Electronic contracting is evolving in Europe: paperless in 24 months

# E-Procurement Evolving in Europe

How UNITEC became paperless in 24 months, saving customers money

Vincenzo Marino worked for a company that used robots on an assembly line in the automotive industry. There he witnessed workers standing idle while the plant waited for a crucial part someone had forgotten to order. “Every time it makes a mistake, the company loses time and money,” observes Marino.

In 1989, Marino went to work for Unitec, an outsourcing provider specializing in supply chain management and logistics. The company has two offices in Europe, one in Augsburg, Germany, and another in Saubaudia, Italy. Marino, the CEO, was determined to improve the process.

Marino says his goal was to offer his clients the ability to consolidate their purchases and make Unitec their single purchasing office. The outsourcing provider would help their buyers avoid costly purchasing mistakes, consolidate purchases to save money, and simplify invoicing.

Marino started his outsourcing company with the automotive industry, because that was where his experience lay. Now Unitec has added the printing, rubber and chemical industries to its customer portfolio. Your typical customer has 10,000 or more suppliers.

In 1995, to avoid the growing mountain of paper, Unitec began using an enterprise resource planning (ERP) application for its purchasing activities. Marino, who is also a programmer, wrote the ERP program himself. Unitec went paperless in 24 months. Going paperless eliminated the need to store old receipts or archive information on microfiche, saving customers money.

Related Articles