From standardisation, through integration and automation, into machine-to-machine communication : a field problem solving project at Philips Lighting B.V.

Since February 2016, Philips Lighting B.V. operates as a stand-alone company. To split the buying system and processes from Royal Philips a new cloud-based e-procurement solution will be implemented in January 2017. Other reasons for a new solution are no clear preferred buying channels, and preferred suppliers, defined. Performance issues of a Purchase-to-Pay process can have dfiferent underlying reasons. In this research the concepts of maverick buying, pooling of demand, efficiency, spend control, and supply base optimization were analysed. Results show a clear need for performance increase. A five-year roadmap is designed to guide the company into the next steps in terms of standardisation, department integration, automation, and eventually fully automated purchasing opportunities.