Outsourced Procurement Services
Businesses typically focus on the (approximately) 80% of expenditure incurred on goods (those required to produce the goods they manufacture or for resale or Usage). The remaining (approximately) 20% is incurred on indirect goods and is often both highly fragmented and under managed, representing both a significant cost and a missed opportunity for the business. 2Max Solutions focuses on streamlining this 20%, delivering real cost savings for assembly, manufacturing and process businesses in their non-core indirect materials categories, such as MRO.During 2016/2017 2Max Solutions procured over Ksh 56m of Goods for clients and, as service provider rather than product distributor is able to offer flexible independent sourcing solutions of over 7.1m products throughout Kenya & East Africa.
Last year 2Max Solutions delivered average 'cost of product' savings of over 11% to clients by consolidating the supplier base and utilising the advantages offered through its leveraged preferred supplier chain whilst maintaining existing relationships with specialised and local vendors where necessary. IESA's network of preferred suppliers also provides 24hr out of office services, technical support, OEM conversion, product consolidation, training programmes, repair and recertification processes and many other services essential in modern manufacturing.
Always mindful of each client's individual requirements, 2Max Solutions cultivate both local and specialist national suppliers, building long standing relationships, providing unparalleled services levels and supporting local economies.
Why choose 2Max Solutions?
- 12Max Solutions has extensive expertise in outsourced indirect material procurement, understands the complexities and pitfalls of in-house management and use this knowledge to define the tried and tested approach of our specialist teams.
- 2The cost of indirect materials often begins to spiral as the labour intensity grows, operations become more fragmented and so-called ‘maverick buying’ proliferates.
- 3The lower value, repetitive nature of indirect material ordering means that it can account for as much has 50% of a purchasing department’s workload, a grossly disproportionate investment of time, manpower and money. Over time, organisations supplement and augment their processes, resulting in ever-expanding bureaucracies and red tape, turning potentially simple purchasing tasks into convoluted protocols requiring multiple sign offs and mountains of paperwork.
- 42Max Solutions can analyse and identify bottlenecks of this kind and introduce streamlined and efficient process changes.
- 5‘Maverick buying’ describes the propensity of employees to ignore protocols and guidelines when purchasing indirect materials – rather than using approved suppliers or framework agreements. In large organisations, so-called maverick buying can account for as much as 45% of all indirect procurement.
- 6By introducing new controls and streamlining clunky processes which were previously difficult to use, 2Max Solutions can cut out maverick buying and make a huge difference to the indirect material procurement costs.
- 7Outsourcing indirect material procurement to 2Max Solutions gives immediate access to the sort of expertise, experience and business intelligence which would otherwise take many years and a lot of money to acquire in-house, especially since the award-winning technology platform provides for complete end-to-end management, so driving greater control, compliance and therefore savings, which is why so many blue chip organisation have chosen to partner with 2Max Solutions.