Vendor Management System — Proposal
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Confidential · Trinesis Technologies Pvt. Ltd.

NAGA LIMITED

Vendor Management System — Final Proposal

End-to-End Procure-to-Pay · Master-Data Governance · AI Validation · Cost-Saving Analytics · Delivery Plan

Solution & Delivery Proposal

27 June 2026

RESPONSE TO VMS SCOPE v1.2

Prepared for

Mr. Anandh Giri & Lakshmi Madam

Naga Limited

Prepared by

Trinesis Technologies Pvt. Ltd.

What's InsideScope & solution, then delivery & execution

Part AScope & Solution

1From a Payment Tool to a Procurement PlatformWhere this engagement now sits

Naga's leadership has reframed the original P2P Payment Automation project into a single, integrated Vendor Management System spanning the complete procure-to-pay lifecycle — vendor onboarding, sourcing, negotiation, purchase control, invoice and payment automation, working-capital, vendor performance and inventory intelligence — all governed against one mandate: a minimum 5% year-on-year cost saving across every division.

Where we are today
Invoice-to-Payment Automation

PO & Non-PO invoice validation, OCR, 3-way match, payment automation. The one workstream already scoped & proposed.

~15%

of the full VMS scope

Where Naga is going
Full Source-to-Pay VMS

9 business objectives · vendor portal · sourcing & RFQ · landed-cost intelligence · master-data governance · vendor scorecards · inventory analytics · 5% savings tracker.

100%

one platform, one dashboard, one source of truth

9
Business Objectives
11
Capability Modules
168
"Must" Requirements
5%
YoY Savings Mandate

2The Nine Business ObjectivesFrom Naga's cost-savings workbook

Every module in this scope traces back to a measurable business objective. Only one — Faster Payments — has been scoped and proposed so far; the rest are yet to start. The platform is designed so that each objective contributes a tracked, finance-validated saving into the Executive 5% dashboard.

CodeBusiness ObjectiveSolution LeverStatusTarget
P1Better Procurement PriceSourcing · BenchmarkingYet to start5% saving
P2Landed Cost / Cost-to-Company ComparisonLanded-Cost EngineYet to startTo define
C1Faster Payments / Invoice-to-PaymentPayment AutomationScoped · proposedTo define
C2Extended Credit TermsWorking CapitalYet to start5% benefit
C3Minimise AdvancesAdvance ControlYet to start50% reduction
I1Reduce Inventory Carrying CostInventory Analytics & MRPYet to start5% saving
I2Reduce Inventory / Reorder ControlInventory Analytics & MRPYet to startTo define
V1Avoid Vendor DependencyDependency AnalyticsYet to start50% coverage
V2100% Quality ComplianceVendor ScorecardYet to start100%

3Scope at a Glance — Eleven Capability ModulesWhat we will build

The VMS consolidates into eleven integrated modules. Green is already fully scoped & designed with Naga (lowest-risk to build first); gold is new scope to be designed during Discovery. None is built yet — the whole platform is to be delivered.

🔗 See the complete end-to-end workflow diagram
All 8 stages, control gates & AI/SAP steps — hover any step for detail
1Vendor Lifecycle & Master Governance
New

A reliable, compliant, auditable vendor master with controlled onboarding & change.

  • Vendor self-registration portal (configurable by type/category)
  • KYC & document capture — PAN, GST, MSME, FSSAI, bank proof, statutory certs
  • Vendor material-code capture — vendor uploads their part codes/descriptions (any format) for SAP mapping
  • OCR-assisted extraction + duplicate detection (PAN/GSTIN/bank/name)
  • Multi-stage review (Purchase, Finance, Tax, Quality, Compliance) — maker-checker in VMS only; SAP needs no second check
  • Phased automation — manual approval first; once AI proves reliable, clean cases auto-approve and only flagged ones go to review
  • External validation (GST active, IFSC/bank) via approved APIs · SAP Business Partner creation

Outputs: onboarding TAT dashboard · duplicate exception report · document-expiry & high-risk vendor register

2Strategic Sourcing, RFQ & Quotation Comparison
New

Digitise competitive sourcing; transparent, consistent vendor selection.

