Reduce Contract Leakage with the Celonis Open Purchase Requisition Processing app

Maximizing contract value can be a challenging initiative that may be overwhelming. It requires seamless action from requisition through the Procurement team.

According to research from World Commerce & Contracting, formerly known as the International Association for Contract & Commercial Management (IACCM),  the average company loses 12.4% of annual revenue because of contract leakage. Best-in-class companies only lose 6.2% on average.

Meet the Open Purchase Requisition Processing App (OPRP App). Operating like a radar system for your purchase requisition (PR) process, the app monitors your organization’s underlying ERP system, identifies PRs that don’t conform to your corporate policies and alerts Procurement staff to take action. The app prioritizes critical requisitions and suggests contracts to purchase against for open requisitions , so you can control spend and boost productivity simultaneously.

Celonis Open Purchase Requisition Processing app in action

How does the app make PR processing easier and more effective?

According to Alejandro Basterrechea, the Head of Procurement Operations, Indirect Procurement at Zalando:

“We are driving on a complex highway with hundreds of stakeholders, hundreds or thousands of suppliers… Celonis is one of the pieces of the puzzle.”

Using the Open Purchase Requisition Processing app, Procurement teams can:

Accelerate detection and take action

In companies with multiple purchasing systems, Procurement teams can waste hundreds of hours jumping across instances digging up contract details. The Open Purchase Order Processing app extracts open purchase requisitions and contracts from your source systems in real-time, saving your teams time and frustration.

The app then flags open requisitions that include materials for which a contract exists but was not referenced on the PR. It then suggests a contract to reference on the PR so Procurement staff can take corrective action.

Improve spend under-management

Optimizing your organization's total, addressable spend is impossible if your Procurement team can't effectively manage their spend under management (SUM). Eliminating contract leakage on the spot is the best opportunity for organizations to turn process efficiencies into tangible value.

For each incoming PR, the Open Purchase Requisition Processing app identifies those without contract references, searches your connected systems for available contracts, determines the best contract to reference based on price and will either update the PR automatically or notify the Procurement team.

With over a decade of experience helping companies improve their operational efficiency, we understand the most persistent and impactful business performance gaps and how to fix them. With the Open Purchase Requisition Processing app, Procurement teams can focus on what’s important and what’s within their control, so you can get the most value from your contracts.

How does the app help Procurement teams?

The Open Purchase Requisition Processing app is designed for both Procurement Specialists and Team Leads and provides dedicated views to easily manage work specific to their roles:

Procurement Specialists: We enable Procurement Specialists to intelligently act on their open PRs across systems to reduce contract leakage. This saves significant time and effort by eliminating the need to comb through existing contracts or jumping across systems.

Procurement Team Leads: Procurement Team Leads can monitor open PRs to ensure all requisitions are processed as swiftly as possible. The app empowers Team Leads to run with an overview of all open requisitions, understand what the team is currently working on, and most importantly - where they need to get involved. For example, a Procurement Team Lead can identify stagnant purchase requisitions due to contract complications and escalate to a Specialist to urgently fix the issue so the order can be placed.

Secure your grasp on spend with the Open Purchase Requisition Processing app

You can learn more about the OPRP App through the Celonis Academy Open Purchase Requisition Processing App course. The online course is available for free and is designed to take 15 minutes.

For more insights into how the Open Purchase Requisition Processing app can benefit your organization, reach out to your Celonis account team.

Paige Andrews

Product Marketing Manager

Paige Andrews is a product marketing manager at Celonis, driving the go-to-market strategy and positioning of Celonis’ Procurement and Accounts Payable solutions.