Financial Services provider streamlines procurement and reduces total spend by 20%

Executive overview

Profile

Vertical sector
Financial Services

No. of users
1,200

No. of suppliers
1,000+

 

 

Objectives

  • To improve spend visibility and cost control.
  • To reduce the number of employees buying off-contract and out of the system.

How Proactis helped

  • Staff can now purchase the items they need, when they need them, at the right price.
  • Instilled best practices across the enterprise to improve cost controls, spend visibility and compliance.
  • Reduced reliance on paper-based processes.

Benefits 

  • Cost of goods was lowered by 10%-20%, with total spend reduced by 20%.
  • Empowered the Procurement team to conduct more strategic, higher value activities, with full Procure-to-Pay process.
  • Substantially reduced supplier invoicing errors.
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Profile

A leading international provider of financial services, retirement benefits and wealth management solutions took the decision to search for and implement an easy-to-use procurement solution to gain greater visibility into spend and cut the fat off its budgets.

The organisation was looking to streamline purchasing, manage negotiated contracts, promote on-contract purchasing and increase enterprise-wide compliance.

Objectives

The first step to improving the company's procurement process was to clarify where money was being spent. Achieving total spend visibility would allow the organization to evaluate key elements of its processes, and streamline where necessary.

The company wanted all employees to process invoices centrally, to improve visibility, auditability and compliance. Invoices would not be paid if not submitted through the system. Having all invoices managed this way would give the accounting office a more streamlined process, while also having to manage fewer suppliers by only allowing contracted / negotiated purchasing.

How Proactis helped

Following in-depth spend analysis by Proactis, numerous suppliers were removed in order to streamline the supplier base, increase cost competitiveness and drop poorly-performing suppliers. Proactis also enabled automation of paper-based, resource-intensive processes.

An enterprise-wide eProcurement solution from Proactis was implemented in multiple locations, with 1,200 users and over 1,000 suppliers. Additionally, a Proactis sourcing and spend analytics application was used to complement eProcurement and promote future strategic sourcing within the organization.

Benefits

Each implementation was very successful, and the company started seeing significant business results after only nine months. The exact purchasing process was made visible, including details of who was making the purchases, what they were buying, when and from whom, and how much they were spending – something that had never previously been possible.

Supplier invoicing errors were greatly reduced, as was total spend. Staff are now empowered to make more strategic, higher value purchases. As a result, with the help of Proactis, the organisation has reduced overall spend by 20%, lowered the cost of goods by 10% - 20%, reduced poor-performing suppliers and effectively implemented procurement best practices.