The Church of Jesus Christ of Latter-day Saints (LDS) and Vinimaya’s procurement marketplace solution are featured in the B2BecNews 2015 Winter Report. The article showcases how progressive companies are blending spend management policies with a new generation of eProcurement tools to drive user adoption, savings and improved purchasing operations.
The article explores the challenge corporations are having to reduce “rogue” spending as more B2B companies sell online—including many unknown, unvetted and unapproved suppliers. The report contests that in the age of Amazon.com, it’s an ongoing battle for purchasing and financial executives who want their teams of buyers to follow spend management policies.
“The concerns of procurement executives used to be purely concerns about cost— they assumed that their eProcurement application would direct employees to approved suppliers who would, they believed, be the cheapest,” said Duncan Jones, VP and Procurement Systems Analyst from Forrester Research. “Now, however, the bigger issue is supplier risk. Issues such as corporate social responsibility, conflict minerals, corrupt practices, data security and so on, are forcing CPOs to be much tougher in preventing purchases from unapproved suppliers.”
Vinimaya customer LDS is featured as an example of a global procurement organization that is using Vinimaya’s eProcurement marketplace to improve its control over spending across some 50 countries. Following the backlog in purchasing that had built up during the recession, the Church was able to quickly ramp up online purchasing under a new organization-driven procurement system.
After rolling out the vMarketPlace software in the United States, where many LDS buyers quickly took to using it, the Church began deploying it across its international operations. In one year the volume of purchases processed through LDS’s global marketplace increased by more than 50%. Usage has continued to steadily grow since implementing the eProcurement marketplace and the Church is close to having 100% of supplies that can be ordered via purchase orders up on its procurement software.
“The return on investment of using the Vinimaya software has been good and fast,” said Blake Anderson, LDS Manager of Business Processes and Systems. “Our goal was to have a standard ordering platform that was easy to use. This is an easy-to-use tool, and we’ve been able to gain more standardization.”