Procurement and Logistics Service. Overcoming the challenges and complexities of international business

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1 Procurement and Logistics Service Overcoming the challenges and complexities of international business

2 There are massive benefits in expanding your organisation into new international territories. You access new markets, leverage a lower cost base and move closer to skilled talent. But it also means your day-to-day operations become more strategic than ever before.

3 IT procurement and logistics are no exception. Procurement is no longer simply a purchasing function, and logistics is not just about moving inventory. These functions now take centre stage in the supply chain as they offer opportunities to improve the bottom line through expense management and streamlined operations. In fact, successful multinational organisations view their Chief Procurement Officers as enablers and drivers of a long-term supply chain strategy. Businesses rely on international IT operations and logistics capabilities to: leverage global buying power and economies of scale improve speed to market minimise waste and mitigate risks through efficient management and control of the supply chain align with best practices and corporate governance manage multiple vendors in multiple locations control supply chain costs In addition, supply chain managers must consider ethical, social and economic factors, such as carbon footprint impact and other sustainability issues. Cross-border business also means complexity. The logistics of logistics sourcing from multiple vendors, receiving quotes and invoices in multiple currencies, managing shipments in multiple countries leaves little time for focusing on the big picture of IT supply chain management. Does this sound familiar? You don t have a single point of accountability for all your IT procurement and logistics needs There s no centralised visibility and control of your process There s a lack of transparency across your supply chain Are you looking for? The ability to manage vendor spend and leverage transaction volume Insight into the total cost sourcing for IT products and services Automation and system integration to make your procurement process more efficient Help in managing the risk inherent in cross-border shipping, including customs clearance, the payment and reclamation of VAT, and management of duties Dimension Data s Procurement and Logistics Service can help you simplify this complexity. Our service gives you one point of accountability, one procurement system, one asset tracking tool, and one, end-to-end view of your IT supply chain leaving you free to focus on your strategy.

4 From quote to invoice, with us you get One point of accountability You can entrust your entire IT supply chain to a single outsourcing partner Dimension Data s IT Procurement and Logistics Service allows you to entrust your entire IT supply chain to a single outsourcing partner with experience across the board. We give you a single point of accountability for all your IT infrastructure procurement and logistics needs. From small volumes, delivered just in time, to large international transactions, we manage the order process and offer advice on vendor fulfilment and freight VAT and duties costs. We re also able to manage complex situations such as reverse logistics. An organisation that used its own processes to procure and deliver IT infrastructure ended up paying an additional USD 375,000 in taxes, an amount equal to 70% of the price of the hardware. Our average quote to PO process went from two weeks to two days. Global financial services company We ve seen a 31% decrease in quote-to-delivery time and lowered procurement costs. Global bank and financial service firm One seamless, end-to-end service Use our global expertise at every step of the supply chain cycle Our experience in global procurement and logistics means that we can manage the entire supply chain process. We provide many procurement services including an e-procurement portal which facilitates practices that improve productivity, operational efficiency and risk management. By integrating with both our vendors and clients systems, we re able to offer a seamless quote-to-invoice process with transactional efficiency and integrity. If you integrate our system with your internal systems, you can collect on the investment already made in those systems, while reducing manual processes saving time and mitigating the risk associated with re-keying and manual entry. Points of integration can either be with your own proprietary system or with commercially available procurement applications such as Ariba, SAP, Oracle OSN or PeopleSoft. These services are flexible and you can configure the functions to meet your specific requirements. We don t just understand IT we understand the complexities and intricacies of international procurement and the unique laws, taxes and customs procedures involved in shipping IT equipment to countries all over the world. We deliver consistently across multiple geographies, multiple technologies, multiple currencies and multiple vendors, enabling greater control and transparency, while being able to adapt to the variables inherent in local supplier bases, regulations, in-country nuances and currencies. We also consolidate orders to save you money, reduce travel (and therefore reduce carbon emissions), minimise packaging waste, and make tracking easier. You also benefit from the processes and agreements we have with our international vendor and carrier partners. We leverage our partner relationships to ensure that you receive the right technology, in the right place, at the right time and for the right price. quote procure source ship clear deliver invoice Provide accurate real-time quotes Procure IT equipment from various vendors, for anywhere globally Collect IT equipment from various vendor locations and consolidate for export Manage shipping process Execute on customs clearance process on a Delivered Duty Paid excluding VAT basis Deliver goods on time and within budget Consolidated invoicing

5 Each and every deployment was coordinated with us and the partners to establish the optimal and most cost-effective shipping mode and route, as well as provide optimum duty planning to ensure that each shipment was processed without delay, and the risk of penalties was alleviated. Visibility was maintained throughout the shipping and delivery process, with real-time updates and tracking. Personal client support was provided, all our questions were answered and advice and guidance on global tax and import laws and requirements was provided. Global pharmaceutical manufacturer

