Cambridge Consultants

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<ul><li> 1. CAMBRIDGE CONSULTANTS<br />YohanesLeonardiLiem<br /></li> <li> 2. Who are they?<br />Cambridge Consultants is a manufacturer with 300 employees offering technical product design and development services to commerce and industry.<br />Leading technology and innovation company, renowned for its ability to solve technical problems and provide creative, practical solutions to business issues.<br /></li> <li> 3. Who are they? (contd)<br />Fields that are covered by Cambridge Consultants:<br />Defence and Security<br />Transport<br />Wireless<br />Semiconductor<br />Consumer Product<br />Medical Technologies<br />Industrial Products<br /></li> <li> 4. Known Issues<br />Because of its varied and often unique requirements, Cambridge has a supplier base of nearly 4000 companies, with 20 new ones added each month.<br />Some suppliers provides items so specialized that Cambridge purchases from them no more than twice a year.<br />Only 400 preferred suppliers.<br /></li> <li> 5. Current Purchasing Pr<br />Heavy internal cost of raising an order.<br />The whole order processing taken in account :<br />Raising paper requisition<br />Processing by purchasing<br />Invoice matching and clearance<br />Physical cost of a four-part purchase order form<br /></li> <li> 6. Current Purchasing Pr(Contd)<br />The whole process involved between 8-10 peoples, and cost the company anywhere from 60 - 120 depending on the complexity of the order.<br />They started to use RS purchasing card :<br />Engineers no longer needs to raise paper requisition<br />Which results in low value ordering &amp; cost efficient<br />Reduced invoice matching cost since the purchase card statement lists all purchases made each month.<br /></li> <li> 7. Current Purchasing Pr(Contd)<br />Using the purchase cards are improvement nonetheless, butit does not allow costs to be assigned to jobs in the system each day.<br />Purchase cards statement takes a month to arrive<br />Resulting lag in the showing the real costs<br /></li> <li> 8. E-Procurement Pr<br />RS put Cambridges pre-Internet trading records on the web server to enable the company makes online order immediately.<br />Automatically set up:<br />Purchasing agreement &amp; control<br />Correct pricing <br />Special payment terms<br /></li> <li> 9. E-Procurement Pr(Contd)<br />Making purchase orders from the purchase cards from the web server means the complete order was automatically collated with all controls in place.<br />Resulting in :<br />Increased accuracy<br />Increased speed in purchasing process<br />Reduced cost per transaction<br /></li> <li> 10. E-Procurement Pr(Contd)<br />This method enables departments in the company to make their own purchases independently from the web site.<br />In purchasing process, the company no longer needs to spend time passing on orders that they have raised<br />No generation of paper during the process, reducing time and money, thus environmentally friendly<br /></li> <li> 11. Benefits for staff<br />They can add items to the order right up until RSs 8 p.m. deadline without purchasing managers involvement. <br />Purchasing managers maintain control because of the reporting functions on the site.<br />Made it possible for multiple orders to be opened during the day and then put against different cost centers internally.<br /></li> <li> 12. Results<br />The cost to Cambridge of raising a paper-based order was indentified as being 60. <br />Using the new method, this has been reduced to 10 per order. <br />Over a year, this represents a saving of 57.000 to Cambridge. The net effect, is that its purchases from RS components now cost it a mere 5000 a year.<br /></li> <li> 13. Questions<br />Given the scale of the purchasing operation at Cambridge Consultants, what benefits do you think e-procurement has brought?<br />Why are procurements costs currently as high as 60 - 100 per order?<br />How are procurements costs reduced through e-procurement?<br />What staff benefits accrue to Cambridge Consultants as a result of e-procurement?<br /></li> <li> 14. General View of the Site<br /></li> <li> 15. General View of the Site (Contd)<br /></li> <li> 16. Thank you<br /></li> </ul>