Engie structures its procurement
Thanks to the implementation of SynerTrade’s solution, we are able today to pilot the spend evolution by category and supplier, which reinforce actions to reach the ambitious objectives of cost reduction established by our corporate performance plan.
Buy better, less and cheaper. Here is the threefold intended purpose by One For Value 2015 program which cover the Procurement process’s transformation within the GDF SUEZ company. A challenge that motivated the implementation of dedicated information system based on the SynerTrade’s solution.
Since 2000’s, in a tense environment, the energy market has been facing of general decrease of demand, and procurement rationalization represent a decisive issue. Leader of the energetic transition in Europe and key player in this industry, GDF SUEZ employs some 147,200 people worldwide for a turnover of €81,3 billion in 2013. As part of its performance program, GDF SUEZ set a saving goal of €1,7 billion of euros on Procurement department until the end of 2015. Claire Brabec-Lagrange, CPO in GDF SUEZ highlights how to reach this goal: “We must provide to our entities purchasing levers which will allow them to generate savings, beyond the usual performance: priority is inquiries massification and optimization on common purchase category.” A strategy that requires above all a new governance and the adoption of several transversal tools.
Implementation of Procurement IT system
So far, purchase management process was common to the five areas, and based on a quarterly basis, it consisted in a simple data collect on Excel and a SQL consolidation. This measure, adopted following the merger between Gaz de France and Suez groups, no longer offers real opportunities for evolutions. Integrated in One for Value 2015 program, the Pyramid project was launched to establish a Procurement IT system within the group. In the end of 2012, Procurement direction began to look for a complete and modern solution, guaranteeing availability and quality of spend and suppliers data from more than 80 ERPs of different Business Units.
Rich functionality in standard
At the end of a selection process in which ten solutions were studied, SynerTrade was finally selected. Stéphane Baillargeau, Procurement erformance, Tools and process director within Procurement Direction explains the reasons that motivated his choice: “On the one hand, spend analysis and suppliers management modules match in standard with our actual and future needs. On the other hand, the solution usability promises a great report of analysis. Last but not least, the language cover allows to deploy the solution without specific development in all the countries where the group is implanted.” Implementation started on February for a production launch in 4 pilot entities the next September. At the end of the following year, 90% of group scope was covered by the two first modules, the deployment of contract management and eRFX modules are planned on all entities.
The ergonomy, adoption vector
There are currently, 400 employees using the solution. This one received a very positive welcome. “Standards functionalities of SynerTrade’s modules are very affordable, which facilitate the adoption of the tool by teams”, explains Stéphane Baillargeau. It remains today the implementation of Performance Manager, the SynerTrade’s Business Intelligence module, on which the company’s managers have expectations. “If we enjoyed the guidance provided by SynerTrade’s consultants along each conception steps, it is now to us to define the indicators that we want integrated to the solution. Performance Manager module offers plenty of possibilities but arbitration on calculation are still to be done on our side.”
A structuring solution for a virtuous approach
The implementation of a Procurement IT system is a virtuous approach, it is the opportunity for Engie to restructure the Procurement data management within the group, including all areas, Business Units and entities. “Simple and ergonomic, the SynerTrade’s solution remains an uncompromising tool which allows us to discipline our procurement process, conclude Stéphane Baillargeau. Furthermore, if this tool induces significant productivity gains within teams and a better data reliability, it equally supports the cost reduction objective established by the performance plan through a data supplier harmonization and a refined analysis of the spends”.