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Laing O'Rourke reduce order processing cost by 56% with Asite 

Asite demonstrate that they can offer an e-procurement solution that will allow Laing O'Rourke to conduct e-business with their suppliers and integrate the systems that their supply chain use. By purchasing online, they reduced processing costs for invoices, orders, requisitions, site orders and Goods Received Notes by up to 56%.
 

The Challenge

Laing O'Rourke have a vision of 'adopting work processes to compete with the world's leading businesses' and a goal to process 68% of their procurement transactions electronically by the end of the second Quarter 2003.

As a major step towards minimising their purchasing cycle, eProcurement allows Laing O'Rourke to provide their customers with greater flexibility whilst maintaining control of their expenditure.

Laing O'Rourke already had a Coins purchasing application operating across the group. The challenge for Asite was to allow any of Laing O'Rourke's key suppliers, in this case VJ Technology, to trade with them using Asite. This one-time integration would then allow Laing O'Rourke to connect to their other existing preferred suppliers through Asite.

 

The Solution

Asite has enabled Laing O'Rourke to exchange purchasing and accounting information electronically with one of their key suppliers - VJ Technology, through Asite. To place an order, Laing O'Rourke can select products from VJ Technology's online catalogue and issue an online purchase order via their existing purchasing application, Coins.

The catalogue is hosted on Asite and holds real-time product and pricing information, which eliminates the need for Laing O'Rourke to manage its supplier catalogues. VJ Technology can now receive purchase orders by simply logging onto Asite where they can also generate and send invoices directly to Laing O'Rourke's accounting system.

Asite worked with both Laing O'Rourke and VJ Technology to identify how their existing processes could be integrated using Asite. To ensure a smooth roll-out of the technology, users were fully trained by Asite to maximise the benefits of the solution.

 

The benefits

As Laing O'Rourke continues to move towards strategic procurement, the use of Asite will assist in making their business processes more efficient. It will provide improved procurement information within the organisation and result in better financial control and profitability.

By integrating their purchasing application with Asite and enabling 30 of their supply chain, Laing O'Rourke can reduce invoice processing costs by up to 56% resulting in an overall anticipated saving of 25% per transaction.

The cost-savings are realised through a number of factors. Laing O'Rourke will no longer have the task of catalogue management and they will benefit from more efficient order placement and accuracy. Invoices can be easily reconciled with purchase orders, and as they are received directly into the back-office system, this eliminates the time taken to input them. 

VJ Technology also benefitted from receiving purchase orders and returning invoices online as they are able to fulfil the requirements of their preferred supplier status with Laing O'Rourke. In addition, order queries can be reduced and payment expedited through the automatching of online orders and invoices.

However, VJ Technology will only maximise the benefits when they integrate their accounts system with the Asite exchange. This will enable the transfer of data direct from the order placed into the fulfilment and accounting processes.

 

Company profile

With the acquisition of Laing Construction, the Laing O'Rourke Group has become one of the most capable and complete forces in the UK construction industry.

The Group develops, designs, builds and manages infrastructure on a global basis. Its interests encompass every aspect of the construction process while it is building many of the country's biggest and most technically challenging projects.

The vision is to be the company of first choice for all stakeholders, challenging and changing the image of construction worldwide, lean and agile, by adopting work processes to compete with the world's leading businesses.