DSSI procurement services: What we do and how we're different

24 July 2024    By Heidi Humphries


We get it. There are a lot of solutions on the market for procurement leaders to get to grips with - from procurement services companies, group purchasing organizations, integrators, software and purchasing services and beyond. It can be overwhelming. 

We make it easy for you, breaking down what each does - and how we're different. 

DSSI procurement services

DSSI specializes in providing comprehensive source-to-pay solutions for indirect spend, with a particular focus on maintenance, repair and operations (MRO) supplies. Our key offerings include:

  • Strategic sourcing: Competitively bidding out your frequently purchased items, leveraging aggregated spend across multiple clients to negotiate better pricing and terms with suppliers.
  • Source-to-Pay services: Providing end-to-end procurement support from requisition to payment, including tail spend. 
  • eProcurement system: Our proprietary web-based platform called Epic® streamlines procurement processes and integrates with all leading ERP and catalog platforms. 
  • Category management: Expertise in managing various indirect spend categories, particularly MRO.
  • Supplier management: Maintaining relationships with vast networks of suppliers to ensure optimal performance and value.

How we compare to other procurement services companies

Traditional procurement services companies such as WNS Denali offer a range of services aimed at optimizing spend and improving operational efficiency. However, there are several key differences when compared to DSSI:

  • Focus: While traditional providers may offer a broad spectrum of procurement services across various categories, we have a more specialized focus on indirect spend, particularly MRO supplies.
  • Service model: We operate as an extension of our clients' purchasing and accounting organizations, actively managing the supply chain and supplier payments, while traditional providers may offer more advisory and managed services.
  • Technology: Many procurement services companies offer proprietary platforms, but ours is designed specifically for indirect spend management and MRO procurement. It’s also simple and quick to integrate into your own ERP.

Our value driver? Specialized expertise in indirect spend and MRO procurement, with a hands-on approach to supply chain management.

How do we differ from Group Purchasing Organizations (GPOs)?

A group purchasing organization (think Omnia Partners or CoVest), like us, focuses on leveraging group purchasing power to achieve savings for their members. However, there are notable differences:

  • Scope of services: While GPOs primarily focus on aggregating spend and negotiating contracts, we offer a more comprehensive suite of services, including source-to-pay processing, category management and taile spend support.
  • Membership model: GPOs operate on a traditional model where members join to access pre-negotiated contracts. DSSI on the other hand, provides more tailored solutions to our clients, acting as an extension of their procurement teams.
  • Analytics capabilities: Both emphasize the importance of data analytics, but we integrate analytics into our broader source-to-pay offering, providing real-time insights throughout the procurement process, including your tail spend. 
  • Implementation support: We offer more extensive implementation support, including on-site resources and shared service center support, which goes beyond the typical GPO model.

Our value driver? Comprehensive source-to-pay services combined with the benefits of group purchasing, offering a more integrated approach to procurement optimization.

DSSI vs. integrated supply chain solutions

Integrators are industrial product and service solutions providers that have expanded into integrated supply solutions, e.g. RS Group or SDI and even some distributors. Here’s how we differ: 

  • Sourcing Strategy: Integrators often come at sourcing from the opposite direction than DSSI in which they have pre-negotiated deals with certain suppliers and manufacturers that they will attempt to transition you to.  DSSI, on the other hand, works as part of your team to identify the optimal source for the materials you need.
  • Service offering: While integrators offer some remote source-to-pay services, their core business model is to provide on-site support to manage the storeroom.  DSSI provides more comprehensive procurement services, including strategic sourcing and category management, enabling your employees to manage inventory levels in line with internal targets with the optimal supply base.  
  • Technology integration: While we both offer digital solutions, our platforms are specifically designed to optimize your team’s end-to-end procurement management, whereas integrators' solutions may be more focused on product selection and ordering.

Our value driver? Specialized procurement expertise and technology tailored for indirect spend and MRO, offering a more focused and comprehensive solution compared to broad-based industrial integrators.

Major distributors: Same space, different model

Major distributors, such as Fastenal or Grainger, operate in the MRO space, but their approaches differ significantly from DSSI:

  • Business model: Distributors are primarily focused on selling and distributing products with vast networks of physical locations and ecommerce platforms. DSSI, in contrast, are procurement services providers that don't hold inventory but manage the entire sourcing and procurement process.
  • Service scope: While distributors offer some value-added services like inventory management, we provide a much broader range of procurement services, including strategic sourcing, category management and tail spend support.
  • Technology offering: DSSI platforms offer comprehensive procurement management capabilities, whereas distributors' technology solutions are more focused on product ordering and inventory management.
  • Supplier relationships: We leverage relationships with multiple suppliers to find the best value for clients, while distributors primarily sell their own branded and stocked products.

Our value driver? Comprehensive procurement services and technology that go beyond traditional distribution, offering strategic value and cost savings across the entire indirect spend category.

How does DSSI differ from transaction processors?

Transaction processors (think Candex or Genpact) focus on streamlining vendor payments and management, which is one aspect of the procurement process that DSSI addresses. Key differences include:

  • Service scope: While transaction processors specialize in vendor payments and management, DSSI offers a full suite of procurement services from sourcing to tail spend management to payment.
  • Technology focus: Transaction processors' technology is centered around vendor management and payments, while our platforms cover the entire procurement procure-to-pay process as well as on-demand spend analytics.
  • Value proposition: Transaction processors aim to simplify vendor management and payments, while DSSI focuses on optimizing the entire procurement process and driving cost savings through strategic sourcing and category management.

Our value driver? A holistic approach to procurement that goes beyond transaction processing, offering strategic value throughout the entire procurement lifecycle.

DSSI’s value drivers

We’ve rounded these up so you can see how our procurement services differ from the market:

  • Specialized expertise: Deep expertise in indirect spend and MRO procurement, providing tailored solutions for these often complex and fragmented spend categories.
  • Comprehensive service model: Unlike many competitors that focus on specific aspects of procurement, DSSI offers end-to-end services from strategic sourcing to payment processing, acting as a true extension of our clients' procurement teams.
  • Proprietary technology platforms: eProcurement systems specifically designed for indirect spend management, offering robust features tailored to the unique challenges of MRO and other indirect categories.
  • Active supply chain management: Going beyond providing tools or aggregating spend, actively managing the supply chain to drive continuous improvements and savings.
  • Hybrid model: Combining elements of a GPO with comprehensive procurement services, offering the benefits of aggregated purchasing power alongside tailored, hands-on procurement support.
  • Implementation support: Providing extensive implementation support, including on-site resources and shared service center support, ensuring smooth adoption and ongoing optimization of procurement processes.
  • Data-driven approach: Focusing on analytics and reporting, enabling clients to make informed decisions and track performance improvements over time.
  • Industry experience: Bringing decades of experience in procurement services, particularly in complex industries like automotive and manufacturing.

While other players in the market may excel in specific areas – such as software provision, transaction processing or distribution – we stand out for our holistic approach to procurement management. This comprehensive strategy positions us as valuable partners for organizations seeking to drive significant improvements in their indirect spend management.