6 One consolidated view of your supply chain We give clients a window of visibility into the total supply chain The right supply chain model is critical to managing global procurement and logistics. Consolidating the supply chain results in better efficiencies and frees up capital. You need to be able to monitor the entire order and fulfilment process in multiple geographies so you can manage costs and risk. You also need accurate reporting to help you plan and manage your supply chain. Our systems have extensive reporting capabilities so you can obtain accurate quotes and procure IT equipment from various vendors for any country or region, globally. You can access real-time order status information and track the movement of goods throughout the world. This means less time spent trying to track down information and waiting for answers. We also offer consolidated invoicing: one invoice showing all costs (duty and tax charges). By recouping VAT charges we have reduced our total cost of ownership. Global shipping company The SMART benefits of Procurement and Logistics Services: Single point of contact and accountability Monitoring and tracking Advice, expertise and experience Relationships with IT vendors and carriers Technology expertise Our global footprint and supply chain capabilities Our global footprint and multinational capabilities enable us to deliver multi-vendor solutions in over 150 countries on five continents. We can reduce the quote-to-purchase order process from two weeks to two days. Our e-procurement system is deployed in over 40 countries and supports seven languages and multiple currencies. Our system is customisable and is integrated with all major ERP and procurement systems, including: Ariba, PeopleSoft, SAP, Oracle, and more. Pricing and reporting information is available 24 hours a day, seven days a week. You have access to tailored catalogues from over 80 different technology vendors and manufacturers with prices that include negotiated discounts. We provide 24x7x365 cross-border shipping and customs clearance support. We are able to expedite or delay shipments, based on your needs. Over 790 clients use our tracking and asset management tool. Delivery Duty Paid services to 121 countries (VAT reclaimable where possible) are provided. Our systems and tools Our e-procurement system allows you to obtain accurate quotes and procure IT equipment from various vendors for any country or region. It is used to quote, procure and manage a range of hardware, software, licences and services offered by Dimension Data and our technology partners. It s integrated with all major enterprise resource planning and procurement systems. You will be able to harness the convenience and flexibility of an online system along with the knowledge and peace of mind that comes from working with our product and service experts. You can view the sourcing, manufacturing and shipment statuses of your order at serial number level. All orders are consolidated into one delivery, which means only one invoice, thus reducing paperwork. However, partial deliveries can be made on request. Visibility of the supply chain is carried through to delivery electronic documentation shows when the goods were delivered, and who signed for delivery. Since integrating with Dimension Data s e-procurement portal we are able to ensure that all assets are accounted for and that we are not paying maintenance on technology that is not business critical. Global healthcare company

7 Client success story Ongoing growth and expansion on a global scale brought with it a unique set of challenges for one of the world s largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company needed a partner to help it ensure that its infrastructure continues to support the business s strategic journey. Dimension Data owned global procurement and logistics for the organisation in 108 countries for nine years before recently completing its fourth multi-year contract with the client, which covers multiple vendors across multiple countries. The Global Orchestration Local Delivery (GOLD) transactional model is used, which is a local to local delivery model and allows for transactional flexibility and increased control. Dimension Data s e-procurement system has been integrated with the organisation s own asset management tool across all territories, consolidating global discounts from its various manufacturers. Dimension Data has also created standard bundles on the system. The organisation is now able to view its global IT spend while ensuring that the company s corporate, accounting and governance standards are maintained. Dimension Data handles all logistical requirements and reporting on behalf of the organisation. This has greatly enhanced the supply chain process for the client, and has resulted in major cost savings and cheaper rates for moving equipment. The organisation had struggled with equipment not arriving at destination countries. Since working with Dimension Data, the company has the assurance that products arrive at the right time, at the right place, after being shipped. Dimension Data s Track and Trace tool is integrated with the organisation s own asset tool, and each automatically updates the other weekly. As one of the organisation s six strategic partners and its top-performing partner, Dimension Data has exceeded the client s expectations including improved revenues due to cost savings. By renewing its Uptime contract with Dimension Data (at a contract value of over USD 20 million) the organisation has realised an estimated USD 7 million in savings. Dimension Data is working with the organisation to induct its independently owned, dedicated supply chain dealer network into the procurement and logistics portfolio so that dealers can enjoy the same advantages as the organisation itself. Using our people, processes and systems we ve helped the client along its journey of transformation from an international business to a truly global organisation. This has put us at a strategic supplier level and we re recognised as a top-performing supplier. Entering our ninth year of partnership with the client, we recognise the continued changes and challenges that the client may face but due to the strategic nature of our partnership, we re on the journey together. Jason Szerlong, Dimension Data Vice President of Sales, Central North America All great relationships start with a conversation. So why not give us a call? We welcome the opportunity to assist you in achieving your business ambitions. To set up an appointment or to obtain advice, dimensiondata.com or visit our website: for more information. CS / DDMS-1274 / 03/13 Copyright Dimension Data 2013 For further information visit:

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