CHALLENGE & OPPORTUNITY

A design-build contractor of renewable energy powerplants was consistently penalized for late vendor payments.  Internal business processes lacked transparency and inconsistently tracked procurement spend.  Systems data structures were not standardized and lacked maturity, creating complexity and inability to manage spend categorically and leverage economies of scale with strategic sourcing.  As a result, service levels and operating costs were not controlled.

SOLUTION HIGHLIGHTS

• Assessed & identified immature, non-standard processes that caused complexity, inefficiencies, and reactive execution capabilities
• Designed, tested, and implemented a Procure-to-Pay (P2P) process which streamlined purchase order throughput
• Transformation of Enterprise Resource Planning (ERP) tool enabling new P2P process

KEY BENEFITS

• Standardized procurement processes, systems, and data structures
• Decreased procure-to-pay cycle-time, increased transparency of budget commitments, and increased spend accountability
• Capture of early-pay discounts and process/technology enablement for future category management and strategic sourcing initiatives