Transform Your Source-to-Pay Cycle
PRGX consultants thrive in the space between business and technology. Armed with the right facts and statistics, we regularly help our clients drive inefficiency out of their Source-to-Pay cycle and uncover hidden profits. We also deliver non-software-based services such as item-level cost harmonization.
Large organizations often struggle with poor visibility into purchasing categories. Decentralized purchasing leads to having multiple suppliers for the same or similar goods and a wide disparity in costs for those goods. PRGX helps organizations analyze spend at the category level and create strategies to improve spending in the pursuit of category excellence.
Spend Visibility & Classification
Find the quick hits and longer-term strategies that ensure you’re buying the right products at the right price and in the right quantity.
Spend Analysis & Advanced Category Analytics
We consolidate data from all of your disparate systems and aggregate by category to see what you’re actually buying and from which suppliers.
Opportunity Assessment & Wave Plan
Once we understand what you’re spending, we develop a prioritization plan, addressing the best opportunities first.
Category Strategy Plan
Combining your data with market dynamics, we can create a plan of attack for each category, determining the best way to reduce costs — whether through vendor consolidation, price negotiation or other strategies.
Long-Term Strategic Playbooks
Strategic sourcing is not a one-time exercise. We’ll create playbooks that help you apply the strategies and methodologies on your own so you can control supplier costs.
Strategic Spend Management
Different categories require unique strategies for controlling spend — whether by negotiating prices or adjusting inventory levels. We’ll help you set the right strategy for each category and apply it.
Source-to-Pay Assessments & Strategy
While many companies can help you analyze your Source-to-Pay cycle, no one does it better or faster than PRGX. We go far beyond reporting to arm your team with strategies they can apply to data right away for true value creation.
Assessment & Strategy
Let the data tell the truth. PRGX’s Assessment & Strategy methodology adds a fourth dimension to the People/Process/Technology paradigm: data. Knowing how you compare to the industry and region in efficiencies, cycle times, and other key metrics is key to determining how to change your business.
Buying, Procurement & Accounts Payable Transformation
Manage your transformation with true Subject Matter Experts who will oversee the program team and workstreams, while adding best practices recommendations throughout your transformation
Cash Chain Optimization
An often-overlooked Source-to-Pay benefit is working capital. Cash is the lifeblood of companies, but many executives prioritize delivering strategic initiatives to enhance the P&L over improving the balance sheet. These strategic initiatives need funding and, when executed correctly, working capital is the least risky form of funding available. Using our big data capabilities and Source-to-Pay expertise, PRGX can help identify quick-hit and longer-term opportunities to free up working capital, shore up business and provide growth potential.
Days Payable Outstanding (DPO)
Cash Chain Optimization starts with the area where companies have the most control over cash – Accounts Payable. PRGX’s fact-based approach combines your data with our deep industry benchmarking and analytical capabilities to provide insight into both current and optimal payment terms across suppliers, categories and business units.
Days Inventory Outstanding (DIO)
Moving downstream in the cash chain, we review inventory positions to help understand what current levels are and what they should be. Too much and you risk write-offs, but too little and you may jeopardize sales.
Days Sales Outstanding (DSO)
The end of the cash chain is a mirror image of the beginning. Our years working with suppliers give our teams intimate knowledge of what they go through and we leverage that experience to improve our client’s collections efforts.
Accounts Payable (AP) Transformation
With increased popularity of business process outsourcing, shared service centers and complex operating models due to M&A, managing AP has become much more complicated than before. We know clients value simplicity and transparency, and PRGX works with clients to deploy leading practices as they embark on their AP transformation journey.
Bringing together separate purchasing organizations presents challenges and opportunities. While you’re bound to have different processes and significant duplication, you’ll also find synergies and negotiating opportunities. PRGX can provide in-depth analysis of both systems, create strategies to exploit the strengths of each and then help you bring the two together.
Pre-Deal Valuation in Clean Rooms
We leverage our True Net Cost and Global Product Aggregation technologies to help value the synergy potential on GFR and GNFR, along with pre close planning so you are ready to hit the ground running on day one. We understand the sensitive nature of your data during the M&A process — as well as the potential risks. Our clean rooms meet the most stringent security standards and ensure that only those that need to see the data have access.
Post-Merger Synergy Realization
After your deal has closed, we’ll help ensure your strategic plans come to fruition and your teams realize financial and process synergies, including synergy tracking.
Merchandising Margin Improvement
There’s a wealth of data to help you determine which products are moving the best and at what price, but extracting that data can be daunting. As a Big Data expert, PRGX can help you mine your data for powerful insights and strategies to ensure you have the right products, at the right price and in the right quantities, maximizing sales and margins.
True Net Cost
Once we understand what you’re really paying, we leverage historical and industry norms to help you negotiate reductions in COGS.
Purchase Price Variance
Create a baseline for supplier negotiations, understanding and prioritizing where to get the best and fastest returns on your negotiations.
We’ll create plans for what you should do more — and less — of, in order to maximize sales and margins.
Global Product Aggregation
We leverage machine learning, web scraping, and clustering technologies to match equal or equivalent products across your catalog base, or between banners or entities. This allows you to compare price or costs or funding of similar items to identify facts to take to suppliers.
Cost Harmonization/Opportunity Identification
Harmonize true net costs of equal and equivalent items either within region, or across regions, to increase margins through a fact-based quick-win discussion.
[video width="1280" height="720" mp4="https://www.prgx.com/wp-content/uploads/2018/11/A-Data-Driven-Approach-to-Strategic-Sourcing.mp4"][/video] Leakage occurs throughout the Source to Pay process and choices at the beginning often dictate how efficient the overall process flows. Your sourcing organization is critical...
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[video width="1920" height="1080" mp4="https://www.prgx.com/wp-content/uploads/2018/10/Recording-1.mp4"][/video] Many challenges exist in the Source-to-Pay (S2P) cycle. Companies are constantly challenged to find new efficiencies, identify leakage points to capture savings, and...