Petroineos entrusted Ivalua and Fluxym for the management of their supplier base
Petroineos is a trading and refining joint venture between INEOS and PETROCHINA, created in 2011.
It is the leading independent European refiner with two industrial sites located in Grangemouth (Scotland) and Lavera (France). Petroineos sells a full range of petroleum products and processes over 420,000 barrels of crude oil per day.
We have significantly improved our supplier knowledge. We are now capable of selecting the ones that bring us the most value.
By digitizing our processes with Ivalua, our buyers have more time to analyze spend and implement purchasing strategies by category.Jean-François Henninger,
Procurement Team Leader
Context and Challenges
Prior to Ivalua, the Purchasing Department had no tools to manage its supplier base and launch complex tenders, apart from a multitude of shared resources. This lack of coordination and visibility caused a dispersion of information and data. It also resulted in considerable loss of time and efficiency for day-to-day buyers.
Towards industry 4.0
To improve its efficiency, the Purchasing Department decided to restructure the service by creating Category Managers in 42 Categories linked to three Markets: direct spend, materials and equipment, and new work and maintenance services.
This category management was set up to develop long-term purchasing strategies. It also aimed at implementing processes dedicated to supplier relations management.
To support this new organization, the deployment of a solution was essential. Hence, the LAVENDOR project was launched!
The platform won the support of the solicited buyers thanks to its ergonomics and its ability to be configured independently, without specific developments.
- Oil and energy
Key Figures :
- €336 M annual spend
- (CAD 519M annual spend)
- 4,000 active suppliers
- 28 buyers: category managers and operation
- 230 prescribers, technical managers and legal department
- ERP: SAP
- GMAO: Maximo
- DocuSign (e-Signature)
- Ellisphère (Financial information)
- E-attestations (Legal documents)
A global view of suppliers in just one click
The deployment of Ivalua’s Source to Contract module enables customers to manage purchasing activities not supported by ERPs:
- Supplier qualification and category approval: centralization of all data and documents in one single database (certifications, legal documents, etc.) Implementation of a technical validation workflow – Securing IBAN data
- Purchasing projects: standardization of RFx and analysis grids, global view of price tables, collaborative evaluation of offers (technical response, price, terms and conditions, environment, Health and safety, etc.), audit trail. 90% of purchasing projects are now managed Ivalua
- Program: visibility into procurement, contracts and supplier issues
- Evaluation: questionnaires sent to suppliers based on criteria defined by stakeholders – Internal management and visibility of supplier records including, performance ratings
- Contracts: contract repository, validation workflow for strategic contracts, monitoring of the contract life cycle (automatic renewal)
- Litigation and progress plans: management and detailed monitoring of disputes and progress plans; collaboration with stakeholders and suppliers in a dynamic environment with the goal of continuous improvement processes and efficiencies
- Reporting: mapping of spend and creation of dashboards in complete autonomy.
We carried out this project in a true spirit of partnership with the Fluxym team. We really appreciated their commitment and availability. We established an intelligent and constructive dialogue to find the best solutions together.Jean-François Henninger,
Procurement Team Leader
- Improvement of supplier knowledge:
supplier qualification is more rigorous and more systematic, especially thanks to automatic updates and alerts. Managing the approval process by category is simple and collaborative. Thus, the selection of suppliers is done fully knowing all the facts based on exhaustive, objective and shared criteria
- Harmonization and standardization of processes (tenders, disputes, etc.) and dashboards for better management of projects and tasks
- Compliance and risk mitigation thanks to the updating of legal documents, the monitoring of certifications, the securing of financial data and the traceability of validations which can be restored in the event of an audit
- Better collaboration with stakeholders: the clear definition of the roles and responsibilities of prescribers and buyers improve their collaboration in the tendering and supplier qualification processes
- Consolidation of the supplier relations: Petroineos chose to share its information (approval, contracts, disputes, etc.) with its suppliers. Transparency is a key element in building a good relationship, especially with strategic suppliers
- Saving time and efficiency: Petroineos buyers now have a centralized and regularly updated supplier base. This allows them to spend more time analyzing expenses and developing purchasing strategies by category.
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