Leading Government Municipality - Customer Case Study

A municipal government, serving a population of around 150,000 constituents, sought a way to better spend tax dollars in the face of mounting, often politicized pressure on budgets. The procurement department of this agency is in charge of an annual budget of roughly $400 million, and needed to make that money last longer and provide better services to citizens. Government agencies are experts at negotiating sophisticated contracts with suppliers—but such deals do little good if employees have difficulty accessing the negotiated savings. By making contracts easily to review and purchase against, buying power can be consolidated and an agency’s departments and individuals can fully take advantage of the discounted prices they are privy to—saving the department, and the taxpayer, money. Further, manual processes were holding employees back from making efficient use of their time and effort. The municipality turned to JAGGAER to bring its procurement into the 21st century and reconcile this gap between vendor negotiations and employee purchases with the company’s Public Sector Suite of solutions. JAGGAER’s eProcurement solution provided an intuitive online shopping portal that drove users to purchase from catalogs reflecting preferred suppliers and negotiated prices, while Supplier Management and Contract Lifecycle Management assured that supplier relationships remained active, efficient, and that contracts were being honored. And with JAGGAER’s Sourcing, supplier sourcing is automated and saves costs; with it, bids will be more competitive and the process for bringing new vendors on board will be streamlined, eliminating expensive delays. Before starting the procurement transformation, less than ten percent of the municipal government’s spend was under management, signaling a significant missed opportunity to save costs. Now, over 75 percent is under management, and the city is saving costs at many steps of their supply chain, such as negotiating more favorable terms when renewing contracts, quickly finding better-fitting suppliers for their needs, and increasing the efficiency of their procurement process from sourcing to payment.