FTP Fuels Procurement Transformation with SAP Ariba
Oil and gas companies need tens of thousands of products to keep their operations humming. And to create advantage in an increasingly competitive market, they need to buy them from the right suppliers at the right times and prices.
With the help of SAP Ariba, FTP is enabling them to do it. The Memphis-based procurement consulting firm has tapped into Ariba’s cloud-based applications and business network to create fair and transparent markets for everything from emergency vehicles and valves to pumps, hoses, drilling rigs and office supplies. And in doing so, it has opened a gusher of savings and efficiencies for its clients around the world.
“The oil and gas industry is more competitive than ever. And to be successful requires a global network of partners who can reliably deliver goods and services at optimal prices,” said Thomas Pandola, President, FTP. “But building this network isn’t easy to do – particularly on a global scale.”
Discovering a Better Way
So FTP signed on to the Ariba® Network - the largest, most global business network on the planet - and began using Ariba Discovery™ in conjunction with Ariba Sourcing™ to source goods and services on behalf of its customers.
The premier service for matching business buyers and sellers globally, Ariba Discovery eliminates the hassle of discovering qualified partners by instantly matching buyer requirements to supplier capabilities. Fully integrated with Ariba Sourcing, the service allows buyers to quickly identify and qualify partners from a global community of over one million selling organizations across 20,000 categories and sellers to connect with more than $5 billion in business opportunities that are posted on an annual basis.
“Everything we need to help our customers was there for us,” Pandola said.
In one event conducted for a large Caribbean-based global petroleum company using the solutions, FTP was able to find suppliers for industrial tubing equipment in a matter of hours and secure the goods at a savings of $9 million.
“We never knew those kinds of savings and efficiencies were just a click away, but SAP Ariba makes it that easy,” Pandola says.
While he appreciates the simplicity that SAP Ariba brings to the procurement process, Pandola says the real value of the company’s solutions are the transparency and compliance they drive.
“There are plenty of places where you can find and buy industrial goods and services fast and cheap,” he says. “The key is to find a fair and open marketplace where buyers and sellers can collaborate on transactions and grow their relationships, and this is exactly what SAP Ariba provides.”
To learn more about SAP Ariba’s solutions and they value they are delivering to more than 2 million companies around the world, visit www.ariba.com
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Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.