Starkt Development (First BPM Form)

The Head of legal department became the initiator of the appeal to First Form. Daily through lawyers there pass more than 20 agreements from different suppliers of construction materials. Efforts of the available employees began not to be enough, in documents cock-a-hoop — who as well as in what agreement is engaged at present.

In the course of discussion of the project on implementation of First Form one of key "narrow" places in a company performance – need of formalization of purchasing processes was revealed. Daily tens of phone calls with addresses on purchase of construction materials came to department of supply. According to each request it was necessary to call back, specify and reconcile several times the name, quantity, manufacturing company of this or that position, terms and the fact of delivery and so forth. Numerous discussions with customers and negotiations with suppliers required unfairly large number of time for processing of one request.

In this regard the following operation mode of department was set: all arriving addresses were saved within a week, and only in the unique day — the next Monday – were processed and distributed on suppliers. For this reason sometimes there were difficulties with accomplishment of urgent orders. What, in turn, attracted equipment downtime, labor power, tightening of terms of commissioning of the object.

The working group of consultants of First Form and coordinators from the customer defined main objectives of automation:

1. Повышение performing discipline of employees, introduction of accurate fixing of responsibility of employees.
2. Повышение transparency of work of employees, formalization of working interactions, a possibility of control over tasks and rapid response on deviations.
3. Снижение risks of loss of information owing to decrease in a role of a human factor.
4. Унификация process of collecting of purchasing requests.
5. Унификация reconciliation procedures of agreements with suppliers.

The project started in May, 2015. The first stage automated work of department of supply regarding processing of supply requisitions of construction materials.

Now all information on requests is entered by foremen into the system directly on an object and on a centralized basis consolidated in the unified register. At the same time there is an opportunity to specify in the request not only the nomenclature list, but also date when material should be delivered to the building site. At any time the customer can keep track of the status of request and check the term of its execution.

The unified register of requests allowed to implement end-to-end business process in which all key divisions of the company are involved (financial, legal, department of supply, etc.). The automation circuit consistently covers all stages of purchasing process: choice of the optimal supplier; drawing of the estimate from the partner; collecting, registration and drawing of invoices for payment for the current week; carrying out and tracking of payments; delivery of the order for an object; obtaining reports upon goods receipt before purchasing department.

Such operating procedure allowed:

• provide stability of the purchase plan and delivery schedule of construction materials;
• control payment of accounts to partners and accomplishment from their party of contractual commitments;
• create the uniform budget on purchases and perform its weekly planning;
• increase transparency of process of purchases for the management and, as a result, the speed of approval of ready estimates;
• reduce risk of acquisition of construction materials at the "non-market" prices.

In general, time for filling of one request increased a little since now it is necessary to specify the complete information for delivery implementation. But, in a total amount of affairs, time for useless, excess communications are reduced in very considerable measure. In it there is also most important plus of automation — Evgeny Mosolov, the deputy CEO for logistics said.

System implementation of electronic document management based on First Form became the second stage of automation. A common information space according to all contractual documentation was created. Problem definition and instructions in all office divisions is automated, automatic control over their accomplishment is provided. All work on approval of agreements and accounts with partners is conducted in an information system.

Now at the exit we have the qualitative, fulfilled agreement. At once it is visible where and what introduced errors and corrections were. Work with agreements became quicker. For example, if earlier approval of one document could drag on for a month, then now there is a certain working schedule which is not exceeding two weeks — Vitaly Novikov, the head of legal department of Starkt LLC noted.

Results, a job got according to the results of three months in a system:

• Average speed of accomplishment of order was reduced by 30%.
• The percent of loss of delivery agreements at approval is reduced to zero.
• Reduction of time of formation of the register of supply requisitions at least for 80%.
• Reduction of time of approval of delivery agreements at least for 30%.