How ewiz commerce helped a global FMCG giant ace long-tail procurement with a state-of-the-art eCommerce platform
Discover how ewiz commerce (A Powerweave Brand) deployed a custom, efficient, and all-inclusive eCommerce solution, Primemart, for enhanced supply chain management.
Summary
Our client* is a renowned leader in the global consumer goods market, boasting an extensive and varied product portfolio. Known for its commitment to sustainability
and innovation, the client operates in over 190 countries. Its products, ranging from nutritious foods and indulgent ice creams to household care items and famous beauty brands,
touch the lives of billions every day. This vast global presence and diverse product range present unique challenges in supply chain management, necessitating cutting-edge
solutions to stay ahead in a competitive market.
Herein lies the core of their transformation, spearheaded by ewiz commerce, that reimagined procurement through the lens of advanced technology and strategic innovation. Primemart,
a custom-developed eCommerce solution by ewiz commerce, emerges as the hero of this narrative, offering not just solutions but a new direction in procurement for our globally renowned FMCG client.
* Client confidentiality is paramount for us, and due to NDA commitments, some customer names cannot be disclosed publicly.
The Challenge
Global scale and complexity: Managing a vast and diverse supply chain with a €600 million annual expenditure across 80 countries and over 2000 suppliers
Procurement and quality control issues: Overseeing a cumbersome system with over 10,000 SKUs and recurring product recalls due to quality control challenges.
Limited operational visibility: Struggling with inadequate global purchasing visibility, inefficient tools, and fragmented procurement processes.
The company's procurement landscape, before the advent of Primemart, was fraught with complexities and inefficiencies
that hindered its global operations. With an annual expenditure of €600 million across a vast network of over 2000 suppliers in 80 countries,
the challenges were daunting. The procurement process, burdened with over 80,000 transactions annually, was plagued by a cumbersome system managing an
extensive array of over 10,000 SKUs. This complexity was exacerbated by a suboptimal quality approval process, evidenced by many product recalls in different
regions. Additionally, a significant lack of global purchasing visibility led to missed opportunities in demand aggregation and a repetitive approach to
designing marketing materials.
The limitations of an online tool they used in Europe further compounded these challenges due to its insufficient automation, user interface,
and aggregation functionality. These issues, combined with zero spend insights, difficulty in consolidating suppliers, the prevalence of
offline purchases, and poor adoption of legacy ERP systems, painted a clear picture of the need for a transformative solution in company’s
procurement process.
“Managing our extensive product portfolio across 190 countries was a daunting task. With over 80,000 transactions annually and a vast network
of suppliers, our long-tail procurement process lacked the necessary visibility and efficiency. Product recalls, and a cumbersome system added to the
complexity, highlighting the need for a transformative solution.“
- Procurement Head, [Global FMCG Company]
The Solution
Primemart – a comprehensive eCommerce platform customized for global needs
In response to intricate procurement challenges, ewiz commerce deployed a
state-of-the-art eCommerce platform, Primemart, transforming the procurement
landscape into a model of efficiency and innovation.
“Primemart, our bespoke enterprise eCommerce solution, has been instrumental for
our client over the last 5 years. With over USD 8.5 billion worth of transactions,
and processing more than 47,000 orders annually, we addressed the intricate
challenges they faced. By centralizing supplier catalogs, introducing volume-based
pricing, and integrating quality partners like Datalink, we provided a comprehensive
solution. The B2C-style interface ensured a streamlined long-tail spend procurement process, fostering
user adoption and accelerating decision-making, ultimately setting the stage for sustained
procurement excellence with 100% automation and a 30% reduction in manual efforts.“
- Reena Ravindran, Senior Program Manager, Powerweave
This bespoke solution centralized supplier catalogs, significantly enhancing
product and price discovery while enabling insightful comparisons across a multitude
of suppliers. A key feature was the support for volume-based pricing, which, in tandem
with global demand aggregation, allowed them to capitalize on its extensive market presence
for better deals. The platform's integration with the client’s quality partner, Datalink,
ushered in a new era of risk management and quality assurance at a global scale, ensuring
compliance and high standards across all products.
