Frisian Water Board automates the entire ordering to payment process with Proactis

Objectives

In 2014, Frisian Water Board changed to a process-driven way of working, in which the operational procurement process, from placing orders to invoice processing, was examined. The organization came to the conclusion that many employees did their own orders, their own way, often done without prior approval. Each employee had their own way of working and, as a result, employees or departments often placed orders outside of current contracts. This made it difficult to get a clear picture of agreements, the current status of orders and obligations. It was also not clear what and how much was ordered, or from which suppliers. This, in addition to the need to digitize the entire procurement process, was the reason for a complete review. Purchasers, orderers and other interested parties joined forces to create a joint blueprint for the best way forward.

The objective was to establish one uniform way of ordering and invoicing (Purchase-to-Pay) for the entire organization. By standardizing the operational ordering process and having all purchases from current framework agreements run through one central system, the Purchasing department expected to achieve greater efficiency and transparency in the purchasing process - and ultimately save costs. Any new way of working had to be supported by one integrated system in which contract management, order placement, approvals, the monitoring of budgets, processing of orders and purchase invoices could take place. For the solution, the Water Board did not want the complexity of an ERP system, but the flexibility of a best-of-breed solution that could communicate seamlessly with the existing financial system. Based on these requirements, a tender was launched in the market, with Proactis ultimately being chosen.

Benefits

Kristian de Jong, Purchasing Advisor at Frisian, believes transparency and efficiency in the processes are important benefits of the new way of working. "The platform immediately gives us a complete overview of our orders, commitments and expenses, with a clear audit trail. We now have more control over budgets and can monitor the status of outstanding invoices much more closely. We are also now able to detect deviations, for example, we recently discovered that a supplier had inadvertently invoiced too much in a certain period of time and that this did not correspond to the agreed rates. As a result, we were able to reclaim a considerable amount."

It is estimated that over 10,000 orders and 20,000 invoices pass through the system on an annual basis and more than 300 contracts are recorded centrally. By standardizing our processes, we also gain access to strategic management information. This helps us to further optimize processes. With the valuable insights provided by Proactis, we can be better prepared for a tender," says De Jong. "Have we made good use of the possibilities offered by a contract? Or can we bundle specific procurement flows? With the answers we get from the system, I am now a stronger procurement professional, especially in negotiationss with internal clients. As a result, as a Procurement department, we make a substantial contribution to the broader objectives we have as an organization."

Winands concludes: "Over the past few years we have succeeded in implementing significant professionalization in our operational procurement. We are proud that the Frisian Water Board is an example for other public organizations. They are impressed by the results we have achieved. The implementation of such a process affects a lot of people in the organization, so it's important to make sure you discuss it widely within your organization in order to create support. Only then will the project have a chance to be successful.”