The technology maintains process transparency, adding efficiency, flexibility and visibility for decision making
Madrid, October 29th, 2019 – Repsol, an energy company based in Madrid, Spain and JAGGAER, the world’s largest independent spend management company, have collaborated on a significant project for sourcing liquid transportation to improve supply chain management and reduce operational costs.
The Logistics Procurement Category of the Spanish energy leader hired the collaborative sourcing module of JAGGAER’s technology platform to optimize the award of the transport of chemicals and lubricants by road and intermodal to the suppliers that met the best conditions of security, solvency, technical and economic. The project which ran from February to September 2019 involved more than 40 suppliers to transport goods across Europe.
The magnitude of this initiative is reflected in the number of main routes, more than 30,000. JAGGAER’s solution introduces collaborative purchasing techniques, allowing suppliers to quote in the areas they are most interested in and capturing travel capacities at different levels depending on their possibilities and enables suppliers to propose different discount ranges, also by contract duration and route groupings.
JAGGAER’s technology has enabled Repsol to increase its analysis capacity exponentially for different scenarios, far exceeding 500 simulations. This has been done in record time using the power and speed of the optimization engine with which more than 400,000 offers have been analysed, based on all the safety, technical and quality parameters carried out by Repsol to suppliers.
Apart from process agility, Repsol, thanks to the help of technology, has been able to improve the results obtained due to collaborative negotiation techniques. This project fits with the mission of the procurement function at Repsol, which is to promote innovative ways of working, through the application of new technologies enabling the supply of goods and services in the necessary time and quality, being more efficient and optimizing management throughout the supply chain, with the maximum professionalism and transparency.