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