- Centralize all purchasing activities
- Automate and optimize workflows
- Improve reporting for better forecasting
Before selecting Determine, Aon France handled their entire purchasing process from purchase requests to invoice matching, manually. With their regional French headquarters in Paris, and eights subsidiaries in different parts of the country, the purchasing function was completely decentralized.
In order to improve the organization’s processes, Stéphane Dubois, General Resources Manager, wanted to centralize the purchasing function. “The purchasing department was created in 2003 to centralize our purchasing activities. The goal was to standardize processes and approval workflows for indirect purchasing,” says Dubois.
Besides this standardization, the average approval time was still long mainly because of the use of paper trail leading to document loss. In addition, there were a lack of compliance, high percentage of maverick spends due to a lack of budget monitoring.
Aon was looking for a solution that could automate all their operational tasks while monitoring their performance. They also wanted to drive better spend control and better financial security by minimizing discrepancies.
By automating our procurement process, Determine drives better purchasing management, from contracts to invoicing, as well as a better price negotiation power. ”
“ Determine has eliminated the issue related to paper trails, improved the quality control of our purchases, but also has been driving better reporting and better forecasting ”
— Stéphane Dubois
General Resources Manager, Aon France
Determine was selected by Aon for its flexibility and its capacity to automate their source to pay process while improving control.
“Due to the evolution of IT systems and the high demand of our executives for cost reduction and financial security, the big trend of purchasing optimization projects has led us to implement a procurement software to manage our indirect costs.” says Stéphane Dubois
That implementation was rapid, as Aon deployed Determine’s solution in only a few months. The main objectives of the deployment was to centralize the entire purchasing process, to automate approval workflows, and to improve Aon’s reporting capacity in order to improve their forecasting capacity.
Using Determine, Aon has been able to manage all their purchasing within one centralized application. The organization has improved their supplier management as the organization deals with +600 suppliers. Determine has also led to better contract management and sourcing practices (RFPs).
By getting rid of paper and moving to electronic invoicing, Aon has been able to speed up the invoice matching process, simplify their dispute management, leading to indirect spend cost reductions.
In addition, by using Determine’s reporting capacity for quarter end, Aon has been improving their spend analysis.
Thanks to its flexibility, Determine has been able to answer Aon’s specific requirements. Determine’s intuitive interface has ensured fast user adoption for 150+ users, minimizing change management costs.
Determine has become a source procurement optimization for Aon, creating real value add using their procurement automation software. Using Determine has led to reduced operational costs, with one of the reasons being the reduction of maverick spend by 90%.
By centralizing their entire purchasing activities and using Determine, Aon has achieved an economies of scale. Aon can now do the same functions with less time and money effort, translating into 15% cost savings for the company. Determine has also simplified the RFP process while reinforcing Aon’s negotiation power with their suppliers with an estimated 10 to 15% of savings coming from the creation of better purchasing opportunities. In 2010, Aon France upgraded to a newer version of Determine. Today Aon keeps on reducing costs by expanding the use of Determine’s solution to more departments.