SAP FORUM İSTANBUL Reimagine Business for the Digital Economy SAP KALİTE ÖDÜLÜ SAHİBİ BİR E-SATINALMA DÖNÜŞÜM PROJESİ
Ufuk Güler
Abdi Ibrahim
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 2
Agenda
1. Company overview
2. Project overview
3. Key challenges and success factors
4. Business case and actual business benefits achieved
5. Questions & answers
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 3
Company Overview
Company name: Abdi İbrahim İlaç Sanayi ve Yatırım A.Ş
www.abdiibrahim.com.tr
Headquarter location: Maslak – İstanbul
Industry: Pharmaceutical
Main products/services: Abdi İbrahim provides services in 13 treatment areas, such as antiemetic, antibacterial/antiviral, dermatology, endocrine,
metabolism, gastrointestinal, cardiovascular, NSAI and myorelaxants, ophthalmology, nervous system, respiratory
system and urogenital system, as well as food supplement products, vitamins and minerals. Abdi İbrahim is a preferred
partner for contract manufacturing having 3 production facilities based in Turkey, Kazakhstan and Algeria.
Operating countries: Operates in nine countries, with exports to around 50 countries including
Canada and the UK
# of employees: 3.000
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 4
Project Overview
Project name: e-Procurement @Abdi Ibrahim
Project scope: Business Transformation from conventional purchasing into rapid P2P
Process coverage: Supplier Management, e-Catalogue, e-ordering, P2P, reporting, e-archiving, e-bidding
Partner(s): Consultancy Company (Fiz), Business Units, Suppliers
Rollout scope: 8 Abdi Ibrahim Companies, all located in Turkey
Implementation method: SAP ASAP Methodology
Project duration: 10 Months
Go-live date(s): 07.01.2015 SAP SRM&SLC, 04.01.2016 SAP BW
# of users implemented: 722
Additional users planned: 35
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 5
Key Challenges and Success Factors
Key challenges faced
Cleaning master data and restructuring the master data model
Change management with internal stakeholders
Aligning with existing suppliers
Key lessons learnt
Existing Supplier Engagement:
Time and resources spent on the master data cleansing
Test period
Key contributors to the success of project
• Involvement of the team and the Steering Committee
• Conceptual design & URS
• Partner&Team Selection (Proper SAP Solution, and
experienced Partner in the respective domain)
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 6
Business Case and Actual Business Benefits
Automatically created
purchase orders
Maximize
%72 (e-quotations
and catalogues)
Number of purchase
orders through catalogues
Maximize
7.180
Orders
e-Quotations collected
through the system
Maximize
3.756 Quotations
Ratio of maverick buying
Minimize
From %9,8 to %2, 2016 December
target is %0,5
Number of PO's through e-quotations
Maximize
2.218
Orders
Number of suppliers evaluated
Maximize
108 with 36 development
plans
Number of supplier
applications through the
system
Maximize
242 Supplier Application
From 01.07.2015 to 15.08.2016
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 7
Business Case and Actual Business Benefits
Savings and Negotiation
Effectiveness
Maximize
Planned additional
saving/year 100.000€’s,
YTD Realised 313.000€’s as per the ROI expectations
Operational Workload
Minimize
1 operational purchasing headcount reduced
Organisational Effectiveness
Maximize
2016 volume (3 times more than 2015 – 2 new plants)
with decreased headcount managed
Communication Effectiveness
Minimize
Suppliers can track their purchase orders, monitor
payment data, their
performances through SLC
and SRM
Transparency in Ordering
Maximize
All purchase order related documents
are attached in the
purchase order
Strategic data entries
Maximize
284 supplier master data
updated (Assesments,
Cert.)
Transparency in
procurement processes
Maximize
20 reports are created
through BW system
From 01.07.2015 to 15.08.2016
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 8
Business Case and Actual Business Benefits – SAP SRM
Before SRM(Best Case):
• Requisitioner sends the request (3 mins)
• Purchasing takes the request and enters the
price to the system (5 mins)
• Purchasing adresses the PO to the archived
price list( 1 mins)
• Approval period: Purchasing
Manager+Requisitioner+Requisitioner’s
Manager (5 mins, depending on availability
since there wasn’t any online approval)
• Creating the PDF PO and sending to the
supplier by operations deparment (5 mins)
After SRM (Standart Scenerio)
• Requisitioner sends the request (2 mins)
• Price is created in the beginning of the year no
Purchasing Activity (0 mins)
• All related data is embedded in supplier master
no Purchasing Activity (0 mins).
• Approval period: Requisitioner+Requisitioner’s
Manager (3 mins, possible to approve via
mobile)
• PO is created automatically and sent via
automatically created e-mail to supplier (0
mins)
Catalogue Process Time Saving
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 9
Business Case and Actual Business Benefits – SAP SRM
Before SRM(Best Case Scenerio)
• Taking the appoval from the supplier (several
e-mails and phonecalls, 10 mins)
• Goods/Invoice Receipt (4 mins)
Total: 33 mins.
After SRM (Standart Scenerio)
• Supplier enters to the system and submits the
approval by himself, reminder e-mails are sent
via SRM system periodically. (5 mins)
• Goods/Invoice Receipt (4 mins)
Total: 14 mins.
33 -14 = 19 mins saving for a Purchase order.
19 mins x 7.180 = 136.420 mins.
