Centralize and Reduce Indirect Spending with a GBS Strategy

Opportunity

Opportunity

A water equipment, technology and services company’s indirect transactional procurement activities (purchase request to purchase order (PR-to-PO), tactical buying) were completely decentralized and done locally on approximately 100 enterprise resource planning (ERP) instances and/or tools across over 28 systems. No enterprise-wide tools existed to enable the PR-to-PO and PO-to-invoice process. The process maturity of the local purchasing groups varied widely; there were a high number of after-the-fact PO’s. 
A preferred supplier list did not exist, leading to a very high supplier count. Master data was not consolidated, hindering corporate-wide visibility. The company engaged ISG to not only help design a global business services (GBS) strategy to centralize indirect spend, but also to help select a tool to enable the set-up of the GBS services.
Imagining IT Differently

Imagining IT Differently

ISG conducted an as-is process functional analysis and identified process consolidation and rationalization opportunities by leveraging robotic process automation (RPA) and other digital strategies to cut the costs while enhancing the customer experience.
ISG facilitated a request for proposals (RFP) process to select a procure-to-pay technology solution. The RFP also included selecting the service provider to implement the tool and the associated services via a GBS organization.
ISG identified and helped implement specific RPA initiatives to integrate across 100 ERP instances and tools across the company’s enterprise.
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Future Made Possible

  • The company obtained potential savings ranging from three to seven percent.
  • It identified over 100 ERP instances and tools with opportunities to integrate and implement RPA.
  • It benefited from ISG’s RPA expertise throughout the implementation process.