Dynatrace Case Study

Dynatrace: Building a Global Procurement Function From Scratch

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Dynatrace is a tech company offering a unified software intelligence platform that enables enterprises to manage, monitor, and secure IT environments. The company has been consistently recognized as a global leader in AIOps and performance monitoring, serving clients across the travel, hospitality, banking, and tech sectors. 

As Dynatrace geared up to expand from a $1B company to a $3B business, it needed a robust procurement function to support those bold goals. 

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“We needed a best-in-class tool to power a global source-to-procure process. It had to be transparent, easy to implement, and fast to deliver ROI.” — Ed Petrush, Senior Director of Global Procurement

Dynatrace enlisted Zip’s help to build a global procurement function from the ground up. Within four months, Zip put 99% of Dynatrace’s spend under management and secured 100% compliance on payment orders of over $1K. The new process generated an estimated $5.8M in benefits through time and human capital savings, risk mitigation, and improved efficiency. 

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The Challenge: A hyper-growth organization with a broken procurement pipeline

The team describes Dynatrace’s previous procurement system as the “wild, wild west.” The company’s fragmented tech stack contributed to a siloed procurement function that relied heavily on manual processes and led to frequent breaks in communication between stakeholders. 

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“We had no process and no visibility. Anyone could buy anything whenever they wanted from whoever they wanted.” – Ben Varney, Senior Manager, Global Procurement 

In addition to discouraging transparency and collaboration, the absence of a formal procurement process made oversight difficult and inflated Dynatrace’s supplier base. Contracts were frequently signed outside of the delegation of authority. Leadership couldn’t identify the performance of due diligence for all purchases. And managing a large number of vendors resulted in increased complexity and higher costs.

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Zip’s Solution: An integrated global procurement function

In under 18 weeks, Zip rolled out a plan to help Dynatrace get $375M in addressable spending and a supplier base of nearly 3,500 vendors under management. Our team leveraged Zip’s customizable workflows and no-code, out-of-the-box integrations to ensure the quick and seamless transition that Dynatrace sought.

Zip replaced Dynatrace’s siloed procurement process with a powerful tech stack that consolidates spend analytics, source-to-procure, contract lifecycle management, and tail spend management in one platform. The new stack will help Dynatrace with intake, new vendor onboarding, sourcing, and internal communications.

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“Zip enables us to provide exceptional customer care while creating much-needed process visibility and structure. It would have taken us years to achieve this on our own.”  — Ed Petrush, Senior Director of Global Procurement

Results: Streamlined, scalable, and transparent source-to-procure

With Zip, Dynatrace built an efficient and scalable procurement function to power its race to the $3B valuation mark. The company now enjoys full PO compliance and has nearly 100% of its spending under management. 

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“Zip enabled us to build a more efficient process and add value through strategic thinking. As a result, we’ve gained full visibility into spend, support commercial negotiations, and support vendor consolidation efforts.” – Ben Varney, Senior Manager, Global Procurement 

Ed cites enhanced transparency, increased compliance, optimized cross-functional collaboration, and increased stakeholder trust as the most consequential outcomes of partnering with Zip. He and his team singled out the ease of use, configurability, and quick ROI as some of the favorite features of their new procurement platform.

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“The sky's the limit with our flexibility to create custom workflows on the fly. I only see us expanding our usage of Zip in the future.” — Ed Petrush, Senior Director of Global Procurement