[Case study]
Automated RFQ Management Saves Costs
and Efforts for Top Petroleum Products’ Distributors
profitably
Geography: Global
Module: GoProcure and GoInvoice
Overview
Motul Asia Pacific Pte Ltd is a petroleum products distributor leading the way in high-performance lubricants and industrial solutions, recognized for its cutting-edge technology and commitment to excellence.
The Challenge
In the absence of a freight quotation management system, Motul faced challenges, such as tiring manual procurement processes and errors & delays due to human oversight. They were looking for an automated solution to streamline their procurement processes, offering complete transparency and enhanced control.
Results
- Improved visibility and measurable benefits were achieved through clear and user-friendly dashboards and comprehensive monthly reports
- Automation of vendor quote collection and AI-powered invoice matching streamlined Motul’s operations
- Costs reduced significantly, with monthly freight cost reductions of 5% to 8%
Solution
Our integration of GoProcure into Motul’s existing systems has been a resounding success. By streamlining their freight negotiation process, we’ve helped Motul achieve tangible cost savings. With improved visibility and efficiency, Motul now experiences significant monthly reductions in freight costs, alongside smoother operations.
Company Overview
Motul Asia Pacific Pte Ltd, headquartered in Singapore, isn’t just another distributor. It embodies Motul’s legacy of innovation. With a penchant for pushing boundaries, this French company introduced the industry-changing Century 2100, the first semi-synthetic oil, in 1966.
Expanding on their success and racing expertise, Motul pioneered the world’s first fully synthetic oil, 300V, in 1971, setting the bar high for motorsports lubricants today. Beyond automotive, Motul Tech offers high-performance solutions across an engine’s lifecycle, from casting to final assembly. This commitment to cutting-edge technology, as recognized by the 2022 SBR International Business Award, positions Motul Asia Pacific as a leader in high-performance lubricants and industrial solutions across the Asia Pacific region.
Industry: Petroleum and Petroleum Products
Challenges
In the absence of a freight quotation management system faced multiple challenges:
Tiring manual procurement processes
- Numerous emails, and constant follow-ups for quotations
- High dependency on human evaluations
- Increased costs, time, and effort due to manual processes
Human Oversight
- Lack of centralized system leading to missed email
- Invoices are buried in inboxes, causing delayed payments
- More prone to human error, leading to mistakes
Requirement
Motul faced increasing costs and inefficiencies in manually handling freight quotations, prompting them to seek an automated solution. They aimed to streamline procurement processes while ensuring transparency and control over freight quotation management.
Motul had the following goals:
- Ensure transparency in procurement processes for both the company and all stakeholders involved
- Adopt a solution that is easy to adopt and one that integrates well into existing workflows to prevent reverting to previous methods.
- Implement auditability, to be able to track actions taken within the system, ensuring accountability and providing clear metrics on approvals.
reasing costs and inefficiencies in manually handling freight quotations, prompting them to seek an automated solution. They aimed to streamli
Solution: GoProcure – Streamlining Freight Procurement with Ease
GoProcure is a user-friendly enterprise software solution designed to simplify the freight negotiation process. Seamlessly integrating with existing systems, it’s the gateway to finding the best freight deals effortlessly. Here’s how Motul benefited from GoComet’s GoProcure Enterprise Software for Freight Negotiation module:
Smooth Integration and Change Management:
Embracing change can be daunting for companies, especially when adopting new technology. We at GoComet, partnering with Motul, worked together to seamlessly integrate our solution into their operations. Through active listening and proactive change management, we facilitated a smooth transition, understanding the pivotal role it plays in successful software implementation.
Gamification of the procurement process:
Motul praised a unique feature they found particularly appealing: our platform’s vendor ranking system. We’ve gamified this aspect by assigning ranks (such as one, two, three, etc.) to vendors, fostering healthy competition among them. It removes the animosity of how much to negotiate amongst the customers, allowing vendors to vie for the top rank by outbidding each other. This feature not only saves Motul time and effort but also frees up resources for other crucial tasks.
Improved Visibility and Measurable Benefits:
Motul emphasized the importance of clear dashboards for tracking queries and key performance indicators (KPIs) to effectively evaluate the tool’s performance. GoComet consistently provides detailed monthly reports showcasing tangible cost savings ranging from 5% to 8%, along with other benefits such as saved time and effort. Through eliminating the need to chase vendors for renegotiation and actively negotiating lower quotes, the platform efficiently streamlines procurement processes for Motul.
“The negotiation tool by GoComet acts as the last push to further squeeze the lemon. But how much more to squeeze was never known to us before.”
Mr. Sanjeev Wangoo, Chief Supply Chain Officer, Motul
“Every month I get the detailed report, which gives me confidence that, yes, basically I’m getting what I expected from the tool along with the savings which was promised.”
Mr. Sanjeev Wangoo, Chief Supply Chain Officer, Motul
Significant Impact on Operations:
While Motul was approached by a couple of other platforms, Motul found GoComet’s ease of operations to be a standout feature, influencing their decision. Our platform transformed Motul’s operations by automating vendor quote collection, eliminating the need for manual follow-ups, and saving valuable time and effort. Leveraging AI-powered invoice matching, we further improved efficiency by reducing manual work and errors in invoice processing, streamlining the payment processes. Accompanying it was effective local support, which ensured seamless operations and was an added benefit that made Motul choose GoComet over other service providers.
Effective Support Mechanism:
Motul’s decision to choose GoComet over competitors was also influenced by our strong support system. Motul praised our support team for their attentive listening, thorough grasp of Motul’s challenges, and their ability to craft customized solutions. Our platform showcased agility in addressing issues swiftly, with a dedication to resolving all operational concerns within a 24-hour timeframe, aligning with our service-level agreements.
“Our platform showcased agility in addressing issues swiftly, with a dedication to resolving all operational concerns within a 24-hour timeframe, aligning with our service-level agreements.”
Reduced Costs
Through automation-driven vendor negotiations, our system effectively drove down costs for Motul. Demonstrating tangible results, GoComet consistently delivered monthly freight cost reductions of 5% to 8%, directly contributing to significant financial savings for our client.
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“A fair promise made, and a fair promise delivered.”
Mr. Sanjeev Wangoo
Chief Supply Chain Officer, Motul
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