Furthermore, the system's intuitive B2C-style interface streamlined the procurement process,
bolstering user adoption and accelerating decision-making. Additional functionalities like API
connectivity for external data integration, as demonstrated in markets like China and Mexico,
offered unparalleled flexibility and market responsiveness. This comprehensive solution,
culminating in controlled product management workflows and detailed order history reports,
not only addressed the immediate challenges but also set the stage for sustained procurement excellence.
The path to transformation: Implementing the Primemart solution
Primemart's journey to revolutionize the procurement system commenced with an in-depth assessment
of the existing procurement workflows. This critical analysis laid the foundation for the impactful
integration of the new eCommerce platform. Meticulous attention was then devoted to customizing the
technical aspects of the solution, ensuring it met their specific needs. This phase was followed by
a rigorous testing process in a User Acceptance Testing environment, guaranteeing functionality and
reliability. The final stride in this transformative journey was a strategic, step-by-step rollout
across the company’s global operations. Accompanying this rollout were comprehensive training programs
designed to ensure adept usage and widespread adoption of the system. This strategic implementation marks
a significant milestone in their history, showcasing a journey of innovation and efficiency and positioning
Primemart as a cornerstone in the reinvention of their procurement landscape.
The Result
Achieving excellence in streamlining long-tail procurement
80+
suppliers onboarded
globally
3100+
SKUs listed and
traded
$8.5B
worth of trans.
managed
47,000+
orders processed
efficiently
100%
automation achieved
in procurement
30%
reduction in
manual efforts
15%
savings in
procurement costs
20-30%
reduction in
time-to-market
Results demonstrated over 5 years of usage.
Primemart's implementation marked a significant leap in procurement
efficiency and effectiveness. By centralizing supplier catalogs and providing a
sophisticated eCommerce experience, Primemart enabled a more streamlined and insightful
procurement process. This approach supported volume-based pricing, allowing our client
to leverage its scale for better pricing and cost savings.
Strategic impacts:
Enhanced decision-making: The ability to compare products and prices across suppliers led to more informed and quicker purchasing decisions.
Quality and compliance: Integration with quality partners like Datalink ensured higher standards and compliance, reducing risks significantly.
Global efficiency: The system facilitated global demand aggregation, offering them the advantage of lower prices through bulk procurement.
Data-driven insights: With API connectivity and comprehensive order history reports, Primemart provided valuable data insights that were previously
inaccessible, aiding in strategic planning and forecasting.
Overall, Primemart's solution streamlined the procurement process and brought about substantial improvements in decision-making, cost efficiency, and risk management.
“Primemart's implementation has been transformative, driving a major leap in our long-tail procurement efficiency. Handling transactions worth
USD 8.5 billion and processing over 47,000 orders with full automation, we've seen substantial benefits. Our decision-making is more
informed, compliance is stronger, and we've achieved significant cost savings. This platform hasn't just solved our immediate challenges;
it's set us on a path to a more agile and responsive procurement future."
- Procurement Head, [Global FMCG Company]
Looking ahead
Collaborative innovation with AI-enhanced procurement
As we continue to advance our strategic partnership, the focus is set on taking
the procurement system to the next level by incorporating advanced Artificial Intelligence
(AI) technologies. Our vision includes the development of a comprehensive analytics dashboard,
providing an all-encompassing view of procurement activities. This platform will facilitate detailed
analysis and visualization, covering critical areas like expenditure, vendor performance,
location-based analytics, and market trends.
The future of Primemart involves harnessing AI and Machine Learning to revolutionize support, adoption,
and decision-making in procurement. This innovation will allow for the automation of key decision processes,
utilizing a blend of internal operational data and external market insights. This approach will empower Primemart
to suggest the most effective procurement strategies, optimize contract negotiations, and enhance vendor selection processes.
Moreover, there’s scope to use Generative AI and LLMs to automate the generation of procurement documents and create dynamic
supplier evaluation metrics, leveraging real-time data for precision and efficiency. This transformation is not merely about automation;
it's about elevating Primemart into an intelligent, forward-thinking platform that enhances strategic decision-making. With these AI-driven enhancements,
Primemart is poised to become a more adaptive, efficient, and strategically predictive tool, perfectly aligned with the dynamic and complex needs
of global procurement.