Evolution Online – EON
Procurement management – procurement management solution
About the Client
UNIQA Serbia is a member of one of the leading European insurance concerns – Austrian UNIQUA Group, doing business in 18 European markets with 9.6 mn clients and a 200-year-long tradition. In Serbia, it has operated for more than 20 years. Ever since its foundation, UNIQUA has made as many as 3 mn policies with more than 500,000 people of different generations, levels and types of education and life plans, large and medium-sized companies, the experienced and the beginners
Context
The procurement process with a large corporation is a great challenge always and everywhere. It is necessary to organize the procurement of goods and services in such a way to have unimpeded operating, for every organizational unit to have everything it needs to conduct daily activities and, on the other hand, to obey the framework defined by the budget, namely for the consumption not to exceed planned values.
During the procurement process, communication must be simplified to the maximum and transparent, and anyone, at any moment, can obtain information about the status of the procurement order, whether the procurement has been approved, whether the goods have been ordered, what are the prices. As well as the highest number of companies in the market, UNIQA conducted the entire process via emails and manual or half-automated processes. As a company which is one of the tech leaders in the insurance market, the company decided to tackle this challenge and create a possibility for further expansion of business capacities, not fearing that this process might turn into a bottleneck.
Solution
After we have been commission to do this job, we have conducted an analysis of the entire procurement process, from initial annual plans and budget definition, via procurement orders, the decision-making process, contacting suppliers and the very delivery of goods. A set of new business processes has been defined and, based on them, a modern software solution based on web technologies has been designed, with an aim to fully make the process of planning, procurement and delivery of procured goods, material and services fully automated.
As a foundation, the system had to obey the organizational structure of the company and, based on that, implement the connection between cost centers of organization units, budget lines and organizational hierarchy. Each employee can order certain funds, and each order must undergo the approval process by authorities within the linear organization.
Client:
Uniqa Insurance
Industry:
Insurance
Size:
Large company
Period:
2013-
Status:
System is in use and constantly updated.
Category:
Special-purpose software development, business analysis, project management
Technology:
HTML CSS Javascript Jquery .NET ASP.Net C# MSSQL MS Reporting Services
Integrations:
BPMS DMS Uniqa core sistem
Specific features:
Integration with BPMS tool and implementation of decision-making system on the procurement in question
In accordance with that, an administrative module, integrated with the central IT information system of the company in the domain of basic code books of staff has been integrated, hierarchies of employees, cost centers, organizational structures etc.
The system has been harmonized with the company’s annual budget and, in accordance with that, each organizational unit, namely its cost center, receives annual budget for procurement. Budgets have project architecture, namely every cost center had basic annual budget, and could have additional budgets based on different projects as well. When the budget is exceeded, and depending on settings, the system has a possibility to refuse the order automatically, or leave it to the superior to accept it or not, manually.
The central storage facility, as a central place in the company, where all goods from the suppliers are coming, and then they are further distributed per organizational units, is designed at an exceptionally flexible base which enables easy mapping of products by suppliers with items used during the procurement process by the employees within the company. In this way, the danger from unnecessary creation of double items within the base, and, making order creation process more complex has been avoided, just because different suppliers have different codes for the same item.
The same as codes for the items, the price has been decided based on the internal code for the item and presents an orientational, informative price according to which the previous procurement has been made and does not guarantee that the new procurement will be at the same price. However, this is a very important information when you have in mind the supervision of budget consumption because in this way the system automatically calculates how much would the wanted procurement amount to, more or less, and whether this is within the limits of the defined budget.
After the order has been created by the employee, and approved by the superior, the order is received by the employees in the procurement service, who further forward the order to suppliers. The system is defined in a way to enable the integration of several internal orders into one in case the goods are ordered by the same supplier. When the supplier has sent his proposal, the procurement service operator corrects procurement terms (price availability, alternatives, delivery terms etc) if necessary and “informs” the one who placed the order when the status of the order has been changed.
In case the one who placed the order agrees to the procurement terms, s/he confirms the order, which is a signal for the procurement service to approve the delivery of goods to the supplier.
Goods/services can be delivered directly to the location of the cost center, which initiated the procurement, or delivered to the central storage facility and further distributed from that location.
Following the delivery of goods/service and their reception, the system automatically updates the situation in the cost center (central storage facility) in terms of goods and finances and enables real time reporting. Each user, with her/his user rights, is enabled an insight into the consumption of cost centers/he is authorized to see.
The solution has been implemented in accordance with the state-of-the-art Microsoft technologies for development of web platforms. It requires minimum resources and technical maintenance.
Benefits
Since its first day in operational use, the system turned out to be very successful and simple for use of end users. Time necessary to create procurement has been cut in half from the very beginning, and the entire process has been very transparent. Each procurement has been properly registered and the entire process is visible to all participants.
The procurement of funds has been optimized to the maximum because the central storage facility has been updated in real time and each interested employee could see whether the funds are already in the company or s/he must wait to make the delivery.
The reporting system, from predefined reports (for example, consumption per budget lines), to sophisticated reports created by the system administrator (users with the highest set of authorizations in the system) enables simple planning and timely orders. It is possible to set notifications for desired items in regular consumption (for example, printing paper), when, in case minimum quantity is registered in the central storage facility, the employee might contact the supplier immediately and procure the quantity necessary for regular implementation of business processes within the company in a timely manner.
TIN: 102789279
Bank Account:
170-30005036000-02
Bank Account:
170-30005036000-02
TIN: 102789279