The company
Based in Latin America, this mining company employs ~2,000 people. Its centralized procurement function consists of a team of dedicated experts and sourcing specialists. Their primary focus includes achieving awarded savings when purchasing large equipment and enabling data visibility that allows for seamless auditing from a compliance perspective.
The challenge
The organization’s small but efficient procurement team faced operational challenges that hindered their ability to optimize processes and maintain compliance:
- Operational Bottlenecks: The team struggled to manage thousands of monthly purchase orders, resulting in long cycle times.
- Limited Visibility: Lack of insight into buyer performance, cycle times, and supplier engagement hindered strategic decision-making.
- Audit and Compliance Risks: Unstructured approval workflows increased compliance risks and audit vulnerabilities.
The company needed to streamline procurement processes, enforce compliance, and scale operations efficiently without adding headcount. They recognized that an AI-driven platform could significantly boost their existing team’s productivity, ultimately reducing cycle times, improving audit readiness, and achieving measurable savings on large equipment purchases. Finding a partner to scale these improvements across their procurement organization was essential to drive long-term impact.
Selecting and implementing Fairmarkit
Recognizing the need for a scalable, compliance-focused solution, the company selected Fairmarkit for several key reasons:
- Approval Workflows that Enforce Policy: Fairmarkit's flexible workflows ensured that no RFQ could be released without the appropriate sign-offs, supporting strict internal controls and audit requirements.
- Low-Lift SAP Integration: With minimal IT involvement, Fairmarkit integrated smoothly into the existing SAP ecosystem, crucial for a lean IT and procurement team.
- Scalable Event Management: Efficient handling of large-scale equipment sourcing events, driving significant time savings and greater supplier competition
- Built-In Compliance Guardrails: From minimum bid thresholds to event reopenings, Fairmarkit’s automation aligned seamlessly with the organization’s rigorous procurement policies.
The onboarding process reflected Fairmarkit’s commitment to partnership and speed. From kickoff to go-live in just two months, the deployment was collaborative, fast-moving, and focused on driving immediate value. Early momentum to establish success for the small team included:
- Accelerated Go-Live: The implementation went live in just eight weeks, setting a strong foundation for rapid time to value.
- Hands-On Configuration and Training: Fairmarkit's team collaborated closely with procurement leadership to tailor workflows, train staff, and embed best practices from day one.
Strategic Foundations for Scale: From the outset, Fairmarkit was configured not only for immediate compliance needs but also to scale with the company’s evolving sourcing goals.
Results
The implementation delivered profound, measurable impacts on procurement operations:
- Cycle Times Reduced by 82%: Average sourcing timelines fell from 66 days to just 12 days, accelerating procurement’s responsiveness to business needs
- $30M in Awarded Savings: By year three, the company achieved a 27% identified savings rate, outpacing industry benchmarks and turning sourcing into a strategic savings engine
- Driving Value at Scale: The team sourced nearly 4,000 events in 2024, including high-stakes equipment purchases, generating more savings in a single event than some organizations achieve annually
- Compliance by Design: Approval and bidding workflows provided built-in audit readiness, supporting regulatory obligations and internal controls
- Unique, Community-Driven Sourcing Events: The procurement team came to the company's rescue to address otherwise head-turning challenges. In one case, they quickly sourced a local vendor to handle the humane capture and adoption of stray dogs and donkeys that were rampant across one of their sites.
These transformative outcomes empowered the procurement team to strengthen compliance, enhance productivity, and expand strategic influence, positioning the organization as a forward-thinking leader within the mining industry.
Looking Ahead
The organization plans to expand its use of Fairmarkit by exploring autonomous sourcing workflows, unlocking greater productivity while preserving compliance and control through embedded policies. Their proven success in managing complex, high-value sourcing events positions them to broaden their impact across more spend categories and supplier types, operate with greater strategic foresight, and drive adoption of procurement best practices across the business.
With a foundation built on compliance, cost discipline, and transparency, the company is well-positioned to scale its procurement influence enterprise-wide, adapting quickly to future demands while continuing to lead with intention and rigor. Their ability to leverage technology in this way underscores the strength of their model and serves as a powerful example of how lean procurement teams can lead transformation at scale.