  • Auto-RFQ to eligible vendors from approved PR / demand
  • Demand consolidation across divisions for bulk leverage
  • Sealed-bid quotation capture via portal + email/WhatsApp alert
  • AI ranks first — landed-cost normalisation & suggestion, then separate technical & commercial evaluation (no overlap)
  • AI's rank-1 = no reason needed; choosing another vendor needs a recorded reason (feeds the scorecard)
  • Multi-round negotiation tracker; calls placed & recorded in-VMS, transcribed, vendor numbers masked
  • Split / item-wise / non-lowest award with approval & regret comms

Outputs: RFQ register · comparison statement · negotiation & savings report

3Landed Cost, Benchmarking & Negotiation
New

Decisions on total cost-to-company & price history, not basic rate alone.

  • Full cost build-up: basic + freight + packing + loading + tax/duty + insurance
  • Credit-period converted to ₹ value using cost-of-funds (the finance edge buyers don't see)
  • Last price · moving/historical average · contracted rate · market benchmark
  • Warranty & specification factored into ranking
  • Price-increase alert before award; reason & approval for non-lowest

Outputs: vendor rate comparison · price-trend report · landed-cost statement · price-increase register

4Purchase Request, PO & Supply Controls
New

Prevent avoidable, duplicate & high-risk purchasing; visibility of commitments.

  • MRP materials — PR stays in SAP, auto-pulled into VMS; non-MRP — PR raised in VMS (blocked/alerted if the material already has SAP MRP)
  • Before approval: live stock, open PR/PO, consumption, reorder/max level
  • PO released in VMS & written to SAP (SAP = system of record); PO ref linked back
  • ASN (advance shipping notice) by vendor — dispatch, vehicle, packing list
  • Gate-in/GRN/quality visibility + delivery-performance scoring
  • Three rejection workflows — OK · OK-with-condition (price cut + credit note) · Not-OK (return + debit note / purchase return), incl. post-production returns days later

Outputs: open-PO & overdue dashboard · duplicate-purchase report · supplier delivery performance

5Invoice-to-Payment Automation
Scoped & designed

Reduce processing delay, prevent payment leakage, improve vendor comms.

  • Vendor invoice OCR (header + lines) with confidence scoring
  • Duplicate-invoice prevention (FY + vendor + invoice no.)
  • Automated 3-way match (PO · GRN · Invoice) with tolerances
  • Gate-entry → stores → MIR7 simulation → MIRO posting
  • Exception routing with owner, reason, SLA
  • Due-date / discount monitoring · UTR communication to vendor

Outputs: invoice ageing · 3-way-match exceptions · early-payment-discount tracker · TAT dashboard

6Payment Terms & Advance Control
New

Improve working capital — extend credit, cut unnecessary advances.

  • Short-credit-vendor bands & vendor-wise payment-term dashboard
  • Credit-term negotiation tracker (existing → target → achieved)
  • Advance request linked to PO/contract with policy checks
  • Checks against existing unadjusted advances before release
  • PO-wise advance ageing, recovery & escalation
  • Cost-of-funds benefit calculation on credit days & advance reduction

Outputs: payment-terms dashboard · advance-ageing & unadjusted-advance alerts · credit benefit report

7Vendor Performance, Quality & Claims
New

Use measurable performance data in sourcing, approval & blocking.

  • Configurable weighted scorecard — price 25 · quality 25 · OTD 20 · credit 10 · compliance 10 · service 5 · docs 5
  • Auto-score from transactions + controlled manual qualitative scoring
  • Rejection / acceptance %, defect type, lot status
  • Complaint & corrective-action (CAPA) register linked to PO/GRN/batch
  • Claim · debit note · replacement · recovery tracking
  • Block / conditional-approval workflow; warn when sourcing poor vendors

Outputs: scorecard & ranking · rejection dashboard · claim-recovery tracker · review pack

8Inventory Optimisation & Vendor Dependency
New

Cut carrying cost, excess purchasing & single-source risk.

  • Average inventory, turnover ratio, inventory days, carrying cost
  • ABC (value) & FSN (fast/slow/non-moving) classification + stock ageing
  • Consumption-trend & reorder/safety-stock exception analysis
  • Open-PO + stock visibility to stop duplicate ordering
  • Single-source dependency % by material/category/spend
  • Alternate-vendor development tracker (sample → trial → approval → release)

Outputs: ABC/FSN dashboard · slow/non-moving tracker · single-vendor dependency · alternate-vendor coverage

9AI-Assisted Master-Data Validation
New scope

Governed OCR/AI validation, duplicate prevention, SAP cross-checks.

