Electronics manufacturer sources responsibly and ethically with Pega
Legacy procurement processes could not scale, slowing sourcing speed and increasing cost and risk
Pega Platform™ delivered scalable solution with guided interactions
New process supports business growth alongside risk and cost reduction
The Business Issue
Faced with the challenge of maintaining quality while socially and environmentally sourcing millions of parts from over 20,000 suppliers, this Global 200 Electronics manufacturer looked to simplify a complex and cumbersome sourcing process to ensure the products they build contain only responsibly-sourced parts.
Existing processes and systems required specialized knowledge and micro-management, yet still failed to provide a closed loop in responsible sourcing. Their fragile processes would not scale to meet business demands and posed a risk to this company and their over 300 customers.
Recognizing the risk as well as the opportunity to improve, the manufacturer developed a scalable solution built on the Pega PlatformTM. The Risk and Responsible Sourcing Application provides supplier assessment and sourcing surveys to over 20,000 suppliers, simplifying and streamlining sourcing analysis while delivering proof of compliance with legal and regulatory requirements across a diverse supply base including: information on reliable/sustainable sourcing including company policy; certifications (such as ISO); membership in trade networks/groups; RoHS (restriction of hazardous substances); chain of custody; diversity; and other requirements.
Using Pega’s low-code approach and layered architecture, the manufacturer quickly created processes to accommodate different customer industry needs, geographies, and commodities.
Providing the Sourcing and Quality organizations with the tools they need to meet increasing customer demands, this Global 200 manufacturer has:
- Completed over 9,000 supplier surveys per year
- Completed over 2,400 Social and Environmental Risk assessments and 100 audits
- Reduced Cost of Poor Quality (COPQ)
- Improved customer confidence
Product Area: Platform
Challenge: Business Agility
Challenge: Operational Excellence
Challenge: Workforce Optimization