Univision switched from a prominent business process outsourcing (BPO) company to Fairmarkit to improve visibility into nonstrategic spend. In addition to greater oversight, Univision has also realized over 15% in cost savings with Fairmarkit's artificial intelligence platform.
Univision is an American Spanish-language television network founded in 1962. Univision is the US’s largest provider of Spanish-language content with programs including telenovelas, sports, sitcoms, reality series, news, and imported Spanish-language feature films. Univision is available on most pay television providers throughout the US, with local stations in over 60 markets with large Latin American communities. As a massive consumer corporation, Univision decided to outsource most of their procurement responsibilities but were never fully satisfied due to the lack of transparency in their spend.
Univision Communications outsourced their tail spend purchasing to a prominent business process outsourcing (BPO) company. However, they were not experiencing the business process efficiencies or cost savings results they had anticipated. The executive team wanted increased spend visibility, cost reduction, vendor consolidation, greater spend under management, and processing efficiencies. Because they use Oracle as their ERP technology platform, other technologies in the procurement marketplace would take months to integrate seamlessly into their procurement system. Additionally, there would be a large consulting fee associated with adopting a customized solution to address their requirements.
Using Fairmarkit, Univision was able to eliminate their outsourced sourcing desk model for purchases under $100,000. Prior to using Fairmarkit, the process was very manual and cumbersome and the turnaround cycle time was too long. Moreover, they weren't realizing substantial cost savings. Fairmarkit was able to replace the outsourced nonstrategic sourcing desk model and streamline the procurement process with automation, including machine learning algorithms to maximize the value of Univision's preferred vendors. Fairmarkit was able to provide an instant return on investment while improving spend visibility and analytics into their tail spend activity.
Using Fairmarkit, Univision saw a one week ROI and realized cost savings of over 15%. They also experienced increased productivity through the elimination of their offshore, third-party team without having to add additional internal headcount.
“Simply put, Fairmarkit automates our tail spend sourcing activity. We set up criteria within Fairmarkit to streamline the decision-making process around what qualifies as tail spend activity, and the system provides RFQ feedback in the required 48 hours, allowing us to leverage aggressive pricing with a trusted vendor. Checks both boxes of saving time and money.”
— Frank Cuomo, Vice President, Strategic Sourcing & Procurement
The ease of Fairmarkit's integration allowed for a seamless data flow back into their backend ERP. Univision is able to continually import all of their existing vendors and RFQs into Fairmarkit. This enables the company to continue leveraging Fairmarkit as an artificial buyer on nonstrategic spend as their business needs evolve.