Our client is a prominent rubber and plastics manufacturing company with multiple production facilities across India, serving automotive, industrial equipment, and consumer product sectors. The company faced significant procurement challenges impacting operational efficiency and profit margins.
Complex Procurement Obstacles in Manufacturing
- Cost Management Crisis: Our client struggled with price volatility in raw materials and limited visibility into market pricing, resulting in suboptimal purchasing decisions and budget overruns.
- Supplier Management Inefficiencies: Heavy reliance on established suppliers without competitive benchmarking limited negotiating power and prevented discovery of cost-effective alternatives. Manual procurement processes extended cycles to several weeks.
- Limited Market Intelligence: Traditional methods provided insufficient visibility into supplier capabilities, pricing trends, and market opportunities, hampering informed sourcing decisions for specialized rubber compounds and plastic materials.
- Supply Chain Risk Exposure: The company faced challenges with delivery reliability, quality consistency, and supplier financial stability, exposing them to supply disruptions that could impact production schedules and customer commitments.
Comprehensive Digital Procurement Transformation
- Strategic E-Negotiation Implementation: Proctek's advanced e-negotiation platform revolutionized rubber and plastics procurement through transparent, real-time competitive bidding where pre-qualified suppliers drive optimal pricing through market dynamics.
- AI-Powered Supplier Intelligence: Proprietary algorithms connecting to 27 APIs deliver comprehensive 360-degree vendor evaluation within 72 hours, assessing supplier financial stability, technical capabilities, and risk factors.
- Streamlined Procurement Workflow: Complete procurement cycle integration from vendor onboarding to contract execution, featuring automated RFQ generation, real-time quote comparisons, and detailed audit trails.
- Market-Driven Price Discovery: Competitive auction environment enables true market pricing discovery through transparent competition among multiple qualified suppliers, ensuring optimal costs while maintaining quality standards.
- Starting Procurement Value: ₹96,49,979.00
- Final Negotiated Value: ₹66,71,213.29
- Total Savings Achieved: ₹29,78,765.71
- Savings Percentage: 30.87%
Overall Savings
for the Client:
30.87%
Market-Leading Cost Reduction
The 30.87% cost savings significantly exceeded typical e-procurement savings ranges of 10- 25% reported in manufacturing case studies. This exceptional performance demonstrates Proctek's superior effectiveness in the rubber and plastics category, where the client achieved savings of ₹0.31 for every rupee of original procurement value.
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