Efficiency boost by digital processing purchase orders
Generate time for other purchase activities
Pieter Bergman, Head of Purchasing at Nedmag: “Every year we process about 1,100 purchase orders with 3 fte. Over 500 of those orders are operational purchase orders for consumables, such as work clothes and IT equipment from a number of selected parties. As we are facing an expansion of the work activities and are striving to increase the processing quality, we have opted to digitalize this purchase order flow. Research showed that the old situation cost us an average of 50 minutes per order for the execution of administrative and repeating activities. We wanted to spend this time on other purchase activities in which we can make the most of our added value and still be able to handle the increased work load with the same number of fte. Nedmag will make significant investments in the future, which will be combined with a large number of project investments. In order to be properly prepared for our future task we have automated as many of the standard work activities as possible!”
An efficiency improvement of 90 percent
“On 1 January, we went live with ISP-Purchase and we now process 300 orders for two suppliers digitally. This saves us 45 minutes: a reduction of 90%! For our 3 fte department, this results in saving 3 months of work per year! We now only have to work on the one-time selection of a supplier and the rest will take place automatically. The supplier sets up an online store especially for us containing the supplier’s range of products and our prices. With the ISProjects purchase portal, the end users will automatically visit this portal and be able to select the desired items. Our expectations, as a purchase department, have been met; we now have to perform fewer routine operational activities. In the past, we sometimes received reports that the authorisation was not complete; this is also no longer an issue! The major benefit to us is that we now have more time and attention for activities that truly matter instead of the routine processing of orders and suppliers. An additional benefit is that digitalizing the purchase orders also saves considerable time for the applicants. They are now only required to click instead of selecting a general ledger account. In short: Nedmag is extremely satisfied with the result!” Bergman concludes.
We now have time for purchase activities that truly offer an added value!
Nedmag produces high-quality dead burned magnesia (DBM), magnesium chloride, calcium chloride and magnesium hydroxide. These products are purchased for wide range of applications, such as the production of fireproof stone for lining cement and steel ovens, sustainable bleaching procedures for the paper and pulp industry, slip and dust control on roads, the food industry and the wastewater treatment. Nedmag’s products are sold in Europe, North America, the Middle East and Asia.
More information about Nedmag