Company Profile
Global market leader in subsea systems and a leading provider of technologies and services to the oil and gas industry. Company helps Exploration and Production (E&P) customers overcome difficult challenges with onshore and offshore drilling, completion and production technologies and services to improve their returns.
ProcurePort Solutions and Services Utilized
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Strategic Sourcing Software – e-RFI, e-RFQ, e-Auction
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ProcurePort Sourcing Services – Fully managed e-Sourcing event consulting and execution
Summary
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The technology & service provider needed to source logistics services for global shipping
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Automate its current quoting process, and introduce auctions to both, increase participation of suppliers and improve economics of the transaction
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ProcurePort’s e-Sourcing platform provided both the configurability and advanced capabilities needed to enable:
- Air Freight
- Ocean Freight
- Land Freight
- More than 50 sourcing events
- Across 35 Global Suppliers
- Spanning 32 Countries
- Across 600 Lanes
By automating its quoting process, the client was able to quickly get multiple price points from its suppliers across hundreds of lanes globally for Air, Ocean and Land Freight. The use of e-Auctions further increased competition across suppliers generating significant cost savings.
Business objective
The Global subsea systems technology and service provider needed to automate its current bid collection process, which involved gathering bid quotes for its Air, Ocean and Land Freight globally. The current manual process was inefficient, time consuming and required manual analysis of thousands of bid points across global shipping lanes to facilitate the final award process. Additionally, the suppliers that provided the logistics services also found the manual process cumbersome. This resulted in suboptimal pricing and missed opportunities to enable supplier competition.
Procurement challenges
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The company had a large logistics spend for Air freight, Ocean freight and Land freight that required to be negotiated to generate cost savings.
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Negotiating shipping costs globally across hundreds of lanes with multiple global suppliers was time consuming and inefficient
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The current manual process of shortlisting and selecting suppliers for the different types of logistics across different countries for an optimal financial outcome was inefficient.
Selecting ProcurePort to meet their procurement challenges
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The company selected ProcurePort after evaluating a range of e-sourcing and e-auction solution providers. ProcurePort offered the following capabilities that uniquely addressed client needs:
1) Advanced e-auction engine to handle large and complex transactions
2) Ease-of-use for the participating suppliers
3) Ability to customize and configure the solution to handle the various bid formats required for Air Freight, Ocean Freight and Land Freight
4) Advanced, real-time reporting to analyze thousands of bids points across hundreds of lanes, globally across multiple suppliers, allowing the buyer to make quick award decisions that generated significant cost savings
ProcurePort Advantage
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Advanced e-sourcing capability to manage complex auction events
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Easy-to-use solution drove higher participation from both buyers and suppliers
- Intuitive setup and responsive auction engine allowed events to be initiated and completed in a very short period of time
- Dynamic multi-round bidding, automate supplier qualification based on criteria set by client
- Advanced rules engine enabled configuration of bid breakup of various price points required for Air, Ocean and Land freight.
- ProcurePort sourcing team managed all aspects of the sourcing process
- Event participants required less than 5 min. of training to participate in the bid event
- Off-line bidding capability using Excel allowed participants to upload and update hundreds of bid points in seconds in real-time
- On screen, real-time reporting and analysis of thousands of bid points across various suppliers made the award process a breeze.
Results from Strategic Sourcing Adoption
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The ProcurePort solution allowed client to automate their sourcing process, improve process efficiency, and increase supplier participation. Overall, Client generated a 20% costs savings across their entire annual logistics spend globally.
About ProcurePort®
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ProcurePort is a leader in providing cloud hosted e-procurement solutions and strategic sourcing services. The ProcurePort® Procurement Solution Suite provides an easy to use, powerful, comprehensive and proven e-sourcing toolkit for organizations of any size.
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ProcurePort’s consulting services and flexible deployment options, enable organizations across a range of industries to improve spend management, automate processes and achieve procurement excellence.
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ProcurePort’s on-demand e-procurement solutions are cloud hosted in a Tier IV SSAE 16 Type II compliant data center, providing the highest level of data security and confidentiality.
