Product Specification Management

Document Management System

iMac

Lean IT Solutions Help Customer

Cut Costs On Procurement

Centralizing Procurement in a Multinational Company Becomes a Challenge for IT Budget

By centralizing procurement function in a large multinational company with high M&A activity, one should expect a good return: not only centralizing leads to a larger purchase volume and better discount from suppliers, but unification of product specifications decreases need of working capital due to smaller amount of different raw materials needed to be on-stock.

Food Union, a dairy-producing enterprise spanned across Europe, Russia and Eastern Asia, and a valued Client of Codenetix, was in the beginning of that path in 2017. Deployment of PSM (Product Specification Management) solution became an essential part of IT landscape as procurement centers responsible for specific materials were established across Food Union production sites, with BOM (bill of materials) unification as one of their main tasks.

First, a large amount of enterprise PSM solutions have been evaluated and put into comparison. Large number of features mark almost every commercial product on the market. However, extensive feature list has its flip side: enterprise-level PSM systems are complex in deployment and pricey. Long list of features means more complex set up and longer learning curve for end users. Adding to that, implementation costs of $30K+ and maintenance of at least $5K per year make them a choice for really big enterprises.

Tailor-Made Web App as a Working Solution

With all that given, the task for a Codenetix team was really challenging: to offer a product that should be more user friendly (as user base is distributed among procurement centers in several countries, so zero time invested in user training is a must), web-based (no installation, no corporate LAN), cover all features needed for a Customer team, and, finally, be less expensive than corporate out-of-the-box solutions.

Strict adherence to agile methodology and strong teams both on Customer and Codenetix sides made this possible. Thorough prioritisation and cutting away unneeded features, using of cutting-edge development tools and frameworks, TDD (test driven development) made development speed truly amazing.

Web app was released in under than three months, but went live just way before, just after first month of development – a database and data management interface was ready as MVP, and «pilot» team, which manages sticks for ice cream, started using the product right away. Other features came in short notice, which allowed whole Customer team to collaborate and manage their data in new environment.

As reported, Food Union have already gained substantial cost savings by implementing new procurement practices. Codenetix team is happy to help our Customer in gaining these results, supporting future growth.