Jan 11, 2021

NTT DATA Services adopts SAP procurement solutions

SAP
NTT DATA Services
spend management
Procurement
Georgia Wilson
2 min
Spend management solutions
NTT DATA Services has adopted the full suite of intelligent spend management solutions from SAP to drive US$125mn in value...

In an announcement made by NTT DATA Services, the company reports its adoption of SAP’s full suite of intelligent spend management solutions to drive US$125mn in value. The solutions include: SAP® Ariba® solutions for procurement, SAP Fieldglass® solutions for contingent workforce management and SAP Concur® solutions for travel and expense management. 

Following the adoption of SAP’s solutions, NTT DATA Services reported that it has benefited from an intelligent, dynamic and strategic function for procuring direct and indirect materials, services and MRO. As a result of COVID-19, the company has established plans to further enable its remote workforce and enhance the user experience with mobility, by working with SAP and its own NTT DATA SAP practice to drive machine learning, artificial intelligence and robotics innovation.

“The outcomes to date have been impressive, and I anticipate even more positive momentum to come given the increased efficiency, cost reduction and risk mitigation already achieved. Amid widespread and accelerated supply chain disruptions, procurement professionals are being challenged to elevate traditional best practices to drive greater strategic business value. With a clear vision of what intelligent spend management means to its business, NTT DATA facilitated its procurement journey strategically and comprehensively,” commented Chad Crook, SAP Procurement Solutions senior vice president and global head of Customer Engagement and Adoption. 

Since adopting SAP’s solutions for procurement - which began three years ago - NTT DATA Services has driven US$125mn in value. SAP Ariba helps NTT DATA Services to manage over US1$bn in spend with more than 3,700 suppliers in over 50 countries. While SAP Fieldglass helps to manage more than 1,300 U.S.-based contingent workers. 

“We knew that utilizing world-class tools to create a modern procurement function with the help of SAP was going to enable our business to move forward and deliver clear value. SAP’s support has been instrumental in helping us build and deploy a standardized set of processes and tools that enables us to reduce cost, enable revenue and mitigate supplier risk now and into the future,” added Jeffrey R. Tramel, NTT DATA Services vice president of Global Procurement. 

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital.

Follow us on LinkedIn and Twitter.

Share article

Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

Share article