Procurement as a Service
Can procurement be outsourced? Meet PaaS at DEPERT
Very often, manufacturing companies don’t know that procurement is something that could be effectively outsourced to an external company. In fact, this is an extremely convenient option – PaaS (Procurement as a Service) allows you to significantly save time and resources.
It should be highlighted that the entire process of purchasing is much more than just finding the best suppliers. DEPERT, a pioneer in PaaS, offers comprehensive services at any stage of procurement.
Procurement as a Service at DEPERT – how it works
Outsourcing your procurement processes might be a great way to scale up your business. PaaS at DEPERT means comprehensiveness – cost optimization, supplier qualification, negotiating deals – we have got you covered in all areas you may need help with. We offer both strategic and operational procurement services. Strategic procurement is auditing and selecting suppliers, deal negotiations, preparing purchase lists, creating business contracts and transportation documents, and all delivery settlements. Operational PaaS is taking over all the daily, repetitive activities related to processing orders, managing invoices and documentation, managing inventory, and managing deliveries.
The benefits of PaaS
You should be aware that product concept and design play the most important role in the entire new product development process. It provides the greatest added value and, at the same time, determines future costs, quality, and life cycle of the component. These three factors are what make the product a success or a failure. The product concept has a significant influence on the future cost of materials, labor, and product management. We know from our own experience that up to 70-80% of the total cost of the final product depends on the concept and materials used for manufacturing. Our clients confirm that it’s absolutely doable to reduce costs by up to 20% by involving a professional Procurement Department at the very beginning of the new product development process.
Nowadays, only 12% of companies involve a Procurement team at the beginning of new product development.
This is why:
The cost of NPD and NPI is much higher than expected.
Design Engineers don’t really continuously scan the market and do not know full spectrum of materials available on the market.
An urgent need of finding new suppliers comes up in the middle of the already started NPD process.
All these lead to failures that could have been avoided if there was close cooperation with design engineers at the beginning of project. At DEPERT, we have an experienced Procurement Department who is involved in all development stages. All teams collaborate to maximize their potential.
Also, suppliers are involved at the early stages of product development. Because we collaborate with suppliers at the early stages of design, the time to market is faster and final costs are lower. There is more time to work on the technology that suits the project best. This technology will be then used to formulate the technological strategy. This, in consequence, increases effectiveness and efficiency. How do we involve suppliers? First, we conduct research to find the most suitable third parties. We put the effort into business relations to make sure the chosen suppliers meet all needs and requirements.
And what about logistics?
Once a new client starts collaboration with DEPERT, they receive comprehensive R&DaaS and PaaS services. However, we are also ready to provide LaaS (Logistics as a Service). Not only does LaaS cover transportation and storage, but also manages MRP – Material Requirements Planning. We have years of experience in working with various ERP systems so we can manage your delivery planning and management in a professional way. Proper planning, based on detailed sales forecasts and orders, allows you to optimize both costs within the supply chain and inventory. Another benefit is that the company’s cash flow is safe.