10 Procurement Case Studies: Examples & Lessons Learned
Effective procurement practices are necessary across all industries. By examining 10 procurement case studies in various sectors, from non-profit to technology, healthcare, and beyond, we demonstrate
- Procurement software integration is a powerful lever, dramatically increasing spend compliance and cutting operational waste.
- Automation boosts efficiency, eliminates manual grunt work, and speeds up financial close processes.
- Effective change management and training were absolutely crucial for successful system adoption.
Explore a range of case studies that showcase how organizations have leveraged innovative procurement strategies to overcome challenges and enhance overall efficiency:
Real-life examples from different sectors
By examining procurement case studies from different sectors, we uncover how organizations have leveraged innovative solutions to address challenges, optimize operations, and achieve better results.
1. Energy & utilities sector
Problem
A major utility company was hit by severe supply chain constraints, pushing lead times for essential transformers and electrical gear past two years.1
Solution
A procurement software vendor stepped in to help the utility secure future production slots, negotiate better contract terms, and simplify their internal procedures. This partnership achieved a 5% cost reduction through competitive bidding, standardized pricing, and the creation of unique material codes for better budgeting and forecasting.
Lessons learned
This case proves the critical role of strategic supplier partnerships, direct negotiations to lower supply risk, and the value of smoothing out internal processes for efficiency and cost savings.
2. Oil & gas sector
Challenge
A leading global oil and gas firm struggled with massive inefficiencies, data silos, and governance headaches. Their reliance on old systems led to delays, zero visibility, and a hopelessly complex approval process.2
Solution
The vendor implemented its Intelligent Category Management (ICM) system, collapsing the multiple outdated solutions into just two centralized platforms. This move digitized contracts, increased eSourcing use by 20%, and boosted procurement ROI by 15%.
Lessons learned
This shows the huge advantage of modernizing outdated systems by centralizing and unifying procurement platforms. It highlights the power of real-time data for strategic decisions and using intelligent category management to improve efficiency, save money, and manage risk.
3. Healthcare sector
Problem
Memorial Hospital of Sweetwater County experienced frequent system failures and limited access to budget details during the purchasing process due to a problematic general ledger system, leading to workflow interruptions.3
Solution
The hospital partnered with a procurement software provided a requisition solution that offered accurate budget reporting, visibility and transparency throughout the purchasing process, and seamless integration with the hospital’s materials management and ERP systems. This led to improved processing times, reduced errors, and enhanced efficiency.
Lessons learned
The case underscores the importance of adopting tailored procurement solutions to overcome system inefficiencies, reduce errors, and streamline operations, leading to significant improvements in budgeting, transparency, and procurement professionals’ satisfaction. Technology can help procurement teams streamline their processes and improve communication with different suppliers.
4. Non-profit sector
Problem
Central Park Conservancy’s paper-based requisition system caused chaotic ordering, making it difficult to track, approve, and efficiently place orders.4
Solution
Solution
The procurement software vendor delivered an integrated procurement platform featuring customized workflows and audit trails. This allowed for accurate tracking of expenditures, encumbrances, and accruals.
Lessons learned
Procurement software implementation significantly streamlined the procurement process, reinforced purchasing policies, and enhanced spend management, leading to improved efficiency, time savings, and better control over financial operations.
5. Financial sector
Problem
Challenge
Hellenic Bank suffered from a lack of standardization, centralization, and digitalization in procurement, leading to high costs and general inefficiency. They also needed to urgently improve compliance with regulatory rules.5
Solution
The bank implemented an AI-powered source-to-pay software to centralize procurement activities, and integrate key processes such as supplier management, and contract management.
For more information, check 10 AI Procurement Use Cases & Case Studies.
Lessons learned
Rolling out the procurement tool completely overhauled Hellenic Bank’s operations. The outcome was standardized processes, enhanced visibility, shorter cycle times, stronger supplier ties, and strategic insights. They expect even more benefits—like greater cost cuts and better compliance—once the platform is fully integrated.
