Legito for Sourcing and Procurement

Legito for Sourcing and Procurement

Jan 24 · 3 min read

Today, we’ll look at the application of the Legito platform for folks working in sourcing and procurement. The challenge they face, among many, is buying-in goods and services from suppliers who will have their own procedures, policies, pricing and requirements, and checking that they will fit the needs of the customer. The scene is set for a potential clash when a buyer’s procurement team meets the supplier’s sales team. Meanwhile, their colleagues in both organisations want to get things moving.

If you think it will work in practice, you could build a Legito solution that effectively forces all buying processes through a strict regime, audit trail, and get signatures on all the paperwork you see fit to require. However, if life were that simple, you wouldn’t need sourcing professionals. We think it’s better to create a facility that leaves space for the sourcing professionals to use their expertise and support them with the more tedious tasks, and help them keep visibility of the big picture.

First Things First

Let’s suppose you have started a Legito trial. Where would you begin? You could start by defining your documents and processes at a granular level and then replicate them in Legito. If that looks manageable without too much difficulty, do that. However, if you struggle to extract all those low-level details, it might be because you don’t have many things that are fixed and defined at low-level (perhaps because it doesn’t serve the real-world needs of the business). In those cases, we suggest you start by mapping some high-level procedures and thinking about the subsidiary documents and tasks that serve each step of the end-to-end process.

Using Legito to implement and manage a high-level workflow is one way to create the space for human intervention. You don’t need to automate everything – you add optimum value by focussing only on the bits that are tedious and repetitive. If you take this approach, you build a working application more quickly, and add extra layers later as the need arises.

Expertise of your Sourcing Team

For sourcing teams that manage higher volumes of lower complexity purchases, consider using Legito to enable some self-service options for business colleagues – this can work particularly well when a procurement process starts with information-gathering. You could use Legito to prompt colleagues through the first few steps, so the sourcing team has what they need when it’s time for them to start work. This will reduce wait times and alleviate frustrations associated with stop-start patterns because it has to pause for things that are missing.

For sourcing teams faced with a wide variety of purchases, where it can be hard to keep track of the different requirements associated with different categories of purchasing, Legito can work well as a reference source, helping you retrieve the correct documents and requirements.

If you start by modelling only high-level procedures, it takes less time to build. Because Legito is a no-code platform for citizen developers, you can use the expertise of your sourcing team to build what you need without having to remove them totally from their duties.

Legito Deployment

If you deploy Legito to augment the purchase process, it’s a small step to retain the associated data to help you manage suppliers’ fulfilment of contracts. Use the automatic extraction of diary dates, so you don’t overlook renewal dates, SLA checks, routine inspection of insurance policies, and other supplier assurance requirements.

Legito for Sourcing and Procurement

Jan 24 · 3 min read

Today, we’ll look at the application of the Legito platform for folks working in sourcing and procurement. The challenge they face, among many, is buying-in goods and services from suppliers who will have their own procedures, policies, pricing and requirements, and checking that they will fit the needs of the customer. The scene is set for a potential clash when a buyer’s procurement team meets the supplier’s sales team. Meanwhile, their colleagues in both organisations want to get things moving.

If you think it will work in practice, you could build a Legito solution that effectively forces all buying processes through a strict regime, audit trail, and get signatures on all the paperwork you see fit to require. However, if life were that simple, you wouldn’t need sourcing professionals. We think it’s better to create a facility that leaves space for the sourcing professionals to use their expertise and support them with the more tedious tasks, and help them keep visibility of the big picture.

First Things First

Let’s suppose you have started a Legito trial. Where would you begin? You could start by defining your documents and processes at a granular level and then replicate them in Legito. If that looks manageable without too much difficulty, do that. However, if you struggle to extract all those low-level details, it might be because you don’t have many things that are fixed and defined at low-level (perhaps because it doesn’t serve the real-world needs of the business). In those cases, we suggest you start by mapping some high-level procedures and thinking about the subsidiary documents and tasks that serve each step of the end-to-end process.

