Vendor Management System — Final Proposal
End-to-End Procure-to-Pay · Master-Data Governance · AI Validation · Cost-Saving Analytics · Delivery Plan
27 June 2026
RESPONSE TO VMS SCOPE v1.2Prepared for
Mr. Anandh Giri & Lakshmi Madam
Naga Limited
Prepared by
Trinesis Technologies Pvt. Ltd.
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.
PO & Non-PO invoice validation, OCR, 3-way match, payment automation. The one workstream already scoped & proposed.
of the full VMS scope
9 business objectives · vendor portal · sourcing & RFQ · landed-cost intelligence · master-data governance · vendor scorecards · inventory analytics · 5% savings tracker.
one platform, one dashboard, one source of truth
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.
| Code | Business Objective | Solution Lever | Status | Target |
|---|---|---|---|---|
| P1 | Better Procurement Price | Sourcing · Benchmarking | Yet to start | 5% saving |
| P2 | Landed Cost / Cost-to-Company Comparison | Landed-Cost Engine | Yet to start | To define |
| C1 | Faster Payments / Invoice-to-Payment | Payment Automation | Scoped · proposed | To define |
| C2 | Extended Credit Terms | Working Capital | Yet to start | 5% benefit |
| C3 | Minimise Advances | Advance Control | Yet to start | 50% reduction |
| I1 | Reduce Inventory Carrying Cost | Inventory Analytics & MRP | Yet to start | 5% saving |
| I2 | Reduce Inventory / Reorder Control | Inventory Analytics & MRP | Yet to start | To define |
| V1 | Avoid Vendor Dependency | Dependency Analytics | Yet to start | 50% coverage |
| V2 | 100% Quality Compliance | Vendor Scorecard | Yet to start | 100% |
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 diagramA reliable, compliant, auditable vendor master with controlled onboarding & change.
Outputs: onboarding TAT dashboard · duplicate exception report · document-expiry & high-risk vendor register
Digitise competitive sourcing; transparent, consistent vendor selection.
Outputs: RFQ register · comparison statement · negotiation & savings report
Decisions on total cost-to-company & price history, not basic rate alone.
Outputs: vendor rate comparison · price-trend report · landed-cost statement · price-increase register
Prevent avoidable, duplicate & high-risk purchasing; visibility of commitments.
Outputs: open-PO & overdue dashboard · duplicate-purchase report · supplier delivery performance
Reduce processing delay, prevent payment leakage, improve vendor comms.
Outputs: invoice ageing · 3-way-match exceptions · early-payment-discount tracker · TAT dashboard
Improve working capital — extend credit, cut unnecessary advances.
Outputs: payment-terms dashboard · advance-ageing & unadjusted-advance alerts · credit benefit report
Use measurable performance data in sourcing, approval & blocking.
Outputs: scorecard & ranking · rejection dashboard · claim-recovery tracker · review pack
Cut carrying cost, excess purchasing & single-source risk.
Outputs: ABC/FSN dashboard · slow/non-moving tracker · single-vendor dependency · alternate-vendor coverage
Governed OCR/AI validation, duplicate prevention, SAP cross-checks.
Outputs: validation register · duplicate worklist · OCR confidence & correction report
Validate every invoice from gate entry to FI posting.
Outputs: gate-entry validation register · supporting-doc completeness · non-PO threshold dashboard
One management view of savings, performance, TAT, exposure & compliance.
Outputs: Executive 5% cost-benefit dashboard · spend analytics · benefit-realisation register
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.
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.
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.
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.
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.
Pulls quotations and approval mails straight from the inbox into the comparison engine and normalises them — no re-keying into spreadsheets, no lost quotes.
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.
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.
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.
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.
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
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
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.
Independent pods run modules concurrently once Discovery locks the blueprint.
Each phase is UAT-signed and demonstrable — value proven every phase, not after 10 months.
Signed blueprint, detailed phase plan & interface design — the agreed foundation the build executes against.
De-risks the whole programmeThe highest-ROI workstream — already scoped & designed with Naga, lowest risk — built and UAT-signed first. This is the "3–4 month" outcome.
✅ UAT #1Where negotiation & price savings — the core of the 5% mandate — start landing.
✅ UAT #2Closes the working-capital & benefit-realisation loop — the full intelligence layer.
✅ UAT #3Stable production VMS + full IP handover + 2 months free hypercare.
🏁 Full handoverA 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.
Steering, blocker resolution, commercials. Available throughout, no extra cost.
Day-to-day point of contact; deep AI / digital-transformation experience (also leads the Treasury programme).
Plan, RAID, change control, weekly status with Anandh / Prabhu / Karthik.
Architecture, SAP integration design, code quality, cross-pod coherence.
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.
Working software every 2 weeks with a live demo.
With Anandh, Prabhu & Karthik — progress, risks, decisions.
With Lakshmi / management — phase health & benefits.
Risks, assumptions, issues & scope changes logged transparently.
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.
| Milestone | Trigger | Timing | % | Amount (₹, indicative) |
|---|---|---|---|---|
| M1Kickoff ADVANCE | SOW signed, team mobilised | Wk 0 | 30% | 72,00,000 |
| M2Discovery & Blueprint | Fit-gap, architecture & blueprint sign-off | Wk 4 | 10% | 24,00,000 |
| M3Phase 1 UAT | Invoice-to-Payment + Master-Data Validation UAT signed off | Month 4 | 20% | 48,00,000 |
| M4Phase 2 UAT | Vendor Portal + Sourcing + Landed Cost UAT signed off | Month 7 | 15% | 36,00,000 |
| M5Phase 3 UAT | Working Capital + Scorecard + Inventory + Dashboards UAT signed off | Month 9 | 12% | 28,80,000 |
| M6Full Cutover / Go-Live | All modules live, parallel run cleared | Month 10 | 8% | 19,20,000 |
| M7Final Acceptance | Hypercare complete, handover signed off | Month 12 | 5% | 12,00,000 |
| –Hypercare Support 2 MONTHS · FREE | Bug fixes, knowledge transfer, source-code & runbook handover | Months 11–12 | NA | 0 |
| TOTAL | 100% | 2,40,00,000 | ||