Byggmax makes smarter purchases with Oneflow

Byggmax is an offensive low-price player in construction products and today has over 100 department stores throughout the Nordic region. The key to Byggmax’s success has been efficient and innovative purchasing routines.

Contract management was a bottleneck

Byggmax makes all its purchases from the head office in Stockholm. The company signs annual agreements with almost 300 suppliers each autumn. According to Purchasing Manager Per Haraldsson, the workload for the purchasing department is extra high during this period.

– One of the most time-consuming work steps for us has been to communicate with all suppliers via email and send Word documents with the agreements back and forth, he says and continues:

– This led to us often not receiving the agreements until well into the spring, and I sat with decimetre-high bundles of agreements that were to be signed and archived in binders. This was time consuming, inefficient and tedious. We had long lead times from the first negotiation until the agreements were signed and ready. Contract management became a bottleneck for us because we have hundreds of suppliers.

Byggmax and Oneflow share the same vision

Byggmax realized that they had to find a solution to the problem. They started looking for suppliers who could simplify the whole work process regarding their purchasing agreements. Important criteria for Byggmax were a complete solution, functions for collaboration, being able to work efficiently, a good overview and a high degree of safety.

Byggmax found many suppliers who offered different systems, but they only solved parts of Byggmax problems. Per Haraldsson had a vision of being able to work interactively with agreements at all stages; everything from building templates, to negotiating, changing and updating agreements in ongoing processes, e-signing and last but not least, managing Byggmax agreements. Byggmax came in contact with Oneflow and discovered that the companies shared the same vision.

Save time and negotiate better

Byggmax works according to the “lean” model in everything they do and focuses strongly on improving routines and maximizing standardization. A characteristic of Byggmax is that they dare to be innovative and challenge established ways of thinking and working methods. Purchasing Manager Per Haraldsson says:

– After implementing Oneflow, we now have lead times that can be down to 3 days from first contact to a signed agreement. Previously, this took at least a month and a half. With fewer resources, we now process a much larger volume of agreements than before. The cycle time for handling agreements has decreased and we save a lot of time.

– Ten years ago we only had 40 suppliers and today we probably work 10-15 times more efficiently than then. We negotiate very hard with our suppliers. Oneflow has increased our productivity. We can free up resources and spend more time negotiating better. We have also received positive reactions from our suppliers who think that Oneflow is a good and clear system.

Oneflow’s strategy is to further develop the application in a close relationship with its customers. Per Haraldsson confirms this and says:

– We have a very good collaboration with Oneflow who have been responsive when it comes to our wishes and requirements. It’s easy to work with Oneflow. We are wholeheartedly committed and strongly believe that this is the future of contract management. We see Oneflow as a strategic partner.