The Challenge
Following a consolidation at a large enterprise firm, overlapping divisions led to inefficiencies in the procurement and management of managed devices such as computers, phones, and accessories. Each division worked with different vendors from an Approved Vendor List (AVL), and newly acquired businesses often purchased from any available source. This lack of uniformity resulted in significant gaps in cost controls and higher expenses for each division. The primary objective was to streamline the procurement process, support the transition to a centralized IT division, create a new team to handle procurement, and develop a system to manage chargebacks effectively.
The Approach
To address these challenges, the first step was to create a detailed workflow to understand the current state. Key requirements identified included:
- A relational database application to manage inventory.
- A request form for submitting orders.
- Dashboards and reporting capabilities.
- Chargeback tracking.
Given the company’s uncertainty about available market options, a comprehensive vendor assessment was conducted. After evaluating various solutions, considering budget constraints, and emphasizing the importance of chargeback tracking, a decision was made to create a custom application using a low-code platform. This approach allowed for cost control and rapid customization as needed.
The Solution
The team developed a custom inventory management system on the low-code platform. The first phase of the solution was built within four weeks and included:
- A relational database to manage inventory and track devices.
- A user-friendly request form for submitting procurement orders.
- Dashboards for real-time reporting and monitoring.
- A robust chargeback tracking system to allocate costs accurately.
The system was designed to be intuitive and scalable, enabling the new centralized IT team to manage all procurement activities effectively. Continuous support and improvements were provided until the team was fully equipped to take over ownership of the application.
The Outcome
The implementation of the custom-built low-code platform resulted in significant cost savings and operational efficiencies:
- Cost Reduction: The company saved 50% in the first year by building the low-code platform, with savings projected to exceed 70% in subsequent years due to favorable licensing models compared to traditional SaaS solutions.
- Centralized Procurement: Centralizing procurement processes allowed the company to renegotiate better vendor terms due to the increased volume of orders.
- Budget Optimization: Operating groups saw reduced costs on their budgets through an effective chargeback system, eliminating the need for each division to manage procurement independently.
Conclusion
The decision to build a custom inventory management system using the low code platform proved highly effective for the enterprise firm. By leveraging a low-code platform, the company achieved significant cost savings, streamlined procurement processes, and enhanced cost control through accurate chargeback tracking. This case study highlights the benefits of a tailored solution over off-the-shelf products, especially in complex, large-scale environments with unique requirements.
