Case Peab

​

Background

Peab is one of the largest construction companies in the Nordic region with a turnover of 34 billion SEK (2008) and more than 14 000 employees. As part of the strategic development of the company Peab aims to lower production costs for all parts of the production process.

​

Challenges with purchasing development

In 2005 the process of changing purchasing procedures was commenced. As is traditionally the case within the Swedish construction industry, purchasing was a decentralized activity, where each unit within Peab acted on local supplier markets. To benefit from its size and gain purchasing power, a new way of thinking and acting was necessary.

​

Peab wanted to improve the purchasing process efficiency and gain an overview of the total group spend. To meet these goals an extensive IT and purchasing project was launched under the name PIA – Peab’s Purchasing and Call-off system.

​

Aim
Peab’s aim with the introduction of PIA has been to eliminate non-value-adding procedures in the purchasing process. In connection to this site managers and foremen needed to gain increased control over the procurement of material to the construction sites, and be provided with information about current prices and delivery capacities.

​

Solution
Peab chose Symbrio to enable the realization of the goals set up with PIA. In Symbrio, the site manager or foreman can place orders online to a majority of suppliers in one single interface, where the communication with the suppliers’ order handling systems are handled through EDI or through a supplier web interface. Even when the order is placed outside the system, e.g. by phone or pick-up at a warehouse, all order information is gathered in Symbrio.

System integration

Symbrio is flexible to be integrated with the customer’s ERP or other business systems. Suppliers with an EDI connection can also integrate its order handling system with Symbrio. This means that orders are automatically processed which rationalizes sales administration for the supplier. A grand majority of all transactions in Symbrio are made through EDI.

​

Implementation

The PIA project was launched in 2005 and by 2009, 1500 emloyees had passed a one-day course which makes you ready to start using the system the very same day.

​

Results for Peab

Advantages mentioned by users include visibility of correct prices, which makes comparison and price checks by calling the supplier obsolete. Also keeping paper documents in binders and passing paper invoices around for authorization has become a way of the past, as all documents are stored and handled electronically in Symbrio by default. For the organization as a whole the change means lower direct material costs and lower administrative costs. The largest benefits, however, are reaped from the fact that the organization is starting to act as one company where all units are conducting the purchasing process in a structured and similar way.

​

Results for suppliers

As orders from Peab are processed directly through the supplier’s order handling system, this saves administration costs for the supplier. All parts of the value chain gain from an electronic order flow, as resources are released in every step. Being chosen to be included as a supplier in Symbrio also means the unique possibility to expose the offered product range to an extended part of the Peab organization.