Randstad realizes a more efficient Purchase-to-Pay process and more control over spending with Proactis

Executive overview

Profile

Sector
Professional Services

Number of
employees
38,000+ globally,
approx. 5,500 in
The Netherlands

Number of invoices
processed
80,000 in
The Netherlands

Customer since
2017

Operates 
Globally

Objectives

  • Complete management of costs.
  • Transparency of ordering and invoicing throughout the chain.
  • Ordering without complications: ease of use and transparent processes.

How Proactis helped

  • Solution for contract, category, supplier, vendor and performance management.
  • Approval based on the order instead of the invoice, in a single digital process.
  • Ease of use thanks to an intuitive application with simple process.

Benefits

  • New Purchase-to-Pay (P2P) process enables better control of expenditure.
  • Improved spend management with full awareness of costs along the entire chain.
  • Processing of invoices using fewer FTEs.
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Profile

In 55 years, the Randstad Group has grown from a pioneering temporary employment agency into a large Dutch multi-national human capital company. Randstad helps people find employment every day. It is also able to help companies use their available capacity better and more efficiently, thanks to the dedication of its people and the use of the most innovative customized solutions. The company has over 38,000 employees, and more than 650,000 people work for clients through Randstad every day. This makes Randstad the world’s largest HR service provider.

Randstad Group Netherlands was founded in 2015 by merging various organizational units within the group. As a result, Purchasing and Accounts Payable were centralized and became the responsibility of Business Services (the SSC). Historically, Randstad Group Netherlands had always worked with multiple independent systems – each with its own set-up and process – to order items and services and create invoices. Due to the fragmented ordering and invoice processes, the organization ran into various problems. There was insufficient control over purchases and approval of orders often took place afterwards, after the receipt of the invoice. As a result, the organization had only limited insight into outstanding commitments and expenditure. A complete and up-to-date overview of current supplier contracts (below 100 Euro) was also not available, which meant that agreements were not properly adhered to.

Objectives

Ultimately, the organization could not purchase efficiently enough and incurred unnecessarily high costs. In order to manage costs better and get a complete overview of the entire chain, Randstad wanted to introduce a single ordering and payment process for the entire organization. It wanted to replace the existing tooling with a single integrated (Software as a Service) application that could be used for both contract management and order- and invoice processing. Processing everything in a single application makes it possible to get a better grip on expenditure and also increase transparency. In addition, ease of use – ordering without complications – was also an important objective. It had to be as convenient as possible for the user.

The new process should make it possible for departments and employees to independently purchase and place orders on a decentralized basis. And the new solution should also be flexible and scalable, allowing it to grow with the organization in both the Netherlands and internationally.

How Proactis helped

Randstad found the right solution and implementation partner in Proactis. According to Rogier Wijnands, Principal Staff Manager Business Services, “Randstad opted for a phased deployment per department to familiarize employees with the new way of working. With the new solution, employees can directly place their orders in the web shops of the preferred suppliers, as they are linked to the platform. This not only facilitates easier ordering, but also gives the organization a better, up-to-date overview of any expenditure and outstanding commitments.”

An automatic authorization flow ensures the approval of each order. Incoming (XML) invoices are automatically matched with the orders and receipts pre-booked in the system. Additionally, a single, central and up-to-date contract database permits Purchasing to share new contract agreements with suppliers via the platform within the organization. This means that employees always have up-to-date and correct information regarding prices and suppliers.

Benefits

With the new solution, everything is processed within a single application so it has become easier to gain insight into the largest purchasing categories and which suppliers are responsible for the most expenditure. The way in which orders and invoices are authorized is now so transparent, that maverick buying no longer occurs. In short, Randstad now has true control over the Purchase-to-Pay process. From start to finish. Procurement compares supplier spending on a quarterly basis and, if necessary, discusses terms and conditions, discounts and the use of contracts.

According to Wijnands, the biggest gain is that Randstad Group Netherlands now has a much more efficient P2P process. The administration of expenditure and commitments is much clearer and finally under control. The number of hours required for invoice processing has decreased drastically (by 3 FTE). The reason for this is that Finance only has to handle the exceptions. One third of the 80,000 invoices is fully processed automatically. Randstad still makes significant progress in this regard every day. The flow of physical invoices has become non-existent. In addition to these tangible savings, Wijnands also considers it an important gain that the organization now has a clear and up-to-date idea of its expenditure at all times. Better cost awareness helps Randstad spend Euros more effectively, keep control of budgets and avoid wasting valuable time and money.
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