When the company set out to replace its legacy ERP system with SAP it recognised it was maintaining detail of over 50,000 suppliers, many of whom were never or rarely used. The organisation chose PROACTIS to deploy electronic tools to manage supplier qualification data, standardise the qualification and accreditation process, establish and measure supplier risk levels and target non-compliant suppliers.
"Before PROACTIS, supplier qualification and accreditation was too subjective providing little visibility of risks. There was no consistent measurement and evaluation of suppliers. Risk was effectively 'buried' in paper and filing cabinets. With PROACTIS, we now have a fully automated, transparent and repeatable process," said a spokesperson for the company.
PROACTIS SRM enables the organisation to effectively communicate qualification requirements to suppliers, create baselines for evaluating supplier risk, and ensure conformance to specific supply requirements. The results of the project include:
- £280m spend under management
- 100% visibility of supply base accreditation
- 50,000 supplier records rationalised
- 6,300 suppliers accredited
- Target of non-compliant suppliers and spend brought under central framework agreement to generate more value and savings
- PROACTIS Supplier Portal provides suppliers with 24x7 access to information and a broad array of self-service functions