Leading companies unifying procurement operations, says SAP Ariba
SAP Ariba has announced that in Q3, more than 150,000 new selling organisations to the Ariba Network where nearly 3,000 opportunities worth more than $7.5bn were posted through SAP Ariba Discovery.
The amount of commerce transacted on the network on annual basis soared to nearly $1trn.
SAP Ariba said leading companies such as Ferrero Group, The Whirlpool Corporation and Faurecia have embraced digital procurement and are reaping various benefits from the integrated platform.
Ferrero, the world’s third-largest chocolate manufacturer chose SAP Ariba solutions to drive efficiency and compliance across its source-to-settle process and operate an integrated platform which consolidates all spend and drives collaboration with a global network of partners from sourcing and orders through invoicing and payment.
“For years we tackled procurement using different systems and applications,” said Jane Scott, Ferrero Group CIO.
“We are sure that now, through an integrated platform on which we can consolidate all of our spend and collaborate with a global network of partners on everything from sourcing and orders through invoicing and payment, we will better achieve our goals.”
In addition to unifying procurement, companies around the globe are also turning to SAP Ariba to make the function smarter.
As of September 30, more than 750,000 users have turned on SAP Ariba’s guided buying capabilities, a market-leading innovation through which procurement organisations can create a contextual experience that automatically leads users to the goods and services they need to do their jobs, then guides them through making purchases in compliance with company policies and processes.
These users are logging in more than 15,000 times per day and managing over $5bn in spend.
Among the companies that got on board with guided buying in the third quarter: Faurecia, a global leader in automotive seating, interior systems and clean mobility solutions with a presence in 35 countries, which will use the capabilities as a key element of its procurement strategy to achieve spend compliance and significant cost savings.
During the third quarter, more than 150,000 new selling organisations – or more than one per minute – connected to the Ariba Network where nearly 3,000 opportunities worth more than $7.5bn were posted through SAP Ariba Discover.
And the amount of commerce transacted on the network on annual basis soared to nearly $1trn.
“Like any small business, our first question before signing up was ‘what is this process going to cost and will it be worth it?’,” said Mitchell Ross, CEO of Sydney-based Muru Office Supplies. “But we were familiar with SAP Ariba and knew it was a reputable platform, so we jumped right in.
“SAP Ariba gives us a lot of freedom. We have more opportunities to sell to our customers, which produces more revenue and profits to give back to the community.”
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.