How a Solar Power Producer Reduced Procurement Cycle Time by 50%

Locations: Singapore, Indonesia, Malaysia, Vietnam, Thailand, Cambodia, and the Philippines
Industry: Renewables & Environment
Company size: 201-500
Using Precoro since: October 2022
Users: 74
Client’s rating of Precoro: 8/10
Featuring: Chief Operating Officer, Chief Financial Officer, and Assistant Procurement Manager

About the Company

This anonymized case study focuses on a leading solar independent power producer (IPP) that provides comprehensive solar energy solutions to businesses across the Asia Pacific. Their services span from installing solar photovoltaic (PV) systems at commercial, industrial, and public sites to offering consultations on carbon emission reduction and energy optimization. With operations spread across eleven entities, the company has a broad reach in the region.

The company’s Chief Operating Officer, Chief Financial Officer, and Assistant Procurement Manager shared their experiences in tackling procurement challenges and explained how Precoro provided the solution.

Initial Procurement Process

In the past, the company’s procurement process was heavily reliant on spreadsheets, making PO creation and approval time-consuming and prone to delays. The process was as follows: employees would create a purchase order in Excel, print it, manually sign it, and circulate it for approval. Once approved, the PO would be scanned and sent to the vendor.

Tracking and analyzing purchases across multiple locations was challenging, and there was no clear visibility or control over budgets. This lack of oversight led to out-of-control spending.

Additionally, each PO had to be linked to a specific budget, but because spreadsheets didn’t update automatically, calculation errors were common. As a result, many POs exceeded the project budget.

Moreover, all analyses and reports were done manually using Excel. This reliance on spreadsheets led to periodic human errors, further complicating the procurement process.

Struggling with these ongoing challenges, the company ultimately decided to implement a software solution.

“Our goal was to establish a completely paperless process. We were tired of constantly printing out purchase requisitions, purchase orders, and all the other documents. We just wanted to access everything with one click in the system.”
— Assistant Procurement Manager

The company aspired to achieve the following:

• Fully automate the purchasing process
• Streamline the approval workflow
• Ensure accurate delivery tracking
• Gain complete control over spending and budget management

Selection of the System

After pinpointing the key pain points in its procurement process, the organization set out to find a solution that would streamline operations across its multiple entities. The team researched various procurement software options through online resources and comparison websites.

When evaluating solutions, the Chief Operating Officer considered several key factors: vendor reputation, pricing, customer support, and security. The company prioritized features like:

• Multi-entity management
• Easy-to-use templates for purchase requisitions, purchase orders, invoices, and receipts
• Budget management and real-time tracking
• Customizable multi-level approval workflows for procurement documents
• Automatic three-way matching to quickly verify invoices
• Inventory management
• Integration with Xero, their accounting software

Precoro checked all the boxes. With great reviews and strong customer support, it quickly became the top choice. The intuitive interface and easy customization — praised by users — were key factors that sealed the decision.

The Onboarding Process

Initially, the Chief Operating Officer and Chief Financial Officer led the implementation of Precoro, with support from the Customer Success Manager, Jane Karnaukh, at every step. However, progress was slow due to their tight schedules and simultaneous onboarding at multiple locations.

The process gained momentum once the Assistant Procurement Manager was hired. Focused on procurement optimization, he drove the project forward. The Assistant Procurement Manager notes that the system is very user-friendly. He also appreciates the excellent customer support.

“We have very good support. Whenever we face any problems or have questions, our Customer Success Manager is always there to give us answers. She puts in so much effort to help us have the best experience with the system. We appreciate it a lot.”
— Assistant Procurement Manager

Gradually, in six months, the company set up 37 users across its six entities. In just two years, this grew to 74 Precoro users across 11 entities. While implementing new software can be complex, especially for multi-entity organizations, at Precoro, we make every effort to simplify the process and tailor the system to meet our clients’ specific needs.

Results & Next Steps

Now, teams use Precoro to seamlessly create purchase requisitions, orders, receipts, and invoices, all with customized approval workflows. The Singapore office alone processes around 50 POs per month. Thanks to Precoro, handling a high volume of orders has become much easier, with approvals moving faster than ever.

Although configuring approval workflows for different entities and departments took some time, the process is now fully automated. When an employee creates a PO, the system instantly sends it to the designated approver. Most POs are created and approved on the same day.

The Assistant Procurement Manager notes that document creation and processing are now twice as fast! He also points out that there are no more human mistakes in procurement documents.

“When we issued POs using data in Excel, they often came out with typos and errors in the calculation and the total amount. When we use Precoro, prices and items are already set out in the system. Sometimes, I will not even open up the PO; I’ll just send it to the supplier because I’m that confident in the numbers and everything else.”
— Assistant Procurement Manager

The Assistant Procurement Manager and teams actively use the Inventory module, particularly for warehouse management and stock transfers. Now, all receipts are easily traceable back to their corresponding POs and invoices.

Tracking equipment and supplies across warehouses and transferring items between locations has become much more efficient. The Assistant Procurement Manager also mentions that accessing information has become much easier thanks to the centralized procurement platform.

“Now we can work anytime, anywhere. I can simply retrieve any information from the software because, normally, I will attach all the relevant documents to the system. It’s such a relief that now I don’t have to search and take them out of our shared folder.”
— Assistant Procurement Manager

The solar independent power producer successfully implemented Precoro across most entities, effectively eliminating previous budget issues. Budgets now update automatically whenever purchases are made, ensuring that no PO exceeds the allocated amount for a project or department.

The Assistant Procurement Manager was particularly impressed with the Reports module, calling it a major time-saver and valuable analysis tool. He can now easily create custom reports based on any data or document type and easily retrieve them from Precoro whenever needed.

The Assistant Procurement Manager also emphasizes that Precoro has been a game-changer for saving time overall. By streamlining and simplifying secondary processes with the platform, teams now have more time to focus on high-value projects. For instance, rather than discussing every detail of purchase orders or invoices in meetings, they can leave notes and comments directly within the platform, making communication more efficient.

Key Takeaways

Before Precoro

• Inefficient spreadsheet- and paper-based buying process
• Lengthy approval times
• Lack of proper budget control
• Time-consuming reporting
• Unreliable delivery tracking
• Human mistakes in purchase orders

With Precoro

• 2x times faster procurement process
• Automatic 3-way matching of POs, invoices, and receipts
• Centralized repository for all procurement-related data
• Streamlined approval workflows
• Transparent budget management
• Automated, customizable reporting
• Transparent delivery control
• Ability to set up item and supplier catalogs