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You are here: Case Studies  / Services  / Chemical company

Initial State

The subsidiary of an international chemical company entrusted our firm with examining their procurement processes, analyzing activities of individual sub-areas and inviting their most important suppliers to tender.

Project

In the first phase of the assignment we conducted a quick audit (Quick View). The evaluation analyzed the relationship of suppliers and spending, as well as help select procurement-related aspects to be addressed in the future. In the course of our investigation, the company obtained valuable information about their spend because their current ERP system had limited options for mapping aggregated data. Only partial data had been available on procurement indicators. 

We developed a detailed schedule for addressing the selected areas. Then we started to prepare procurements, write specifications and assess the needs to be included in tender invitations along with requests for written proposals. We used our auction tool in researching the majority price negotiations. Results were analyzed jointly with the client who then decided which supplier they wanted to sign the contract with. 

In the contract phase we supported our partner with our procurement knowledge and contract templates in order to have all economic aspects in the procurement contracts defined, ensuring quality and compliance control. (Legal verification was carried out by lawyers of the company.) 

The next step captured contract data in a database for transfer to the client’s own contract registration system built and implemented earlier with the assistance of Electool.  

Result

The results of these joint efforts was summarized by the company as follows: 

 

  • “Significant savings were obtained on procurements where we had not been able to exploit price reduction opportunities in the absence of resources or specific expertise.”
  • “We gained a more precise view on procurements and spending. Our contracts became more structured economically and also more favorable to us.”
  • “Contracts are now tracked in our contract registration system.”
  • “When procurements were completed we received a system of indicators that makes it easy to measure performance and qualify suppliers.”
  • “A buyer function was put in position between internal requesters and suppliers (in this case a staff member of Electool). This increased our efficiency and the quality of our procurement processes.” 
  • “We are satisfied with this serice method and the results and have initiated further options for cooperation in the field of driving down  costs as well.