Challenge
Embrace the future of sourcing
The client is well-known for its commitment to futureproofing its customers' businesses by technologically enhancing intelligence, safety, and sustainability. And it recognizes the need to continually update its internal processes using automation technologies to achieve this aim.
Sourcing reputable suppliers and quality materials at competitive prices is central to the company's success. But while it already had in place a preferred e-sourcing auction tool, Ivalua, adoption was low as teams held onto the comforts of legacy systems and practices.
Recognizing the urgent need for digital intervention and advancement, the company's leadership turned to Genpact as a trusted partner to lead its sourcing process transformation.
Solution
Transformation through strategies, streamlined processes, and domain expertise
Genpact delivers comprehensive global procurement support to clients, spanning the entire source-to-pay process, including purchase order management, invoice resolution, vendor management, and e-sourcing support. So, we had the inside knowledge to help the company overhaul its sourcing practices.
Following a comprehensive diagnostic exercise engaging multiple stakeholders – spend owners, procurement teams, and technology partners – we designed a future-state e-sourcing process and target operating model. Our three-pronged solution focused on:
Digital enablement: We streamlined and customized Ivalua's workflow system, which included automatically initiating sourcing event templates based on digital libraries of information and establishing connections with suppliers for specific categories of materials or services. This enhanced user experience by reducing build time and improving visibility for all
Analytics integration: We embedded real-time analytics into Ivalua, enabling live spend tracking, supplier insights, and savings reporting through a dynamic dashboard. This helped sourcing teams make better decisions and activated operational agility
User-centric change management: We tailored Ivalua training materials for supplier onboarding, as well as for category buyers and end users, ensuring everyone was fully prepared to use the platform effectively. This initiative boosted supplier participation, increased competition, and led to better negotiation outcomes
Using this approach, we not only improved tool adoption and user experience but also reduced risk through better supplier selection.
Impact
A results-driven e-sourcing process that breeds trust
We delivered significant benefits, markedly improving the client's sourcing processes and overall business impact. These included:
$61 million in realized savings over three years
A 44% shift from traditional sourcing to e-sourcing, translating to transactions worth $590 million
E-sourcing tool adoption up by 25%
E-sourcing events increased by over 30%
Beyond the numbers, this transformation strengthened trust in the company's decision-making processes. It empowered the strategic sourcing team to focus on core initiatives while streamlining workflows and improving outcomes for business stakeholders. Team confidence is at an all-time high.
With so much positivity around the project, we are now exploring how our partnership can optimize other areas of the business for future readiness.