Aggregating Spend AND Services – The effectiveness of Source-to-Pay services in Indirect Procurement - By Heidi Humphries, DSSI LLC

Many points were made in an earlier post about the benefits of consolidating your organization's indirect materials spend with that of other like companies. Aggregation of high-use MRO categories consistently produces cost savings well beyond what any one company could realize on its own.

But what about consolidation of activities? Think about how many times your company touches an invoice or interacts with a supplier to confirm a price or shipment. How much time do your MRO buyers spend tracking down one-time use items or gathering data from various sources to create reporting documents? On that topic, does your company even have access to the data sources you need to pull together effective reporting on cost savings per item, spend per requisitioner or RFQ response per supplier? And while some options do exist for e-catalogs and supplier management tools, few of them interface with legacy ERPs and manage spend to the item level detail that delivers substantial cost savings over time.

DSSI's Source-To-Pay model allows for shared services in indirect materials procurement amongst all of its clients and is typically funded by a portion of the savings achieved through material cost aggregation. Starting with an aggregated spend that can be listed by item in client-specific e-catalogs, DSSI drives cost savings using a supplier-agnostic sourcing approach. Using client-defined parameters, DSSI's Epic® e-procurement system facilitates RFQs, approvals, invoice consolidation and more, either on its own or interfacing with legacy ERPs. Throughout the entire process, Epic® maintains up-to-date metrics in item-level cost savings, supplier response times and spend patterns to help clients and DSSI Client Managers stay on top of opportunities. Learn more about how to transform your organization's indirect procurement program with DSSI's full Source-To-Pay process or contact us directly.