136.420 mins/ 60 = 2.273 hours
2.273 hours/8(working hours) = 284 Working Days Saving!
Catalogue Process Time Saving
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 10
Business Case and Actual Business Benefits – SAP SRM
Before SRM (Best Case with 3 suppliers)
• Requsition has been processed via e-mail to
suppliers by purchasing.(10 mins)
• Supplier reminders, and quotation revision
needs,negotiations are communicated via e-
mail and phone.(30 mins mainly reminders)
• All the quotations will be entered to the
comparison table.(10 mins)
• All offers with revisions has to be saved to
shared folder.(5 mins)
• Offer approvals taken with hard copy
signatures.(10 mins)
After SRM (Standart Scenerio with 3+ Suppliers)
• Requsition has been processed via SRM to
suppliers by purchasing automatically( 5 mins)
• Supplier reminders, and quotation revision needs
are communicated via SRM with automatic e-mail
reminders.(30 mins for negotiation)
• Comparison table is created automatically.(0 mins)
• SRM automatically archives the quotations with
revisions.(0 mins)
• Offer approvals taken via SRM system
automatically.(5 mins)
e-Quotation Time Saving:
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 11
Business Case and Actual Business Benefits – SAP SRM
Before SRM (Best Case with 3 suppliers)
• Creation of PO in SAP.(10 mins)
• Sending the PO to the supplier by operations
deparment (5 mins)
• Taking the appoval from the supplier (several
e-mails and phonecalls, 10 mins)
• Total: 90 mins.
After SRM (Standart Scenerio with 3+ Suppliers)
• Creation of PO in SRM (0 mins)
• PO is sent via automatically created e-mail to
supplier (0 mins)
• Supplier enters to the system and submits the
approval by himself, reminder e-mails are sent via
SRM system periodically.Sometimes there is a need
for phonecall (5 mins)
• Total: 45 mins.
e-Quotation Time Saving:
90 - 45 = 45 mins saving for a Purchase order.
45 mins x 2.218 = 99.810 mins.
99.810 mins/ 60 = 1.664 hours
1.664 hours/8(working hours) = 208 Working Days Saving with better Negotiation!
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 12
Business Case and Actual Business Benefits – SAP SLC
Before SLC
• Communication with suppliers were mainly in
e-mails and phone calls,
• New supplier applications were taken via e-
mails, without any questionnaire
• Lack of potential supplier pool in related
categories.
• Lack of supplier development and action plans
• Supplier evaluations via hardcopy forms
• Lack of risk assesments
• Missing supplier certification in audits, and lack
of renewal period tracking
• Supplier creations via hardcopy forms.
After SLC
• Meeting notes and action plans on SLC System.
• New supplier applications via SLC system with
related category questionnaires
• There is a potential supplier pool for each category,
with reports and documentation, submitted by
suppliers
• Supplier evaluation and development via SLC with
recorded action plans and milestones
• Risk assesments in SLC embedded supplier item
master data.
• All certification is recorded in supplier item master
data with renewal reminders.
• Suppliers can maintain the data by themselves
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 13
Business Case and Actual Business Benefits – SAP BW
Before BW
• Category based volume and saving reports
were taken from SAP MM and FI manually,
• Saving reports were made manually each
month with min 1,5 days efford.
• Number of PO’s, payment terms, Number of
catalogued orders, workload reports were
created manually with the data from several
sources with huge efford,
• Strategic areas can be avoided due to report
quality
• Report visuals had to be prepared manually
• Report creation time was sometimes more than
one hour
After BW
• BI collects the data from different sources and
bundles in one report without manual intervention
• Saving reports are automated and can be taken in 1
minute
• Number of PO’s, payment terms, Number of
catalogued orders, workload reports are created
automatically in less than 1 minute and we can
design our own reports.
• All the strategic areas are visible to all parties
• With BI we have great visiuals can be used directly
in presentations.
• All reports are created less than 1 minute and can
be viewed via mobile devices.
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 14
Business Case and Actual Business Benefits
• Increased communication with suppliers and
internal customers.(102 Supplier Meetings,
242 new supplier applications)
• Early involvement to the requsitions, usage of
pooling effect
• Increased number of supplier visits and
supplier development (42 visits in 2016, 7
Conferences, 108 supplier evaluations, 36
development plans )
• More efficiency with less people, and higher
business volumes.(Purchasing volume tripled
and we have one less headcount than
previous year)
What Did We Achieve?
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 15
Business Case and Actual Business Benefits
• First Turkish company with SRM+SLC solution
together
• Maverick buying areas decreased and we are
involved in all major categories, this increased the
purchasing volume as well
• Coorporate memory, and sustainability in sourcing,
increased business quality in all levels,
• Sourcing department had a negative image in the
company, now we are one of the most attractive
departments for job rotation
• Best practise in systems and organisational levels,
What Did We Achieve?
© 2016 SAP AG or an SAP affiliate company. All rights reserved. 16
Business Case and Actual Business Benefits
• Expanding the SRM, SLC and BI to the other
operating countries (Algeria and Kazakhstan)
• Decreasing the Maverick Buying to %0
• Increase market integreation in all categories,
with category based strategies
• Application for the CIPS Certificate in 2018 to
be certified as a World Class Organisation
• Increase savings and business quality
continiously through best practises
What Is Next ?
© 2016 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Ufuk Güler
Endirekt Satınalma Müdürü
Abdi İbrahim
Top Related