With one of the highest cost-to-income ratio (CIR) in the region, the client faced a substantial cost and efficiency challenge. Key issues included: 

• Limited visibility of spend data 
• Fragmented and decentralized spend across the region 
• Lack of spend controls and transparency 

In order to address these issues, the client required a spend transformation project to: 

• Define the transformational change needed to optimize spend across the region 
• Provide the technology enablers to achieve the necessary change 
• Enhance strategic sourcing and category management capabilities to achieve immediate and sustainable cost savings

The KPMG team designed and implemented a technology-powered spend optimization and transformation program that is capable of delivering sustainable cost savings. 

Key activities included:

• Deployment of spend management solution 
• Extraction and consolidation of spend data from multiple ERP systems across the region 
• Data cleansing and classification to a single target taxonomy that is enabled by machine-learning
• Spend diagnostic on a single harmonized spend data set
• Rapid identification and validation of saving opportunities
• Capture and realization of saving opportunities, including e-bid events
• Savings tracking and reporting

The spend management solution has delivered immediate and significant savings; while continuing to generate data-driven business outcomes and insights. Key benefits included: 

• Over US$6 million in quick win savings captured within six months 
• 38 spend optimization opportunities identified in the IT category 
• More than US$0.3 million wave 1 savings identified in the facilities management category