KLM Synergizes Procurement Operations

31st Aug 2005

Procuri, a leader in OnDemand Enterprise Supplier Management solutions, today announced that KLM Royal Dutch Airlines, part of Air France-KLM, the world’s third largest airline group, extended and expanded its agreement with Procuri. The company is using Procuri TotalSource and Procuri TotalContracts to automate its strategic sourcing and contract management processes, respectively.
After the company’s merger almost a year ago, KLM and Air France, formerly using a competitive solution, revaluated the marketplace. The company selected Procuri because of its state-of-the-art technology, ability to provide process transparency and automation, and its record of generating significant sourcing results. KLM and Air France are using Procuri’s solutions to help synergize their procurement operations.
“There is enormous potential for Procuri’s solutions to act as a facilitator and enabler of achieving the much needed and desired purchasing synergies between Air France and KLM, from a functional, organizational, technical and cultural perspective,” said Ralph Polman, e-sourcing manager for KLM. “After a turbulent market period with many consolidations, Procuri is proving to be a leader in the marketplace with an impressive track record and customer base. With solutions that truly create value for organizations, Procuri’s expanded solution suite makes them an even stronger company.”
KLM has used the Procuri TotalSource solution since 2002 with Jan Witsenboer, senior vice president and chief procurement officer, spearheading the strategic effort to move KLM to a more efficient procurement organization. As one of the first European customers for Procuri, KLM, under Witsenboer’s leadership, completely automated its sourcing processes and realized significant time and cost savings.
With the need for KLM, as well as Air France, to gain control over their contract management processes, the company will use Procuri TotalContracts to ensure compliance and to gain contract visibility and transparency. Nearly all of KLM’s procurement departments will begin converting every active procurement contract into the database, creating a central contract repository to efficiently automate, document and manage the contracts.
The company will also continue to use Procuri TotalSource to generate savings and visibility into their strategic sourcing processes. “Over the past three years, KLM has had a very good experience with Procuri and has gained significant sourcing results with savings as much as 40 percent and has achieved greater process efficiencies,” said Polman.
Last year, KLM sourced 800 million euro worth of goods and services using Procuri TotalSource while conducting approximately 700 sourcing events. Some of the goods and services purchased through the solution include hotels, computers, food, childcare, conference and meeting accommodations, and even a 777 airplane cabin interior.
“Air France-KLM is a prime example of why Procuri has the highest customer loyalty in the industry. Even after a major merger and market revaluation, the company selected, extended and expanded its agreement with Procuri. They are even using the solutions as enablers to integrate the company’s procurement organizations,” said Mark Morel, president and chief executive officer of Procuri. “It is companies like Air France-KLM that help make Procuri the market leader in OnDemand enterprise supplier management solutions.”



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