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PROCUREMENT SERVICES

Genpact Source to Pay:


Smart Processes for Optimizing Spend
Organizations battered by the sluggish economy must use every means available to
increase margins, reduce risk, and improve cash flow as they look for opportunities for
growth. Genpact uses the power of smarter processes, detailed analytics, and targeted
technologies to transform the S2P cycle, helping our clients achieve the true potential
of their sourcing and procurement organizations to impact these initiatives. Our Smart
Enterprise Processes (SEPSM) approach provides clear insight into end-to-end S2P
processes, driving higher value, better controllership and compliance, better optimized
working capital, and greater availability of materials and services. The resulting
intelligent enterprise is well equipped to seize competitive advantage through greater
responsiveness to vendors and customers, agility in meeting market change, and greater
effectiveness in managing organizational spend.

Taking S2P to Its Full Potential


The silo approach to procurement across geographies, functions and processes used by many companies limits visibility into end-to-
end processes, and too many focus solely on process efficiencies rather than driving greater overall effectiveness. Fragmented spend
and use of technology without process rigor often results in inaccurate forecasting and poor visibility into organizational spend, while
process gaps and inadequate technology tools can lead to compliance issues with regard to approvals and contracts.
Genpacts long heritage of Lean Six Sigma underlies our proprietary Smart Enterprise Processes (SEPSM), which takes a holistic,
enterprise-wide view of the S2P life cycle to eliminate many of the challenges keeping S2P functions from performing at their best.
SEPSM benchmarks S2P processes against industry best-in-class and provides clear linkages between process drivers and business
outcomes. Founded firmly on science, SEPSM takes common processes and transforms them into smart processes through a
combination of rigorous process execution, reengineering, industry-specific analytics that drive performance, and focused IT solutions
to improve workflow and access to information. This end-to-end transformation of S2P processes focuses on key business outcomes:
Reduction in total cost of ownership (TCO)
Optimizing working capital
Higher availability of material and services

The Keys to Helping You Outcompete


The intelligent enterprise is one that not only competes, but outcompetes. Genpacts Indirect Source to Pay solution combines a wide
spectrum of end-to-end service offerings tailored to your specific business needs, from low value/less complex to high value/highly
complex services designed to boost your competitive advantage. All are built on our science-driven SEPSM methodology for S2P,
which enables you to benchmark your S2P performance and transform it to best-in-class through:
An enterprise-wide view across functions and geographies and granular mapping of S2P processes
Over 30 S2P performance measures and 100+ performance drivers
A compendium of over 200 leading practices and a toolkit of 9 diagnostics tools
Continuous business improvements achieved by eliminating non-value added activities
Optimizing existing IT and ERP investments
This combination of smarter processes, smarter analytics, - Global financial services company: Genpact is driving
and smarter technologies drives faster and smarter procurement transformation towards best-in-class
decisions, greater responsiveness to market change, procurement processes through a one-time assessment to
better customer and vendor relationships, and an overall understand process maturity, which created a transformation
more intelligent enterprise. roadmap that is under execution. It uses a combination
of shared service center establishment, analytics, process
Proven Solution, Proven Results reengineering and technology interventions to drive over
$40MM in benefits.
The intelligent enterprise focuses on results. Genpacts S2P
SEPSM methodology improves efficiencies and effectiveness that
increase process performance between 2-5 times in terms of
Quick Facts
addressable spend visibility, working capital requirements and
cost savings. 30+ clients, over 7,000 people, global reach
Genpact transformed a Fortune 100 IT software companys with 10 delivery centers and support in 11
source to pay function and helped achieve savings of over languages
$160MM. Over $25 Bn spend, 5MM purchasing
For a leading energy company, Genpact provided spend transactions and 37MM invoices processed
analytics and sourcing for their key indirect spend categories, annually
delivering 35% improvement in spend visibility and increased Process compliance levels of 4.37 Sigma, the
compliance. highest in the industry
Genpact has completed 14 source-to-pay SEPSM assessments Strategic and technology partnerships with
with identified business impact of over $200MM. Key clients leading procurement service providers
include: World-class academy for training and
- Large pharmaceutical company: Genpact identified developing sourcing and procurement
improvement areas in the clients S2P process and is currently professionals
implementing a 2-year transformation plan with estimated Global delivery team: 25% located onshore or
$35MM savings and $300MM cash flow impact. near-shore
- Global automotive manufacturer: Opportunities of $10MM Consistently recognized as a top procurement
were identified through adoption of e-Procurement, better BPO provider by:
workflow, spend analytics, eRFX and e-Auction technology. Industry analysts: Everest (Star Performer),
- Fortune 100 IT software company: Genpact identified up to Nelson-Hall (Top 5 global/US provider), Gartner
$40MM in TCO reduction opportunity, achievable through and IDC
increased spend under management, contract visibility Global Services 2010 (Top 5 Provider)
and compliance, organization realignment and usage of Supply Demand Chain Executive 2010
technological platforms.
For more information

Peter Sowrey
Vice President
peter.sowrey@genpact.com

Isabelle Cole
Vice President
isabelle.cole@genpact.com

www.genpact.com
Copyright Genpact 2011. All Rights Reserved

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