  • Common validation screen: user value · OCR value · SAP value · rule · confidence
  • Material master — description/UoM/type/HSN/valuation/mandatory fields (70% fuzzy)
  • Vendor & customer master — GSTIN/PAN/bank/MSME/address validation
  • Material-master cleansing (inactive list, duplicate by description+UoM)
  • Material-vendor info-record creation from invoice OCR + SAP PO
  • No autonomous SAP creation — approved workflow always mandatory

Outputs: validation register · duplicate worklist · OCR confidence & correction report

10PO & Non-PO Invoice Validation
Scoped & designed

Validate every invoice from gate entry to FI posting.

  • PO validation vs quotation & approval evidence (price/qty/tax/terms/warranty)
  • Gate-entry capture (vehicle/driver) + invoice OCR vs SAP PO/master
  • Background checks: GSTIN, HSN/SAC, e-way/e-invoice, weighment, signature, seal
  • Stores inward: shortage/excess/damage, debit-note, MIR7 simulation
  • Non-PO: separate flow — 3 scenarios (pay vendor · pay employee-vendor · reimbursement/ITC); design finalised in Discovery
  • Six-month-old & future-date invoice approval routing

Outputs: gate-entry validation register · supporting-doc completeness · non-PO threshold dashboard

11Management Dashboards & 5% Cost-Benefit Tracking
New

One management view of savings, performance, TAT, exposure & compliance.

  • 14-dashboard suite — executive 5%, spend, landed cost, payment terms, inventory, scorecard, TAT
  • Benefit governance: identified → approved → contracted → realised → finance-validated
  • Every saving links to baseline, formula, owner, evidence & approval
  • Prevents duplicate benefit claims across modules
  • Drill-down from KPI to source SAP transaction

Outputs: Executive 5% cost-benefit dashboard · spend analytics · benefit-realisation register

Plus the cross-cutting platform layer

  • SAP / Enterprise integration — vendor/BP, material, PR/PO, GRN, FI, payment, UTR
  • Data migration & master-data cleansing — profiling, dedup, mock loads, reconciliation
  • Roles, workflows & segregation of duties — configurable approval matrix & DoA
  • Non-functional, security & audit — SSO/MFA, encryption, immutable audit, data masking
  • Vendor portal — web + mobile app — responsive, with in-app AI chatbot & WhatsApp-bot fallback for low-touch vendors
  • Trader & market-price capture — trader login (one level above vendors) & daily wheat/commodity price feed (screen / WhatsApp)
  • Reports, alerts & notifications — in-app, email, WhatsApp, scheduled exec reports
  • Tech stack — React · Node.js · MySQL · Python (AI/ML) · AWS · GitHub + Jenkins CI/CD

4The AI Value-Add LayerWhat's included — and what we can add

Naga's scope document asked us to propose advanced AI features, value-added functionality and industry best practices. The base platform is rules + OCR. Below we split the AI into two parts — what is included in this proposal, and the further AI we can add to lift the VMS from a workflow system into a full decision-intelligence platform that an in-house build cannot easily achieve.

AI included in the platform — and the value it adds In scope

These run inside the core VMS from day one. Each removes manual effort or proves a saving — the difference between a workflow tool and a system that pays for itself.

📄
Self-Learning Document AI

Reads every vendor invoice, quotation, GST / PAN / bank document and weighment slip — including scanned images (PNG / JPG, ~95% of Naga's docs) — extracting fields with confidence scores and adapting to each vendor's layout.

Value to Naga
Removes manual data entry across ~7,600 documents/month; straight-through processing rises over time, so fewer people touch each invoice.
🧮
Smart Material-Code Mapping Mandatory

Maps each vendor's material codes / descriptions to Naga's SAP material master — captured at onboarding and back-filled from ~1 year of historical invoices via PO → HSN. A PO cannot be raised for an unmapped vendor material.

