PSA - CALCULATING THE BENEFITS

With offices located in Aberdeen, Houston, and Singapore, WESCO is able to offer true Global Sourcing and Purchasing services to the international market. WESCO SPS has developed the resources and expertise to purchase large volume orders and small low-value orders at discounted prices. Without the burden of high operating expenses or a large inventory to finance, WESCO SPS can effectively pass these cost savings to their clients. ExxonMobil recently renewed its global outsourced purchasing services contract with WESCO, and in recognition of the value added by WESCO SPS, the scope of work under this agreement was extended to include additional Exxon affiliates around the world

Benefits derived from our efforts can be broadly categorised as either: 

• Hard-dollar savings - Those that are easily visible and quantifiable, such as reduction in the transaction cost, price improvements due to substitution with equivalent products, or price reductions due to capturing volume usage and leverage with suppliers.
• Soft-dollar savings - Those that are difficult to quantify, but which often have the greatest impact on overall productivity, such as less search/sourcing time required of expensive field engineers and the efficiency associated with increased fill rates of stock items
• Strategic Value – Outsourcing efforts that focus only on cost contribute significantly less than efforts that analyze the impact on the entire business. Outsourcing is a way to capture value, not just save money. Outsourcing helps the company focus on total value and strategic solutions not repetitive transactions which represent a small fraction of the companies overall budget.
• Emotive Value - People want to concentrate on the job at hand and not worry about acquiring the materials needed.  In today’s world of high stress and exacting requirements, everyone from the CEO, to field technicians and service personnel, benefit when a simplified and streamlined materials and services acquisition and management process is in place.

There are substantial cost savings to be had from Day 1.

·         Accounts payable expense is reduced to a single invoice rather than hundreds.

·         WESCO pays all sub-suppliers reducing customers cost of funds

·          Re-sellers discounts are passed to our customer

·         Process cost are reduced

·        Material price reductions through leveraging customer purchases.

·         Communication charges are reduced.

·         No more constant updates and vendor approvals to your vendor database.

 Additional Benefits include:

• Consolidated deliveries to point of use.

• Purchasing cost varies with changes in demand.

• Automatic stores replenishment

• Re-allocation of resource to focus on core activities where there is opportunity for significant value added contribution.

• Seamless control system/pipeline offering faster response time to User.

• Single accounting entry for total monthly expenditure

• Centralised spend analysis by location, department, or project

• Management reports to maintain control and audibility