Procurement Process Outsourcing –

How it Works

Tutelam

About Tutelam

Who are weAn SCM company

providing Procurement &

Logistics services enabled

with IT solutions

60+ years of Collective

domain experience & in

Demand Consolidation &

Procurement

Strong Vendor base in

Logistics, F&B, FMCG,

Construction, Indirect

Purchases and Packaging,

etc

• One stop service

provider Procurement

• Support in

Operational

excellence

• Enhance Compliances

• Facilitate cost

reduction

• Easily adaptable

commercial (OpEx)

What we do Strengths BenefitsPartners with Corporates

and takes over Indirect

spend hence they focus on

core areas for processes

improvement leading to

cost savings

2

Tutelam Procurement Portfolio

3

TutelamAP &

Freight Audit & Payment

(FAP)(IT Enabled service)

8

Spend Analysis (IT Enabled)

1

Supplier Identification

2Supplier Assessment

& Rating

3Sourcing(e Auction- Reverse, Forward,

Spot )

Contract

Management(IT Enabled service)

5

Indirect Spend Management(Manpower Optimization, Physical support)

Order Fulfillment(Physical support)

7

Procurement Problems Customers face..

5

4

32

1

01

02

03

04

05

Spend creep and cost containment

Visibility of realized savings

Compliance to contracts

Leveraging technology effectively

Insufficient skilled resources

Why procurement Outsourcing?

Value creation

Shareholder value increased

Need to gain access to improved pricing

Leverage global collaboration in people,

resources and Technology

Improved spend visibility

Improved processes & systems

Increased global competition

Increased pressure to lower the cost of goods & services and

transaction costs

Growing acceptance of procurement BPO as a

visible option

Pressure to refocus personnel on more strategic activities

End to End PPO

Purchase Pay

Linking purchasing and financing

BETTER PROCUREMENT, SPEND CONTROL & CASHFLOW VISIBILITY

REDUCED COST INCREASED VISIBILITY

IMPROVED SECURITY &

COMPLIANCE

BETTER CONTROL

Procurement & payment transaction savings

Improved analytics through the end-to-end process

Stronger regulatory, contractual and internal compliance

Unified governance across procurement & finance

End to End PPO Solution

7

PPO Steps

8

Needs Analysis Market Analysis Portfolio AnalysisSupplier

Relationship Analysis

Risk Management

Supplier Selection

Contracting

Order & Delivery

Receipt Management

Receipt & Payment

Supplier Performance

Quality Management

Continuous Improvement

MIS

Upst

ream

Sourc

ing

Dow

nst

ream

Sourc

ing

Finally Clients get...

9

Customer

Delight

Many

Intangibles

Process

Improvement What else?

TAIL SPEND MANAGEMENT• Multiple vendors.

• Low value. High Transactions

• Higher management cost

• Defocus

• Resources could be better utilized in core

areas

PROCESS OUTSOURCING for TAIL

SPEND • Indirect Purchase

• Non Core

• Non BOM

• Low Value & high volume Spend

Recognition of Needs

Description of Needs

Identification and analysis of possible source of supplies

Supplier selection and determination of terms

Negotiation and contracting

Preparation and placement of POs

Follow up for delivery

Receipt of goods or service

Inspection of goods or services and raise GRN

Invoice clearing and Payment

Monitor supplier performance

Key PPO Steps

Single Window sourcing

Multiple vendors management

Optimize inbound supply chain

Reduced admin cost

Enhanced visibility

Total Spend savings

Demand Consolidation

Reduce Spot buys

Users’ existing efforts reduction

Existing resources reallocated

Improved Compliances

Post Transformation

Multiple vendors

Using multiple vendors

is always a distracted

approach; transactional

cost increase; AP

processing difficult;

reduced chance of

volume discounts

Many Suppliers

Consolidation

Process of eliminating

low capacity suppliers in

favor of a smaller

number of high capacity

providers

Reduced Suppliers

PPO

Tutelam handles

consolidated supplier

base thus managing cost

fluctuation, supplier

relations finally leading

customer satisfaction

Tutelam

Outsourcing gives significant improvement 13

Value Proposition

ABC Resources can do their ‘core’ job

Save Time, effort, resources, Operating cost and Training cost

Improved Compliance

Enhanced Spend visibility, monitoring and control

Access to professional, expert and high-quality services

Single window approach by offloading huge vendor base to Tutelam

Overall ‘Tutelam’ to support in

Rationalization and reduction

in assets

Efficient operational

systems

Improved productivity

Enhanced focus on core competencies

Economies of scale leading to cost reduction

Maximize EBITDA

Materials proposed to handle by

Tutelam1. Employee Transportation – bus /cab /TT

2. Food & Beverage – Cafeteria related (Tea & Coffee, Kitchen

equipment, cafeteria facility purchase, water tankers, drinking

water, etc.)

3. Facility management (Housekeeping items, Stationery items,

Chemicals, Tissue papers , ladders, paints, civil requirements,

plumbing items, Uniforms, work stations, electrical items ,

carpentry work etc.)

– Housekeeping equipment, White goods (Microwave,

Refrigerator, Televisions, and Audio visual Equipment etc.),

Vehicles (Bikes, Cycles, and Four wheelers), workstations,

cafeteria chairs & tables, Workstation Chairs etc.

– Facility AMCs - Annual contracts for lifts, DG Sets, House

Keeping Equipment, UPS, Laundry Equipment, Air

Conditions etc.

– Facility Security related purchases- CCTV, Turnstiles,

Boom Barriers, walky-talky, safety shoes, Traffic cones,

chains, barriers etc.

– Security services – Guard services

– Front Office – staff

– Gardening, facility maintenance, Facade cleaning etc.

– Administration: GIFTING - Backpacks, T-Shirts, Desktop

Items, Indian Handicraft Items, Silver & Gold Mementos,

Trophies, printing certificates etc.

– Low value spend management

– Civil related facility purchases

– Electrical related Purchases

– Carpentry related Purchases

– Office equipment & stationery, printing & paper

– Team out-bound related purchases

– Event Management related

4. External Training, Learning & development Requirements

5. Logistics – domestic & international

6. Travel & accommodation related purchases (travel helpdesk,

hotel accommodation, taxis etc.,)

4. Managed services

5. Hiring – Contract and permanent

6. Staff augmentation

7. IT hardware & software purchases

8. Telecom (mobility services)

9. Data links purchase

10. Cables, network equipment purchase & installation services

11. Sale of scrap/assets, old machinery, cars, IT Hardware etc.,

12. Contract negotiation & Management for all the above categories

13. All one-time high value purchases

Thank you

1054 | | 7th Main3rd Block | KoramangalaBangalore – 560 034Phone: 00 91 2553 0001 | 2553 0002www.tutelam.com

U8, First FloorDLF Phase IIIGurgaon – 122 002www.tutelam.com