Enhancing supply chain management through Gocomet
Abstract
Discover how Essentra, a global leader in manufacturing, overcame challenges in delayed payments, shipment inefficiencies, and communication gaps through its collaboration with GoComet. By integrating GoComet advanced modules, Essentra improved operational efficiency, stronger vendor relations, significant cost savings, and data-driven decision-making. This case study underscores the role of technology in driving Essentra growth and leadership in the global logistics landscape.
Introduction
Essentra, a global manufacturer and distributor of plastic injection moulded, vinyl dip moulded, and metal items. Operating in 25 countries, with 12 manufacturing facilities and 23 sales and distribution centres, Essentra offers a seamless and efficient experience, ensuring timely delivery to support businesses worldwide. However, Essentra encountered several challenges that hindered its operational efficiency and financial reporting.
Challenges
Essentra faced significant challenges in its logistics operations that hindered its operational efficiency and necessitated innovative solutions for improvement.
Manual Shipment Tracking
Manual shipment tracking at Essentra had the potential to cause delays, resulting in slower and less visible logistics operations. Real-time visibility and accuracy were unavailable, leading to challenges in scheduling and freight planning.
Freight Selection Process
Essentra shipment selection process faced challenges, potentially leading to unfavourable rates and missed opportunities. This had an impact on the Company logistics costs which really benefitted from the data-driven approach provided by GoComet.
Communication and Benchmark Improvements
Essentra global logistics operations faced a challenge in maintaining visibility over worldwide traffic and controlling costs effectively. The absence of comprehensive reports and centralized dashboards hindered the coordination of various teams within the company, resulting in limited insights into daily and monthly performance and the inability to take immediate corrective actions
Solution
In search of a comprehensive logistics solution, Essentra turned to GoComet, an innovative platform designed to streamline logistics operation.
GoComet Modules Implemented by Essentra
GoInvoice
Essentra leveraged GoInvoice to automate invoice management, enabling efficient tracking, comparison, and approval. This reduced invoice processing time and prevented overpayments. The GoInvoice process has allowed Essentra to bring the invoice authorisation and payments process under one platform which has improved Essentra visibility of invoices and costs. This has brought benefits to both Essentra and their vendors ensuring a timely payment schedule and enabling any variations between quote and final invoice to be resolved at an early stage. The visibility of rates at the point of booking has enabled a more structured approach to identifying potential savings.
GoProcure
GoProcure streamlined Essentra procurement process, providing faster vendor quotes and attracting increased vendor participation in their RFQs. The platform negotiation features enabled better deals, leading to improved savings. The GoProcure/GoContract process has reduced significantly email traffic and delays in processing the Company freight around the world.
GoTrack & GoShipment
GoTrack and GoShipment offered Essentra automated shipment tracking, consolidated supply chain visibility, and insightful analytics. This real-time data empowered Essentra to make data-driven decisions and reduced turnaround times.
Transformation and Benefits
Enhanced Efficiency
GoComet improvements at Essentra have made processes run smoother and are more organized, especially when it comes to certifying and paying vendor invoices. They've managed to cut down the time it takes for different steps significantly. The GoInvoice process has ensured when Essentra gets an invoice from a vendor, it now takes significantly less time to process and pay. This faster process ensures that vendors don't have to wait extended periods for payment.
Lane-Wise Activity Monitoring
Essentra formed dedicated teams to monitor lane-wise activities, ensuring timely and effective operations. This targeted approach enhanced efficiency and minimized disruptions.
Centralized Invoice Tracking
Utilizing GoComet centralized invoice tracking system, Essentra achieved enhanced visibility into payment statuses. This enabled the precise and punctual processing of vendor payments, effectively averting financial discrepancies. The implementation involved processing substantial invoices, resulting in significant time savings of over 20 hours. Moreover, the streamlining of invoice reconciliation translated into substantial invoice revisions by vendor which translated to over 6.75% of the total invoice value.
Increased Savings
Through GoProcure, Essentra achieved a remarkable 4.34% savings on freight spend in 2023. The platform negotiation features resulted in better deals and cost savings.
Improved Vendor Participation
GoComet user-friendly interface and faster vendor quotes attracted an average of 3 quotes per RFQ with the RFQs being sent to 6 vendors on average. This increase in vendor participation provided Essentra with better options and improved negotiation power.
Data-Driven Decisions
GoComet dashboard provided valuable insights into logistics operations. This data-driven approach empowered Essentra to optimize its supply chain, improving efficiency and performance.
Conclusion
The partnership between GoComet and Essentra has brought about a remarkable transformation in Essentra logistics operations. By streamlining processes, enhancing visibility, and facilitating seamless communication, Essentra considered selection of GoComet has provided a platform to achieve significant savings, improve efficiency, and deliver a superior customer experience. The success of the implementation serves as a testament to the power of technology in driving logistics excellence, ensuring Essentra continued growth and success in the competitive logistics landscape.