6. Construction sector
Situation
High Speed 2 Ltd. (HS2) faced the enormous task of ensuring supply chain transparency and resilience for the UK’s largest infrastructure project. They had to manage countless suppliers in a complex market where external factors like hyperinflation and labor shortages compounded costs and risks.6
Solution
HS2 implemented the supply chain management initiative, involved mapping and assessing critical contracts and suppliers across multiple tiers, leveraging dashboards and innovative methods to deliver valuable insights into the supply chain.
Lessons learned
This case proves that a strong commitment to collaboration and proactive risk management is the key to significant progress in supply chain clarity, maintaining quality, and securing better value. HS2’s successful program let them focus on immediate needs and secure value for taxpayers by truly understanding and managing risks moment-to-moment.
7. Chemical sector
Problem
Bioscience company Royal DSM N.V. (DSM)’s indirect procurement processes were leading to inefficiencies and excessive time spent on operational tasks, detracting from value-creating activities. Their purchase-to-pay process was weak, causing payment delays and introducing risk.7
Solution
DSM adopted a procurement software solution to digitalize and automate their transactions. This included a full source-to-pay process backed by a strong governance structure and a global rollout that started with a pilot in Brazil to navigate tricky tax regulations.
Lessons learned
Effective change management and extensive training, including local language support, were crucial for the successful adoption and deployment of the new procurement processes.
8. Transportation sector
Challenge
Transport for London (TfL) was dealing with a severe skills shortage and lack of diversity in the transport industry, with a workforce predominantly composed of older white males, while a significant portion of young Londoners were unemployed or out of education.8
Solution
TfL established the Supplier Skills Team and implemented Strategic Labour Needs and Training (SLNT) requirements in contracts. This approach required suppliers to deliver specific skills and employment outputs, with a focus on apprenticeships and job starts for disadvantaged groups. TfL also partnered with charities and employability groups to support these efforts.
Lessons learned
Successful outcomes were driven by strong internal buy-in, clear communication of goals with suppliers, effective partnerships with the right organizations, and recognition of achievements. TfL’s approach has led to thousands of apprenticeships, job placements, and the employment of disadvantaged individuals, setting a standard now being adopted by other public sector bodies.
9. Technology sector
Problem
As Jumio scaled up globally across multiple subsidiaries, managing its procurement and accounts payable became the greatest challenge, especially with manual Purchase Order (PO) matching creating frustrating bottlenecks.9
Solution
Jumio implemented an integrated procure-to-pay finance automation solution. This system automated PO and invoice processing, allowed for self-service supplier onboarding, and improved month-end reconciliation.
Lessons learned
Automating procurement and accounts payable processes massively cut down on workload, boosted efficiency by eliminating manual tasks, sped up financial reconciliation, and guaranteed smooth integration with their ERP system.
10. Education sector
Problem
Pearson, a global leader in education, struggled with disjointed procurement systems that lacked comprehensive spend visibility and compliance enforcement, hindering strategic decision-making.10
Solution
Pearson partnered with a business spend management platform to unify their procurement processes, improve risk management, enhance compliance, and achieve better deals, with a focus on user-friendly adoption.
Lessons learned
The integration of the procurement software platform significantly increased spend compliance from 22% to 85%, reduced operational inefficiencies, and resulted in high user satisfaction, demonstrating the value of streamlined procurement processes.
Summary of lessons learned from the procurement case studies
- Procurement software integration significantly increased spend compliance and reduced operational inefficiencies.
- Automation improved efficiency, reduced manual tasks, and streamlined financial processes.
- Effective change management and training were crucial for successful adoption.
- Commitment to collaboration and proactive risk management enhanced supply chain transparency and efficiency.
- Centralizing procurement systems and using real-time data led to better decision-making and cost savings.
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Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE and NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and resources that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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