eProcure-to-Pay business case
An eProcure-to-Pay solution offers the potential to free up the organisation from transactional work and rework, enable it to improve compliance to contracts by both employees and Tier 1 suppliers and renegotiate contracts based upon guaranteed volumes.
Issue:
The client operates in a regulated market with continued pressure on costs and a high capital budget. The client had previously outsourced large amounts of capital and operational work to large contractors and therefore needs to work closely with its Tier 1 suppliers to ensure quality, service levels and value for money.
Solution:
Capgemini conducted a review of the current procure-to-pay processes and systems and a review of the 3rd party spend. A high level future state was designed and a gap analysis conducted. Key commodities were investigated in detail and improvement opportunities were identified and quantified. Benchmarking information was used to validate these opportunities. All this was brought together to produce:
- Business case, transformation map and implementation plan for change
- Outline design for a web-based eProcure-to Pay solution that integrates with the company’s SAP ERP system and other 3rd party systems
- Identified quick wins (process, systems and sourcing)
- Risk assessment & mitigation plan and organisational impact assessment
Results:
- Significant opportunity to reduce 3rd party spend through improved compliance and better negotiated contracts (that are a direct result of the eP2P solution)
- The per annum cost reduction is estimated to be £24m, or 3% of spend
Softer benefits also included:
- The elimination of transactional work for the Procurement department, thus enabling more strategic work to be undertaken
- The simplification of the process for the requisitioners (including 3rd parties)
