What We Do
Generating Smart Procurement Impact
Direct procurement functions are responsible for a large part of an organization's cost of goods sold. With inefficient processes, buyers can spend up to 40% of their time on non-value-adding activities. Reducing the costs associated with direct materials and services can significantly affect your organization's profitability and working capital management.
Genpact's procurement services span the purchasing lifecycle, from demand planning, forecasting, spend analytics, and inventory optimization to direct sourcing, logistics, and order management.
Our experienced team of commodity managers, analysts, and buyers apply our Systems of EngagementTM framework and Lean Six Sigma approach to deliver intelligent operations and improved business outcomes.
Genpact designs, transforms, and runs intelligent business operations. By combining our Smart Enterprise ProcessesSM framework with core IT, Systems of EngagementTM, and Data-to-Action AnalyticsSM, we offer direct procurement solutions, and deliver enterprise-wide visibility of your processes across the supply chain.
Named as a '2010 Market Star Performer' in both Finance and Accounting Outsourcing (FAO) and Procurement Outsourcing (PO) in Everest Group's Research Reports, Genpact is a leader in full service procurement outsourcing and a top BPO provider to some of the best-known organizations in the world.
Forecasting, planning, and inventory management
Our materials planning, demand management, and inventory optimization services reduce surplus inventories and potential raw material stock-out scenarios to ensure the availability of materials for the manufacturing process and high customer service.
Careful spend management reduces costs by strengthening spend analysis, price negotiations, and supplier performance.
Genpact manages more than US$1.5 billion of inventory and 2 million stock-keeping units in 500 inventory locations for clients across sectors.
Genpact handles more than $2 billion of spend and manages more than 250,000 purchasing transactions a year. Our direct sourcing solutions include design, supplier and commodity strategy development, demand management, transactional sourcing and procurement activities, value redesign, and sourcing quality services.
Strategic sourcing – Through our integrated sourcing, analytics, and engineering services, we apply strategic sourcing levers to your business, such as effective category sourcing (auctions and rationalization or volume bundling), material cost analysis, market intelligence and spend analytics, new vendor introduction, and low-cost country sourcing
Tactical sourcing – We offer requisition and purchase order (PO) management by streamlining transmission, supplier acknowledgement, conversion, and amendments. We also support suppliers with invoice and payment status, and resolution.
Logistics and fulfillment
We work to enable on-time supplier deliveries, and the expedition and delay of deliveries to match product demand.
To manage supplier performance, we apply a scorecard to measure the delivery and quality of materials and compliance with procurement policies, which reduces delinquency by getting the right products to the right place on or before the promised date.
Our process excellence capabilities and functional expertise deliver direct procurement outsourcing solutions and intelligent operations.
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Planning: Inventory optimization improves working capital by $31 million
By optimizing its inventory, a global aerospace manufacturer gained greater visibility to identify excess raw materials and lower inventory turnaround. This generated an impact of $31 million on working capital and a 48% reduction in the raw materials inventory.
Planning: Improved supplier delivery reliability through effective material planning
Following an increase in delinquency and high inventory costs, an aviation client pushed out excess materials from the supply chain through an in-depth inventory analysis while pulling in the material required to meet customer demand. As a result, the company pushed out excess inventory worth $1.3 billion and improved customer service levels from 82% to 95%.
Strategic sourcing: Significant savings in direct materials
A leading transportation company wanted to capture procurement savings and improve sourcing-policy compliance. To strengthen negotiations with suppliers, we reviewed the firm's RFQ management, studied spend and price changes, and used should-cost analysis to identify the actual costs of parts. By moving spend to strategic suppliers, the company gained better pricing, a consolidated supplier base, and rebates.
Within eight months, the firm had saved $2.5 million against a total spend of $70 million for direct materials.
Tactical sourcing: Centralized sourcing creates $13.5 million business impact
A firm with no strategic approach to sourcing centralized its buy-to-pay function to enable tactical sourcing operations. The firm placed strategic sourcing coordinators in critical onshore markets to plan outages, identify suppliers, and drive deflation and fulfillment.
Through Lean Six Sigma projects, the company reduced the requisition-to-PO process from more than two days to less than one. This generated a business impact of $13.5 million through cost avoidance and on-time delivery.
Fulfillment: Supplier on-time delivery success
An oil and gas equipment manufacturer realized improved supplier on-time delivery by 50% by applying a Lean framework.
Fulfillment: Supplier order fulfillment improvement
A healthcare equipment manufacturer delivered a 10% improvement in on-time delivery by reducing the cycle time for supplier-order fulfillment.