Procurement Automation — SAP Ariba

Task

To increase the efficiency and transparency of procurement operations within the Metinvest Group

13 000

suppliers

in the system

01
95%

a purchases of goods 

are carried out through the SAP Ariba system

02
40%

reduction 

in the complexity of the procurement process after the introduction of automation

03
100+

tenders / purchases 

are held in the system monthly

04

 

Technology

  • SAP Ariba Sourcing—electronic trading system
  • SAP SLP (Supplier Lifecycle Management and Performance) — system for managing supplier registration and qualification processes

Decision

As part of the automation, SAP solutions were implemented:

  • SAP SLP (Supplier Lifecycle Management and Performance)— system for managing supplier registration and qualification processes
  • SAP Ariba Sourcing— Electronic Trading System

 

The SAP Ariba system made it possible to automate the procurement processes and the interaction of representatives of the purchasing functions of Metinvest Group enterprises with suppliers through an electronic trading platform. The implemented tool allows conducting centralized tenders and quick auctions, quickly comparing suppliers' offers, managing the course of the procurement procedure, as well as attracting new suppliers, preliminary evaluating their qualifications. She combined suppliers and purchasers of various goods and services in one information and trading space.

In addition, the SAP SLP and SAP Ariba systems are integrated with enterprise resource planning systems - SAP ERP, which reduces the resource consumption of operations, improves the accuracy and efficiency of information received.


 

Result

  • Reduced labor intensity of the procurement process and automated routine operations
  • Transparency of the procurement and tendering process was ensured both for the management of the company and enterprises, as well as for suppliers
  • The influence of the human factor on the procurement process is minimized
  • 10% — average percentage of budget savings compared to the previous system
  • 100+ tenders / purchases are held in the system monthly