A Win-Win Program

The initial implementation of SHOPP/Ariba has been well received by users, business managers, and VISA's purchasing professionals. Employees have better visibility into the order process and can track the progress of their orders through the system. In addition, goods and services are received significantly faster. For example, during VISA's pilot program, purchases of computer hardware that previously took three days to process were completed in as little as 32 minutes. Further, managers have found it easy to access the system and review items needing their approval. They also like the fact that there is no paper to keep track of.
Equally impressive are the cost savings. By automating the procurement process from selection through payment, VISA reduced its administrative costs by an average of $100 per order—a 50% to 90% reduction depending on type of order.
Purchasing professionals are among the most enthusiastic advocates for the program. "SHOPP/Ariba is a win-win program because it enables and empowers our procurement specialists by shifting their focus to strategic initiatives as opposed to paper-shuffling processes," says Hall.
SHOPP/Ariba also makes information more readily available to VISA's procurement organization and cost center managers. With the reporting capabilities in SHOPP/Ariba, buyers can readily track purchasing patterns, analyze purchasing practices, and determine how well vendors are meeting their service-level agreements. The software also creates a solid base of information on which to negotiate better prices in future contracts.