Enabled Leading Steel, Ore, Mines & Quarries Manufacturing Company Achieve 5% In Net Savings, Improve Service Levels & Reduce Cost With MRO Procurement Services (PR To PO)
The world’s second-most geographically diversified steel producer in the world wanted a MRO (supplies for maintenance, repair and operations) partner who could strategically drive efficiencies & operational excellence across its procurement management processes. Conneqt handles Procurement management processes for the manufacturing client including PO creation (PR to PO) for MRO, Services, Bulk Purchase, Capital Purchase, etc.
Challenges
- Long purchase cycles
- Delayed payments
- Poor cash flow visibility
- Low PR conversion rates
Solution
About Activity:
Handle 80% Supply Commodity and 20% Services Procurement
- Help in conversion of all Purchase Requisitions (PRs) to procure Materials, Services and CAPEX for defined Material Group in SAP to Purchase Orders (POs).
- Various Business Functions generate the PR’s and assign them to Conneqt Team
- Conneqt Buyers team manages end-to-end PO processing in co-ordination with Commodity Managers and Buying Departments at client end.
The Solution:
- Procurement Strategy focused on creating strategic advantage
- Procurement Technology:
- Strategic sourcing tools (auctions, eRFX & contract management)
- Automated procurement process (SAP)
- Spend management tools to understand & manage MRO expenditure & compliance
- Procurement Process:
- Leveraged domain expertise to eliminate transaction-oriented procurement activities
- SOP-based approach to standardize and align processes across enterprise
Results
- Resulted in 5% Savings for Business (Negotiation & Strategic)
- PR Conversion Rates stand at 60% (Higher than Industry benchmark of 55 %)
- 20+ Customer Appreciations in last 5 months
- Expertise available to handle Import POs
- Reduction in PO processing or Cycle time (MRO stands @ 33 Days & Services @ 25 Days)
- Reduction in Long Pending (High Ageing PRs <60 days) > 90 Days stand at Zero
Testimonials
Dear Team Services and CBSL,
Congratulations on achieving this. It’s always a pleasure to hear improvement in services. My sincere thanks to the team for the agility, hard work and sincerity! I also congratulate CBSL team on crossing 900 MRO POs in Oct. In view of the constraints of festival, ECM and low incoming PRs its good healthy number. Keep it up and do better in Nov.
I am more delighted to note that pending PRs greater than 90 days is nearing 40. I’m sure by next month we will hit the dream figure of zero pending.
Marking a copy to CPO sir and Chief MRO and Services – just to inform the good work.
Regards,
Head Procurement