INTELLIGENT BRANDS // Software for Business
Sasol fuels enhances supply chain efficiency with SAP Ariba deployment
Successfully navigating a business
through uncertain times requires that decision-makers have full visibility over every aspect of the business in order to make accurate , informed decisions . For one of South Africa ’ s largest global organisations , decentralised and siloed procurement systems and processes across multiple business units left it blind and lacking the visibility it needed to better serve the business .
“ We had , at the time ( 2012 ), 15 business units within the Southern Africa region , each using different procurement processes and different systems ,” said Hendrik Steynberg , Vice President , Supply Chain Operations and Systems , Sasol . “ This left us with disparate master data and no end-to-end visibility over our supply chain . We wanted a single integrated procure-to-pay platform that provided us with a clear view into spend and the ability to quickly onboard , engage and manage suppliers .”
Sasol is a global integrated chemicals and energy company that sources , produces and markets a range of high-value product streams in 31 countries . The company employs more than 30 000 people and generates revenue of more than US $ 21.7 billion . Sasol manages more than 50 billion rand ( US $ 2.4 billion ) in spend across 12,000 global suppliers .
To centralise and standardise its procureto-pay processes , Sasol chose SAP Ariba , the world ’ s largest procurement platform that facilitates US $ 3.2 trillion in commerce transacted annually across 190 countries .
“ SAP Ariba ’ s reliability and versatility were the two key ingredients that improved our service level to the organisation . By standardising our procurement processes , it enabled us to have better visibility into our spend while improving efficiencies and significantly lower costs ,” said Steynberg .
Sasol implemented SAP Ariba Sourcing , Ariba Supplier Information and Performance , Ariba Contracts and Ariba Network .
One of the key advantages of choosing SAP Ariba was its integration with SAP enterprise resource planning ( ERP ) solutions . The implementation was designed to help Sasol standardise its South African procurement operations . Ariba Sourcing has also been implemented within its Eurasian operations .
Since implementing SAP Ariba , Sasol has enjoyed better visibility over the end-to-end procurement process .
“ We have achieved a 50 % cost reduction on accounts payable within the Southern Africa region , and a 95 % rate on of-time supplier payments using electronic invoicing ,” Steynberg said .
He added that 75 % of total procurement transactions within the Southern African region are now performed through the Ariba Network . “ Our automated processes have also reduced the time it takes the supply chain to action purchase requisitions and issue purchase orders . This has contributed to a higher supplier satisfaction score as we can provide streamlined communication and greater transparency over the status of procurement processes .”
Cameron Beveridge , Regional Director , Southern Africa , SAP , commended the work achieved by the implementation team . “ Sasol has elevated its procurement processes to better match modern demands and achieved outstanding gains in efficiency , costreduction and transparency .
The new digital procurement platform has also empowered Sasol with accurate , real-time information over its total procurement spend and will continue supporting the business as it scales its operations around the world .” p
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