Context of the Case

Vantage Automotive Inc is among the top five car manufacturer in North America with
operation primarily in United Nation. The company main focus is to grow through mergers and
takeovers rather than expanding its own business activities. It acquired 5 firms over the last
decades; this helped them in increasing their gross sales but not the profit. In last two years net
profit has become the main concern

Assessment of Current procurement performance of Vantage Automotive

 3.05% saving on spend under management which is low compared to industry average
savings.
 $1.2 Billion dollar of indirect spending out of which $600 million dollar was un-
addressable.
 A 2013 report by CAPS research a tempe Arizona based program jointly sponsored by
Arizona state university and Institute for supply management identified that 93% spend
under management is a benchmark for Automotive industries.
 Vantage Automotive has 50% of spend under management which is very much low as
compared to industry benchmark figure. This shows the inefficiency of Procurement
group
 Gross profit increased at a rate of 19.4% from 2015 to 2017
 Net income increased at a rate 3.4% from 2015 to 2017.
 Total Indirect Expense increased from 2015 to 2017 at a rate of 28.71%

Suggestion for the improvement of Procurement operation group performance.

 Hire efficient professionals in procurement operation group it should not be considered

as clerical work
 Purchase order process should be automate and streamline.
 Suppliers and partners should be trained by the Vantage automotive Inc most of the
suppliers do not know how to manage PO digitally.

Contract Management

 No tools for the management of the contract.

 Dependence on the finance corporate department to get the data of contract spending
 Professional department cost around 53 million dollar for Vantage automotive Inc. Legal
function own internal share point for the maintenance of report of active contracts with
renewal or expiry information that the sourcing team uses to identify and prioritize upcoming
renewals for renegotiations or rebidding. These add to the unnecessary expense to the company
  A very crucial problem is that almost 35% of the time throughout the year spend on the contract
and spending analysis and tracking. These also add to unnecessary cost of the managing it.
 Lack of visibility in spend line categories which creates gap. All these add to the unnecessary
expenses.

Suggestion for Contract management

 Migrate all your contracts easily from your existing ERP or contract management system
 Speed up the contract approval and administration process with digital signature
 Edit and review contracts easily with full Microsoft Word integration
 Get 360-degree visibility of contract status across the enterprise with executive dashboards
 Simplify contract authoring with audit tracking and document version control
 Add terms and conditions in a snap with clause libraries, pre-approved by your legal department