Extended Supply Chain Optimization

With ~ 70 to 75% average organizational costs associated with materials and services sourcing, procurement and inventory

Supply chain optimization Extended Supply Chain Management System
“ Increasing costs and risks to right sourcing, optimal procurement, and inventory with most of the industries spend investment at whopping 70-75% of annual budgets. Continual cost reduction drives in highly violate supply chain will be critical success factor ”


CxO’s and CFO’s always self-reflect opportunities... WHERE and HOW!!!

  • Spend performance visibility
  • Real-Time Inventory hoarding information
  • Confidence in partnership
  • Achieve industry benchmarks - KPI’s and KRA’s
  • Lower Total Cost of Ownership...

Optimization of Category, Sourcing, Procurement and Contract Management

Supply chain optimization
  • Qualified Master Data for vendors, customers, materials, and services
  • Spend, Inventory and Partner Performance Visibility
  • SOPs and Strategy Inventory, Sourcing and Business Partner
  • Sourcing Projects and Contracts enabling quality, quantity, value
  • Inventory Optimization and Automation
  • Business Partner Life Cycle Management covering 360-degree alignment in collaboration and performance management
  • Continual Monitoring, Reporting, and Control

Supply Chain Optimization

  • Categorize commodities and services
  • Real-time Spend Management using machine learning
  • Predict Demand and Future Sourcing using AI
  • Optimization of Sourcing Projects execution
  • Implementation of full proof and controlled Bid Evaluation systems
  • Implement Smart Contracts
  • Automation of repetitive procurement processes
  • Secure Digital Payments
  • Enhance Internal Audits and Controls

Spend Cube


Pioneer Applications


Critical Success Factors


Cost Metrics




Category Management

Extended Supply Chain Optimization - PiLog Group

PiLog's low investment value analysis will enable Quick Wins to Business Transformations and Digitalization

Materials Criticality

Streamline and intergrate an organization's supply chain network using PiLog innoviative products.

Material Criticality = f (ABC - Spend YoY, FMSN - Pattern on consumption YoY, XYZ - Inventory Hoarding, HML - High Medium Low, VED - Criticality and Impact etc.)

Data Health Assessment

Qualitative data management against standards and provisional reporting

Assessment on quality dimensions - Completeness, Accuracy, Traceability, Consistency, Timeliness, Availability, and Validity

Process Maturity Model

Supply Chain (S2P) Maturity = f (cost of procurement; contract compliance; effective supplier management; standards compliance to safety, security, quality; operational efficiencies, etc.)The weights and factoring of parameters depends upon the organization, its industry segment, and the S2P category

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  • Analyze the complete inventory using best practices (ABC, FMSN, VED, XYZ, HML, and SDE) Material Criticality Assessment or Ranking
  • Revalidating and updating of Inventory Meta Data parameters of Safety Stock, Re-Order Point, Min. / Max. Levels
  • Recommendations on Storage conditions based on industry and OEM recommendations
  • Physical inventory process review and recommendation for cyclic, sample, stochastic inventory taking
  • Review and update of Picking and Put Away strategies
  • Optimization of other value-added inventory services like JIT, KANBAN and Centralized Planning; HUB and Spoke Distribution
  • Warehouse Automation

Key Result Area(s) and Performance Indicator(s)

Key Challenges Key Opportunities
Source to Pay
  • Availability of right material or service at the right quality, quantity, price, time
  • Adherence to contract compliance
  • Ways to improve spend visibility and re-categorization
  • Demand amalgamations and sourcing optimization
Plan to Inventory
  • Having an optimum level of inventory for fulfilling a demand
  • Effective and effective management warehouse operations and costs
  • Optimization of parameters such as SS, ROP, EOQ, Min. / Max. levels etc.
  • Automation and Innovation with JIT delivery, distributed supply chain
Business Partner Collaboration
  • Having the right partners to support and accelerate growth in a bad time
  • Ability to think out of the box with innovative products and services
  • Improved process of registrations, evaluations, continual monitoring, performance assessment, and end to end life cycle management
Business Outcomes
  • 100% Contract Compliance
  • >95% On-time Delivery
  • 100% Delivery Quality Compliance
  • >98% Order Confirmation
  • >95% Quality meeting PO expectations
  • 100% Compliance to Regulatory, Safety, and Standards
  • Reduce the pricing YoY by 15% A, B, C (Service Criticality)
  • Reduce invoicing errors to less than 5%
Key Result Area Key Performance Indicator
Contract Management 100% Contract Compliance
JIT / ON Time Delivery 95% On time Delivery
100% Delivery Quality Compliance
Order Collaboration >98% Order Confirmation
Goods and Services Quality >95% Quality meeting PO expectations
Design Collaboration 100% Compliance to Regulatory, Safety, and Standards
Sourcing Collaboration Reduce the pricing YoY by 15% A, B, C (Service Criticality)
Invoice Management Reduce invoicing errors to less than 5%

As most of the businesses are controlled by Master and Meta Management and thought leaders effective decision with Augmented Predictive Analytics, PiLog Systematic and Innovative Approach help organizations with Kaizen to Transformation !!!


Client Value Management and Success Stories

A Petrochemical Major in KSA has invited PiLog and multiple other consulting leaders to identify the challenges and define problem statements in their Supply Chain Sourcing, Procurement and Inventory factors as their inventory was piling up with YoY increase in inventory hoarding, sourcing, procurement and transportation costs and increased risk of supply chain sustenance…

Download Success Stories