Value to Naga
Ends the supplier-vs-SAP code mismatch that forces manual MIGO entry today; gate receipts auto-match the right SAP material.
🧾
AI Negotiation Assistant

Brings price history, cross-division rates and the credit-period-in-₹ onto the negotiation screen, drafts target prices, and records & transcribes the in-VMS call for the audit trail.

Value to Naga
Buyers negotiate with full context, not instinct; the reason for every non-AI choice is captured for the scorecard.
📧
AI Quotation & Email Ingestion

Pulls quotations and approval mails straight from the inbox into the comparison engine and normalises them — no re-keying into spreadsheets, no lost quotes.

Value to Naga
Replaces today's manual Excel quotation comparison; every quote captured, comparable and audit-ready in one place.
🏷
Auto GL-Coding, HSN / SAC & TDS

Suggests the GL account, expense type, HSN / SAC classification and correct TDS treatment (PAN 4th-character logic) at the point of capture, flagging anything uncertain for review.

Value to Naga
Cuts tax & coding effort and rework on every Non-PO bill; fewer posting errors and wrong TDS deductions.
AI Savings Auto-Attribution

Automatically links each PO to its approved baseline, applies the agreed formula and computes the verified, finance-traceable saving — feeding the Executive 5% dashboard with a full audit trail.

Value to Naga
Operationalises the 5% mandate — savings are measured and proven automatically, not stitched together by hand at month-end.
📱
WhatsApp Conversational Vendor Portal

A WhatsApp Business chatbot (with RAG over policy / PO / contract documents) lets vendors check payment status & UTR, raise complaints and get document-renewal reminders — answered instantly.

Value to Naga
Vendor self-service on the channel Naga already wants — fewer follow-up calls and emails, faster vendor resolution.

Further AI we can add Optional

Opt-in, advanced capabilities — the decision-intelligence layer that sets this apart from a standard build. Can be added per phase once the core is live.

🤖Buyer Copilot

Natural-language assistant — "show price history, alternate vendors & landed-cost ranking for material X" — delivering the single-decision view buyers ask for, conversationally.

▸ Directly answers Prabhu's "all data in one view" need

📈Predictive Vendor Risk & Demand Forecast

Machine-learning early warning on delivery slippage & vendor distress feeding the scorecard; demand/price forecasting for MRP & reorder.

▸ Pure-ML, future add — turns the scorecard from backward to forward-looking

Part BDelivery & Execution

5How We Will ExecutePrinciples that make this deliverable

The full VMS is yet to be built — nothing is coded today. A platform of this breadth is delivered not in one big bang, but as overlapping workstreams that go live incrementally — so Naga sees working software and real savings within months, not at the very end. Two principles govern the plan.

Parallel Workstreams

Independent pods run modules concurrently once Discovery locks the blueprint.

Phased UAT & Delivery

Each phase is UAT-signed and demonstrable — value proven every phase, not after 10 months.

6Programme Timeline & Parallel Execution10 months delivery + 2 months support · 3 phase UATs + go-live

Wk 0
Discovery starts
Mo 4
Phase 1 UAT
Mo 7
Phase 2 UAT
Mo 9
Phase 3 UAT
Mo 10
Full cutover live
Mo 12
Handover · support ends

Workstream schedule — where the parallelism is

Workstream
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
M12
P0
Phase 1
Phase 2
Phase 3
P4
Support
Discovery & Blueprintfit-gap · architecture · blueprint sign-off
4 wks
Foundation & SAP IntegrationRFC/BAPI · OCR · env setup
build
Invoice-to-Payment Automation3-way match · MIR7/MIRO · UTR
build → UAT
AI Master-Data Validationmaterial · vendor · customer · cleansing
build → UAT
Vendor Lifecycle Portalself-reg · KYC · maker-checker · BP
build → UAT
Sourcing, RFQ & Landed Costquotation compare · negotiation
build → UAT
PR / PO & Supply Controlsstock visibility · ASN · delivery
build → UAT
Payment Terms & Advance Controlcredit negotiation · advance ageing
build → UAT
Vendor Scorecard & Qualityweighted score · CAPA · claims
build → UAT
Inventory & Dependency AnalyticsABC/FSN · alternate-vendor
build → UAT
Mgmt Dashboards & 5% Trackerbenefit governance · drill-down
build → UAT
Integrated UAT & Cutoverend-to-end · training · parallel run
cutover
Hypercare & Handover (free)stabilise · KT · source-code handover
2 mo free
🏁
Phase 0 · Discovery
Phase 1 · Foundation + Invoice-to-Pay
Phase 2 · Vendor Portal + Sourcing
Phase 3 · Working Capital + Analytics
Phase 4 · Cutover + Hypercare
✅ UAT   🏁 Go-live / Handover