 Using Legito to implement and manage a high-level workflow is one way to create the space for human intervention. You don’t need to automate everything – you add optimum value by focussing only on the bits that are tedious and repetitive. If you take this approach, you build a working application more quickly, and add extra layers later as the need arises.

Expertise of your Sourcing Team

For sourcing teams that manage higher volumes of lower complexity purchases, consider using Legito to enable some self-service options for business colleagues – this can work particularly well when a procurement process starts with information-gathering. You could use Legito to prompt colleagues through the first few steps, so the sourcing team has what they need when it’s time for them to start work. This will reduce wait times and alleviate frustrations associated with stop-start patterns because it has to pause for things that are missing.

For sourcing teams faced with a wide variety of purchases, where it can be hard to keep track of the different requirements associated with different categories of purchasing, Legito can work well as a reference source, helping you retrieve the correct documents and requirements.

If you start by modelling only high-level procedures, it takes less time to build. Because Legito is a no-code platform for citizen developers, you can use the expertise of your sourcing team to build what you need without having to remove them totally from their duties.

Legito Deployment

If you deploy Legito to augment the purchase process, it’s a small step to retain the associated data to help you manage suppliers’ fulfilment of contracts. Use the automatic extraction of diary dates, so you don’t overlook renewal dates, SLA checks, routine inspection of insurance policies, and other supplier assurance requirements.

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Legito PowerUp 2022: Panel Discussion – Automation for Sourcing and Procurement Departments

Legito PowerUp 2022: Panel Discussion – Automation for Sourcing and Procurement Departments

The first panel session at PowerUp conference heard from two different organisations sharing similar requirements when deploying Legito for buy-side departments.

American Trade & Finance provides lending services across five continents. Lending is a heavily regulated sector, and operating under multiple jurisdictions adds another level of complication. The result: 75 documents are needed for each transaction, and some of those documents are 100+ pages long.

The panel learned how they deployed Legito to solve several challenges:

  • The organisation had templates, but scattered across the computers of different people, with no reliable way to know who had the authoritative versions.
  • It was cumbersome to copy information needed for one document for use in another.
  • Compiling the documents for each transaction was manual and therefore vulnerable to human error.

Diversity of a different kind was the challenge for the second panel contributor: the diversity of products and services (including intellectual property) that needed to be correctly managed by the procurement team. Legito works like a database for the different requirements matched to the subject matter of the procurement. When they need to procure something for the first time, the solution’s capability expands and can be re-used on the next occasion.

The panel also discussed how Legito is used to create links between business development teams, compliance teams, and Finance. The solution allowed the business development team to work at pace because they were equipped with a solution to generate documents, including invoices, without needing to wait for colleagues in the other teams.

💡Tips for successful deployments:

  • Don’t automate broken systems or documents. Adopting a new solution is a good time to implement improvements.
  • The best way to overcome sceptical or conservative colleagues is to deploy a solution that was a ‘wow factor’ – make it nice to use and demonstrate that the solution deals with a known problem.
  • Listen to feedback from users and act on feedback, quickly.

We thank Pavlin Stoyanoff and Galya Oster for beign part of Legito PowerUp 2022 and sharing their experience and useful tips for successful deployments.

 

Legito PowerUp 2022: Panel Discussion – Automation for Sourcing and Procurement Departments

The first panel session at PowerUp conference heard from two different organisations sharing similar requirements when deploying Legito for buy-side departments.

American Trade & Finance provides lending services across five continents. Lending is a heavily regulated sector, and operating under multiple jurisdictions adds another level of complication. The result: 75 documents are needed for each transaction, and some of those documents are 100+ pages long.

The panel learned how they deployed Legito to solve several challenges:

  • The organisation had templates, but scattered across the computers of different people, with no reliable way to know who had the authoritative versions.
  • It was cumbersome to copy information needed for one document for use in another.
  • Compiling the documents for each transaction was manual and therefore vulnerable to human error.

