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| Case Study |
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'Procure-to-pay' automation streamlines the
procurement process |
Automation of procure-to-pay process proposed by Patni, helped the world's leading stock
exchange to check maverick buying, consolidate supplier base, reduce duplication in
procurement, and squeeze administration costs from the purchasing process.
The Client
The client is the world's leading and one of the most technologically advanced stock exchanges. Over the
years, the stock exchange has built its reputation by being the most competitive venue for trading listed stocks and providing investors
with the lowest transaction costs, and increased liquidity.
The Challenge
The client has consciously leveraged technology to improve all the critical
aspects of its business. However, the rapid growth posed its set of
challenges especially in the procurement process.
The requisitioning and procurement of all articles ranging from office
supplies to other business critical items or services did not conform to a
standard process. Different departments followed different processes and
placed orders with suppliers of their choice. The existing system lacked the
capability to consolidate and track the purchases made across the
organization. The non-availability of purchase history and off-contract
purchasing prevented the client from availing volume-linked discounts,
despite having the purchasing volumes of a mega corporation.
The deficiencies in the procurement process fueled the need to transform
the traditional ways of requisitioning and purchasing into a seamless Webbased
procurement. The need for a Web-based platform was also necessary
for the consolidation and analysis of information pertaining to enterprisewide
procurement. Transformation, both in process and IT capabilities was
inevitable as the client wanted to improve efficiencies in the purchasing
process.
The Solution
Patni worked closely with the IT as well as non-IT staff of the client to gain an
understanding of existing processes, and identify easy-to-use enhancements that
would significantly reduce the manual efforts and simplify the process.
Furthermore, the feedback from the suppliers was also considered while finalizing
the specifications of the solution.
Patni recommended the client to use a self-service requisitioning capability with a
user-friendly web-shopping interface and workflow-based approval mechanism. In
addition, Patni suggested that the new solution be made compatible with the
existing systems and transactions with online marketplaces or consortia be carried
out using native integration capabilities of Oracle.
Oracle iProcurement formed the central part of Patni's solution, so that the client
could leverage its existing investments in Oracle applications. Patni configured all
the existing processes e.g. catalog management, online requisitioning, purchase
order approval, receipts creation etc. as per the iProcurement solution. It also
enabled punch-out to a supplier's web store like OfficeMax as well as marketplaces
and consortia.
The Technology
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Operating System:
HP UNIX |
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Enterprise Application:
Oracle iProcurement 11i. |
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The Benefits
The solution facilitated localized purchasing by different
business units while allowing centralized control and
monitoring. The solution also enabled the client to:
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Ensure tighter control over spending and authorization |
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Reduce the time for processing requisitions from 20 days to
3 days |
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Avoid duplication of requisitions by consolidating the
purchase information across the enterprise |
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Eliminate the need for paper-based requisitions and the
delays that usually accompanied such transactions |
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Improve relationship with the suppliers as their payments
were speeded up due to faster approval |
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Leverage the combined purchases of all its business units
for negotiating better discounts |
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Participate in transactions with a large number of web
stores or online marketplaces, as the solution was
compliant with technology standards like XML for document
exchange and UNSPSC for catalogue content |
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Enforce consistent practices in procurement across the
organization through checks and controls. |
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