E-procurement is evolving in Europe – Dematerialization in 24 months

# E-Procurement Evolving in Europe

Here's how UNITEC became paperless in 24 months, saving its customers money

Vincenzo Marino worked for a company that used robots on an assembly line in the automobile industry. There, he watched workers stand idle while the factory waited for a crucial part that someone had forgotten to order. “Every time you make a mistake, the company loses time and money,” observes Marino.

In 1989, Marino left his position to join Unitec, an outsourcing provider specializing in supply chain management and logistics. The company has two offices in Europe, one in Augsburg, Germany, the other in Saubaudia, Italy. Marino, the CEO, was determined to improve the process.

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

Marino launched his outsourcing business in the automotive industry because that’s where his expertise lay. Today, Unitec has added the printing, rubber and chemical industries to its customer base. Its 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 procurement activities. Marino, who is also a programmer, wrote the ERP program himself. Unitec became paperless in 24 months. Going paperless has eliminated the need to store old receipts or archive information on microfilm, saving its customers money.

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