Solution

While Ruangguru was growing at such a fast pace, they were stuck with an age-old procurement process, which meant the organization's purchasing was handled primarily on paper and spreadsheets. There wasn't a proper procurement strategy, and the finance and procurement teams were plagued with ineffective business practices that led to huge inefficiencies in invoice processing. The absence of a concrete procurement process also meant Ruangguru was infested with maverick spend and non-compliance.

Ruangguru wanted to address the lack of a proper procurement process and accelerate its business growth. Their objectives were multifold. However, the priority was to streamline their P2P process by using digital procurement software. Given the number of users who would be using their platform, they were looking at a purchasing system that was simple and easy to use for the employees. As for their approval processes, Ruangguru wanted to take control of them via a centralized system that came with structured workflows. They wanted to enable stakeholders and employees to make better decisions by improving visibility into their purchasing process end-to-end. They were also looking at a system that would help them process their travel reimbursement with efficiency.

With Kissflow Procurement Cloud, Ruangguru automated and streamlined its purchase-to-pay process. Every time a user filled out a requisition form, it was sent to the line manager for approval. After that, the requisition is routed to the purchasing department, which has two options. They can either approve the request or reject it. If it is rejected for lack of information, it will be returned to the requestor for changes. Once the purchase requisition is approved, a purchase order is created with specifics such as quantities, types, and prices that were previously agreed upon.

The approved purchase order is then sent to the supplier. Upon acceptance, the PO becomes a binding contract. The supplier delivers the products on the specified date. The delivery is checked for quality, and any returns required are processed. The supplier sends the invoice for payment, which undergoes an auto three-way matching process, and upon a successful match, the payment is processed through an accounting system. By streamlining their overall procure-pay process, Ruangguru was able to implement a proper procurement strategy and bring complete transparency into what's happening in purchasing.

For supplier registration, the service owner or manager can submit the registration request using a form that includes vital information about the suppliers. It goes to the procurement team for review, which checks the submitted form to ensure there is sufficient information. Once the submission is accepted, the supplier is logged into the master repository of the system. The reviewing team also has the option to return the submission or reject it. The contract registration process will be triggered every time a contract is submitted against a supplier. With a dedicated supplier registration and contract management process, Kissflow Procurement Cloud ensured compliance and paved the way for strategic sourcing, which will further reduce spending.

Dedicated workflows were created for Ruangguru to address their requirements, including a travel form with reimbursement. Users can now initiate a travel reimbursement request against a standard, allotted budget. Based on the item and the cost, it is auto-approved in the AP queue, speeding up the overall process.