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Delta Lloyd: more control over payments with one integrated procurement solution

It is important for financial services providers to have their internal processes in order and to keep costs under control as far as possible. Rigorous scrutiny by regulators and stricter legislation have an impact on the daily state of affairs. There is a lot of competition out there, while consumers are becoming more discerning and they compare providers online. This places high demands on the quality of service. For Delta Lloyd these developments mean an even stronger focus on customer satisfaction, while also improving internal processes and cost management.

Delta Lloyd has been a trusted partner for insurance, pensions, investments and banking for corporate and private clients since 1807. The services and products of the company are brought to market under the strong brand names of Delta Lloyd, OHRA and ABN AMRO Insurance. With more than 4,200 employees Delta Lloyd mainly operates in the Netherlands and Belgium. The company equity amounts to approximately € 2.5 billion and it manages assets worth € 85 billion.

Expenditure control
Efficiency and transparency become an even more important driving force when cost savings also put pressure on the organisation. Delta Lloyd noticed that further gains could be achieved through procurement. Jan Huiting, Finance and Staff Manager at Delta Lloyd, explains: “In the past the procurement process was less efficient and it was also somewhat fragmented. When supplier contracts had to be registered this had to be done in multiple, separate systems. The result was that purchasing was not done in the most efficient manner and additional costs were incurred. In order to improve the procurement policy and to reduce purchasing costs it became necessary to make this process simpler and more efficient.”

Integrated purchasing platform
In 2008 Delta Lloyd moved to one central procurement platform to automate and integrate its company-wide purchasing and invoice handling processes. The company turned to Esize; a complete software package for contract management, ordering, hiring external staff and invoice processing, which is available fully integrated via the Cloud. With the new solution, Delta Lloyd wants to fulfil its ambition to gain full control of supplier contracts and purchasing and expenditure flows within the organisation, while also continuously improving the quality and availability of accurate management information on procurement. “Some of our orders (especially IT, Facility Management, Marketing and Business Services) are currently processed through the central system. Our procurement process is now a lot faster and more efficient. The system also provides some very important information: who are our suppliers, what contracts have we concluded with them, which orders are currently in progress and which invoices have to be paid? When you have insight in this type of information at any time you have more control over your spending and you can buy smarter,” declares Jan Huiting.

Correct (standard) procedures and authorisation rules
Another important result is that the correct (standard) procedures and authorisation rules are used within the organisation. Jan Huiting: “Better understanding and control of overdue commitments will help our organisation to better maintain control over spending when it comes to procurement of goods, services and hiring.”

Efficient processing of invoices
“Since we started using Esize software our ordering and payment process has also improved considerably. Now when someone places an order requisition, the order is created in the system. After approval the order is automatically forwarded to the supplier. As soon as the invoice comes in the system ‘authorises’ the invoice automatically with the corresponding order. If there is a match the invoice is approved and prepared for payment. Invoices with issues are automatically flagged. The system therefore reduces the administrative burden considerably and incoming invoices are handled faster and with more care.”

Towards more payment control
Hiring of external personnel is a major expenditure item for Delta Lloyd. The organisation has several hundred temporary employees working for it at any time, for whom invoices must be processed and paid every week. In the past this time consuming process was done manually. This process has now been fully automated in Esize for the hiring of external staff to become more efficient. Jan Huiting: “Temporary workers complete their timesheets and expenses themselves every week, which are then approved by a manager. This process is now fully automatic, which saves a lot of administrative work. But the module offers even more: Delta Lloyd sends invoice proposals to suppliers based on approved timesheets. All invoices are sent out without any issues and are paid on time. We also maintain full control over payment terms and we can also better manage that. Another important result is that the system also provides correct data for internal and external reports (e.g. hiring costs forecast).This means that more information is available about external hiring, which is used to determine the hiring policies of Delta Lloyd and so forth.

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