Consumer packaged goods organisation Tiger Brands has significantly reduced some of its inbound supply chain costs. This is owed to SearchLight description-based analysis software, which has been implemented by Tiger Brands in some of its various projects, Erica Bradley, of CCI Growthcon, told SmartProcurement.
SearchLight offers transaction analysis that examines free-text descriptions in the purchase order, which enables a spend analysis to be done using keywords. For example, one could enter any word related to Personal Protective Equipment (PPE), such as gloves, boots, helmets and masks. This gives instant information of group spend on PPE, including comprehensive supplier detail, said Bradley.
Tiger Brands operates from over 70 sites around South Africa and consists of several diversified business units that do their own procurement, most of them using different procurement systems. Although the group prefers that the business units remain independent, it still wanted them to benefit from group contracts, bulk purchasing and other benefits that central procurement could offer. To achieve this, the group required a system which could combine all the procurement transactions, including cash payments, from the different business units.
Tiger Brands uses SearchLight to show expenditure across the group, which easily identifies savings opportunities, he said
“SearchLight is a unique and valuable tool that allows [Tiger Brands] to pull data from multiple ERP systems. This data can be easily analysed for cost-saving and efficiency opportunities. Without this data in an accessible format, we would be at a significant disadvantage when negotiating with suppliers,” said James Parkin, Group Supply Chain Executive for Tiger Brands.
SearchLight also offers contract compliance management, said Silberbauer.
Just as one would look for spend on PPE, one could set up a rule to include transactions covered by a new contract. Once this rule is in place, the new transactions downloaded on a monthly basis will automatically ‘fall into place’ and one can immediately see whether the right suppliers are used, and at the negotiated price. Furthermore, whether items are on contract or not, or have different material codes or none at all, SearchLight allows the user to see where purchases are made off-contract, and where material codes should be allocated, concluded Silberbauer.
For more information on description-based analysis software, contact Erica Bradley by following this link EBradley@cci-growthcon.com