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	Avetta Case Study

Avetta Case Study

Technology Category	Platform as a Service (PaaS) - Connectivity Platforms Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Cement Construction & Infrastructure
Applicable Functions	Procurement Quality Assurance
Services	System Integration Training
Challenge	When a company the size of LafargeHolcim makes a serious commitment to sustainability, quality, the environment and to the health and safety of the people who work at its many plants and job sites around the world, there are significant implications to all processes. Policies must be applied throughout the supply chain to manage the way LafargeHolcim purchases goods and services in every unit. The company set ambitious goals for its global operations, including: • Follow a “zero harm to people” principle that prioritizes health and safety and reduces lost-time incidents for employees, contractors, and stakeholders. • Develop innovative and sustainable products to help customers improve the energy efficiency of their buildings and increase materials recycling. In Brazil, LafargeHolcim employs 2,400 employees and 2,300 contractors in its 80 plants around the country. The high number of contract employees makes it very difficult to manually handle prequalification and other evaluation processes. “Before [the merger], we did the whole process of supplier evaluation through e-mails and Excel spreadsheets,” says Cristiane Oliveira, Procurement Specialist for LafargeHolcim in Brazil. This situation inevitably led to increased risk, including a lack of standardization in the way contractors were evaluated. Various people performed the evaluations, which created the opportunity for different criteria to be applied. There was no simple, objective way to measure a supplier’s record on social responsibility, human rights issues (bribery, corruption, child labor, and so on), and other issues related to sustainability,” said Cristiane Oliveira. These factors impacted supplier onboarding and limited visibility into supply chain risk. Read More
About Customer	With a well-balanced presence in 90 countries and a focus on cement, aggregates and concrete, LafargeHolcim (SIX Swiss Exchange, Euronext Paris: LHN) is the world leader in the building materials industry. The Group has 100,000 employees around the world and combined net sales of CHF 29.5 billion in 2015. With a commitment to drive sustainable solutions for building and infrastructure and contribute to a better quality of life, the Group is best positioned to meet the challenges of increasing urbanization. Read More
Solution	To develop more efficient and objective methods of evaluating suppliers, LafargeHolcim started the process of identifying a vendor to help with supply-chain management. The vendor analysis was conducted at the corporate level with the participation of procurement teams in the various national offices, including those in Brazil, Argentina, and other Latin American countries. The company ultimately selected the platform to support the sustainable procurement process specified for addressing the risks in the supply chain. The platform provides a web tool and services necessary to outsource the administrative activities related to the qualification of suppliers and this allows our employees to focus on risk mitigation and the development of suppliers. “We evaluated other vendors, other possibilities, other platforms,” said Cristiane Oliveira. “However they really listened to our business needs and accommodated our process in their solution to better satisfy our needs. Another important point that contributed to the choice was the flexibility and provision of services in the different regions in which LafargeHolcim operates. Once the decision was made, LafargeHolcim worked with Avetta to implement a process for prequalifying suppliers that focused on sustainable procurement and the health and safety of contractors. The new platform went live in April 2016 and Brazil was a pilot. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Cement

Construction & Infrastructure

Applicable Functions

Procurement

Quality Assurance

Services

System Integration

Training

Challenge

When a company the size of LafargeHolcim makes a serious commitment to sustainability, quality, the environment and to the health and safety of the people who work at its many plants and job sites around the world, there are significant implications to all processes. Policies must be applied throughout the supply chain to manage the way LafargeHolcim purchases goods and services in every unit. The company set ambitious goals for its global operations, including: • Follow a “zero harm to people” principle that prioritizes health and safety and reduces lost-time incidents for employees, contractors, and stakeholders. • Develop innovative and sustainable products to help customers improve the energy efficiency of their buildings and increase materials recycling. In Brazil, LafargeHolcim employs 2,400 employees and 2,300 contractors in its 80 plants around the country. The high number of contract employees makes it very difficult to manually handle prequalification and other evaluation processes. “Before [the merger], we did the whole process of supplier evaluation through e-mails and Excel spreadsheets,” says Cristiane Oliveira, Procurement Specialist for LafargeHolcim in Brazil. This situation inevitably led to increased risk, including a lack of standardization in the way contractors were evaluated. Various people performed the evaluations, which created the opportunity for different criteria to be applied. There was no simple, objective way to measure a supplier’s record on social responsibility, human rights issues (bribery, corruption, child labor, and so on), and other issues related to sustainability,” said Cristiane Oliveira. These factors impacted supplier onboarding and limited visibility into supply chain risk.

About Customer

With a well-balanced presence in 90 countries and a focus on cement, aggregates and concrete, LafargeHolcim (SIX Swiss Exchange, Euronext Paris: LHN) is the world leader in the building materials industry. The Group has 100,000 employees around the world and combined net sales of CHF 29.5 billion in 2015. With a commitment to drive sustainable solutions for building and infrastructure and contribute to a better quality of life, the Group is best positioned to meet the challenges of increasing urbanization.

Solution

To develop more efficient and objective methods of evaluating suppliers, LafargeHolcim started the process of identifying a vendor to help with supply-chain management. The vendor analysis was conducted at the corporate level with the participation of procurement teams in the various national offices, including those in Brazil, Argentina, and other Latin American countries. The company ultimately selected the platform to support the sustainable procurement process specified for addressing the risks in the supply chain. The platform provides a web tool and services necessary to outsource the administrative activities related to the qualification of suppliers and this allows our employees to focus on risk mitigation and the development of suppliers. “We evaluated other vendors, other possibilities, other platforms,” said Cristiane Oliveira. “However they really listened to our business needs and accommodated our process in their solution to better satisfy our needs. Another important point that contributed to the choice was the flexibility and provision of services in the different regions in which LafargeHolcim operates. Once the decision was made, LafargeHolcim worked with Avetta to implement a process for prequalifying suppliers that focused on sustainable procurement and the health and safety of contractors. The new platform went live in April 2016 and Brazil was a pilot.

Impact #1	Avetta helped in the standardization of supplier evaluation processes in Brazil, ensuring uniform standards and allowing the company to determine which suppliers met its standards on sustainability and health and safety.
Impact #2	Once a supplier is evaluated and prequalified for one job site or factory, the supplier would not need to be evaluated again for other job sites, reducing paperwork and workload.
Impact #3	Avetta provided the ability to assess suppliers based on their human rights record, which LafargeHolcim had not done before, enhancing the company's focus on social responsibility.

Impact #1

Avetta helped in the standardization of supplier evaluation processes in Brazil, ensuring uniform standards and allowing the company to determine which suppliers met its standards on sustainability and health and safety.

Impact #2

Once a supplier is evaluated and prequalified for one job site or factory, the supplier would not need to be evaluated again for other job sites, reducing paperwork and workload.

Impact #3

Avetta provided the ability to assess suppliers based on their human rights record, which LafargeHolcim had not done before, enhancing the company's focus on social responsibility.

Benefit #1	LafargeHolcim employs 2,400 employees and 2,300 contractors in Brazil.
Benefit #2	The Group has 100,000 employees around the world.
Benefit #3	Combined net sales of CHF 29.5 billion in 2015.

Benefit #1

LafargeHolcim employs 2,400 employees and 2,300 contractors in Brazil.

Benefit #2

The Group has 100,000 employees around the world.

Benefit #3

Combined net sales of CHF 29.5 billion in 2015.

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Overview

Avetta Case Study

Operational Impact

Quantitative Benefit