| "Using the Fisher Scientific
web site and features such as hotlists, order tracking and
non catalogue procurement mean that we have improved efficiency,
visibility and accuracy of placing orders."
Avecia is a leading global fine and specialty
chemicals company focused on delivering innovative technology
and service excellence to customers across a range of high
technology industries.
Avecia's on-going success is based on
a long track record of innovation and service excellence.
With over $500 million invested across 17 advanced research,
technical service and manufacturing sites in recent years,
Avecia operates globally at the leading edge of technology
in its chosen fields.
The knowledge and skills of its international
workforce of 3500 employees have pioneered many important
products which are in everyday use. With unique capabilities
in organic chemistry, biological & polymer sciences
and process technology, each of its business sectors offers
bespoke products and services to their global customers,
supported by highly focused technical expertise.
In keeping with its innovative technology,
Avecia has always been forward thinking about the way it
carries out its business processes, not least of all in
its purchasing function. As long ago as 1996, Avecia greatly
reduced the high volume transaction costs of ordering low
value goods by introducing a system called Fasttrack. This
system was used with seven key suppliers across all UK sites.
Essentially, it empowered end users to compile their own
orders on their ERP system, which then instead of going
through each stage in the system, would be converted to
an email that would be sent directly to the suppliers. This
worked very well and the cost of ordering this type of goods
fell significantly.
With the advent of an upgraded version
of their ERP system in January 2002, Avecia faced a dilemma.
John Lynch, Engineering Purchasing Specialist takes up the
story; "We had already demonstrated savings in the
ordering of low value goods using the Fasttrack system,
and wanted to be able to maintain these savings. Unfortunately
our upgraded ERP system would not support this ordering
method. One option would have been to write a programme
within our new ERP version to enable Fasttrack to continue,
however this had a significant time and cost element. In
the meantime we had been running a pilot of on line ordering
with Fisher Scientific and a supplier of electrical components.
We were so impressed with the results of these pilots that
had run for a year, that we decided to move all seven suppliers
that had been part of the Fasttrack system to on line ordering.
Because our users would be ordering over the internet, we
were able to maintain our previously achieved cost savings."
Avecia went live with their seven suppliers
in April 2001. The pilots had enabled Avecia to flush out
potential problems, to investigate elements of control and
visibility of ordering on line, and ensure that logistical
problems such as browser software versions could be eliminated.
It soon became apparent when going live however, that a
disparity existed between suppliers in their ability to
handle electronic ordering. Comments John; "Because
we were so impressed with Fisher's web site and electronic
ordering facilities during the pilot, it set a standard
that we found some of our other suppliers were not able
to live up to. Some were just not able to handle the volume
of end users placing orders when we went live. We had to
do quite a bit of work to get these suppliers to the stage
that they were able to fully go live, whereas with Fisher
it was simply a case of registering and away you go! "
Keeping control of users authorised to
send orders electronically was a big task for Avecia, with
thousands of end users over a number of geographical sites.
It was important for them to know who was registered on
which web sites, with authorisation to order, and registrations
kept up to date with movement of personnel. Avecia solved
this by setting up a central controller that administrates
access and registrations. This controller liaises with suppliers
to maintain the validity of the user base.
Once users had been registered the next
task was to provide training. "This process was simpler
than we thought", comments John. "Initially we
invited John Brear our Fisher Scientific Corporate Account
Manager to run seminars to demonstrate the web catalogue
and how to use the various features. We also produced a
very simple web guide for users to keep. However we found
that the Fisher web site was so user friendly and simple
to use, that the uptake was as fast in those who were unable
to attend the seminars as those that did. In addition the
local Fisher Scientific Account Managers were always on
hand to visit or speak to end users that needed support."
Hazel Bell, a Chemist at Avecia who orders
over the Fisher web site on a regular basis, echoes this
simplicity of use. "I found the Fisher web site the
easiest one to use out of all of our suppliers where we
order on line. It's exceedingly quick and easy to place
an order, and features such as the free Material Safety
Data Sheets which I can print from the web site are really
useful."
The key to the success of the new system
was gaining buy-in from Fisher Scientific's extensive network
of suppliers who would be encouraged to embrace the system
and deliver their invoices electronically. Owen's team worked
closely with OBE during the testing phase in order generate
support from the network and encourage buy-in. The supplier
enrolment programme was based around a series of one to
one meetings and seminars for larger suppliers and a simple
letter distributed to smaller suppliers. "The initial
reaction from our community of suppliers has been overwhelmingly
positive," says Owen. "The process has been relatively
painless as it has been easy to educate our suppliers that
OB10 represents a new, more efficient way of delivering
invoices which will ultimately save them time and money
with only a minimal investment.
Significantly, Owen predicts that 50%
of key suppliers will have joined the OB10 network within
6 months.
Since finalising the testing programme
for OBE in June 2001, the benefits of the service have been
immediately evident according to Owen. "As a company
constantly striving to improve our business processes, the
ability to receive invoices electronically is a significant
advantage for us and it will continue to add value as our
supplier network grows".
As the launch customer for OB10, Fisher
Scientific is the first company in the world with the facility
to send and receive electronic invoices universally. "The
system is already benefiting our entire spectrum of suppliers,
from small companies right through to large multinational
organisations like ourselves" says Owen.
Peter Outen is already impressed with
the results of the implementation of OB10. On an operational
level, the company has noticed improving levels of efficiency
within the accounts payable department. "We are on
target to reduce the costs associated with invoicing by
a significant amount at the six months stage, increasing
to substantive amounts by the end of year two. Costs have
started to decrease as staff are redeployed within the company
and the speed of processing invoices and resolving disputes
has improved significantly."
"While we are still at a relatively
early stage of deployment within our existing supplier network,
we have been delighted with the immediate benefits demonstrated
by the system", says Owen.
Avecia users are configured on the Fisher
web site so that any low value orders placed are sent direct
to Fisher Scientific; any that are over the order value
limit are automatically converted to an electronic requisition
and routed to a nominated authoriser.
"This system gives us control
over what is being ordered, allowing us visibility of orders
and the reassurance that the system is not open to inappropriate
use," comments John. "The authoriser is sent an
email notifying them that there is a requisition that requires
attention. They are then able to view the order and decide
whether to send it on to Fisher as it is, amend it and send
to Fisher, or decline the whole order. This kind of configerability
sets the Fisher web site ahead of the competition. Features
such as on line non catalogue procurement really are a key
feature for our purchasing solution. This means our end
users are able to electronically order goods from Fisher
Scientific that are not specified in their catalogue. On
sites where this is not available it means having to have
ERP access for the end user which could encourage maverick
buying."
Concludes John; "Ordering on
line has not only enabled us to maintain the savings we
made through the Fasttrack system, but has created more
opportunities for improving the efficiency in the purchasing
function. Using the Fisher Scientific web site and features
such as hotlists, order tracking and non catalogue procurement
mean that we have improved efficiency, visibility and accuracy
of placing orders. This means our end users who are highly
qualified and specialised scientists are able to concentrate
on their core tasks and are empowered to purchase the products
they need to perform their roles, in the most efficient
manner."
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Ordering Online