Source to Contract
Basically it is a process that controls your spending on the Goods and suggests to you what you need and what you don’t. This also answers you so many questions like what can you implement to increase your annual returns, how can you know about your unnecessary and more.
Cons of Source to Contract
- It saves your time of procurement service by 15-20%. This extra time can be used by your team to make more promising strategies to benefit the business and users to increase your profit.
- It increases the vendor competition that will help you in identifying to whom you are competing with and on which vendor you should pay attention to.
- It also makes your contract easy by doing most of the work on its own by giving you data on your previous spending, sources and return from those.
- Not the just the time it also saves your costing or expenses that you are making.
- By letting you what is on the other end it makes negotiation so smooth and easy to work on.
How Source to Contract Works?
- At first, it reads your previous records of supply and spending to identify what kind of source you are looking for to create a contract.
- After making a brief analysis of the previous spending it suggests or advise you on how much you should spend on supply to purchase source.
- Now it is time to identify the right vendor who can provide you that source while maintaining the good return from it.
- Into the contract, it organizes all the details like the selection of supplier, source, and cost.
- The last thing in the Source to Contract is managing all the cost, supply and supplier details as the contract in now out of the plane and is now effective and executable.
Category Management Service
The world of business and market is experiencing a drastic change in it from the introduction of the technology and innovative solution and ideas into business. Now as it started to change there is a sudden rise in the requirement of the reduction in cost, spending, grabbing top-notch opportunities, having actionable strategies and achieving the bigger and bolder business targets.
This is a cost and risk optimization program that is built so that a business can identify places where it can reduce its risks of loss and where it can save investment and execute solutions for fast-growing.
Category Management Service at NextPro
We follow a process so that people from different regions can achieve their business’s or service’s target.
It helps in making strategic focusing on the procurement process of the business that will make benefits for the business and will lead business objectives directly to the procurement objectives.
It helps in influencing the supplier and also increment in the expertise of the category understanding, category decision and having precise suggestions and recommendations.
If the category management is done well then it will also increase your chance to have good value capture, reduces the implementation risks and achieve higher compliance.
The right category management methodology increases the alignment with the stakeholders also increases frequent chance of collaboration with them.
We take it seriously when it comes to making strategy and practice management of sources of a business. We do a brief analysis of the market and your business first before deploying our best and suitable man so that your business can reach the desired goal. If you do not follow a process then the best card in your deck can go vain. We at NextPro make sure that every step and process is followed and performed as it should be to leave no chance of failure.
Low-Cost Country Sourcing
LCCS is one part of the procurement strategy a business posses to reduce some cost that businesses have been investing in the business. This is one simple practice that a business performs to hire lower-cost resources from countries with lower labor charges than the business’s own. This is how a company can easily reduce its capital investment and reach the business’s objectives. Approaching a business with the low-cost country sourcing strategies requires the following steps to achieve a perfect solution.
- Understand the Requirement: First, you need to understand what kind of sources you require then choose the right country from where you can source at lower prices as well as lower taxation because sometimes taxation makes the price go beyond the savings you are targeting.
- Compare the Equation: Make an overall equation of the total coast of sourcing from another country including the tax and shipping/ traveling charges and compare it with the total amount of domestic hiring/ sourcing.
- Long Term Considerations: It might happen sometime that your cost of LCCS may go a little higher than the domestic prices. Then you need to consider looking into the future. You need to compare the quantity and need of the source you might end up with a zero-sum equation.
- Quality Products: Companies some time consider having their hands in lower quality products or make investment at the origin of the product only. This affects savings by LCCS in a good way.
- Politics Affects Saving: Politics may look like it is an out of the league thing but LCCS is directly connected with it. Change in the ruler party may increase or decrease the price of sourcing. So, keeping an eye on political stability will help you in selecting the right country.
- Be Prepared: If you are investing in a supplier then you might get yourself prepared for the loss. Create a backup plan and also calculate the loss amount.
Procurement Support Service
As in the business, demands are getting increased by the internal Clients it is becoming hard to achieve the Procurement or getting close to the desired business’s goals. If these demands are not full filled by the business in a most adequated manner it will take the business goals down with it and will discourage the internal teams.
In this service, NextPro provides you a full support to your internal procurement team in various ways. This support allows your team to fly around in different departments and make better solutions and strategies there while we take care of the procurement process fully.
What Our Support Offers You?
- Supply Market Intelligence:
- Sourcing Support
- Contract Management
- Supplier Performance Management
- Saving and Compliance Tracking
We, NextPro, here gives you support in making the research analytics and executions because this is our specialty. Our experts are performing these tasks for a very long time for various business businesses and service providers. While we are doing this your team can make efforts and solutions to cut better deals with your current and future suppliers, make better collaboration with your stakeholders and build better relations with your suppliers.
We can tailor all of our services as per your business’s need. Our experts with the best knowledge of the field will escalate you with solutions to the complex issues and problems requested by you.
