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Case Study

Procurement Technology Assessment P2P Tech Rescue

The balance of experience and expertise in spend management leads to effective decision making.

The Profile

Global data and technology company supporting clients in the clinical trials space.

The Objective

Client sought to achieve significant cost savings, supplier consolidation and improved procurement visibility due to multiple recent acquisitions. Client experienced the typical issues within the procurement function due to this growth. We collaborated with the client to develop and deploy a project plan that would produce an actionable plan for improving their procurement technology utilization.

The Challenge

Client operates in 14 global locations, all with their own supplier group using 11 different ERPs. Each operating location had their own supplier groups, limited formal procurement processes and a high degree of maverick spend. This environment of disparate systems performing the same function made it particularly difficult to operate an effective spend management program. Outside of the very limited utilization of the leading ERP solution, there was limited automation or general use of bonafide source-to-pay technology tools which limited the client to influence procurement efficiency and achieve value. Ultimately, the client desperately needed to determine what they could improve from their existing solutions and/or what else would be required in order to become a more effective procurement department.

The Impact

Examined all aspects of the client’s spend management processes against the existing utilization of incumbent technology solutions in order to determine where there were opportunities to improve efficiency and effectiveness.

  • Our assessment results keyed in on the following improvement areas:
  • Identified where improvements and addi-tions to existing supplier/item catalogs would improve purchasing cycle time by upwards of 70%, which would increase spend under management by 86%.
  • Determined changes to existing invoice approval workflow that would improve invoice processing cycle time by 50%, which also resulted in an 80% reduction of invoice exceptions.
  • Proved that the acquisition of leading sourcing and contracting solutions would improve sourcing cycle time by 30%, produce an estimated 3-4% in incremental cost savings and improve contract cycle time by nearly 47%. Not to mention the benefits of increased supplier collaboration.
“It took Velocity’s distinct expertise in procurement business process and technology to get us where we needed to be.”