Global Oil and Gas Company
Merging with another petroleum giant not only increased this oil and gas company’s market share; it also unleashed the potential for vast economies of scale throughout the company’s global operations. In fact, with savings driven by vendor consolidation, strategic sourcing and an aggressive move toward e-procurement, the oil and gas company planned to reduce its total procurement spend by at least 20 percent a year.
Because the success of any e-procurement strategy depends on the reduction of maverick spending by employees who approach suppliers directly, it was essential the new system be easy to use and offer a truly comprehensive selection of goods and services. However, many of the industry’s biggest suppliers had spent years developing their paper catalogs and were not inclined to invest in new electronic versions. Further, the specialized nature of many of these goods and services required both content-management expertise and deep oil-and-gas industry experience to adapt the catalogs for a digital environment. The company turned to longtime technology partner EDS.
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