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ROI of Using Kavida

Business Case

AUTHOR

Deana Claessen

Content Manager

This article deep dives into the key ROI points of using Kavida

Kavida supports your growth journey, improve internal processes and frees up labor for strategic initiatives that significantly impact the bottom line.

Summary

  • Growth Without Head Count Increases: Leveraging Kavida enables businesses to significantly expand their order books without enlarging the purchasing team. By centralizing and automating purchase order management, it becomes feasible to double the order book size, thereby fueling growth without the need for additional procurement headcount.

  • Internal Process Optimization: Kavida enables better inter-departmental collaboration. By enabling collaboration between finance, quality control, logistics, sales and procurement, Kavida significantly reduces response times, fostering a more effective and efficient workflow while amplifying productivity.

  • Free Up Time For Cost Saving Initiatives: Kavida automates non-value-added tasks, freeing up time for personnel to be redeployed into more strategic positions within the business. This redeployment is crucial as many companies lack the labor resources to tackle cost-saving initiatives and strategic sourcing objectives.

  • Head Count Reduction: Headcount reduction becomes feasible with Kavida, however it may not be the optimal decision for cost savings due to the point above.

Problem 1: Top Line Growth Creates More Supply Chain Complexity

  1. More Global Risk Exposure: As companies expand, they often consolidate spend with more global suppliers who offer cost advantages, thereby increasing risk exposure and complexity.

  2. Increased Supplier Management: Growth necessitates a larger procurement team to manage an increasing number of suppliers, orders, and evolving supplier relationships

  3. Diversified Product Lines: Companies offer more products to customers and compete in more markets, increasing their own supply chain complexity

    Other sources of complexity include; greater inter departmental coordination, bigger data management requirements, higher customer expectations with bigger accounts etc.

Companies typically respond to growth through a linear increase in procurement and supply chain head count

Solution:

  • Centralised Procurement Execution Platform:
    All supplier interactions for order fulfilment are management in an all in one platform from PO placed to order received including logistics

  • Manage by Exceptions
    Procurement teams only focus on issues which require their attention instead of chasing all orders

     

     

    Impact:

    • Entire supply chain is managed by 2-3 procurement managers regardless of number of suppliers, orders, spend and sourcing complexity

Companies typically respond to growth through a linear increase in procurement and supply chain head count

Solution:

  • Centralised Procurement Execution Platform:
    All supplier interactions for order fulfilment are management in an all in one platform from PO placed to order received including logistics

  • Manage by Exceptions
    Procurement teams only focus on issues which require their attention instead of chasing all orders

     

Impact:

  • Entire supply chain is managed by 2-3 procurement managers regardless of number of suppliers, orders, spend and sourcing complexity

Problem 2: Inefficient, Siloed Interdepartmental Workflows

Interdepartmental workflows among procurement, finance, operations, and sales departments are inefficient and the lack of coordinated, timely responses leads to bottlenecks

This problem primarily stems from communication silos which inhibit effective collaboration between these teams, preventing them from swiftly addressing supply chain disruptions or swiftly fulfilling customer requirements.

Critical information does not flow seamlessly across the departments

Solution:

  • Document Collaboration
    Streamlines interactions among procurement, finance, logistics teams, and suppliers, ensuring timely supplier payments and smooth clearance of shipments.

  • Centralized Order Visibility:
    Maintains a real-time view of all orders to prevent any lapses due to unexpected team absences, centralizing communications throughout the purchase order lifecycle to ensure everyone has complete visibility of whats happening with every order

  • Supplier Chat Collaboration:
    Single chat window between your teams and suppliers ensures easier supply chain collaberation

Impact:

  • Real-time Sales Updates:
    Provides sales teams with real-time visibility on order status, enabling them to give accurate and timely updates to customers regarding their orders, thus enhancing customer satisfaction and trust.

  • Break Down Logistics Siloes
    With real-time visibility of each container and delivery’s Estimated Time of Arrival (ETA), procurement and production planners are empowered to make informed decisions independently, without having to rely on logistics teams.

  • Faster Response Times:
    Kavida leads to faster response times among teams, ensuring seamless workflow continuity and timely decision-making

  • Reduced Error Rate:
    Easier collaberation, faster response times and visibility reduces error rates to prevent bottlenecks

Problem 3: Lack of resources for strategic initiatives i.e cost savings

In many organizations, the lack of resources dedicated to strategic initiatives, such as cost savings, hampers the ability to improve operational efficiency and financial performance.

Often, personnel are consumed with day-to-day operational tasks, leaving little bandwidth for exploring cost-saving opportunities or focusing on strategic supplier partnerships.

Without allocating resources to these strategic initiatives, companies miss out on potential savings

Solution:

  • Automated Delivery Date Chasing:
    Kavida automatically chases your supplier for the latest delivery dates and documents and flags up changes which require approvals

Impact:

  • Free up 30% of procurement teams time to focus on high value activities

  • Commit more labour to cost saving initiatives to achieve cost reduction targets

  • Commit more labour to strategic sourcing to minimise sourcing risk, improve supplier development or improve supply chain sustainability

AUTHOR

Deana Claessen

Content Manager

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