Client: A global provider of high-tech products and services.
Objective: Control, monitor, and leverage the multi-billion-dollar procurement spend.
IBM’s BTO value proposition for this client: (1) Large-scale global resources. (2) Domain expertise in procurement functions.
Results: The client had numerous large business units, each buying and managing separate relationships with sources of supplies. Each business unit also had invested in its own procurement system and processes. With basically everyone being a buyer and no insight into what was being procured, it was difficult for the company to gain control and impact the bottom line around procurement. The transformation focused on reengineering and outsourcing the procurement process, including consolidating to one state-of-the-art procurement system.
The transformational solution impacted the company on an enterprise-wide basis. In addition to taking significant costs out of the process and gaining additional savings as result of consolidated buying, it now has full visibility into on-hand inventory; better tracking and delivery control on the back end of the procurement process; automated reconciliation; and better supplier relationships from managing a large amount of spend across a smaller number of suppliers.