Phase One Launch of Indirect Procurement Portal to Improve Procurement Capability and Process

Michelle MachenMauser News, Industrial Solutions, Large Packaging, Reconditioning, Small Packaging

Mauser Packaging Solutions has entered into a strategic multi-year partnership with IBM to supplement the existing Indirect Procurement Team. The joint MPS and IBM Procurement Teams will be responsible for standardizing the procurement process which includes the implementation of a requisition/purchasing portal for indirect spend. The new Portal will be used by all facilities and locations in North America and Europe*.

A few of the expected benefits of this partnership include:

  • Standardization, simplification, and automation of the indirect procurement process for buyers or requisitioners within MPS.
  • Improving management and internal control over indirect spend across the business each year.
  • Leveraging collective buying power to reduce the purchase price of indirect spend items.
  • Ability to develop, capture, view and analyze consolidated indirect spend data across all North American and European business unites and the three existing ERPs.
  • Establishment of a comprehensive strategy to leverage indirect spend across all of MPS.
  • Creation of standard processes to engage and support the business more efficiently.
The initial roll out of the program began the week of June 15 with the phase one launch of the indirect procurement portal in North America. Built on the same platform as IT ServiceNow, the Indirect Procurement Portal provides a central source for submitting requests for indirect procurement needs. Phase one addresses requests for budgetary quotes, sourcing support, and additions or changes to master vendor lists. Phase one encompasses requests for assistance with procurement and sourcing only. The purchasing process will continue through existing ERPs and direct contact with vendors.  In phase two, expanded options in the portal will include catalog features for procurement of commonly sourced items such as office supplies, parts, and maintenance supplies. Also, in phase two, requests for procurement support submitted through the portal will feed into existing ERP systems to initiate Purchase Orders.

What is Direct vs. Indirect Procurement?

Direct Procurement includes all items on a Bill of Material for our end products. This includes all the raw materials (i.e. steel, resin) and purchased components (i.e. valves, handles) that are part of our finished products.

Indirect Procurement includes anything that would not be on a Bill of Material. This includes everything else necessary to keep our facilities and offices operational. Primary categories for indirect procurement include maintenance repair and overhaul (MRO), corporate and professional services, facilities management, IT, travel, fleet and utilities.

“It is important that procurement needs for all indirect spend items be funneled through the Indirect Procurement Portal so that we have a clear understanding of how we are spending money on indirect products and services and can ensure that every facility or functional area is utilizing the best vendors available.”
- Bharat Sharma, Vice President of North American Procurement

The Procurement Transformation project is an important endeavor for our organization. Our business is constantly evolving, and we need to be agile and responsive to the dynamics we encounter. The goal of this partnership is to enhance and expand the indirect procurement services that are in place today.

*These changes apply only to Indirect Procurement for spend categories such as maintenance repair and overhaul (MRO), corporate and professional services, facilities management, IT, travel, fleet and utilities. There are no changes to the procurement of raw materials or direct materials. North American roll out of these changes began in June 2020. European implementation will follow in 2021.