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The Challenge |
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| Accessing and analyzing small spend-data is an irksome imposition on businesses managers, even to those that are serious about efficient spending. Small and ad-hoc purchases often occur informally and at prices that could be considerably lower. |
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| The challenge with controlling small spends has been that the procurement cycle and vendor-pool need to be matched with the needs that businesses may have across departments and branches. The management often becomes numb to the inefficiencies in these procurements. |
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| Further, the larger enterprise and governments have an obligation to expand to smaller vendors and enhance gender and ethnic diversity. |
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| Solution in Action |
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| A key government agency at a large US city in found that the various departments in the city annually spend in excess of $ 10 million in ad-hoc purchases of products and services that are smaller than $ 3,000 per instance. The city managers saw value in this spend management proposition and implemented the solution, which was planned for ad-hoc purchases of $ 3.000 or less. |
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| "A ‘bid’ for 6 cases of photocopying paper was entered into the browser interface of the police precinct at 3 PM; the "special requirement" was that the paper should be delivered by 11 AM the next day. The system sent out the email bids to all the 17 vendors registered for the item, the bid automatically closed at 4 PM, with 11 responses. The administrator selected the lowest bid, the vendor and was automatically notified and the inventory was delivered at 10.30 AM at the precinct". |
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| A representative at the department commented "we could have gone to the stationary chain at the corner, but who wants to volunteer to carry 6 cases of copy paper on dollies? This purchase saved us a dollar a ream, and the time… and the aggravation!" |
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| The spend management implemented in 2001 that has… |
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Broadened the vendor-diversity |
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Added disabled vendors (system designed for compliance to Section 508) |
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Enhanced just-in-time availability |
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Connected 23 agencies to the system via web interface |
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Used existing vendor and item database |
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Saved the agency time and tax payer money |
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Greater transparency & accountability |
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Improved analytics |
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"Payback in months…" |
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| Infynita Spend Management Solutions |
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| Infynita provides spend management solutions that allow enterprise and government agencies to control and manage spending activities against budgets in real time. |
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| The goal of establishing real-time data-sharing connection with key suppliers is to add efficiency to the supply chain, with the possibility of integrating into larger systems. |
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| Get used to getting quick responses and price benefits from vendors. The way the system is designed, the vendor needs to be quick and efficient. |
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| The system comprises of three key components for entities. |
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Web Interface for the internal user (via intranet or Internet) |
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Web interface for Administration (Bid management, user administration) |
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Web interface for vendors or email parsing where external entities are not allowed to access internal systems |
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| Get used to getting quick responses and price benefits from vendors. The way the system is designed, the vendor needs to be quick and efficient. |
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