sap forum İstanbul 2016 - sap kalİte ÖdÜlÜ sahİbİ bİr e-satinalma dÖnÜŞÜm projesİ

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


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

http://www.abdiibrahim.com.tr/


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


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)


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



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


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



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



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:



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!


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


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.



• 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?



• 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?



• 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 ?

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