Case Study: Yves Saint Laurent

Defining and implementing an expense commitment process with Corcentric

The Objectives

  • Define and implement an expense commitment process
  • Control and analyze indirect purchases
  • Facilitate expense management and budget tracking (with multi-level, multi-company and multi-currency approval rules)

The Challenges

Using paper purchase orders and Excel spreadsheets, Yves Saint Laurent (YSL) did not have a software technology tool capable of tracking expense commitments, requesters or order receipts. Approvals were done manually using sign-offs that were passed from department to department and often lost.

Paper invoices were not centralized, making spend management control and expense analysis difficult. This lack of visibility generated an enormous time and resource waste for the Finance Department.

In 2013, following an internal audit, YSL’s Finance Department wanted to improve its procurement processes, from purchase request all the way to invoice reconciliation.

The Solution

YSL was looking for a solution that would allow it to:

  • Centralize purchasing data
  • Quickly retrieve information related to each expense commitment (requester, approver, amount, receipt status, etc.)
  • Allocate different budgets according to the purchase request
  • Automate the entire process and save time for all stakeholders

We needed a robust technology tool for our Procurement and Supplier Management processes that would enable all operational staff and departments to work together seamlessly to accurately monitor budgets, invoicing and authorizations.”
~ Virginie Bonneau, Accounting and Tax Manager – Yves Saint Laurent

YSL’s Finance Department, with the support of the IT Department, initiated the project to implement a purchasing information system and chose Corcentric’s Procure-to-Pay solution.

Being 100% SaaS, the Corcentric Platform requires no maintenance from our team and updates are done automatically. This criterion is what convinced us to choose Corcentric.”
~ Virginie Bonneau, Accounting and Tax Manager – Yves Saint Laurent

The Results

All purchasing categories are now managed via cloud-based Corcentric Procurement (except for travel and transportation purchases), which represents a volume of 82 million euros and 20,000 orders.

In order to ensure the adoption of the procure-to-pay tool by its 300 users, YSL favors a flexible purchasing process that allows orders to be placed after the fact. Thus, 80% of purchase requests are regularization requests.

IT and general services purchase requests, on the other hand, follow the classic procurement process where the order is sent to the supplier only if the request has been formulated and approved on the Corcentric Platform.

This strategy ensures reliable budget tracking and facilitates expense management by allocating requests to the right cost center with the right account. Budgets are now updated automatically and we are able to anticipate any overruns.”
~ Virginie Bonneau, Accounting and Tax Manager – Yves Saint Laurent

Since implementing the Corcentric Procure-to-Pay solution, YSL has achieved a number of substantial benefits:

  • Centralization of purchasing data on a single platform with automatic updates in real time
  • Time savings, visibility and traceability throughout the spend commitment process
  • Reliable budget tracking and optimized expense management
  • Automated purchasing processes that allow stakeholders to focus on higher value-added activities
  • More flexibility through multi-level management of budgets and approval rules

Customer

Solution(s) Deployed

  • Procure-to-Pay

About the Company

Yves Saint Laurent, also called YSL, is a French luxury goods company founded in 1961 by Pierre Bergé and fashion designer Yves Saint Laurent. YSL has been part of the Kering Group since 1999.

Results

20k

orders per year

€82 Million

spend volume

300

users

5,000

registered suppliers