How the Procurement Department Has Saved Visma NOK 220 Million
About Roy Torheim
Roy Torheim is the Procurement and Operations Director at Visma. He arrived there when the company he led, Huldt & Lillevik, was acquired by Visma in 2015. He has worked 30 years in IT companies, much of the time with a focus on customer service, optimization of processes, and cost reduction.
In 2021, he was tasked with creating a cohesive and strategically important procurement department – including hunting for savings and further professionalizing procurement processes.
About Visma
Visma is the leading European provider of software for business operations, not least accounting and financial systems. Every month, 22 million e-invoices and 11 million payslips go through Visma companies' solutions to 1.5 million corporate customers.
The group currently has 14,500 employees. Their approximately 200+ independent companies generated revenues of about NOK 20 billion in 2022 and an operating profit of about NOK 6 billion. The growth rate was 19 percent
"We started using Complete Control to get better control over suppliers and active contracts. The tool has played an important role in the savings we achieved, NOK 100 million in 2021 and NOK 120 million in 2022."
Roy Torheim - Procurement and Operations Director
Background
Much of the procurement in Visma's 200+ companies is done decentralized in each company. When a supplier has an agreement with several dozen Visma companies, Visma neither achieves good prices nor other terms.
Challenges
With Visma's size, there are significant opportunities through central procurement. Until 2021, central ownership of procurement as a discipline and function was missing. They put the organization in place, but needed a tool for better control over suppliers and ongoing agreements.
Improvements
Visma started using Complete Control as system support for the procurement department. The tool has played an important role in the savings they achieved, NOK 100 million in 2021 and NOK 120 million in 2022. A very useful feature in Complete Control is automatic notifications before contracts expire, which gives them time and space to negotiate.
Process
In total, Visma has registered agreements to the value of almost NOK 2 billion, and last year the procurement department handled close to 130 agreements. They have two key individuals registered per agreement: The one who owns the agreement in procurement, and the one who owns the service, solution, or product that the agreement covers.
Visma has divided the work of the procurement department into four main goals. These are related to building the team and expertise, and putting the procedures in place for how they should work. They have a complete overview of the suppliers, and make assessments of each one. In this way, they were quickly able to demonstrate key results in the form of savings and better processes.
THIS IS HOW EIGHT PEOPLE IN VISMA'S CENTRAL PURCHASING DEPARTMENT HAVE SAVED NOK 220 MILLION FOR THE GROUP - IN TWO YEARS
Read the full story about how they work and what they have achieved here:
How the Procurement Department Has Saved Visma NOK 220 Million
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