Specialist chemical manufacturer Laporte is rolling out an Ariba electronic procurement system that promises to cut purchasing bills by 7% a year.
Laporte plans to roll out the system to 50 locations worldwide by the end of next year, following successful trials...
in the UK and the US.
"Historically, we have concentrated a lot of time and effort in purchasing raw materials that are key to manufacturing. But other areas, such as stationery, are used in relatively low numbers in each business. It is not until you aggregate them, that you can benefit from best practice," said John Blissett, Laporte's group IT director.
Laporte believes it can save up to 7.5% of its £60m annual consumables spend by using the system to introduce company-wide catalogues from preferred suppliers.
Staff will be able to view electronic versions of the catalogues and send orders electronically to suppliers. By eliminating paperwork, the company believes it can reduce the time taken to place and order from days to minutes and at the same time provide accurate management information.
The company has hired Origin to roll out the system, which will run on Compaq Proliant servers.