Presentation: "RMC Industries - iProcurement"
Presenters: Marsha Golletti & Rodney Anthony of RMC

The Challenge
RMC Industries was looking to improve their procurement efficiencies and reduce their total cost of ownership for maintenance, repair and operations (MRO) items. Existing procurement processes were decentralized across 12 subsidiaries and 24,000+ suppliers nationwide. As a result, the company was losing the benefit associated with consolidated, aggregated volumes with vendors, and, at the same time, burdened with the high overhead costs associated with decentralized procurement.

The Solution
RMC determined that a formal procurement process, coupled with national vendor agreements, vendor consolidation, and data aggregation and reporting, would get them started towards a projected $20+ million annually in total cost savings. The solution selected was a pilot implementation for the Allied division, utilizing the Oracle iProcurement suite, including the use of P-cards within iProcurement to facilitate payment processing. To get started, RMC first had to upgrade the existing version of their Oracle Applications to support the new modules within iProcurement.

The Result
The iProcurement pilot solution was successfully launched into production on Dec 3, 2001; the complete rollout to all Allied Readymix facilities was completed mid-January 2002. RMC is adding supplier content to the catalog continually. The end-users, or requisitioners, now use a paperless 'shopping cart' method of ordering their supplies by selecting the items from the catalog via a Web browser interface. Maverick buying has been significantly reduced, as have the overall procurement costs to at Allied Readymix.