The Buying Organisation Challenge

The Challenge

Like many large enterprises looking to enter the digital landscape, our client implemented a procure-to-pay (P2P) solution to begin the digitisation of their procurement process. This global consumer goods business chose Coupa. Whilst Coupa was the best solution for their needs, as time went by and efficiencies were growing, there were still some key challenges that they couldn’t ignore. Our client knew that the below challenges were preventing them from achieving their full purchase-automation potential.

1. Recognising a need to increase the volume of spend handled by their P2P solution

Having set ambitious targets to increase the percentage of automated purchase requisitions going through their Coupa system (helping achieve higher return on their Coupa investment), our client recognised that there was no reduction in the manual creation of purchase orders across a large proportion of spend categories, some entirely untouched by the automation process. Due to complexity around the quotation process, many of these spend categories were services. They quickly realised that their targets would be difficult to reach if they could not find a solution enabling them to handle the below categories (to name a few!) in Coupa:

Site Maintenance and repairs
Marketing
IT services
Professional services
Print and digital media
Security services
Renewable technologies

2. Suppliers connecting their quotation process to Coupa

Whilst suppliers of simple physical products could connect their online catalogues with Coupa using PunchOut, the enterprise recognised that it wasn’t so simple for suppliers of complex goods or services that required detailed quotations to be provided for each project/requirement linked to rates approved in a Master Services Agreement. The entire quotation process from quote right the way through to approval was being completed manually and there was no central visibility of purchasing in these categories. They found that most of their suppliers didn’t have the resources or the expertise to build or buy a quotation system that can integrate with Coupa.

3. Ensuring buyers only purchase services from agreed suppliers at the pre-negotiated rates

This business found that there was still a high percentage of purchasing that was being done outside of their pre-approved supplier list and their pre-negotiated rates, even where there were Master Services Agreements (MSA) in place. This meant that savings opportunities were being missed and contracts were at risk of being breached.

4. Gaining a deeper understanding of what was being spent and when

The central procurement team at this organisation were being faced with inaccurate data as a result of inefficiencies in the existing quote-to-order process. This made it extremely difficult to extract actionable spend analytics. With little time to create detailed purchase requisitions manually, business users were sending POs to be approved with minimal information to describe the proposed purchase – there was no visibility of the different line-items included in the requisition, making analysis and reporting very difficult.

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The Solution

Recognising that free forms, web forms and PunchOut catalogues were unsuitable options for services categories and other complex purchases (free forms and web forms rely on the buyer knowing the elements that make up a request and carrying out the data entry themselves, and PunchOut only being suitable for items rather than services), our client chose G-Quotes to help them reach their purchasing automation goals.

Not only does G-Quotes provide their services suppliers with a low-cost, intuitive online quote-building tool, but it also connects suppliers of these services with the requisition API in their Coupa system. Digital quotations can now be built and sent to buyers who can automatically raise purchase requisitions at the click of a button with no manual data entry.

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The Benefits

1. Procurement

The central procurement team now has visibility of spend in these services categories meaning contracts can be monitored and pre-negotiated rates can be leveraged. These insights allow procurement to identify costs savings opportunities for future contract negotiations.

2. Requisition Approvers/Managers

Managers can now make informed approvals/rejections based on rich and accurate information.

3. Business user

Business users responsible for raising purchase requisitions can now avoid manual data entry, resulting in process efficiencies and rapidly speeding up the delivery of requested services.

4. Supplier

Not only do the suppliers using G-Quotes receive purchase orders 80% faster than before (meaning faster delivery of the service and faster payment), they have also positioned themselves to succeed in the future as more of their customers digitise procurement.

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