INTEGRATE SOURCING & PROCUREMENT
Turn Procurement Into A Real Competitive Differentiator
Higher market velocity, lower margins, and significant spending increases – reaching in some cases 70% of total revenues – are making procurement vital to compete, or simply survive, in the global market.
A 2007 Aberdeen survey of chief procurement officers indicated that cost savings is the top procurement metric. Furthermore, the study found that the misalignment between systems and policies represents the biggest barrier to delivering on cost-saving objectives.
To address the challenge, forward-thinking businesses are closing the entire loop between sourcing and procurement – transforming procurement from a disconnected back-office function into a strategic function. This approach is enabling critical transparency into the end-to-end procurement process, from the identification of savings opportunities to the delivery of tangible cost savings.
For example, a leading chemicals specialty manufacturer turned market pressures into real cost savings by using SAP software to streamline the entire procurement cycle. This world-class company reduced costs by nearly $6 million per year, while increasing first-pass yield by more than 85% and on-time payments by more than 87%. In addition, the adopted approach simplified the existing environment comprising more than 300 disparate IT systems.
Solutions Designed for Integrating Sourcing and Procurement
Solutions from SAP and our partners can help you fully integrate the source-to-pay process to maximize cost savings. By closing the loop between sourcing and procurement, you can sustain savings, reduce operating costs, and ensure compliance with contracts and policies – all key to driving real competitive differentiation.
Gain Complete Transparency
Transparency into procurement activities can help you see how your data can flow from opportunities identified through spend analysis to cost savings captured from strategic sourcing of suppliers. Savings can then be captured as they are locked into contracts and ultimately delivered in the procurement order cycle.
With automated operations, you can streamline procurement of all goods and services, eliminate manual tasks, and reduce purchasing errors. Your procurement staff can also make decisions and take action more quickly with simplified and personalized access to key information.
Ensure Compliance with Contracts and Policies
By managing all aspects of the life of a contract, you can ensure compliance with critical contracts, corporate guidelines, and regulatory requirements. Further, you can dynamically link suppliers to your procurement process to ensure transformative collaboration. SAP NetWeaver can help you integrate business partners and enable data sharing across heterogeneous systems within your global supplier network.
SAP Services can help you assess and analyze procurement processes by delivering a clear road map based on best business practices to achieve rapidly your key objectives.