Halliburton reduces purchase order costs by 75% using Proactis Catalog Management

Executive overview

Profile

Operates in
80 countries

Customer since
2012

No. of employees
80,000+

No. POs processed
126,000 p.a

Vertical sector
Energy

Objectives

  • Increase purchasing visibility and controls with global eCatalog capabilities.
  • Streamline the Purchase-to-Pay (P2P) process whilst accelerating responsiveness.
  • Improve purchase order (PO) accuracy and encourage compliance with procurement processes.
  • Minimize procurement time and resources.

How Proactis helped

  • Provided a flexible solution to create, deploy and manage 34 catalogs and $86M of purchasing spend, across 80 countries.
  • Improved adoption with self-select purchases from a customized shopping cart-enabled website - including full localization and internationalization.
  • Managed supplier on-boarding and training, including content optimization.

Benefits to the authority

  • Eliminated 60% of P2P process steps.
  • Reduced PO costs by more than 75% - creating a benefit of approx. $3.54M.
  • Achieved contract compliance cost savings of $1M in the same year.
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Profile

Founded in 1919, Halliburton has more than 80,000 employees operating in 80 countries, including 15 research centers. With headquarters in Houston and Dubai, Halliburton is one of the world’s largest providers of products and services to the global energy industry.

Nearly five years into utilizing an online supplier eCatalog system, Halliburton grew frustrated with the system’s limitations on the number of users, only being able to accept large suppliers and an inability to accommodate hosted catalogs.

Objectives

As a large global company, Haliburton needed a global Software-as-a-Service (SaaS) eCatalog solution that guaranteed fast user adoption and greater procurement system utilization. The objectives were to provide easy access to supplier catalogs and websites, efficient processing of orders and to ensure accurate prices, whilst minimizing procurement time and resources.

This included speeding up the process by which staff could access information and ensure supplier content is kept up-to-date. A preferred suppliers list would ensure staff did not have to research for best value and are still being provided with a choice of suppliers. It was important to provide staff with relevant localized information and an understanding of the purchasing process within the organizations strategy for a smooth and effectively run operation. In addition, the organization needed the flexibility to adapt to changes quickly.

How Proactis helped

The Proactis solution included a comprehensive dashboard to manage all catalog activity, to facilitate buyer-supplier collaboration, and to provide visibility into catalog update status. This included using Business Support Centers (BSC) across the world as “hubs” and hosted catalogs to deploy and maintain catalogs, as well as prioritize opportunities and ensure accountability. Within a year, they expanded their catalog program by 300% and spend through the solution grew to $86M.

Using Proactis, Halliburton is now able to manage the ongoing global needs of suppliers and users: managing complete supplier on-boarding and user-friendly eCatalog search to provide optimal procurement efficiency, with visibility and accountability. The company’s $20B in spend and 126,000 eCatalog PO’s with external suppliers called for payments to be made to approximately 30,000 suppliers. The ability to view catalog approval workflow, validity periods of catalog and contracts, and number of products per catalog or supplier, has made purchasing more efficient and ensured compliance.

Benefits to Halliburton

Within 30 days, Halliburton streamlined the requisition process and eliminated 60% of Purchase-to-Pay process steps with the implementation of Proactis. This included expanding the use of hosted catalogs by 300% and providing customized order and product comparison with localization and internationalization to support global reach.

Halliburton achieved significant cashable savings including: reduced PO cost by more than 75% - using Proactis PO cost was $9.18 vs. traditional PO cost of $37.32, creating a benefit of approximately $3.54M. Contract compliance yielded a further $1M of savings.

Additionally, Halliburton’s end users and suppliers are able to use the online secure portal with assurance their information is protected throughout the engagement process.
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