After switching from a prominent, business process outsourcing (BPO) company to Fairmarkit, Univision vastly improved its visibility into nonstrategic spend. They now have greater oversight and are realizing over 15% in cost savings using Fairmarkit’s machine learning platform.
Univision is an American Spanish-language television network founded in 1962. They are America’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 its procurement responsibilities but was never fully satisfied due to the lack of transparency in its spending.
The executive team expected and wanted increased spend visibility, cost savings, vendor consolidation, greater spend under management, and processing efficiencies. Univision outsourced its tail spend purchasing to a prominent, business process outsourcing (BPO) company, but it did not yield the business process efficiencies or cost savings results they had anticipated. Additionally, Univision uses Oracle for its ERP (enterprise resource platform) system. Integrating other procurement technologies with their ERP system would normally take months and would come with a large consulting fee to address their custom requirements. Either a BPO or a custom technology solution had its major pitfalls when it came to solving their procurement challenges.
Using Fairmarkit, Univision was able to eliminate its outsourced sourcing desk model for purchases under $100,000. Prior to using Fairmarkit, the process for sourcing these purchases 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 BPO company and streamline the procurement process with automation and machine learning, maximizing the value of Univision's preferred vendors. Fairmarkit also improved spend visibility and analytics into Univision’s tail spend purchasing activity.
Univision realized a one week ROI and an average cost savings of over 15% on every purchase pushed through the Fairmarkit platform. They also experienced increased productivity through the elimination of their offshore, third-party BPO 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
Fairmarkit's integration with Univision’s existing backend Oracle ERP allowed for easy import of all their existing vendors and RFQs into Fairmarkit, and a seamless data flow back to the ERP. This enables Univision to continue leveraging Fairmarkit as an automated sourcing tool for nonstrategic spend as their business needs evolve without investing in additional headcount, custom technology or consulting services to do so.