Brazil is experiencing a time where the greatest challenges for companies are optimizing processes and reducing costs. One of the most efficient ways to achieve this is through the implementation of Shared Services Centers.
Companies such as Hewlett-Packard and General Electric began adopting shared services strategies back in the 1980s. Shared Services Centers emerged as a response to companies' needs for better management of their activities. So to speak, they are the offspring of the downsizing movement, which revolutionized operational management and strategic planning across businesses worldwide.
According to Bergson, the concept of Shared Services Centers refers to a "strategy in which several existing business functions are concentrated within a new, semi-autonomous business unit that has a management structure designed to promote efficiency, value generation, cost reduction, and service improvement for the company's internal customers."
In this context, a study conducted by Level in 2013 revealed that, in Brazil, 73% of companies seek Shared Services Centers due to the need for cost reduction, and 85% of them are motivated by the demand to improve processes. To meet this demand, Level has developed and operated a Procurement Shared Services Center since 2012, aimed at managing these processes with excellence. To this end, it brings intelligence to process management, which generates benefits such as scalability gains through more efficient negotiations and the standardization of strategic information, such as product, service, and supplier catalogs. As is widely known, Procurement Shared Services Centers are a global trend. Level found in its market research that logistics and supply chain processes are among the most aligned with this business strategy. To put it into perspective, of all companies migrating operations to the shared services model, 47% did so in pursuit of improving their procurement departments.
Concretely, first and foremost, what Level does is drive results in the acquisition of goods and services through the efficient management of the supplier base, the standardization and maintenance of the materials catalog, the automation of indirect material procurement through supply contracts, as well as delivery management featuring continuous follow-ups and the application of negotiation best practices.
Secondly, all of our operations are carried out via a SaaS (Software as a Service) model on a cloud platform through an Electronic Procurement Portal utilizing Level's e-Procurement solution. In addition, we also provide systems for contract management, supplier management, third-party management, and material registration management—all integrated within the same business environment to foster process synergy.
The third and final component of Level's Shared Services Center is our team of specialists: professionals with extensive experience in negotiation and procurement, segmented by material and service categories. This more granular approach enables companies to leverage market opportunities while enhancing efficiency in operational follow-ups.
We are at your disposal to visit your company and conduct an assessment of your business's alignment with supply chain shared services. Level operates with two operational models for this service: the first involves implementing and running the procurement center, while the second focuses on implementation and ongoing support, leaving daily operations to the client company.
Schedule a visit and discover the best Shared Services solutions for your business.
