The company
Arauco is a global manufacturer and distributor of wood products. Headquartered in Atlanta for its North American operations, the company serves several markets that consume composite panels, particle board, premium plywood, millwork and lumber. Sustainability is central to its identity, with all products sourced renewably and backed by investments in technology and responsible practices.
Arauco’s procurement function is headquartered in Atlanta, GA, with purchasing staff in plant locations working with business partners across the U.S., Mexico, and Canada.
The challenge
Before Fairmarkit, Arauco’s procurement team operated with semi- manual (ERP)/manual and spot process. The absence of visibility kept procurement from playing a more strategic role and drove inefficiencies and missed savings.
Key issues included:
- Limited Visibility and improve Compliance: Without data and reporting, the team could not enforce sourcing policies or provide leadership with transparency.
- Unmanaged MRO Spend: Supplier relationships and costs were fragmented, leaving significant spend uncontrolled.
- Missed Savings Opportunities: Lack of competitive sourcing limited cost efficiency.
- No Modernization Path: Without a digital platform, the team could not scale or streamline operations.
As a result, procurement remained a tactical function rather than a strategic partner, and leadership lacked insight into sourcing process and result.
“Before, our Purchasing Agents were consumed in semi-manual/manual work. Every sourcing event required chasing suppliers, tracking requests through ERP, spreadsheets and email. It was difficult to keep up with the volume and time consuming to track/report results.”
Scott Miller, Procurement Operations Manager
Selecting and implementing Fairmarkit
Arauco chose to work with Fairmarkit after recognizing that the platform offered the visibility and MRO spend control the team needed, enabling procurement to move beyond tactical execution and become a strategic partner.
Key factors in their decision:
- Centralized Digital Platform: Provided a single system for tracking and managing tail spend MRO events.
- Visibility and improved Compliance: Delivered analytics and reporting to increase transparency, enforce processes and drive spend control.
- Supplier Consolidation and Rationalization: Enabled Arauco to gain control over MRO spend and implement a disciplined approach.
- Competitive Sourcing and Savings: Created a scalable way to run RFQs, drive supplier competition and unlock savings.
- Operational efficiency: Allowed the team to process a high volume of requests quickly, with measurable cycle time improvements.
Although other providers were evaluated, Fairmarkit’s comprehensive solution stood out. What began as a small pilot quickly proved its value, and leadership’s recognition of the strong ROI drove a three-year commitment with expanded capacity, cementing Fairmarkit as a long-term strategic partner in Arauco’s procurement modernization
“We needed a solution that would give us visibility, control, and compliance all in one place. What I highlight about the solution is how user-friendly it is for both our team and our suppliers, it's very simple to use. It became clear that this platform could help us modernize our spot purchasing process while delivering real value to the business."
Paulo Vidal, Procurement Director
Results
Arauco’s partnership with Fairmarkit improved a part of the procurement process, driving visibility, improve compliance, efficiency and savings across the organization. By moving to a digital procurement platform, the company achieved measurable results that validated leadership’s decision to modernize.
Procurement Efficiency Gains
- 4 - 5 Day Average Cycle Times: Reduced turnaround times and streamlined sourcing across MRO and facilities categories.
- Standardized Sourcing: Established a consistent “one-stop shop” process for buyers and suppliers.
- High-Volume Management: Enabled the team to process a large number of requests efficiently, with tracked averages of 21.2 hours from creation to open, 95.4 hours from open to close and 22.3 hours from close to award.
Strategic Expansion
- Tail Spend Control: Gained oversight of previously unmanaged MRO and facilities spend, consolidating and rationalizing suppliers.
- Compliance Improvements: Enforced “3 bids and a buy” sourcing policies with improved transparency and accountability.
- Long-Term Partnership: Grew from a one-year pilot into a three-year commitment with expanded capacity, underscoring leadership’s confidence in the platform’s impact.
Arauco’s testimonial demonstrates how a procurement team with limited sourcing automation can modernize processes, capture measurable savings, and elevate its role as a strategic business partner. This journey proves that procurement can drive organizational growth and long-term value.
“The platform provides the visibility and efficiency needed to support decision-making. It enables us to track every request, measure cycle times, and demonstrate savings with real data. What was once a manual process has become standardized and transparent, making it easier for our team to manage high volumes while clearly showing the value we deliver to leadership.”
Ibrahim Abdon, Procurement Analytics Manager
Looking Ahead
Building on the success of its Fairmarkit partnership, Arauco is advancing its procurement transformation with a clear, forward-looking agenda. The team is scaling automation across more categories and regions, broadening competitive sourcing to unlock further savings, strengthening supplier relationships, and applying analytics to guide smarter decisions.
Rather than a one-time improvement, this journey reflects how Arauco is continuously evolving procurement into a driver of growth and innovation. With Fairmarkit as a strategic partner, the team is poised not only to sustain compliance and efficiency but also to shape the future of procurement within the organization.
