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GEP Case Study

This document summarizes an assessment of Vantage Automotive's current procurement performance. It finds that Vantage has room for improvement, including addressing 50% of indirect spending that is currently unaccounted for, transitioning from paper-based to digital invoice processing to reduce costs and errors, and optimizing employee allocation and skills across procurement functions. The assessment also identifies legacy finance systems, non-standardized procurement policies after acquisitions, and call wait times exceeding industry averages as additional challenges.

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494 views6 pages

GEP Case Study

This document summarizes an assessment of Vantage Automotive's current procurement performance. It finds that Vantage has room for improvement, including addressing 50% of indirect spending that is currently unaccounted for, transitioning from paper-based to digital invoice processing to reduce costs and errors, and optimizing employee allocation and skills across procurement functions. The assessment also identifies legacy finance systems, non-standardized procurement policies after acquisitions, and call wait times exceeding industry averages as additional challenges.

Uploaded by

Wasp_007_007
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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GEP Case Study

Team – CountR
Team Members:
Sunil Shingala
Abhimanyu Singh
Assessment of Vantage Automotive’ s current
procurement performance

▰ Growth rate = 15.2% ▰ Profit Margin = 3.6%


▰ Top 5 car manufacturers in ▰ indirect spend was $1.2 billion
North America ▰ Un addressable spend= $600
▰ 16 manufacturing and million
assembly line with 38 office ▰ Sourcing employee = 23FTE
location
▰ Operations Employee = 52FTE
▰ 3% YoY savings on procurement
▰ Total Employee cost = 816190
budget

2
Assessment of Vantage Automotive’ s current
procurement performance - Continue

▰ Invoices Handled:
PO team =7348 with business cycle of 7 days with 82% of accuracy
Invoicing team = 16,472 with 78 % of accuracy with 11 day of business cycle
▰ 10 core user licenses for the purchase order with $48,000 and 20 the invoicing
tool with $36,000
▰ operators take to attend the call 3 minute against 1.5 minute industry average
▰ Improper usage of invoice management system

3
Problems, Inefficiencies, Challenges

▰ Overall procurement requirements(direct and indirect) are handled by two


separate functions
▰ 50% of the indirect is un-addressable showing improper spending analyzer
and tracker
▰ Inefficient cost optimization and saving as compared to industry standard
▰ Paper based invoice processing leading to high processing time and
inaccuracy
▰ Improper allocation and skill utilization of the Employee i.e. Help desk has
way more employee than the industry standard and skill

4
Continued

▰ High waiting team(3 minutes) as compared to industry standard(1.5 minutes)


▰ No recent tools for managing the finance system as they are still using the legacy system leading to
wastages of lot of time
▰ Compliance management is not up to the industry standard
▰ Acquired company still following their existing procurement policies rather than the vantage
procurement policies

5
Thank You

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