{"id":952046,"date":"2018-08-24T12:50:00","date_gmt":"2018-08-24T12:50:00","guid":{"rendered":"https:\/\/www.capgemini.com\/in-en\/?post_type=client-story&#038;p=952046"},"modified":"2023-08-10T06:02:13","modified_gmt":"2023-08-10T06:02:13","slug":"taking-control-of-purchasing-in-the-construction-industry","status":"publish","type":"client-story","link":"https:\/\/www.capgemini.com\/in-en\/news\/client-stories\/taking-control-of-purchasing-in-the-construction-industry\/","title":{"rendered":"Taking control of purchasing in the construction industry"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-reusable header heroReusable  \"><div class=\"header-bgs\"><\/div><div class=\"heroPictureCardHeaderShape\"><\/div><div class=\"container\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"box\"><div class=\"boxTagWrapper\"><div class=\"tagInfo\"><div><span class=\"box-tag\">Client Stories<\/span><\/div><\/div><\/div><div class=\"box-title\"><h1 data-maxlength=\"34\">Taking control of purchasing in the construction industry<\/h1><\/div><div class=\"inner-row-insight download-btn\"><div class=\"col-md-4 downloadFiles addPadding\"><a class=\"button-download--small\" type=\"download\" href=\"https:\/\/www.capgemini.com\/in-en\/wp-content\/uploads\/sites\/18\/2022\/05\/2015-03-18_ibx_skanska_case_study_v2-3.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><span>2015-03-18_ibx_skanska_case_study_v2.pdf<\/span><span class=\"type\">937 KB  pdf<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\" id=\"introParaWrapper\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/in-en\/news\/client-stories\/taking-control-of-purchasing-in-the-construction-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-tw\"><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https:\/\/www.capgemini.com\/in-en\/news\/client-stories\/taking-control-of-purchasing-in-the-construction-industry\/&amp;text=Taking control of purchasing in the construction industry\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-tw\"><\/i><span class=\"sr-only\">Twitter<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/in-en\/news\/client-stories\/taking-control-of-purchasing-in-the-construction-industry\/&amp;text=Taking control of purchasing in the construction industry\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\"><strong>Skanska selects Capgemini\u2019s IBX Business Network for the complete delivery of Cloud-based eProcurement and eSourcing as well as supplier network and professional services.<\/strong><br>\u00a0<br>Multinational construction and development company Skanska has improved their purchasing processes by implementing IBX Purchase-to-Pay. Control and coordination of purchases has greatly improved and the usage of frame agreements has increased from 15 to 25 percent, a figure unparalleled in the project-centric construction industry. Today, half of all coordinated purchases (including material bought by sub-contractors) are ordered in IBX Purchase-to-Pay.<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\" id=\"quoteWrapper\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<h3 class=\"wp-block-heading\" id=\"h-the-situation\">The Situation<\/h3>\n\n\n\n<p>Skanska wanted to create conditions for an automated purchasing process, from sourcing to paid invoice. At the time, only 15 percent of the purchasing volume was coordinated (partially due to the project focus of the construction industry) and most of the purchasing process was managed manually. The business strategy was crystal clear \u2013 increase productivity by acting as one company and benefit from the company\u2019s size. The goal of the purchasing department was to coordinate 50 percent of all purchasing as well as introducing new, more modern purchasing procedures that would reduce cost in the long run.<br>\u201cPurchasing is Skanska\u2019s largest cost, so our contribution to the organization is very important. We began by formulating a purchasing strategy and a communicative vision\u201d says Sandra Petersson, project manager for the Effect program, one of Skanska\u2019s purchasing initiatives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-solution\">The Solution<\/h3>\n\n\n\n<p>In the fall of 2003, Skanska selected Capgemini\u2019s IBX Business Network for the complete delivery of <a href=\"https:\/\/www.capgemini.com\/in-en\/services\/cloud\/\">Cloud-based<\/a> eProcurement and eSourcing as well as supplier network and professional services. Skanska wanted to spend their energy on change management, so their criteria was based on functionality, proven delivery capability and on-demand delivery, to ensure rapid ROI.<br>\u201cIt was valuable for us that Capgemini had a complete solution and extensive experience with the rollout of purchasing solutions. This meant that we got a quick start and didn\u2019t have to take on large development costs\u201d says Sandra Petersson.<br>Apart from being easy to use, IBX Purchase-to-Pay acts as a virtual warehouse. Capgemini is responsible for content management, activating and connecting Skanska\u2019s suppliers. One major hurdle for the construction industry is the substantial need for spot-and project sourcing. IBX Purchase-to-Pay delivers an efficient spot-buying process, with which Skanska can capture spend that otherwise would have been lost. Buyers create online requests that can be sent to both contracted and non-contracted suppliers. The requests are iterated between buyers and suppliers to ensure market price as well as quality.<br>Capgemini has experts who know what is important in order to have the best possible result. Not only do they know IT, but they also see the business opportunities in the procurement process, Sandra Petersson adds.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-result\">The Result<\/h3>\n\n\n\n<p>With IBX Purchase-to-Pay, Skanska can cooperate with sub-contractors, providing a standardized and limited assortment of goods and services that meet Skanska\u2019s high standards and requirements. It has been crucial to have close cooperation with suppliers in order to succeed with cost reductions. Together, the parties involved found new ways of cooperation, which also enabled streamlining on the side of the supplier.<br>Compliance has increased and costs have been reduced throughout the entire purchasing process. More than 50 percent of all purchases are now coordinated through IBX Purchase-to-Pay, which increases control and transparency. The procurement volume from frame agreement suppliers increased to 25 percent (from 15 percent) \u2013 unparalleled in the construction industry.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":103,"featured_media":0,"template":"","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"","cg_seo_canonical_relation":"{\"uuid\":\"c40b4e37-1b23-4815-b255-b19c7cc56256\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"3fdb3ed0-6bd4-4d15-ac7a-82fc20054e0f\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"footnotes":"","client_logo_id":0,"client_logo_url":"","primary_term":"","featured_focal_points":""},"tags":[],"brand":[],"service":[],"industry":[],"partners":[],"country":[],"content-group":[],"class_list":["post-952046","client-story","type-client-story","status-publish","hentry"],"yoast_head":"<!-- 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