May 17, 2020

SAP and SAP Ariba to support Burger King's procurement transformation

Burger King
Supply Chain
SAP
SAP Ariba
James Henderson
2 min
SAP and SAP Ariba to support Burger King's procurement transformation
SAP and SAP Ariba have signed a deal to support Burger King accelerate plans to expand its number of stores and increase revenue in Korea.

Using the cl...

SAP and SAP Ariba have signed a deal to support Burger King accelerate plans to expand its number of stores and increase revenue in Korea.

Using the cloud-based procurement applications and business network of SAP Ariba alongside SAP S/4HANA, Burger King will create an efficient digital process for managing its spend from end to end in an integrated and intelligent way that fuels savings, efficiencies and business growth.

Burger King is the first company to introduce both SAP S/4HANA and SAP Ariba simultaneously in Korea.

Using the solutions together, the company aims to draw meaningful insights from the data living in its supply chains and use them to make more intelligent decisions that propel their businesses forward.

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“We are pleased that Burger King will be our first customer to introduce both SAP S/4HANA and SAP Ariba simultaneously in the Korean market,” said Sungyoul Lee, Managing Director, SAP Korea.

“SAP will continue to support Korean businesses to enhance efficiency and establish real-time business operation for their digital transformation journey.”

With SAP Ariba as its digital procurement platform and SAP S/4HANA as its core, Burger King can, for instance, connect to the Ariba Network – which with more than 3.4mn companies in 190 countries transacting over $2.1trin in commerce annually is the largest on the planet - and use the market-leading, cloud-based applications delivered on it to:

  • Consolidate and control spend across all major categories – from direct, indirect and logistics to contingent labour and services, travel and capital expenditures - from end to end, on a single, integrated platform in the cloud.
  • Make better buying decisions with analysis and insights into company-wide spending.
  • Discover and digitally transact with qualified suppliers who not only support cost objectives but align with corporate sustainability goals and ethical standards.
  • Engage in real-time collaboration to negotiate savings and make sure those savings are realised.
  • Manage supplier relationships information, lifecycle, performance, and risk all in one place.
  • Accelerate the contract lifecycle and strengthen compliance.
  • Create a consumer-like, contextual purchasing experience through which employees can buy what they need in line with company policies.
  • Transform payables from liabilities into strategic assets to boost cash flow, free up working capital, and deliver more bottom-line value.

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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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