Transactional Processing Services

The advantages here are clear. With 2Max Solutions managing the entire P2P process, clients’ finance departments no longer raise purchase orders, chase suppliers for delivery details, conduct goods procedures, investigate pricing queries, ‘three way match’ purchase orders to goods receipt notes and purchase invoices, process purchase invoices, pay suppliers and reconcile supplier statements, thereby releasing significant resource, instead managing the processes through 2Max Solution’s industry-leading, proprietary cloud-based software system, which replicates client purchase information within the system throughout the P2P process.

There are several ways to calculate the financial benefit of this service and the Chartered Institute of Purchasing and Supply has stated that the average cost of processing for the full life cycle of a single purchase order is Ksh 5,000. Alternatively, the removal of the entire P2P process for all indirect supplies enables clients to redirect their existing finance, purchasing, engineering and general management resources to production-related activity – activity which can then be quantified and used to deduce the cost benefit delivered by 2Max Solutions, and as a third option clients may choose to release all in-house P2P resource, so releasing significant cost savings.

Irrespective of the route clients choose to purchase, 2Max Solution’s approach delivers real overhead cost reductions and, in 2017, 2Max Solutions delivered a 35% reduction to those costs.

2Max Solutions also our vendor partners with a portal to monitor and manage their own invoice life cycle, as well as a single point of contact for all payment enquiries.

Regardless of how you choose to calculate the financial benefit, it is clear that 2Max Solutions is able to deliver real savings to clients' overhead costs and last year this resulted in a 35% reduction in our clients' overhead costs.

Due to the automated nature of 2Max Solution’s P2P process, 2Max Solutions is able to manage a significant number of consumable and OEM vendors – currently more than 24,000 – all the while maintaining low cost overheads and passing savings directly to clients.

Why choose 2Max Solutions?

• 1
  2Max 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.
• 2
  The cost of indirect materials often begins to spiral as the labour intensity grows, operations become more fragmented and so-called ‘maverick buying’ proliferates.
• 3
  The 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.
• 4
  2Max 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.
• 6
  By 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.
• 7
  Outsourcing 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.