ASSINGMENT 2

The Footsteps Module PGP21

ConQuest

INSTRUCTIONS:
1. The naming convention for the file is GROUP_<Group No. Example: GROUP_36
2. The deadline to submit the assignment is 25 Jul 2021, 11:59 PM.
3. You are required to submit your assignment in the given link:
https://forms.gle/QYpyL1LJ6UjVDV137
4. The instructions for the deliverables are mentioned below in detail along with
the case. Kindly go through it before making the submission.

<ASSIGNMENT DETAILS>

ABC Limited is a large multinational organization operating in the clothing and apparel
business. The company procures readymade garments from significant suppliers and sells it
across its partnered / company-owned channel stores. In the past couple of years, the
company faces severe issues in managing its Procure to Pay operations. In the entire value
chain, the company is facing leakages which are affecting the profitability of the company
The company has hired you to understand the process and diagnose problems in its process
and suggest possible improvement measures.
The company, in its initial briefing, explained the entire process of Procure to Pay

1
Procure to Pay
Maintaining Master data – Involves activities on setting up and maintaining changes to the
master data for suppliers, products, items, costs, and tax information to facilitate purchasing
and payments.

• Maintaining vendor master – Includes activities to create and maintain all supplier-
related data

• Maintaining item master – The process includes creating and maintaining item details,
costs, item numbers, strategies, and tax details

• Building workflows – The process describes the controls and workflows used to
manage supplier data and purchasing processes throughout the P2P cycle. Managing
the P2P workflow provides a structure to ensure that purchase orders, invoices, and
payments are processed accurately, and master date is updated

Sourcing – The second stage of the process includes activities to identify new suppliers, obtain
preferential pricing, and manage the procurement, spend, and contract processes.
• Manage Spend Categories – includes Identifying and defining sourcing strategies

• Manage Spend – Activities to identify, review and adapt cost optimization procedures

• Develop and Implement Tax Strategies - Includes capturing and reporting accurate tax
liabilities for maintaining regulatory compliance

Procurement
• Manage Procurement - Includes purchasing direct materials in alignment with
operational needs and according to defined contract terms

2
Receiving
• Receive Goods / Materials – The subprocess includes understanding the quality
measurements, quickly identify any issues in a shipment, and update systems for
received good and materials, activities related to the sampling, inspection, and testing
of incoming materials to ascertain compliance with specifications detailed in the
supplier contract
• Resolve Receipt Discrepancies – The subprocess revolves around resolving any issues
identified during the receipt of materials or services

Invoice Processing
• Receive Invoices -Includes receiving and sorting of invoices for matching and approval

• Process Non-PO Invoices – Includes processing of invoices which do not have a PO

Payments – An essential process in the entire value chain has three subprocess
• Develop Payment Strategies -Payment strategies use the supplier master data and a
company’s working capital strategy to identify the best tactics when determining
when and how to pay invoices

• Manage Payments

• Transfer Payments

Close – The last stage includes four sub-processes including

• Clear Unmatched Invoices and Receipts

• Open PO Clearing

• Reconcile Tax
Note –
• PO – Purchase order
• AP – Accounts payable
• P2P – Procure to Pay

3
Deliverable:
The management believes that there are loopholes in the current P2P model and thus
requires your input in
1. Identifying the gaps in the current P2P process
2. Suggesting measures that can be taken by the company to improve the process