Companies that operate in the Energy and Chemicals space are often multi-national and hence require compliance with global purchasing methodologies. While they tend to have highly-developed, centralised ERP systems to control their direct product and manufacturing expenditures, regional indirect procurement is often still performed on a manual basis. There is increasing pressure to control and centralise these indirect expenditures, particularly on the downstream sectors through streamlining PO  collaboration with suppliers, reducing invoice driven expenditure and the number of paper invoices, while improving compliance to contracts and staff efficiency. All of this needs to be achieved within the interoperability constraints of the global ERP system (typically SAPR3 or Oracle).

With Fraxion, our Energy and Chemicals customers have been able to:

• Achieve centralised procurement, bolting on to and seamlessly integrating with their ERP systems
• Minimise invoice initiated payments and maximising pre-approved PO initiated expenditures
• Communicate and enforce policies and procedures
• Ensure that purchases are formally requested, quoting processes have been followed and approved before a supplier is engaged to deliver goods or provide services
• Design and implement internal audit approved purchase requisition approval hierarchies, which link approvers to budgets, so that approvers are only able to approve requisitions that relate to their own budgets
• Perform budget checks both when a requisition is received and when it is approved
• Enforce a formal process to request additional budget where none is available
• Achieve a reduction in transactional processing costs and burdens
• Vastly improve the control and audit environment as a result of enforced requisition checks
• Allow for a re-focusing of personnel to more strategic activities
• Achieve a reduction in the procurement process cycle
• Allow better access to supplier intelligence
• Achieve improved pricing
• Achieve improved spend category expertise
• Overall, achieve real, quantifiable benchmarked savings