Purchasing area reduced the time for signing contracts with suppliers by 68%
BRF is one of the largest food companies in the world, with 96 thousand employees, 44 factories and around 5000 suppliers. But for this web of raw material and service providers to keep all the manufacturing units running and producing in a perfect way, there is a need for a very efficient purchasing and contract management area.
The problem
In the management of these suppliers, the formalization process is one of the great consumers of time. They are piles of paper and information from the evaluation, negotiation and contracting processes. The time required to formalize contracts with suppliers was very long. On average, it took 62 days to process the paperwork to collect signatures from company and supplier executives, approve technical areas, initials, come and go to adjust the contract and negotiate with the suppliers themselves. Giulliano Sandrini, CSC Executive Manager, identified this problem. “The process was very slow and we needed to find viable alternatives to speed up the process, benefiting both BRF and its suppliers”, he emphasized.
The solution
Analyzing the existing supplier contracting process at the time, it was found that the solution was to eliminate paper and simplify the contract formalization process, so that the parties could close the contract quickly. BRF then set out in search of a supplier that could meet this need quickly and safely. In analyzing the available alternatives, BRF decided to hire a digital signature portal. The choice fell on the QualiSign Portal, maintained and operated by QualiSoft – a SaaS (Software as a Service) solution for digital signature and electronic document management. “The differentials were the parameterization of the system, which proved to be very flexible and focused on the business market, in addition to the implementation of a customized solution in a short time”, commented Mitihide Hirayama, Purchasing Coordinator.
BRF also adopted the notification by Valid E-mail (EV) to suppliers. These are electronic notifications that need to maintain technical evidence of their delivery, replacing registered letters with acknowledgment of receipt (AR). These notices are used for prior notice of contract and contractual notices (out of court).
Results of
With this volume of suppliers, the implementation process, which began in January/2015, is still in progress, but within the established deadlines. The half-paper contracting process took an average of 62 days, 25 of which were associated only with the process of formalizing the contracts. This period was reduced to just 8 days, which means a 68% reduction in time compared to paper formalization. “This would be enough to celebrate, but our expectation is to reduce this time to just 2 days: 1 day for BRF and the other for the supplier. The cost reduction also occurred, but it has not yet been properly measured”, stated Mitihide.
Other advantages are being identified: 1) the simplification of processes has brought more productivity to the purchasing staff, as there is no longer a need for so many controls and papers; 2) the information is all centralized and available on the QualiSign Portal, with quick access to the status of each of the contracts; 3) the benefit of sustainability with a focus on continuous improvement, as the digital signature is a green solution with a tangible reduction in water consumption, electricity and CO2 emissions that would be used in the manufacture and shipment of paper.
With this positive experience, BRF is already evaluating the use of digital signatures in other areas, other types of documents and even with suppliers from other countries. But the priority now is to fully implement the digital signature of contracts for all suppliers, reaching the target of 2 days for the formalization process.
“Today, large companies are demanded by great pressure on results. Operational processes can help decisively by directly affecting the company's operational effectiveness and, consequently, its results. The implementation of the paperless culture is no longer an innovative vision of a better future, it is a reality with tangible results. This is contagious and encourages us to seek new and greater challenges in the pursuit of excellence,” concluded Sandrini.
The QualiSign Portal (www.documentoeletronico.com.br) is the largest portal for digital signature services for electronic documents on the Brazilian Internet. Maintained and operated by QualiSoft is a SaaS (Software as a Service) solution for digital signature and electronic document management.
The problem
In the management of these suppliers, the formalization process is one of the great consumers of time. They are piles of paper and information from the evaluation, negotiation and contracting processes. The time required to formalize contracts with suppliers was very long. On average, it took 62 days to process the paperwork to collect signatures from company and supplier executives, approve technical areas, initials, come and go to adjust the contract and negotiate with the suppliers themselves. Giulliano Sandrini, CSC Executive Manager, identified this problem. “The process was very slow and we needed to find viable alternatives to speed up the process, benefiting both BRF and its suppliers”, he emphasized.
The solution
Analyzing the existing supplier contracting process at the time, it was found that the solution was to eliminate paper and simplify the contract formalization process, so that the parties could close the contract quickly. BRF then set out in search of a supplier that could meet this need quickly and safely. In analyzing the available alternatives, BRF decided to hire a digital signature portal. The choice fell on the QualiSign Portal, maintained and operated by QualiSoft – a SaaS (Software as a Service) solution for digital signature and electronic document management. “The differentials were the parameterization of the system, which proved to be very flexible and focused on the business market, in addition to the implementation of a customized solution in a short time”, commented Mitihide Hirayama, Purchasing Coordinator.
BRF also adopted the notification by Valid E-mail (EV) to suppliers. These are electronic notifications that need to maintain technical evidence of their delivery, replacing registered letters with acknowledgment of receipt (AR). These notices are used for prior notice of contract and contractual notices (out of court).
Results of
With this volume of suppliers, the implementation process, which began in January/2015, is still in progress, but within the established deadlines. The half-paper contracting process took an average of 62 days, 25 of which were associated only with the process of formalizing the contracts. This period was reduced to just 8 days, which means a 68% reduction in time compared to paper formalization. “This would be enough to celebrate, but our expectation is to reduce this time to just 2 days: 1 day for BRF and the other for the supplier. The cost reduction also occurred, but it has not yet been properly measured”, stated Mitihide.
Other advantages are being identified: 1) the simplification of processes has brought more productivity to the purchasing staff, as there is no longer a need for so many controls and papers; 2) the information is all centralized and available on the QualiSign Portal, with quick access to the status of each of the contracts; 3) the benefit of sustainability with a focus on continuous improvement, as the digital signature is a green solution with a tangible reduction in water consumption, electricity and CO2 emissions that would be used in the manufacture and shipment of paper.
With this positive experience, BRF is already evaluating the use of digital signatures in other areas, other types of documents and even with suppliers from other countries. But the priority now is to fully implement the digital signature of contracts for all suppliers, reaching the target of 2 days for the formalization process.
“Today, large companies are demanded by great pressure on results. Operational processes can help decisively by directly affecting the company's operational effectiveness and, consequently, its results. The implementation of the paperless culture is no longer an innovative vision of a better future, it is a reality with tangible results. This is contagious and encourages us to seek new and greater challenges in the pursuit of excellence,” concluded Sandrini.
The QualiSign Portal (www.documentoeletronico.com.br) is the largest portal for digital signature services for electronic documents on the Brazilian Internet. Maintained and operated by QualiSoft is a SaaS (Software as a Service) solution for digital signature and electronic document management.
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