Vitrociset, purchases bring value to the company with e-procurement

By SynerTrade

The modular integration of SynerTrade's Accelerate platform allows the Italian company, active in the security and defense, space and transportation sectors, to automate the entire purchasing process by adding a fundamental element to its digital transformation path.

Digital Transformation is profoundly changing the heart of businesses at every level. The integration of automated processes allows all departments the status of real business units even to departments traditionally considered to be supporting, going beyond the simple execution of service functions. In Procurement, benefits such as traceability of processes, risk reduction, data security and transparency of operations do not put the technology in opposition to the human factor but enhance its effectiveness behind the scenes of production.

This is what occurred at Vitrociset, an Italian company deeply oriented to change and innovation, providing its client companies with systems to enable these factors. Vitrociset has completely transformed the processes of the purchasing function with the integration of Accelerate, SynerTrade's cloud platform capable of supporting the entire purchasing cycle, creating value for the business and giving rise to a best practice of change management in e-procurement.

The scenario

Vitrociset is a high-tech company dedicated to the defence, transport and aerospace markets, with more than 800 employees and revenue of approximately 160 million Euro. The role of Vitrociset is to guide its customers along the path of digital transformation through solutions and services of logistical support, satellite systems and communication, simulation and training, and logical and physical security. Vitrociset is a System Integrator that participates in private negotiations and public tenders. It is not surprising, therefore, that purchases play a fundamental role.

Vitrociset's procurement activity extends to ICT purchases, management services, construction works, engineering system design, indirect and general services. A complex system in which the management of suppliers, the transparency during tender phases, the timing of the processes are just some of the aspects that a platform that can automate the process can make fall within the quality and compliance standards of a company competitive on the market.

After a selection among the main platforms on the market, Vitrociset has identified SynerTrade's Accelerate as the most suitable solution to achieve the double objective that the purchasing function had set itself: migrating to a cloud platform a consolidated system in procedures and culture of employees and, at the same time, confirming to the business the growth potential generated by e-procurement, in the short and long term.

The reasons for this choice is based on three fundamental characteristics of Accelerate: its modularity, that is able to cover every purchases aspect, responding to the specific needs of the context and a winning weapon for introducing change into the company in a gradual manner; ease of use and integration with other company systems, both internal (ERP in the first place) and external (Cerved solutions or other Business Data sources for supplier profiling), and availability in the cloud, able to streamline their adoption without increasing management complexities and investments in IT.

The project

The step-by-step design with which Vitrociset transformed the purchasing process with SynerTrade Accelerate components is impressive but was developed in record time. Reviewing each step of how much integration allows you to grasp the value of using a modular platform in total flexibility.

"We started on September 13, 2016 with the onboarding part of about 500 companies", explains Gianluca Adduci, Supply Chain Processes Improvement Manager of Vitrociset and Project Manager, "a delicate phase in which we invited our suppliers - even historical ones - to collaborate in our transformation process by registering with the system and transmitting the undoubted mutual value of this evolution".

In March 2017, the qualification of suppliers was enhanced by the integration with Cerved's economic-financial databases. "We have provided Vitrociset's buyers with a single environment in which to check the supplier's rating and not only close to signing a contract," adds Adduci. "In the future, our information repository will be able to be dynamically fed by other external tools, such as data from anti-money laundering lists. Not to mention developments in the active scouting of new suppliers. "The integration with Atoka, a semantic platform that carries out keyword searches, could enrich Accelerate with new names to profile and possibly involve in the requests for offers".

The following month it was the turn of digitizing the processes related to the bid, fundamental for the business of Vitrociset. "SynerTrade is very valuable because it allows us to meet internal and external compliance requirements," Adduci points out. "The system allows us to fully trace the phases of the bid and to automatically produce everything necessary for audits on the selections to which we are subject". Through the reporting capabilities contained in Accelerate, a dashboard containing data and information on agreements and contracts with suppliers was made available to Vitrociset's management in September 2017, which is easy to consult and can provide immediate answers on the advantages of computerised management of purchases.

The contract management component was added to the environment in December 2017. Thanks to this functionality, Vitrociset effectively manages the most complex relationships such as Master Contracts, Subcontracts, NDAs and Commercial Agreements. But that is not all. "We are working on the integration of our SAP ERP and SynerTrade, both for the supplier demographics and the bidding process," says Adduci. "The digitization of our partners' proposals, which previously took place via email or telephone, will allow us to produce orders automatically by exploiting the interface with Accelerate".

The project will then be enriched with the performance monitoring phase through a Supply Evaluation to which internal contacts will contribute and which will affect the supplier's rating based on judgments on timing, product quality and price competitiveness.

The results

The approach with which Vitrociset has become the leading role of this decisive project of innovation confirms how, in every organization, it is the organizational and cultural change that makes the difference, and at the same time, technology is the enabling factor for rethinking processes previously carried out in another way. "Today, the purchasing function is not only asked to buy the best but to use accredited suppliers," explains Giovanni Macellari, CPO of Vitrociset. "With SynerTrade we have been able to overturn the paradigm by focusing on who provides the service and no longer just on the product, creating a supplier register constantly reviewed by external partners that allows us to quickly identify the most suitable people for each purchase.” An ecosystem to which internal buyers contribute with their final evaluation, which is fundamental for decisions and which gives procurement - now automated - a decisive role for the company's business.

"The digitization of purchases involves an innovative review of the way we work, to the benefit of risk mitigation and, above all, the generation of time and cost savings not indifferent and reinvestable," Macellari concludes. "Our company has a propensity for innovation in its DNA, and thanks to SynerTrade, the procurement and supply chain management now operates in line with other company departments. Together we can contribute to the digital transformation of Vitrociset, to make it increasingly ready and competitive for future challenges.”

 

About the author

SynerTrade

SynerTrade, Inc. leading global provider of flexible procurement management software that optimizes purchasing and finance processes.