Case Study: How a $4 billion company achieved $100 million in procurement savings

Kelly Deacon
Kelly Deacon,
Managing Spend Control processes across geographically dispersed locations and multiple business units is a challenge for even the most seasoned professional. It can be a mind boggling puzzle on how to tackle varying financial management structures, information systems, size of different operations, cultures, maturity levels across business units, supplier bases... shall we go on?
Equally, not all eProcurement systems are going to have the breadth, depth, flexibility and scalability you require to support a truly effective approach to Spend Control. Many don’t ‘cut the mustard’ when it comes to addressing the special challenges that go beyond those of an organisation with a simpler environment.
In short, it requires a flexible approach that provides the right balance of consistent organisation-wide policies and procedures with appropriate levels of autonomy when it comes to daily operations; the ability to leverage your full buying power without losing the advantages of local sources where they best fit the need; and the ability to evolve smoothly as your organisation responds to market changes. Essentially, you need a whole mix of capabilities in order to ultimately provide a common ‘Spend Control umbrella’ across your organisation that is both complete and lasting.
At first glance, that might sound like theory. But it’s real life experiences that count. Real success from real customers…
In this case study, we investigate how PROACTIS supports a $4 billion Construction Products and Services organisation, operating across 44 US states and five divisions, and achieves over $100 million in procurement savings. No mean feat, but extremely satisfying to deliver such great results for our customer.
Monetary savings included consistently increasing levels of spend under management to achieve sourcing savings that exceeded the $100 million target. Improved operations and efficiencies by exceeding targets for raising PO’s for 80% of all transactions and processing 85% of invoices through purchase-to-pay (P2P) - over 700,000 per annum - and proper internal controls including a framework to support SOX compliance. Nice job!
Read the full case study on how a $4billion company achieved $100 million in procurement savings here.
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