The following takes a high level look at a few organizations who have already adopted the network approach and the successes they have had in a few key areas of procurement.
CONSOL Energy: $6.1B revenue, 9,346 employees, Fortune 500
Adoption: 45,000 e-invoices, 33,000 POs through the network quarterly, 700+ suppliers, 225+ catalogs, and 128,412 items available on the networkBlocked invoice reduction from 60% down to 6%Manually entered service entry reduction ($2.7 million savings)Increased discounts taken ($7.5 million savings)Attained $25million in less than 2.5 years, (Exceeded goal of $25M in first 4 years)
Adoption: 17,238+ suppliers, 645+ catalogs, rapid on-boarding timeDeployed globally in 17 countries (multiple languages)
Adoption: 175,000 POs annually, 845 catalogs, 7,980,000 items, both external & internal catalogs, ¤85,000,000 transaction value per yearItem Master Synchronization: Exchange data between SRM and ERP systems via Hubwoo's Business NetworkThese examples illustrate the dramatic improvements that become possible with a business network: mass on-boarding of suppliers, rapid adoption in multiple global locations, large gains in spend under management, and what counts above all: significant cost savings.
This contrast is stark for any CPO laboring to achieve marginal gains under a traditional procurement model.