Creating an electronic ordering system.

Summary

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Liberty Mutual Group automates procurement process

Liberty Mutual Group has accelerated its procurement process by 99% and product pricing by over 25% by implementing improved processes and installing an electronic ordering system. It developed a direct order processing system in three stages, automating office supplies procurement first, office forms second and stationery last. With the client-server application, users can order directly from their desktops. Orders that have been qualified using cost center validation tables and negotiated price tables are sent straight to the appropriate vendors which, in turn, transmit them to the nearest order destination. Liberty Mutual has generated cost-savings from the elimination of excess space, and expect a 19% decrease in life-cycle costs.

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Extract

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Creating an electronic ordering system.

Thanks to innovative re-engineering and an online purchasing system, Liberty Mutual has cut its purchase orders in half and expects its total procurement costs to drop 19 percent.

A few years ago, Liberty Mutual took a hard look at its procurement process and decided it was far too cumbersome and costly. Now, thanks to improved processes and an electronic ordering system, the company has reduced cycle time in its procurement process by 99 percent and product pricing by more than 25 percent.

Like many other companies in the early to mid 1990s, Liberty Mutual, a d...

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