The Challenge

As part of a wider procurement transformation journey, Alfasigma S.p.A. needed to set up an initiative to digitalize supplier relationship management and simplify procurement processes for indirect spend. The goal was to provide a smart and intuitive purchasing experience that optimizes sourcing and procurement processes in line with procurement best practices. In addition to improving procurement and supply chain, the company sought to create safeguards from increased costs and maverick spending.

The Impact

Alfasigma S.p.A. has improved its sourcing practices and reduced maverick spend, resulting in several benefits throughout the procurement areas. Since implementation, they have reduced the execution cycle time for the procurement process and increased process compliance by automating budget-check verification before purchase-request approval. Additionally, the supplier collaboration process has been shortened by digitalizing the exchange of procurement documents.

With the supplier collaboration functionality, the company has been able to minimize stock-out risk and days payable outstanding, enabling suppliers to respond to specific goods and service-delivery requirements. Furthermore, the receiving process timeline and errors have been reduced by configuring the receiving functionality to allow users to initiate the process of good receipts or service-entry sheets. The company now limits maverick spend opportunities and increases procurement compliance by managing catalogs as an approved source of supply.

Lastly, the customer has enhanced tactical sourcing capability and digitalized the procurement team's engagement process, digitalizing supplier relationship management, and simplifying procurement processes with tools to guide people to preferred buying channels.