Procurement Automation — SAP Ariba

Objective

Improve the procurement efficiency and transparency across Metinvest Group

13 K

suppliers

in the system

01
95%

of goods and materials

are purchased via SAP Ariba

02
40%

labour intensity

of procurement is reduced after automation

03
100+

tenders / purchases 

are carried out in the system on a monthly basis

04

 

Technology

  • SAP Ariba Sourcing — electronic trading system

  • SAP SLP (Supplier Lifecycle Management and Performance) — system to manage supplier registration and qualification processes

Solution

SAP solutions were implemented as part of automation:

  • SAP SLP (Supplier Lifecycle Management and Performance) — system to manage supplier registration and qualification processes

  • SAP Ariba Sourcing — electronic trading system

SAP Ariba helped automate procurement and interaction between the procurement functions of Metinvest Group enterprises and suppliers through an electronic trading platform. The implemented tool allows conducting centralized tenders and quick auctions, promptly comparing offers submitted by suppliers, managing the progress of procurement procedure, and attracting new suppliers with preliminary assessment of their qualifications. It combined suppliers and buyers of various goods and services in a single information and trading platform.

 

Furthermore, SAP SLP and SAP Ariba are integrated with the enterprise resource planning systems (SAP ERP), thus making it possible to reduce the resource consumption of operations and improve accuracy and promptness of information received.

 

Result

  • Labour intensity of procurement is reduced and routine activities are automated

  • Procurement and tendering processes are transparent both for the company and enterprise management and for suppliers

  • Human factor in the procurement process is minimized

  • 10% - average percentage of budget savings in comparison with the previous system

  • 100+ tenders / purchases are carried out in the system on a monthly basis