Fortune 500 manufacturer
Number of users
The Fortune 500 is an annual list compiled by Fortune magazine that ranks 500 of the largest United States corporations by total revenue. It is an honor worthy of high praise and a validation for hard work. It’s easy to think any company on that list runs like a well-oiled machine with no problems. But they too have challenges running their business, and this manufacturing organization was no exception.
This manufacturer with more than $7 billion in revenue had struggled to meet their indirect procurement needs. Over time, multiple solutions and software were tried, but they had either a too high bar for training and user upkeep and/or a too low return on investment to justify keeping. The systems employed made it difficult for everyday employees to be able to efficiently locate items they needed to purchase. Too often purchases were made outside the system at much higher prices or incorrect/low quality products were being bought.
The manufacturer wanted a procurement solution that would provide an easy-to-use interface for the more than 7,000 end user purchasers and also provide a single supplier network to manage all of their indirect spend. They wanted to continue to leverage Oracle as their ERP, so any solution chosen would have to integrate seamlessly.
With Varis™ (formerly BuyerQuest®) procurement technology, they were able to meet all objectives. Replacing the manufacturer’s existing system, Varis delivered a single easy-to-use purchasing experience for all employees that put all of their approved suppliers and verified products in a single search interface. The familiar design allows users to search for products by name, type, and part number. They can place chosen items in a familiar shopping cart for immediate purchase or route for approvals. The user interface is so simple to use, zero to minimal user training was required. No more non-compliant items, and all products are available for purchase at approved pre-negotiated prices.
In less than six months, the manufacturer’s Varis solution went live globally. More than 7,000 people use the system daily purchasing products from more than 15,000 suppliers. The Varis system allows for every step from managing catalogs of items, reviewing purchase orders, creating invoices, and tracking of delivery statuses. To date, more than $1.5 billion is being spent annually through Varis.
And because Varis is a cloud-based procurement system, there was no need for an entire team of IT employees to oversee the system. They were able to reassign employees to focus on more strategic activities.