All Case Studies
Transforming Procurement Audits
Orion Materials Management helped a major operator audit and improve procurement health by reducing aged open purchase orders and invoices, cutting financial exposure by over $20M, streamlining processes, and embedding sustainable practices for long-term efficiency.
Services provided included:
Materials Management
Name of Company
Major Energy OperatorSector
EnergyLocation
GlobalThe Background
The project was initiated in response to significant procurement inefficiencies within the client’s operations. A backlog of aged open purchase orders and invoices had accumulated over time, leading to:
• Over $20M in financial exposure due to outstanding invoices.
• Poor procurement visibility within the ERP system, making it difficult to track commitments.
• Increased administrative burden, slowing down procurement and finance processes.
Recognising the need for greater control, efficiency, and transparency, the client engaged Orion Materials Management (OMM) to audit, optimise, and embed sustainable procurement practices to ensure long-term financial and operational
The Brief
The client’s brief was to audit and optimise their procurement processes, focusing on the reduction of aged open purchase orders and outstanding invoices, which had led to significant financial exposure and administrative inefficiencies. The main objectives were:
Reduce the backlog of open invoices to mitigate over $20M in financial exposure.
- Improve procurement visibility within the system to enable better tracking and decision-making.
- Streamline the invoice processing workflow to enhance efficiency and turnaround times.
- Implement sustainable processes that would ensure ongoing procurement health at high standards, with long-term financial control.
Ultimately, the client sought to increase operational efficiency, minimise financial risk, and embed long-term, scalable procurement practices
The Solution
OMM’s solution focused on optimising procurement processes, reducing financial exposure, and streamlining invoice processing through a series of strategic actions:
- Audit & Analysis: OMM conducted a thorough review of the client’s procurement health, identifying the root causes of aged open purchase orders and invoices, and assessed the impact of these on the overall operations.
- Backlog Reduction: A targeted approach was implemented to reduce the backlog of open purchase orders and invoices, significantly lowering the client’s financial exposure of over $20M.
- System Optimisation: OMM worked to enhance the client’s ERP system, improving procurement visibility and ensuring that the invoicing process was more transparent and easily manageable.
- Process Streamlining: The solution included simplifying and automating invoice processing, cutting down turnaround times and reducing the administrative burden on staff.
- Sustainability: OMM embedded sustainable processes that would ensure the long-term health of the procurement system, maintaining high standards and preventing future backlogs.
By combining strategic process improvements with system enhancements, OMM was able to deliver a solution that reduced financial exposure, increased operational efficiency, and ensured continued procurement health.
The Outcomes
The results of OMM's solution were impactful and transformative for the client:
$20M+ financial exposure reduced by optimising the procurement backlog and addressing open invoices.
- Streamlined invoice processing, significantly improving turnaround times and reducing administrative burdens.
- Enhanced procurement visibility within the system, providing greater control and more efficient tracking of purchase orders and invoices.
- Sustainable procurement processes were embedded, ensuring ongoing high standards and long-term operational health.
- Improved efficiency led to faster invoice processing and a more agile procurement function, with reduced risk of future backlogs.
Overall, OMM's solution resulted in greater financial control, operational efficiency, and a sustainable procurement system that will continue to deliver long-term benefits for our client.