Automating procurement and cost management processes is becoming an inevitable trend in the modern business environment. With the support of technology, VolkerWessels has improved operational efficiency, increased transparency and achieved significant cost savings. This article will analyze in detail how automation has helped this international construction group optimize its processes and at the same time enhance its competitiveness in the global market.
1. Introduction to VolkerWessels
VolkerWessels is an international construction group that started as a family business and has grown into a listed company with over 16,000 employees. Operating mainly in the Netherlands, the UK, North America and Germany, the group adheres to the motto “Think globally, act locally.”
With 120 independently operating subsidiaries, VolkerWessels combines a strong entrepreneurial spirit with operational autonomy to drive sustainable growth. One of the most prominent member companies is VolkerRail, which builds and maintains transport infrastructure in the Netherlands with a team of over 1,200 employees.
2. Challenges in the process cost management
After going public in 2017, VolkerWessels faced pressure to increase transparency in cost management and streamline procurement processes across subsidiaries.
According to Lucas ten Brinke, Cost Manager at VolkerRail, the main limitations in the old process included:
- Lack of synchronization: Costs are only recorded at the invoice stage, leaving businesses without full visibility into previous steps such as order requests, approvals, and deliveries.
- Difficult to manage expenses: There is no comprehensive view of spending commitments or direct expenditures.
- Dispersion process: Each subsidiary uses a different approach, making it difficult to control the overall budget.
3. Process automation solutions
To overcome these limitations, VolkerRail has implemented a modern process automation system that integrates easily with existing ERP systems and management applications. This solution offers many outstanding features:
- Order online: Employees can place orders from approved catalogs on any device, anytime, anywhere.
- Automated approval integration: Transparent approval process ensures all orders comply with company policies.
- Real-time budget management: Visually display budget and spending status, supporting more effective management.
- Eliminate informal shopping: Standardize processes across the organization, minimizing non-compliant orders.
4. Results achieved
The application of automation solutions has brought positive results:
- Cost savings: The Group saved at least 5% in indirect expenses through effective management of non-project related expenses.
- Increase work efficiency: Significantly reduce time spent on administrative work, equivalent to saving 4 FTE (Full-Time Equivalent) in personnel costs.
- Optimal information management: Intuitive reports and dashboards allow teams to track spending details, from building materials to protective equipment.
- Improve supplier relationships: Transparent processes enhance the ability to negotiate, establish strategic contracts and aim for innovation and sustainability.
5. Cost management lessons
Moving from manual to automated expense management processes has not only saved VolkerWessels time, but also created a more transparent and efficient working environment. This is proof that technology can play a key role in optimizing processes, reducing costs, and improving coordination between departments within the group.
To achieve similar results, Vietnamese businesses can refer to modern expense management software solutions, such as Bizzi Expense. Bizzi Expense is one of the leading cost management software solutions, trusted by large enterprises such as Masan Group, Mondelez International, Pierre Fabre,... thanks to its superior automation power and integration capabilities.
Outstanding features of Bizzi Expense:
Control costs strictly according to policies and budget
- Complete and valid invoices and documents
- Prepare budgets by department, project and spending category
- Warning when costs and payment requests do not/do exceed the budget
- Display quick reports of spending information, updates on estimated spending - actual spending in focus
- Dashboard for intuitive, multi-dimensional cost management in real time across multiple platforms
Simplify the process of collecting invoices – creating expenses
- Reduce invoice receipt and verification time – initiate expenses in just 2 taps
- Proactive mass expense reporting helps streamline processes
- Automatically navigate the browsing flow according to established units, regulations, and decentralization
Approve documents conveniently and transparently
- Approve anytime, anywhere cross-platform
- Approval reminders to keep work from getting delayed
- Understand clearly the status of compliance with regulations and budget before making decisions
- Record approval/rejection history with valid reasons
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6. Conclusion
According to Lucas ten Brinke, the implementation of the automation system not only helps VolkerRail achieve transparency in process and contract management, but also elevates procurement to a strategic level.
The VolkerWessels story shows that automation not only brings optimization in cost management but also creates a foundation for sustainable development, increases operational efficiency and promotes strategic cooperation across the organization. This is a valuable lesson for any business that wants to improve processes and enhance competitiveness in the global market.
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