May 17, 2020

Nufarm taps SAP Ariba for supply chain transformation

SAP Ariba
Nufarm
Supply Chain
Procurement
James Henderson
2 min
Nufarm taps SAP Ariba for supply chain transformation
Nufarm Limited is tapping the expertise of SAP Ariba to drive a digital supply chain transformation.

The organisation is to share its story at today...

Nufarm Limited is tapping the expertise of SAP Ariba to drive a digital supply chain transformation.

The organisation is to share its story at today’s SAP Ariba Live conference taking place at the Hyatt Regency Sydney.

When it comes to agriculture and farming, procurement is a different game and needs to be simple and efficient, but also in compliance with rules and regulations designed to protect consumer health and environmental safety.

“Nufarm is on a mission to grow a better tomorrow, and to execute it, we need a supply chain that is not only efficient and cost-effective, but ethical and sustainable,” said David Bury, Global Chief Procurement Officer, Nufarm.

“Using SAP Ariba’s solutions, we have been able to drive a more strategic approach to sourcing that has not only simplified the process and improved our costs but given us greater transparency and insight into our supply chain.

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“And this has helped us to minimise our risk and ensure that we adhere to the highest standards of health, safety and environment protection and conduct our business activities without adverse impact on the communities in which we operate.”

For years, Nufarm took a regional approach to sourcing. But as its business expanded, the company began to realize a more connected, collaborative process was needed.

So, Nufarm connected to the Ariba Network and began using the cloud-based applications on it to streamline things across the enterprise. And it quickly began seeing results:

  • End-to-end visibility and control over more than 1.8 billion AUD in indirect and direct spend
  • Consistent compliance with corporate procurement policies
  • Improved communication with suppliers
  • 80% reduction in number of invoices processed without a valid purchase order

“In the old days, procurement was all about lowering costs and driving efficiencies,” said M. Jason Wolf, General Manager, SAP Ariba, Asia Pacific and Japan.

“Today, many companies are looking to the function to do more. And innovators like Nufarm are leveraging digital technologies to not only improve their business, but the world around them.”

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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.”

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