Service oriented organisations tend to be more personnel based with very little direct or inventory expenditure. As a result the majority of their expenditure tends to be indirect, an area where ERP and accounting solutions have traditionally been less focussed. With no visibility of organisational spend, control tends to be retroactive.
Disparate procurement processes occur at each location via inefficient paper-based processes, suppliers are not authorised, spend policy compliance with preferred suppliers is not enforced, leaving no capacity to negotiate pricing.
Efficiencies, Efficiencies, Efficiencies. With the assistance and introduction of Fraxion software the company has been able to create tremendous efficiencies in the usually very time consuming exercise of indirect expenditure management. Fraxion blocks unnecessary expenditure, channels legitimate expenditure in accordance with volume purchase agreements and dramatically reduces all the associated administrative costs of these typically manual processes. Fraxion provides management with a structured, organisation-wide procurement process built around Hollard’s existing workflows and allows us to gain insight into spend behaviour, improve leverage across various areas and ensure compliance with company-wide policies and procedures.”
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