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Procurement and Operations |
Procurement - responsible for all the many varied activities associated with the acquisition of goods, services and materials for operations and manufacturing.
In the same way that Categoric provides an opportunity to automate the monitoring, alerting and reporting for legislative compliance, by extending the concept to commercial and contractual compliance Categoric can also help Procurement achieve their operational goals and objectives.
Extend existing efforts
In many instances supply managers can apply and use the same controls that are being developed by their colleagues in other areas such as Internal Audit and Risk Management. By recycling the work undertaken for mandatory compliance the opportunity is to “tweak” their templates or process designs to capture the similar data and metrics from various systems relevant to procurement (such as invoice reconciliation and payments, for example).
Supplier contract compliance could become much more visible and measurable, and existing or even new KPIs could be developed or extended to highlight potential non-compliance with Service Level Agreements before they happen, both for supplier organizations and potentially as an internal measure of performance to client organizations.
Lean Manufacturing
Close control of the supply chain means initiatives such as Just In Time inventory and Lean Manufacturing become more achievable and readily managed. Significant savings are possible by ensuring the right thing is in the right place at the right time, and Categoric's solutions allow key interaction with suppliers and customers to deliver this.
The Categoric solution can help procurement to:
- enforce procurement policy
- reduce "rogue" spending and purchasing
- actively monitor 100% of supplier service levels
- define internal performance metrics and KPIs
- avoid over payment to suppliers
- manage payment cycles for "best" effect
- automate manual procurement processes
- reduce transaction costs
- improve spend visibility
The section entitled "Basis for a Unified Framework" explores this opportunity further in the context of creating a business-wide support structure.
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