Case Studies

Sourcing

Communication Company
Success Story: Procurement ROI

Improved Adoption By Using Project Management

The Challenge:

Double Adoption Within 6 Months

Our customer separated from its parent organization, leaving their Procurement team with no visibility into the company’s spend, no workflow, manual processes and approvals, and long cycle times. After they partnered with Determine, the company noticed a drastic improvement in the previously challenging areas. But, they also recognized the Procurement team had not been accepted across the organization. As a result, the Procurement team was challenged to doubling their previous adoption within six months by becoming a strategic business partner to seven new business units.

The Solution:

Track Organizational Savings, Performance, and Cycle-Time

The primary goal was to make sure new business units knew about the Procurement team and how Procurement could support each business unit’s needs. The Procurement team developed marketing messaging describing the function of the team, why the business owners should work with them, and the return and value other business units had received. By leveraging Determine SmartSource and SmartAnalytics, the team was able to track organizational savings, performance by business unit, ROI, and project cycle time. The sourcing solution turned into a true project management effort that gave our customer visibility into every project they evaluated and performance metrics the team could use to evangelize their successes.

Procurement ended up paying for ourselves 70 times!”

— eSourcing Manager, Procurement & Strategic Sourcing Director

The Results:

Achieved $43M in Savings

In a very short time, the Procurement team had reached 100% adoption of seven new business units. This early success allowed the company to expand into nine new business units and save $29M on $64M of new investments. In fact, the company touched $204M in projects through Procurement’s collaborative efforts and saved $43M. Procurement’s goal was to pay for itself ten times; In one year, they ended up paying for themselves 70 times! The company also reduced costs by lowering call volumes to the help desk, adjusting maintenance support tiers, and consolidating wireless phone spend.

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