Industries > Manufacturing & Distribution > CPG

As per the study conducted by Capital Consulting & Management, Inc. (CCMI - Client studies), transaction processing activities consume about 50% of total purchasing department time at the expense of developing and executing sourcing strategies, strategic supplier relationships, continuous improvement programs and other higher value activities. In a typical company 75% of all invoices are for a $1,000 purchase. Average Overhead cost of processing is $100 to $200 (to process the purchase order, pay the invoice, handle all the related paperwork). Indeed, in many cases the cost of handling the paperwork can be greater than the value of the actual items that were purchased.

Also in a manufacturing set up, the total elapsed time required to requisition standard items is often weeks. This results in manufacturing downtime and inefficiency while waiting for materials and carrying higher buffer stocks of "just in case" inventories. Businesses need to reduce cycle times for responding to ongoing or unanticipated business needs. Using e-procurement tools to streamline and speed up the process, these cycle times can typically be reduced to a matter of days or even hours.

Some key potential benefits of TurboProcure are derived through increasing efficiency in executing purchase orders and other transactions. Some of the other benefits are:

Central repository of contracts, prices and payments to check any over payment.
Centralized workflow driven approval process.
Reducing the time employees spend purchasing.
Leveraging volume with preferred suppliers in order to get better pricing and service.
Limiting choices to only those suppliers, materials and services they are confident can meet pre-approved levels of price and quality.

TurboProcure automates the procurement processes between the enterprises and tier 1 suppliers. It effectively manages supplier ratings and partnerships. Enterprises can efficiently automate the full procurement cycle, from generation and acceptance of RFI's, to supplier selection and order placement, to delivery, invoicing and payments to buy goods and services. This all can be accomplished better, faster, cheaper and achieve increased value.