Spend Analysis Service
Visualization spending is necessary for a business because this helps them in coming up with better strategies to reduce the costing they are making in several places. One needs to understand the spending haveing a clean, classifying and enriching data on the spending. These factors will help them in generating the perfect analysis report of the spendings. As told this will give you a right analysis and strategy and this sure will lead you to cost reduction, continual progress and valuing creation.
Quality of NextPro Spend Analysis Service
Consulting and advising the services-oriented goals and objectives that you are going to achieve with spend analysis strategies.
A combination of cutting edge analysis report and the technology that helps in reducing time executing other strategies for bigger success.
Team of experts who would love to push themselves to achieve what the business’s desired goals and objectives are.
We are the one who not just makes strategies that will boost your hopes up. But we can turn these strategies into the action and actions into the result you are seeking.
The research we do is through, complete package of all data and broad in nature so that you can miss a little detail of your spendings. We do not rely on a single source of the data, we make the report based on the data we are collecting from the different sources for building precise and perfect-fit strategy.
This analysis not only covers the high-end risks projects but also quick-win projects to keep up the business momentum.
Optimization of all the addressable spends and identification of non-addressable spends happening in the business.
The success of the spend analysis fully depends on the high-quality data gathered from different places and actionable sourcing strategies. Keep that in mind that spend analysis is just a first step in building better procurement strategies. Comprising it with other techniques and solutions make it a whole plan for Procurement and benefits your business and services.
Businesses need to have a proper supply of the sources that can come from different places or may come from one place. Usually, businesses do not depend on one supplier only. That’s why a business always in a need of managing its sources. This is where our teams step in. We know how to manage all these sources with our knowledge and experience.
Importance of Strategic Sourcing
Business wants 95% of their investment into management and resources to be converted into a visible result and this is what a business can get if they smoothly workout with the Strategic Sourcing.
Good sourcing results in a good relationship with stakeholders along with developing the commercial skills to enable deeper project research experience.
This effectively accelerates the process of saving the cost spending, leading the supplies and business objectives. This gives a business a chance to keep its pace up with the market.
Finding the right source provider that works according to category this increases the chance of better sourcing performance.
This also provides a business, sources that are fit according to the purpose. These perfect sources increase chances to get a higher return from the imperfect but larger amount of source.
Why NextPro Strategic Sourcing?
Solution Sourcing or Strategic sourcing allows a business to dive into the best ideas and resources with which it can stand strong in this complex business challenges. It also allows to get into the depth of the experience, skills, work usability of sources. It also opens the gate to those answers those are yet to be found by your business.
Supply Market Intelligence
Strategy wise the procurement takes a very important place in a business as it is responsible for optimized and source saving practices. At the right time having all the necessary information about the right market give a business an upper hand in playing in this competitive world of business by taking the right decision in sourcing.
Let’s understand this three-part practice build to give a brief knowledge about Supply Market Intelligence also provides benefits with sizable sourcing risk. These risks can be eliminated with timely, accurate and actionable supply chain information. This way this practice supports CPO and business professionals in making the right strategy for the market to achieve a successful procurement Solution. This practice can be divided into three 3 steps.
- Market Research: This involves the collection and analysis of data on the market and the business.
- Competitive Intelligence: This is all about the data collection and analysis of all competitors a business has.
- Processing Information: All the information and analyzed reports generated in the previous 2 steps are analyzed here and generate the final report of a company’s supply market.
Relevancy of Supply Market Intelligence
Supply Market Intelligence gives an opportunity to a business to achieve its goals if they consider better usage of intelligence. A company and also makes investment in a third-party tool or company to take care of all the information that is coming from the supply market intelligence. Also, it is seen that companies are now investing more in these to achieve their goal and keep this in the continuation.
NextPro works very more effectively and efficiently than the other business, we have experts who are having specialization in different domains that serve so many areas where a business practices. Each expert works on a project depending on the domain so that they can give more than a hundred percent to you.
Tail Spending Management
Tail Spending is been part of the procurement solutions but the thing is it was rarely acknowledged seriously. But now a day it is started being recognized. This takes measurement of all the spends that a business is making outside those big, large spendings. In other words, it takes care of all those transactions and spendings that are way too small for the procurement process. These small transactions usually remain unaddressed. Taking care of these small transactions usually is difficult because these transactions are normally done off the book or because of a lack of data in the transaction tail.
How Tail Spending is Done?
It can be split into 3 steps called:
Identification: Any purchase that is either classified, personal or done outside the large purchases need to be addressed here with full information. It is necessary to know where and why a business making all those spendings.
Tracking: Controlling this data requires those to be connected to a centralized system. Streaming this process will give the business a chance to make better payment terms with frequent suppliers. Also, this will lead you to trustworthy buyers.
Analyzing: Once both the process mentioned above gets done that is when analyzing and execution of the report takes place. This analyzation will lead your procurement team to a greater understanding of the spending, purchases, and decisions to make these spending and purchase.
This can be done in several ways by a business. Either they can make a list of all spending according to the supplier or they can make a list of spending based on categories and then sort them out according to the bottom 20% of spending. Some time business unifies spending on small supplier from the same geographical region or category so that it makes up a big spending and eliminate all the small spending data. But this also sometimes increases the complexion of the solution.