7The Phases in DetailWhat ships, and when

P0
Discovery & Solution Blueprint
Weeks 1–4
Key activities
  • Process workshops at Dindigul · current-state mapping
  • Fit-gap against all 168 requirements (standard / config / custom)
  • Solution architecture, integration & security design
  • Master-data profiling — sizing the cleansing effort
  • Savings-baseline validation with Finance & Procurement
  • Pro-app integration contracts & third-party API assessment
Deliverable

Signed blueprint, detailed phase plan & interface design — the agreed foundation the build executes against.

De-risks the whole programme
P1
Foundation + Invoice-to-Payment + Master-Data Validation
Months 2–4
Key activities
  • SAP RFC/BAPI layer live across NSY · NSQ · NSP
  • OCR pipeline + rule-based validation engine in production
  • PO & Non-PO invoice validation, 3-way match, MIR7/MIRO, UTR
  • Master-data validation + cleansing; material-code mapping & 1-yr data migration
  • Exception dashboard & audit framework
Deliverable

The highest-ROI workstream — already scoped & designed with Naga, lowest risk — built and UAT-signed first. This is the "3–4 month" outcome.

✅ UAT #1
P2
Vendor Lifecycle Portal + Sourcing/RFQ + Landed Cost
Months 4–7
Key activities
  • Vendor self-registration portal · KYC · maker-checker · SAP BP creation
  • Auto-RFQ, sealed bids, technical/commercial evaluation, negotiation tracker
  • Landed-cost engine & credit-period-to-₹ benchmarking
  • PR/PO & supply controls — stock visibility, ASN, delivery performance
  • Vendor web + mobile app · in-app AI chatbot · WhatsApp-bot
Deliverable

Where negotiation & price savings — the core of the 5% mandate — start landing.

✅ UAT #2
P3
Working Capital + Scorecard + Inventory + 5% Dashboards
Months 6–9
Key activities
  • Payment-terms & advance control · cost-of-funds benefit
  • Weighted vendor scorecard · quality · CAPA · claims recovery
  • Inventory optimisation · ABC/FSN · alternate-vendor development
  • 14-dashboard management suite + benefit governance
Deliverable

Closes the working-capital & benefit-realisation loop — the full intelligence layer.

✅ UAT #3
P4
Integrated UAT, Cutover & Hypercare
Months 9–12
Key activities
  • End-to-end UAT across all modules · role-based testing
  • Training, SOPs & parallel run
  • Production cutover & stabilisation
  • Source-code, documentation & runbook handover to Naga IT
Deliverable

Stable production VMS + full IP handover + 2 months free hypercare.

🏁 Full handover

8Team StructurePod model · ~14–16 specialists at peak

A thin engagement-leadership layer over four delivery pods. Pods run in parallel and are sized up or down per phase so we never carry idle capacity.

Avinash Mallik — Executive Sponsor

Steering, blocker resolution, commercials. Available throughout, no extra cost.

Mahesh — Digital Transformation Lead & primary POC

Day-to-day point of contact; deep AI / digital-transformation experience (also leads the Treasury programme).

Program Manager

Plan, RAID, change control, weekly status with Anandh / Prabhu / Karthik.

Tech Lead / Solution Architect

Architecture, SAP integration design, code quality, cross-pod coherence.