Diversity of a different kind was the challenge for the second panel contributor: the diversity of products and services (including intellectual property) that needed to be correctly managed by the procurement team. Legito works like a database for the different requirements matched to the subject matter of the procurement. When they need to procure something for the first time, the solution’s capability expands and can be re-used on the next occasion.

The panel also discussed how Legito is used to create links between business development teams, compliance teams, and Finance. The solution allowed the business development team to work at pace because they were equipped with a solution to generate documents, including invoices, without needing to wait for colleagues in the other teams.

💡Tips for successful deployments:

  • Don’t automate broken systems or documents. Adopting a new solution is a good time to implement improvements.
  • The best way to overcome sceptical or conservative colleagues is to deploy a solution that was a ‘wow factor’ – make it nice to use and demonstrate that the solution deals with a known problem.
  • Listen to feedback from users and act on feedback, quickly.

We thank Pavlin Stoyanoff and Galya Oster for beign part of Legito PowerUp 2022 and sharing their experience and useful tips for successful deployments.

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Case Study: Contract Automation for Procurement Department at a Retail Company

Case Study Contract Automation for Procurement Department at a Retail Company

dafiti

Name: Dafiti
Website: https://www.dafiti.com
Industry: Retail (Fashion)
Employees: 2,800+
Vendors: 300

 

 

 

Key Improvements

%

Drafting time saved

%

Time Saved On Audit Reports

%

Time saved in contract negotiation

Background

 

  • One of the largest E-commerce retail companies in South America.
  • Distributor of over 300 fashion brands.
  • Member of the Global Fashion Group.
  • Presence in 4 Countries.
dafiti
dafiti

Procurement Department

 

  • One of Dafiti’s busiest departments with respect to the volume of documents and contracts.
  • Responsible for closing contracts with suppliers and with other key partners/stakeholders.
  • Due to the very high document volume, Dafiti required a system capable of automating and improving its contract drafting, negotiating, approving, and signing processes.
  • Experienced a major challenge in the generation of numerous audit and analysis reports.

“I am constantly looking for solutions that really help us improve our internal processes. Without a doubt, Legito has allowed us to optimize processes for creating, negotiating, filing, and following-up on the organization’s contracts.”

Ignacio Roggero

Ex-CFO, Dafiti

Challenges

 

  • Due to the large size of the company’s business operations, handling over 300 fashion brands from around the world, the company’s contract volume is very high. With Legito, Dafiti has found a way to digitize and digitally transform this integral part of its operation.
  • The terms of business with each supplier are usually unique for that supplier. For that reason, the team of Dafiti Colombia needed a tool that allowed for dynamic and flexible action while simultaneously enhancing their contractual processes, all without sacrificing the quality and legal security that identifies their brand.
  • Their team, being a technology company, knew how to identify and solve improvement opportunities using innovation – digital transformation is in their DNA. However, Dafiti’s IT team historically had been focused on key operational and logistical parts of its business, and not contract management solutions.
dafiti

Evaluation

 

  • Because of the tool’s ease of use, the Dafiti purchasing team quickly implemented Legito tools successfully, and integrated them into their operation.
  • Their strong commitment to improving organizational processes was evident every step of the way.
  • Dafiti’s team has realized that in Legito they have not only found a set of tools that have solved their problems, but have also found a team committed to helping them adapt to any situation related to the implementation of the software, the development of the templates, and the management of their documents.
  • In less than a year, a majority of Dafiti officials are now using Legito daily, having already created over 435 successful contract records.

Onboarding

 

  • The Legito team has accompanied Dafiti closely during its implementation phase. This has allowed Dafiti to successfully use Legito, exceeding expectations.
  • Today the procurement department has a new way of creating audit reports. Easy, fast and efficient.
dafiti
dafiti

Results

 

  • Legito manages the entire life cycle, from the draft to signature.
  •  Purchasing department employees have dramatically reduced their document preparation times.
  • Through Legito’s External Sharing feature, Dafiti, with every document it shares, demonstrates to its stakeholders that they are an innovative and modern company, inside and out.
  • Dafiti is considering implementing Legito in additional departments to continue systematically improving its operations.

More Case Studies and Interviews