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jennifer_scholze
Contributor
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Every company wants to increase its efficiency - one area that many are finding success is procurement.

 

Customers have common ideas when thinking about how to improve the procurement process.  They want to:

 

  • Free up Procurement to drive strategic buying

  • Maximize spend with key suppliers to lower prices

  • Expand use of catalogs and extend purchasing to casual user

  • Improve straight-through invoice processing to lower costs, capture more discounts


 

One leading building materials company, GAF, focused on the procurement process - and had some strong results summarized below:

 

Read the Story

 

 

With 23 plant locations and annual sales approaching $3 billion, GAF is North America’s largest manufacturer of commercial and residential roofing.  A key to its success is a commitment to innovation and product quality. Contractors and home builders rank GAF number one in shingle quality, and home builders recognize GAF as number one in innovation for shingles and ridge ventilation. GAF is likewise committed to process excellence across its procure-to-pay operations. While a first step involved moving to an external invoice processing system, the results were less than stellar: only an 8% touchless processing rate, dependency on buyers for invoice processing, and too much rogue spend.

 

GAF focused on this procure to pay process - and dramatically improved its straight-through invoice processing rate while also driving compliance through extended use of catalogs and automated matching.

 

 

Benefits GAF is seeing

  • Enabled >975 suppliers in first phase

  • Increased touchless invoice processing from 8% to 67%

  • Automated 60% of Maintenance, Repair and Operations transactions

  • Easy to use for personnel in plant stores and casual users

  • Dramatically reduced rogue spend and lowered prices by increasing volumes with select suppliers

  • Achieved 100% straight-through invoice processing with vending machine inventory off catalogs

  • Captured more early payment discounts