Pod A · Procurement & Sourcing 2 BE · 1 FE
  • Vendor lifecycle portal & master governance
  • Sourcing, RFQ & quotation comparison
  • Landed cost & PR/PO supply controls
Pod B · SAP, Invoice & Payment 2 SAP/BE · 1 BE
  • SAP RFC/BAPI integration layer (NSY/NSQ/NSP)
  • Invoice-to-payment & 3-way match
  • Payment terms, advance control & UTR
Pod C · AI / ML & Document 2 AI/ML
  • OCR pipeline & document AI
  • Validation engine & fuzzy matching
  • Advanced AI — copilot, negotiation, material-code mapping, forecasting
Pod D · Analytics & Experience 1 BE · 1 FE · 1 UX
  • 14-dashboard management suite & 5% tracker
  • Inventory & dependency analytics
  • Vendor scorecard & benefit governance

Plus shared services: 2 × QA Engineers (functional + automation + UAT), 1 × DevOps (AWS CI/CD via GitHub + Jenkins, environments, monitoring), and a Functional/Business Analyst bridging Naga's process owners.

9Delivery Governance & CadenceHow we stay aligned

📅
Bi-weekly Sprints

Working software every 2 weeks with a live demo.

💬
Weekly Status

With Anandh, Prabhu & Karthik — progress, risks, decisions.

🏛
Monthly Steering

With Lakshmi / management — phase health & benefits.

📝
RAID & Change Control

Risks, assumptions, issues & scope changes logged transparently.

Joint working model

  • Trinesis builds the AI validation, SAP integration, portals, workflows & analytics.
  • Naga IT builds/readies the Pro-app screens (FI Pro 1/2/3, Claim Pro, CM Pro) as data sources — sequenced so they're ready when each module needs them.
  • Config-first so Naga's 30-person IT team can extend & maintain post-handover; full source-code & IP transfer, no Trinesis lock-in.

Naga-side dependencies that protect the timeline

  • SAP access to NSY / NSQ / NSP within 5 days of kickoff
  • Pro-app schemas / APIs ready per the phase plan
  • Third-party API licences & legal clearance — GST/PAN, Aadhaar-PAN (UIDAI/DPDP), bank/IFSC, market-price feeds, WhatsApp Business
  • Process-owner & approver availability; sign-offs within 5 business days per milestone
  • Approval matrices, savings formulas & score weights signed off by Finance/Procurement/Quality/Audit
  • Migration counts to confirm — unique vendors (≥1,000/division), 1-yr document volume (MIGO count) & material-code count

Commercial Terms & Payment MilestonesClick the bar to collapse

💲  Commercial terms & payment milestones
₹8,000
Per man-day (locked rate)
3,000
Man-days
₹2.40 Cr
Total value (GST extra)

Payments are milestone- and acceptance-based. Based on 3,000 man-days at the locked ₹8,000 / man-day, the total engagement value is ₹2.40 Cr (GST extra). A 30% advance is taken at kickoff; the balance follows the milestones below.

MilestoneTriggerTiming%Amount (₹, indicative)
M1Kickoff ADVANCESOW signed, team mobilisedWk 030%72,00,000
M2Discovery & BlueprintFit-gap, architecture & blueprint sign-offWk 410%24,00,000
M3Phase 1 UATInvoice-to-Payment + Master-Data Validation UAT signed offMonth 420%48,00,000
M4Phase 2 UATVendor Portal + Sourcing + Landed Cost UAT signed offMonth 715%36,00,000
M5Phase 3 UATWorking Capital + Scorecard + Inventory + Dashboards UAT signed offMonth 912%28,80,000
M6Full Cutover / Go-LiveAll modules live, parallel run clearedMonth 108%19,20,000
M7Final AcceptanceHypercare complete, handover signed offMonth 125%12,00,000
Hypercare Support 2 MONTHS · FREEBug fixes, knowledge transfer, source-code & runbook handoverMonths 11–12NA0
TOTAL100%2,40,00,000

Scope & Pricing

  • Rate locked at ₹8,000 / man-day (strategic-partnership rate)
  • 3,000 man-days → total ₹2.40 Cr (GST extra)
  • 30% advance at kickoff; balance milestone-based on UAT / acceptance
  • Phased, fixed-price; includes 2 months free hypercare
  • Scope beyond this document = change order, separately priced

Tax, Ownership & Terms

  • GST @ 18% extra on each invoice
  • Milestone invoice due within 15 days of acceptance (NEFT / RTGS)
  • Full source code & IP transferred to Naga — no Trinesis lock-in
  • AWS infra & third-party licences (OCR, WhatsApp, GST/PAN APIs) billed at actuals to Naga
  • Onsite travel & stay at actuals