Insight into eProcurement Project Success at PROACTIS Inc.
Interesting interview with Mike Tossell, North American Client Services Manager, at PROACTIS Inc., to gain insight into the increasing number of Spend Control and eProcurement projects taking shape in North America. Some great evidence of cloud eProcurement deployments - enhancing clients ERP financial management processes and delivering cost savings:
Electronic Commerce: A fortune 100 organisation selected PROACTIS to replace Oracle iProcurement. Their objective was to adopt a specialist Spend Control and eProcurement solution capable of streamlining a high volume of commerce transactions across 18 countries. This included "out-of the-box" ERP integration, punch-outs to key vendors (Staples, Merrill, Lyreco, etc.) and a rather neat integration with AMEX. AMEX-V Payment offers a "virtual P-Card" enabling a credit card number for "one-time use" specific to each transaction. The vendor then charges the credit card number for the value of the order as apposed to submitting an invoice. In the first quarter, 3,500 requisitions were raised in PROACTIS by 1500 users, accounting for $16.5m spend. Next stage is 4,000 users.
IT Spend: A top 10 US law firm selected PROACTIS to manage procurement of IT spend. The firm places all spend out to a competitive bid with at least three vendors. They do not operate a preferred vendor list or in-house catalogues. Instead they prefer to use PROACTIS "quick quote" functionality to enable 300 users to complete demand requests and be processed by buyer-assisted sourcing. Vendors are invited to respond directly into the system with prices, attached documents etc. This offers simple evaluation and ranking of bids and full process automation.
Services Spend: Likewise, a top US hedge fund will use P2P Quick Quotes, along with PROACTIS eSourcing, Contract Management and SRM solutions, to manage the procurement of services spend. 50% of their total spend is on services - a large proportion of which is contingent labour procurement. Once a vendor is selected, the system automatically populates a PO for submission and provides the ability to track specific requirements for services (rates, hours etc.). Controls for supplier on-boarding was key and PROACTIS Supplier Central offered a central point for approval and distribution that can feed one or more systems with vendor records. The overall project is set to deploy to 1,000 users.
Geographic Coverage: A global manufacturer chose PROACTIS for its ability to fit any organisation and business model and handle the intricacies of multi branch structures, complex workflows, tax regimes, currencies etc. Their objective was to adopt a Spend Control platform for organisation-wide compliance and risk management. PROACTIS was awarded the contract over other eProcurement vendors because it could demonstrate evidence of support for global business. After deploying PROACTIS at HQ in California, it was extended to eight other territories in North America, China, UK and Europe by a single representative with little need for support. The global system was "live and kicking" in just three months.
Finally, a large US-based organisation in the "heavy construction" sector, who already live with PROACTIS in the North East, Central and other US States, is extending the PROACTIS project to a Pan-America roll-out of 3,000 users.
These projects clearly demonstrate that PROACTIS can be deployed to fit the way any organisation works. Whether it is centralised or it works as a distributed, perhaps multi-national organisation. Perhaps the need is for internal controls and streamlined processes, or maybe for more efficient electronic communication with vendors. It might be that access to external catalogues, vendor websites or multi-sourcing techniques is important, or management of complex spend categories, or perhaps visibility of internal contracts. PROACTIS can match any or all of the deployment requirements to deliver against such needs.
Nice job PROACTIS Inc.!