.      for Catalog categories usually all SKU’s are not included in the RFP appropriate mechanism can be designed to mitigate

For more information log on to www.EmpoweringCPO.com

Sujit Assudani

Phone: +1-336-441-0020 (USA) / +91-9879564584 (India)

sales@empoweringcpo.com

www.empoweringcpo.com