Are you spending too much due to poor enforcement of sourcing and procurement policies?
Millions of dollars of investments in sourcing and procurement systems have been justified on the basis of consolidating spend to achieve leverage, identifying the best suppliers through discovery best practices, and using transparent bidding to negotiate the best prices...all leading to huge forecasted procurement cost savings to the enterprise. But the savings never seem to completely reach the bottom line. Where is the disconnect preventing full savings realization?
Put succinctly, the problem is enforcement. Commodity managers, buyers, and approvers often have limited ability to enforce usage of preferred suppliers resulting in spend leakage. Compounding the problem is the fact that requestors often do not have insight into Preferred Supplier Lists, and required approvers are often left off of approval processes leading to inadvertent maverick and off-contract spend. Given the number of procurement execution systems inside the typical enterprise, combined with the long IT backlog around systems integration and business process management projects, it’s no surprise that companies can’t leverage their negotiated buying power.
Aravo can help
Aravo has helped many companies across industries save money by managing processes and workflows around automated supplier selection and enablement, thus reducing administrative costs and ensuring low cost, approved suppliers are always the first choice.
With Aravo you can:
- Achieve bottom-line benefit by driving spend to preferred suppliers
- Increase company leverage with preferred suppliers
- Reduce requisition cycle times through visibility into preferred suppliers
- Improve efficiency by automatically routing requests to team members with needed procurement expertise based on internal hierarchies
- Reduce procurement costs by suggesting suppliers capable of providing the same goods or services at lower prices
- Drive procurement productivity through a single common process
For more information, please click on one of the choices in the Learn More box to the right.
"With Aravo, Boston University suppliers now register online and must choose BU standard payment terms of N60 or enroll in the University's accelerated payment program. This initiative has improved the University's working capital position on a one time basis by an estimated $16M on a supply base of $325M"
Richard Stack, Director of Sourcing & Procurement, Boston University