If you happen to be in the Middle East and find yourself shopping for shampoo or lotions from market leaders P&G, Unilever and Johnson & Johnson, there’s a good chance the bottle it comes in was made by Dubai-based Precision Group. Founded 36 years ago, the company is a pioneer and market leader in the manufacture of rigid plastic packaging products, molds, and aluminum extrusion dies. Many of its customers have been with Precision for more than three decades and rely on R&D partnerships with the company to succeed.
Precision’s highly complex manufacturing operation requires an efficient supply chain to stay on schedule, keep costs under control, and maintain quality. In recent years, Precision Group found that their 25-year enterprise resource planning system couldn’t provide managers with sufficient visibility into the company’s critical procurement process. In fact, much of the purchasing of materials had to be done manually, and in compartmentalized silos, limiting what managers could see and track, and slowing decision-making.
Executives decided to take a disruptive approach to the challenge. They launched a full-scale digital transformation of the business, migrating procurement operations from Precision’s legacy ERP system to Oracle Fusion Cloud Procurement and integrating the platform with a portfolio of more than two dozen Oracle Cloud solutions.
Changing the work habits of members of its veteran procurement team – many with 20 years of experience – wasn’t simple. But after seeing how the cloud solution could cut manual labor, boost productivity, and enable better customer service, the team members eagerly climbed on board. For Precision’s industry-leading customers, the switch was a reassuring sign that one of their key business partners was taking the lead in adopting modern, innovative processes.
Since deploying Oracle Cloud Procurement, Precision has gone 100% digital and paperless. Printed purchase orders are a thing of the past and communications with customers and suppliers has become totally electronic.
With thousands of potential suppliers located all around the globe, Precision needed a fast, systematic way to qualify and manage them. Supplier qualification management in Oracle Cloud helps Precision to gather and organize information about all its potential suppliers by region. Managers can quickly understand supplier capabilities, such as their ability to deliver goods and services, their financial stability, their environmental compliance record, and more. Precision is now equipped to choose the most suitable suppliers to meet the company’s needs. And executives say the enhanced visibility reduces the risk of supplier-related issues impacting the business.
Before Precision moved to Oracle, creating purchase orders used to be a slow, inefficient process. Requisitions had to be manually converted into POs, which were then circulated around the business for approval before being sent to suppliers. By implementing purchasing in Oracle Cloud, Precision can now generate POs directly from requisitions without manual intervention and automatically leverage negotiated pricing and terms from supplier agreements.
With more than 5,000 of its purchase orders based on existing agreements, the automation potential was huge – and the efficiency gain was substantial, with Precision reducing purchase order approval times by 40%.
Using self-service procurement in Oracle Cloud, employees today can “shop” for the products and services they need to be productive, such as a laptop, notebook, or other work supplies. Requisitions are automatically sent to the employee’s manager (and then to more senior managers if necessary) and employees can attach any documents needed to help justify the requisition.
Oracle Cloud self-service procurement also gives employees full visibility into the approval process, so at any time they can see which manager has approved their request and who else still needs to sign off before the order is placed with preferred vendors. If someone on the approval chain is unavailable, authority can be easily transferred to another manager to keep the approval process moving.
Precision realized significant efficiency gains after moving to automated self-service procurement. Notably, the company has reduced approval times from a week to just a few days and the process now requires 30-40% less labor.
Executives at Precision say that moving procurement to the cloud has enhanced the company’s competitiveness on several fronts. The cost savings are increasing their bottom line. It can deliver products to market faster, improving agility. And better visibility into its supply chain is helping managers make better, faster decisions. Not least, customers say they appreciate the switch to all-electronic communications, helping solidify their satisfaction and loyalty.
After more than three decades of market leadership, Precision is laying the technology foundation for continued growth and innovation. And that’s good news for Precision’s industry-leading customers.