GEP Case Study

Team – CountR
Team Members:
Sunil Shingala
Abhimanyu Singh
 Assessment of Vantage Automotive’ s current
procurement performance
▰ Growth rate = 15.2%
▰ Top 5 car manufacturers in
North America
▰ 16 manufacturing and
assembly line with 38 office
location
▰ 3% YoY savings on procurement
budget
▰ Profit Margin = 3.6%
▰ indirect spend was $1.2 billion
▰ Un addressable spend= $600
million
▰ Sourcing employee = 23FTE
▰ Operations Employee = 52FTE
▰ Total Employee cost = 816190
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 Assessment of Vantage Automotive’ s current
procurement performance - Continue

▰ Invoices Handled:
PO team =7348 with business cycle of 7 days with 82% of accuracy
Invoicing team = 16,472 with 78 % of accuracy with 11 day of business cycle
▰ 10 core user licenses for the purchase order with $48,000 and 20 the invoicing
tool with $36,000
▰ operators take to attend the call 3 minute against 1.5 minute industry average
▰ Improper usage of invoice management system

3
 Problems, Inefficiencies, Challenges

▰ Overall procurement requirements(direct and indirect) are handled by two

separate functions
▰ 50% of the indirect is un-addressable showing improper spending analyzer
and tracker
▰ Inefficient cost optimization and saving as compared to industry standard
▰ Paper based invoice processing leading to high processing time and
inaccuracy
▰ Improper allocation and skill utilization of the Employee i.e. Help desk has
way more employee than the industry standard and skill

4
 Continued

▰ High waiting team(3 minutes) as compared to industry standard(1.5 minutes)

▰ No recent tools for managing the finance system as they are still using the legacy system leading to
wastages of lot of time
▰ Compliance management is not up to the industry standard
▰ Acquired company still following their existing procurement policies rather than the vantage
procurement policies

5
Thank You