Reducing factory downtime and fraud with PO approval automation

In the realm of manufacturing, delays in acquiring parts, supplies, or raw materials can significantly impact operations. Much of this delay stems from manual processes, particularly within the Purchasing Department, where approval of Purchase Orders (POs) can consume valuable time. Recognizing the potential of cloud technology to enhance efficiency, Sogefi Brazil, a prominent Suspension Division within Sogefi Group, partnered with Infor to revamp their PO approval process. Within a brief 30-day period, Sogefi leveraged the Infor OS Platform to overhaul their system, achieving an impressive 97% on-time approval rate, a significant improvement from the previous 60%.

Sogefi Group stands at the forefront of global innovation, specializing in the creation and production of air intake solutions, cooling systems, and versatile suspension components. Sogefi Brazil has transitioned its operations to Infor CloudSuite Automotive after migrating from the on-premises Infor Baan IV system in 2021. Looking ahead, Sogefi Brazil sees the Infor OS Platform as more than just a tool for business transformation; it envisions it as a catalyst for reshaping the role of IT within the organization.

“Transitioning to Infor CloudSuite Automotive has brought numerous benefits. Now, we discard local servers and improve our support operation. This new environment allows our IT team to concentrate on supporting our business operations. For instance, when the business sought improvements in the PO approval process, our Senior IT Analyst Pedro Campos collaborated with Infor's innovation team to streamline the process by leveraging the enterprise automation capabilities of the Infor OS Platform. This project's success has not only enhanced Pedro's career but has also spurred his efforts to further expand automation initiatives here at Sogefi Brazil,” says IT Manager Marcelo Moraes.

Manual PO approval process creates risk

Senior Indirect Purchasing Analyst, Ruanita Pedrozo took the lead on the PO automation project, aiming to introduce a more efficient workflow within the business. Previously, the entire process—from PO request to RFQ to PO approval—relied on manual methods, involving email exchanges and spreadsheet management. Recognizing the escalating volume of PO requests, Ruanita foresaw that sticking to the manual approach would only prolong approval times, leading to increased risk of factory downtime and compliance issues.

To ensure the factory operates smoothly, Maintenance must have the necessary parts for timely equipment servicing, and Manufacturing must have the raw materials required to sustain production. The lack of real-time visibility into the PO approval process hindered prompt resolution of issues to ensure POs are approved promptly so that these parts and raw materials are available. Moreover, user actions were not systematically tracked or enforced according to business rules, such as Segregation of Duties, which ensures that the same individual or department responsible for sending RFQs cannot also approve them and that approvers are segregated based on the value of the PO.

“In the old process, PO approval occurs at the outset of the process without visibility into the PO's cost. This posed a security concern because, depending on the cost, it needed to be routed to the appropriate level of approver. To address this, we had to devise an external process using email exchanges and spreadsheets to ensure that each step of the process adheres to our business rules,” says Ruanita.

PO approval automation is secure and faster with Infor ION Workflow

Using Infor ION Workflow, the PO approval process is now more efficient and aligns with the business rules granted approval level according to department and value. With a faster and more secure PO approval timeline, Maintenance receives timely access to necessary parts to service equipment, while Manufacturing promptly obtains the components essential for production.

Infor ION Workflow is a key enterprise automation capability of the Infor OS Platform and is used at Sogefi to streamline a process that includes Requisition Approval, Purchase Order Approval tasks, and RFQ and PO notifications. This optimized process has reduced the number of steps from 27 to 22, resulting in a 42% faster PO approval rate. Each stage of the process offers transparency and accuracy, ensuring the segregation of duties and the selection of the best vendor.

Summary of results:

• 42% faster PO approval rate reduces factory downtime and service delays
• 97% on-time PO approval improves employee satisfaction
• 100% compliant process ensures segregation of duties
• Less than 30 days time to value

Purchasing Specialist Ana Guardia establishes a performance target of achieving a 70% on-time PO approval rate, recognizing the critical role she plays in providing timely parts and materials to Manufacturing and Maintenance. "Previously, we managed to achieve 60%, but now, with the new Infor workflow, we're hitting 97%," she notes. "Gone are the days of endless email chains and paper trails. Requests, quotes, and other tasks seamlessly flow into Infor CloudSuite Automotive for PO approval. Once approved, orders are promptly dispatched to vendors. Additionally, with Infor Go, I can manage tasks from anywhere, ensuring no time is wasted. This streamlined workflow This new workflow has helped to avoid any downtime in the factory."

To learn more about Infor Enterprise Automation, visit https://www.infor.com/technology/enterprise-automation