With its expansive range of solutions for a digitally empowered enterprise, Konica Minolta Business Solutions Asia has been providing office and IT solutions, digital and production print services, and business consultancy across ASEAN since 1972.
A year ago, when the Singapore based team decided to transition from a manual to a digital purchase-to-pay (P2P) system, it was a decision driven by rising costs and complex procurement processes. The clear objective was not only to drive down costs; but to enable the business to gain control over its procurement spend, rationalize its suppliers, and negotiate better deals.
Effective procurement can have a major impact on the revenue and profitability of any business. Better management of procurement operations not only drives down costs; but can lead to increased cost savings. It goes without saying that reducing negotiable spend through cost savings can have a huge impact on a business’s bottom line. Yet, surprisingly, many businesses still fail to see the connection between saving money and increased profit. Increasing profit through sales during a global pandemic can be incredibly hard for any business, but putting spend and procurement processes in place with the right partner can be a lot easier.
The challenges were clear, says Miss Hanako Kato, Corporate HQ General Manager at Konica Minolta Business Solutions Asia, “We identified three areas for improvement in our procurement, sourcing and spend management processes. Firstly, we wanted to improve on our team’s roles and responsibilities in relation to procurement activities, such as formalizing the process for procuring non-trade products, for example, for demos or our showroom.
“Secondly, we also wanted to address, and give more clarity around, the process of procuring materials for specific purposes, and to put in place formal communication of procurement documentation and approval processes.
“Thirdly, because of the limitations which we had identified, our back office and financial teams were unable to conduct spend analysis or performance evaluation. We wanted to gain a 360 view of our outgoing spending so that any efficiencies could be realized. “
Konica Minolta Business Solutions Asia selected Valtatech (Valta Technology Group) as its implementation partner to manage its transition from a manual and paper-based P2P system in 2019. The partnership with the financial process automation experts enabled the implementation of Konica Minolta’s companywide Coupa Business Spend Management technology. With the aim of automating its source to pay (S2P) and expense management systems, following the completion of its successful, procure-to-pay (P2P) digital transformation earlier in the year.
Valtatech’s role was to configure, implement, and manage Konica Minolta Business Solutions Asia procurement automation drive. It was enabling the business to drive efficiencies and gain control over its previously paper-based expense and sourcing systems and improving the business’s resiliency and control over spend; while boosting its ability to satisfy audit demands and reduce costs as a result. Providing visibility and insight the Regional team required while improving risk mitigation, streamlining spend approvals, and improving governance.
Valtatech has been an invaluable partner in that process.
“The project has already helped us to reduce costs, identify risks and improve value delivery across the business; while providing the visibility and insights my team and I require improving risk mitigation, due diligence processes and governance. The fact that our existing team has already automated our P2P system in just over five months, without increasing headcount, is something we are extremely proud of too,” Miss Hanako Kato adds, “Following the success of the first P2P phase of our digital transformation journey, our partnership with Valtatech has now been expanded to sourcing and expense management, utilizing Valtatech’s expertise to tailor Coupa’s Business Spend Management technology for the requirements of multinational businesses.”
The collaboration has helped to improve the ability of Konica’s business to rapidly adapt and respond to business disruptions, safeguard their people, assets, and supply chain; while maintaining continuous business operations has been a priority for the team.
Mr. Ian Wang, Senior Manager, Regional Supply Chain Centre, speaks about the advantages the collaboration has brought in. “We are collaborating with Valtatech because of their extensive digital transformation experience. Our solution-focused services model, together with Valtatech’s unique expertise, and Coupa’s overarching spend management technology, will help my team to effectively adapt to changing requirements; against a backdrop of on-going budgetary pressures, changing technology and our customer demands.”
Together with Valtatech, Konica Minolta has implemented a full procure-to-pay system, including financial governance/approval steps, alongside:
- A systemized supplier relationship management framework to better track and measure supplier performance
- Harnessing data to enhance our ability to build insights to better inform budgeting, financial performance, procurement activities, and decisions
- While providing improved insight and controls across sourcing, contract management, purchasing, accounts payable automation, analytics and supplier relationship management, supplier catalogue enablement, and electronic invoicing (e-invoicing)
The future is bright for the partnership, says Hanako Kato. “Following the success of the first P2P phase of our digital transformation journey, our partnership with Valtatech has now been expanded to sourcing and expense management, utilizing Valtatech’s expertise to tailor Coupa’s Business Spend Management technology for the requirements of multinational businesses. I’m proud of the work my team and our partners at Valtatech have done, and will continue to do, to ensure we have a resilient, future proof business, with complete and on-demand visibility over our committed spend and outgoing liabilities.”