From good to great
From good to great
CLIENT STORY

From good to great

KPMG helped a U.S. state create a modern, digital, central procurement function leveraging leading practices and Ivalua's e-procurement technology.

Client
A U.S. state procurement office
Sector
State and local government
Project
Ivalua cloud e-procurement implementation
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

Government entities are as effective as the public trust placed in them. Over the past few years, the Governor’s office in this state has launched a number of phased initiatives to improve the efficiency of statewide operations. To upgrade its procurement processes, the state wanted to build upon earlier standardization efforts and achieve true best-practice leadership. The state asked KPMG to help make it happen.

KPMG combined its Powered Enterprise approach—built to dramatically improve the design and implementation process—with iValua e-procurement technology to produce a leading-practice digital solution that delivers consistent value for the central state procurement function, the 125 public agencies that administer day-to-day purchasing, and the statewide vendor community. Most importantly, it delivers value for state taxpayers, with the kind of accountability and transparency citizens need to maintain confidence in their public institutions.

Benefits to client

KPMG has helped the state modernize its strategic procurement practice, based upon a single e-procurement cloud platform. Specific benefits include:

  • digitized procurement delivered for all government functions
  • increased supervisory controls in place for the central state procurement office—including strategic-sourcing tools for spend-management—combined with advanced transactional support for more than 125 purchasing agencies
  • standardized data governance that produces more accurate and consistent data, faster approvals and reporting, improved analytics, and more transparent audit trails
  • statewide transparency for all procurement stakeholders, with real-time information available via dashboard reporting, configurable by vendor, solicitation, commodity, workflow, or budget source
  • better user experience for more than 18,000 suppliers and 3,000 state employees through an iValua portal.

Approach

Working closely with iValua under a joint contract, KPMG used its Powered Enterprise approach to align tool capabilities with the state’s needs. KPMG:

  • worked closely with the state in designing iValua’s powerful e-procurement capabilities around a fully integrated source-to-pay (S2P) suite of modules, including source-to-contract, supplier management, and Procure-to-Pay
  • used the pre-built components of KPMG’s Powered Enterprise—leading practices and processes, tested technology solutions, and next-generation delivery methods—to help the state move quickly through project milestones and meet deadlines on a compressed schedule
  • focused project activities on the design and implementation of a core S2P module, configured to the state’s needs. The core module emphasized standardization and end-to-end automation of all statewide procurement processes, with selected built-in flexibility to accommodate agency-specific requirements.
  • prioritized organizational self-sufficiency, with S2P training for more than 3,000 employees and 18,000 suppliers; and a formal KPMG Hyper-Care transition phase for state’s S2P helpdesk team, to support skills consolidation and knowledge transfer.

KPMG insights

Powered Enterprise is a dynamic approach, built to evolve

While Powered Enterprise distills accumulated KPMG cumulative experience and wisdom into ready-to-deploy components, its advanced design anticipates and incorporates refinements from each new KPMG assignment.

 

Our work has already attracted interest from other state governments looking to obtain similar results

Process and information transparency are essential commodities for public-sector entities. For government organizations, accessible information and transparent, impartially applied processes are not just support tools for better policymaking but the building blocks on which their credibility is built, as institutions are ultimately accountable to citizens.

 

We see technology change is a means to larger ends

At KPMG, we help public- and private-sector clients put technology initiatives in the service of organizational success by building strong business cases that outline benefits, prioritize action, and secure stakeholder buy-in.

The pre-built components of KPMG Powered Enterprise helped this client move quickly through project milestones and meet deadlines on a compressed schedule.

KPMG complies with the auditor independence rules of the AICPA, SEC, PCAOB and DOL. As a result, some services described herein may not be available to our audit clients. KPMG audit clients should check with their respective lead audit partner for more information.