Closely tracking procurement savings
Norsk Hydro's central strategic procurement function had been closely tracking savings for many years, but they were increasingly aware that their spread-sheet based system for collating and reporting procurement savings was becoming difficult to maintain and manage due to the sheer amount of data and number of users. A decision was made to find a new solution for tracking cost reduction projects and reporting savings that met the following basic criteria:
Cloud based (software as a service)
Simple for procurement team to use
Ability to handle local and central cost reduction projects
Savings approval functionality
Ability to handle 200+ users at 100+ sites globally
Capacity to handle 1,500+ projects per annum, plus the upload of historic realised savings data
Following a robust sourcing process, Hydro selected Provalido as their new savings tracking provider.
Tailoring savings methodologies and processes
In order to fully meet Hydro’s specific requirements, in particular the ability to manage cost reduction projects at a central level with savings approvals at a local level, some enhancements were required to the Provalido tool. A workshop was held to discuss and identify the best way to implement these requirements. At the same time an implementation plan was agreed. From start to finish, implementation was achieved in 7 weeks, which was exactly on plan. This included:
Coding, validating and testing the enhancements.
Uploading Hydro’s category hierarchy, organisational structure as well as data from over 1,500 historic projects into the Tracker.
Creating bespoke User Guides to match Sapa’s processes.
Conducting training for 200 users via 14 web-based training sessions
Hydro went live in January 2015, and in the first 3 months following implementation over 80% of the users were active in the system, showing an extremely healthy level of adoption. As with all Provalido’s customers, Hydro continues to play an active role in suggesting further enhancements and new functionality within the Tracker.
Successful savings solution implementation
Peter den Dikken, Vice President of Strategic Sourcing at Hydro said:
“The Provalido Savings Tracker has greatly enhanced the way we report our cost savings, giving us more control, efficiency, visibility and credibility. The service and collaborative approach that has accompanied the SaaS solution has also been outstanding, and I would whole-heartedly recommend Provalido to any organisation looking to upgrade their savings tracking technology and process.”
Paul Gurr, Managing Director at Provalido said:
“We are delighted to count Hydro among our customer base. They have a thoughtful and progressive approach to measuring procurement savings and their valued input continues to help our procurement savings management solution evolve which benefits all our customers.”
Norsk Hydro is the world leader in aluminium solutions, shaping a lighter future through a global reach and local presence within extrusions, building systems, and precision tubing. Hydro has 23,500 employees in more than 40 countries, with headquarters in Oslo, Norway.
For more information please visit www.hydro.com