Supply Chain >> Full Value Spend Analysis helps generate economic value through the spending process
FVS is a systematic and a robust process for optimizing the total cost of externally purchased materials and services while ensuring / improving given levels of quality, service and technology.
FVS uses one or more of the four value levers to help organizations unearth, realize and sustain value in the overall spending value chain.
Levers inside the spending organizations
Levers with the supply base
Levers addressing information asymmetry between the organization and the supply base
Levers responsive to environmental dynamics
The FVS program defines a comprehensive set of methodologies across all dimensions of value discovery, namely Product, Process and Price, to help organizations achieve benefits ranging from 8 to 10 percent of their spends over a period of twelve to eighteen months.
Product
Product value analysis engineering
Material subsitution
System buying alternatives
Optimization of life cycle costs
Process
Reengineering of joint processes
Sharing of productivity gains
Logistics Integration
Supplier operations improvement
Establishment and development of key suppliers
Development of strategic alliances/ partnering
Examining strategic make versus buy
Development of integrated supply chain
Development of ancillary tierization structure
Price
Understanding the Total Cost of Ownership (TCO)
Price unbundling
New supplier development
Consolidation and redistribution of suppliers
Volume pooling
FVS program has been run with organizations across different organizations to achieve staggering results and helped organizations unearth and create direct benefits.
Manufacturer of Stationary Diesel Engine Sets
Net Sales of the Company was about Rs 90 crores
The engagement covered a division of the company whose net sales was Rs 55 crores
The engagement covered a spend base of Rs 22.5 crores
Benefits were identified to an extent of Rs 3.22 crores
14.3% of analyzed spend
Manufacturer of 2 wheelers
Net Sales of the Company was about Rs 145 crores
The engagement covered a spend base of Rs 90 crores
Benefits were identified to an extent of Rs 9.57 crores
10.6% of analyzed spend
Manufacturer of Stationary & Automotive Diesel Engine Sets
Net Sales of the Company was about Rs 90 crores
The engagement covered a spend base of Rs 68 crores
Benefits were identified to an extent of Rs 6.8 crores
9.9 % of analyzed spend
CHENNAI
ECS Limited
1st Floor, Mootha Center
New Number 23
(Old Number 9/1)
Kodambakkam High Road
Nungambakkam,
Chennai - 600 034
Tel: 91-44-52123481, 52123471,
Fax:91-44-52122190 Close
DELHI
ECS Limited
804, Signature Towers,
Tower A, South City I,
Gurgaon - 122001, Haryana
