$6B High-Tech company transforms procurement to build foundation for global growth
To continue its aggressive growth and strategic market shift, the company transformed procurement driving significant savings to fund growth and improve operating performance while supporting continued global expansion.
From 1995 to 2005, the company had experienced a period of rapid growth as it transitioned from a consumer focused company to providing enterprise level security for corporate clients. Growth was also driven by an aggressive M&A strategy culminating with a large acquisition in 2005 which doubled its revenue. Throughout this growth, the company’s procurement organization remained lean and was focused on providing adequate control and oversight of purchasing.
Launching its “Build for the Future” initiative, the company recognized that it needed to increase focus on customer facing activities, improve performance by focusing on core strengths and deploy scalable infrastructure to support continued global growth. Indirect procurement was identified as significant potential source of savings to fund growth and improve operating performance while supporting the company’s continued global expansion. Capturing the untapped savings opportunity would require transforming procurement and deploying a global, comprehensive spend management solution.
The company selected ProcurianSM based on our proven ability to help companies transform indirect procurement and maximize the potential of their Source-to-Pay process. By leveraging our Specialized Procurement Infrastructure™ the company has strategically addressed more spend, used market insights to inform category strategies, and continuously optimized spending to deliver greater business impact. Within the relationship Procurian provides Sourcing and Category Management services leveraging our Specialized Procurement Infrastructure which integrates global teams of dedicated category specialists, supply market intelligence, proprietary technology across a comprehensive spend management process. Procure-to-Pay services are provided seamlessly through our proven alliance with leading Finance and Accounting provider, Genpact. Procurian was specifically engaged to support:
- $1 B of spend across the globe in categories including marketing, IT, telecom, corporate services, travel and facilities
- Category Planning, Sourcing, Implementation, Contract Management, Supplier Relationship Management, Continuous Cost Innovation, Market Intelligence and Information Management and Reporting
- Existing Oracle platform plus proprietary sourcing, category management, workflow and analysis tools – Radix™ and SavingsLink™
Leveraging Procurian’s Specialized Procurement Infrastructure, the company has transformed procurement to meet the needs of business stakeholders and drive significant savings. Business leaders and functional executives are able to focus on maintaining market leadership while Procurian helps them maximize the impact of their investments and realize savings to fund growth and margin improvement. The team is on track to generate over $790MM in recurring savings and has been able to help procurement greatly expand their impact in key categories such as marketing, IT and corporate services. Specific program highlights include:
- Standardized buying globally, creating a single and simple to use process and technology interface for end users to handle all sourcing needs
- Reduced end-to-end cycle time and transaction cost while improving accuracy, visibility and improved working capital
- Completed diagnostic identifying additional savings opportunity of $28 – 40 MM
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