Consolidates global business spending into a financial dashboard way down to the item level to allow focused supplier consolidation and contract discounts. For example, instantly giving in a single view a spend line item such as all components purchased to support the manufacture of a solar panel, with consolidation of all spending globally to show discounts, purchase prices and total spending at the line-item level across the entire business group.
Increases significantly the tracking and compliance of all contracted spending to ensure that contract terms are delivered.
Identifies demand management activities to identify and eliminate purchasing bottlenecks and risks, thereby highlighting any supplier vendor risks months ahead of time to reduce product manufacturing and distribution issues.
Enables group-wide days payable outstanding (DPO) control. This alone can save significant expenses within a few days. For example, some suppliers may be paid within 7 days, others within 30 or 45 days. Rapid shows how consolidating in real time the value of aligning all DOPs to a fixed number of days by adjusting and controlling DOP line items has saved some customers several millions of $US.
Integrates procurement spending processes with supplier contract management and finance accounts payable enabling end-to-end ‘procurement to pay’ via a total cloud application leveraging the wider Knowledge Capture analytics platform which is part of the Rapid application.
Reduces total global spend by 3-5% simply by consolidating in real-time suppliers across an entire group.
Rapid showed, for example, how best to consolidate 850 suppliers down to 20 suppliers that could still meet all of the same needs, removing 830 suppliers to gain significant economy of scale in buyer discounts and reduced supplier contract management control.
As a result, NBCU signed off a $US 54 million ROI based on Rapid benefits while Babcock signed off a £84 million savings and Sony saved $US 5 million annually.