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An American manufacturer of secure identity solutions, part of a global conglomerate, had already established a successful eRFX and eAuction program. Next up was tackling the thousands of supplier contracts in its filing cabinets and hard drives.
Finding new savings through collaboration
As a complex, global conglomerate, our customer was looking to find better ways to increase collaboration across its many business units, geographies and industries. By implementing Scanmarket Contract Management for indirect spend, they were able to start identifying areas of spend that had concurrent contracts, common spend areas coming up for bid, and price discrepancies from one contract to the next. While the initial value proposition for the contract management effort was based on more typical goals such as visibility, standardization and audit compliance, they found that there were also hard-dollar opportunities by combining forces.
According to the client,
“Using the Scanmarket Contract Management system led to lots of new conversations about opportunities that we hadn’t had previously.”
In one example, a category as simple as AA batteries was able to yield $50k in savings just by joining forces with other groups within the broader global conglomerate. If you can find $50k in AA batteries, who knows what larger opportunities are out there with better collaboration?
As both eAuction and Contract implementation leaders, the customer was able to take advantage of Scanmarket’s easy-to-use platform with spend owners in various parts of the business. Rather than having to set up and run all events, the client contract lead would help with the first few efforts and then be able to step back and provide support. And the spend owners were able to execute their own events once they got familiar with the system.
Immediate access to support
Additionally, the customer has made extensive use of Scanmarket’s Quick Call feature where spend professionals can get immediate access to an eSourcing expert.
“I was running a particularly high-profile, complex freight bid with many lines and bidding parameters. When we ran into a complication, I was able to get a Scanmarket consultant on the phone within one minute and had our resolution within five minutes. The Quick Call service is one of my favorite features of the Scanmarket platform.”