Centralisation of purchasing processes supported with IT tools developed on the basis of the Marketplanet Platform enabled one of the biggest Polish companies to achieve the purchasing savings of about PLN 300 million during the first year.
KGHM Polska Miedź S.A.is the world’s 9th biggest copper producer and 2nd silver producer that employs over 18.5 thousand employees (28 thousand considering 30 facilities belonging to the Group of Companies). Such a huge enterprise will naturally have many different purchasing needs, from stationery to large mining machines or real property. Some time ago individual companies of the Group had independent purchasing policies, which resulted in a quite short list of suppliers and less advantageous prices negotiated.
The main challenges for the purchasing area of the company were:
- unused potential of savings from purchasing
- purchasing decentralisation – tenders were carried out by individual facilities and units, and not centrally
- the lack of standardisation and unification of proceedings
- limited and constant number of suppliers
- The management board thought that the purchasing process was ineffective and fostered malpractice, and by the end of 2008 decided to use Marketplanet’s support to introduce a new purchasing policy based on a Central Purchasing Office.
- PLN 300 million of savings within the first 6 months of the system’s operation
- improvement of the purchasing organisation by setting up a Central Purchasing Office for the KGHM Group of Companies
- a new structure of the course of the processes supported with an IT system
- increased quality of supplier cooperation