Procuring Success: How Provisur Technologies Sliced Spend by 20% with Arkestro
Food processing equipment manufacturing
Headquarters:
Chicago, IL
Website:
www.provisur.com/en/
<60 days
to achieve savings
11% – 37.6%
of total campaign savings
“Once we achieved +15% savings in only 4 campaigns, with +$350,000 in harvest value on $2.6M in spend, the decision to go with Arkestro became a no-brainer.”
Dirk Meuzelaar
Director of Global Strategic Sourcing at Provisur
The Challenge
The tediousness of adding new suppliers
As a prominent player in the OEM space, Provisur has close and long-standing partner supplier relationships and views supplier performance as more important than savings. However, when it came time to add new suppliers to their supply base, the process was quite tedious. As an OEM equipment manufacturer, quotes are often complex and involve multiple components.
Slicing spend by 20%!
Provisur quickly achieved $350,000 in savings in just four campaigns, ran $2.6 million in spend through Arkestro, and onboarded new suppliers with ease. With Predictive Procurement, they saved 20% on average per event. The company saw value in both Direct (machine parts) and Indirect (corrugated & glue) spend.
Overview
Provisur Technologies is a leader in the manufacturing of industrial food processing equipment, with more than 50 years of experience and 350 global patents.
The company has a global procurement team of 15 individuals with an annual spend of ~$200 million. While the company is headquartered in Chicago, they have a global presence with French and Swiss manufacturing facilities.
Approach
Dirk heard about potential new technologies that could help streamline procurement processes shortly after he was brought on board at Provisur. Since an Arkestro agreement was already in place before he was hired, he wasted no time getting the ball rolling.
Despite his enthusiasm, he was met with initial resistance from buyers who thought another procurement tool just meant more work. Procurement team members were skeptical and hesitant and didn’t want to have to upload design sketches from one program to another. Dirk also felt pressure to show measurable financial outcomes to leadership in a short timeframe.
Result
Arkestro’s hands-on support in the change management process made all the difference during the transition period, and now Dirk’s team can’t imagine life without it.
“After a couple of times, the process is extremely intuitive,” Dirk said. “And once you see the savings, it becomes addictive.”
Conclusion
Thanks to Arkestro, Provisur has formalized its procurement processes, streamlined supplier onboarding, increased cost savings and efficiency, and even helped its suppliers grow.
“I’ve tried a lot of procurement solutions, and Arkestro really nailed it on the head with this one,” Dirk said. “I want them to keep doing what they’re doing.”
FAQs
Provisur Technologies
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What is the main benefit Provisur Technologies achieved using Arkestro?
Provisur Technologies achieved a 20% reduction in spend by using Arkestro’s autonomous sourcing and procurement solutions.
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How does Arkestro help in reducing procurement costs?
Arkestro leverages AI and machine learning to optimize procurement processes, identify cost-saving opportunities, and streamline supplier negotiations.
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What specific features of Arkestro contributed to Provisur’s success?
Key features include real-time data analytics, predictive insights, and automated sourcing processes that enhance decision-making and operational efficiency.
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Can other companies achieve similar results with Arkestro?
Yes, other companies can achieve significant cost savings and efficiency improvements by implementing Arkestro’s autonomous sourcing and procurement solutions.
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How long did it take for Provisur to see results with Arkestro?
The case study highlights that Provisur Technologies saw substantial improvements and cost reductions shortly after integrating Arkestro’s solutions into their procurement strategy.