Global distributor transforms procurement function with guided buying and Managed AP services

The Challenge

A leading specialty chemical and ingredient distributor had grown substantially over the years due to its thoughtful acquisition strategy. With 138 North American production sites and a global indirect spend of over $1 billion, the company was on the verge of its largest acquisition to date when it recognized the need to address critical operational challenges tied to its procurement function. Some of those pain points included a proportionally large tail spend, limited visibility into supplier contracts and end user compliance, lean sourcing and procurement team, decentralized procurement activities, and limited subject matter expertise.

The Solution

As acquisition activity ramped up, Corcentric assisted the distributor in the merging of two procurement teams and uncovering savings to offset operational costs tied to the acquisition by implementing its help desk model. Corcentric then turned its attention to the distributor’s growing tail spend, procurement policy non-compliance, and limited visibility into supplier relationship management activities. Corcentric’s custom Source-to-Pay solution helped the company reduce tail spend, monitor p-card usage, leverage catalogs, manage suppliers, and enforce a no PO no pay policy.

The Results

Over 1,000 end users employ the technology each day while complying with the company’s procurement policy and leveraging preferred supplier agreements. All supplier invoices are now processed through the program by Corcentric, ensuring that they get paid on time.