- Solution overview
Sourcing and category management: A strategic approach to spend management
Genpact's procurement services transform profitability, increase spend under management, and lower operating costs
Challenge
As the impact of COVID-19 continues and inflationary pressures increase, many companies have had to keep costs and cash flow a top priority. In our work with clients across a variety of industries and regions, we typically see a core list of common challenges when trying to free up cash flow and manage costs:
These challenges prevent organizations from reaching their full potential, overinflate costs, and cause unnecessary operational inefficiencies.
Solution
There are three ways organizations can optimize external costs and maximize value from their procurement activities:
Genpact's category management and strategic sourcing teams are industry and category experts, with strong delivery experience in their domains. They've been handpicked for their prior performance in delivering significant cost savings and category management excellence.
Drawing on our teams' expertise, we take a holistic approach to running services and solutions for our clients. This includes:
You can leverage these offerings as part of a complete category management and strategic sourcing program or independently, as an extension of your team. Where needed, our teams are supported by our proprietary sourcing workbench platform – a curated set of best-in-class tools that automate the end-to-end sourcing and category management process.
We recognize that no one solution fits every client's needs. We start by assessing your organization's exact needs and work with you to develop a solution that accelerates your performance and exceeds your goals.
Impact
Genpact runs end-to-end procurement activities – from category management and strategic sourcing services through to tactical procurement operations – for a multinational conglomerate. We were asked to consolidate the supply base, leverage global spend, implement controls for spend compliance, and reduce operating costs. With full category ownership of eight indirect categories of spend, we handle tactical and transactional activities across eight business units and 130 countries. In 2020, we delivered hundreds of millions of dollars of savings, exceeding our savings targets.