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Case Study

Multinational high-tech firm transforms supply chain procurement processes

  • Legacy procurement platform caused delays, higher costs

  • Pega Platform™ delivered system-driven guidance

  • More structure enabled sustainable growth

"We learned more, and we had more opportunities to continuously improve the process. The results were that the buyers themselves were able to process twice the work."

Senior Product Manager, Multinational high-tech firm

The Business Issue

With 20,000 trading partners, suppliers, internal and external manufacturing arms, and a legacy supply chain procurement system, this high-tech firm suffered from siloed data and tribal buying processes. 

The system required specialized knowledge, exception-driven decision making, and inconsistent prioritization – resulting in delays and increased costs. This unsustainable business environment limited the company’s ability to scale up. They realized a pressing need to bring more structure to its procurement processes.

The Solution

To introduce a more data-focused approach to the supply chain, the manufacturer developed an exception management platform capable of diagnosing and prioritizing business exceptions in real time. The Pega Platform-based web portal displayed identified exceptions, allowing buyers to immediately begin working on the most critical tasks. 

Using Pega’s low-code approach, the company quickly created a central knowledgebase within the platform, offering on-demand guidance to buyers unfamiliar with particular tasks and the steps needed to execute on them. Data aggregation and visual summaries further helped with decision making in the procurement process.

The Results

By providing buyers with the tools they need to make informed decisions, the company increased user satisfaction to 90%, and realized huge rewards: 

  • Increased productivity by 50%
  • Cut late orders in half
  • Reduced cycle time by 50%
  • 95% of work fungible/interchangeable
  • Significantly reduced cost of excess inventory 
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Tags

Industry: Manufacturing Product Area: Intelligent Automation Challenge: Business Agility Challenge: Operational Excellence Challenge: Workforce Optimization Topic: Operational Excellence
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