Schneider Electric enabled savings of millions in one year, thanks in part to their Quickbase-powered Cost Analytics Power (CAP) tool. This custom app streamlined procurement, slashed costs, and boosted efficiency. Here’s how they did it.
| Before Quickbase | With Quickbase |
| Fragmented data and manual supplier prep | Centralized system, reducing prep time by 90% |
| Inefficient costing and negotiations | Identified 1% savings in direct materials costs, worth millions |
| 30 million transactions per year, poor data quality | Improved data accuracy and availability across regions |
| Skepticism about new tools | Over 500 procurement professionals adopted the tool after quick wins |
Who They Are
Schneider Electric, a global leader in energy management and automation worth more than $30 billion, operates across diverse markets. They’re all about innovative solutions to optimize operations and improve efficiency.
The Struggle
Raul Granados, Senior Director of Supply Chain at Schneider, faced a big problem: data fragmentation. Procurement teams struggled with product costing, supplier negotiations, and part classifications. Traditional systems like SAP and BI? Not cutting it. They missed crucial details like material waste and part composition, essential for accurate cost forecasting.
The Quickbase Solution
Raul turned to Quickbase. They developed the CAP Tool to bridge data gaps. A flexible, centralized system to capture and analyze costing data from multiple regions and suppliers. Raul likens it to a crowdfunding system for information. Built in under six months, fully mature in two and a half years, the CAP tool centralized critical data previously scattered across Excel files and disconnected systems.
Key Benefits:
- Improved Data Quality and Availability: Quickbase tackled poor data quality head-on. It consolidated and improved data accuracy across regions, empowering teams with accurate, timely information. With the CAP tool, they’re analyzing about 30 million transactions per year.
- Enabled Cost Savings of Millions: The CAP Tool identified significant savings opportunities.
- Time Savings and Efficiency Gains: Automation drastically reduced prep time for supplier negotiations.
- Enhanced Supplier Relationships: Data-driven decisions replaced outdated techniques. Teams now prepare with detailed insights, building stronger, more collaborative supplier relationships.
With the Quickbase-powered CAP tool, we’ve been able to uncover hidden similarities in parts used across different regions, enabling better pricing negotiations and unlocking millions in potential savings.
The ROI
With significant time and efficiency improvements, Raul estimates Quickbase may have helped contribute to saving millions. Lower costs indirectly contribute to Schneider Electric's competitive edge. More competitive pricing can lead to more sales.
What used to take weeks to prepare for supplier negotiations now takes seconds, which has not only saved us hours but also contributed to millions of dollars in cost reductions.
Overcoming Resistance and Driving Adoption
Initial skepticism about new digital tools? Overcome by quick, tangible benefits. Saving hours of manual work drove adoption. As more than 500 procurement professionals experienced the tool's efficiency firsthand, resistance faded.
Outlook
The CAP Tool is the highest-rated productivity identification system in the company. After cutting prep time for supplier negotiations by about 90%, the goal is to continue expanding Quickbase’s use to automate more processes and capture even more potential savings.
