Leading energy products and services company delivers measurable savings and drives continuous improvements through procurement outsourcing

Situation:

A world leader in energy products and support services, the company had an urgent need for savings but limited resources dedicated to indirect categories. Procurement's ability to drive savings was further impacted by long-standing traditional operational processes and supplier relationships. To meet company savings initiatives, procurement recognized they need to accelerate utilization of SAP EBP, reduce expenditures on indirect goods and services globally, promote collaboration and visibility across business units and drive compliance, cost savings, and ongoing improvement.

Solution:

ICG Commerce was selected to provide the company with comprehensive procurement services including strategic sourcing, savings implementation, purchase-to-pay processing and ongoing category management, across seventeen purchasing categories. The company began to immediately leverage ICG Commerce's integrated procurement infrastructure, which includes deep category sourcing experts; a best-practice-based Buying Center; and a comprehensive technology platform for the purchasing of both goods and services. The procurement technology solutions was integrated with the customer's SAP system to help streamline the company's global procurement process, drive savings realization and provide better visibility of indirect expenditures.

Results:

In less than nine months the ICG Commerce team completed the strategic sourcing and implementation of 16 indirect buying categories, launched sourcing projects for an additional ten categories and automated the purchase to pay processes across both goods and services. The team has achieved average savings of 8 - 25% savings on strategic categories. Private catalogs to support new suppliers and SAP EBP were built in 8 - 10 weeks.