Meggitt is a FTSE 100 GBP 1.6 billion turnover international aerospace, defence and electronics group, with global operations. As a result of their scale they were finding it increasingly difficult to aggregate and analyse spend information, across the organisation. Whilst Meggitt have rolled out an ERP system across their operations globally, the ability to visualise and analyse direct and indirect spend information demanded a need for a central spend analytics solution.
Meggitt wanted a partner that they could trust, who understood their sector and could help in the categorisation of their spend against a bespoke taxonomy. They wanted a team of experts who understood their business objectives and could deliver on budget and to plan.
Martin Calland, Group Head of procurement within Meggitt, explained why they chose Vendigital for this extended project: “Whilst we did go out to the market to assess options, we chose Vendigital for two reasons. The first was their undeniable specialisism in the procurement and aerospace markets. The second was the choice of software applications that they offered – in particular their easy to use interfaces, built with the specific needs of the procurement professional in mind.”
Meggitt opted for a two-phased approach to implementation of Vendigital’s SaaS software. In the first phase, the focus was on data categorisation using sector specialist procurement professionals as part of the process to ensure data integrity and credibility of analysis and reporting. In the second phase Vendigital’s team worked to enrich the data in order to enhance the analysis capability and ultimate value to Meggitt.
There is no denying that the ability to visualise and analyse procurement spend is providing significant dividends as Martin explained: “Understanding our spend profile is helping to leverage opportunities, drive category strategies, reduce sourcing cycle times, understand supply chain risks, manage maverick spending and much, much more… the full benefits of this project will only increase as time progresses ”.
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"Vendigital has been instrumental in driving the cost reductions, leveraging the benefits and institutionalising the savings for the long term."