The Purchasing area is currently facing major challenges such as the scarcity of raw materials, transport problems, rising inflation and fuel costs, breaks in the supply chain and geopolitical conflicts.
To delve into the subject, SAP has held the first meeting held in Spain of the SAP CPO Circle, a community of buyers from EMEA South, at the Rosewood Villamagna Hotel.
“In recent years, Spanish companies have made a significant effort to promote the digital transformation of the Purchasing area and it is something that is perceived when compared to other countries,” says Carlos Mercuriali, Senior VP and General Director of Intelligent Spend Management at SAP for South EMEA.
Purchasing Managers in the 1st CPO Circle of Spain
The meeting has had the participation of large Spanish companies such as Iberdrola, MAPFRE, Navantia, Repsol and Santander, as well as former Minister Josep Piqué.
In this way, José Antonio Ledesma, Manager of Corporate Purchasing and Resources Area of MAPFRE and Ennio Fattiboni, Director of Purchasing and Contracting of Repsol, have explained the processes of transformation of the purchasing area in their organizations, through the management platform of purchases, SAP Ariba, and the advantages it has brought them:
- In the process of digital transformation of MAPFRE, as a way to improve productivity, efficiency and management control, the deployment of the SAP Supply Relationship Manager (SRM) solution was framed more than 10 years ago. MAPFRE’s revenues exceeded 27,000 million euros in 2021 and in this global expansion and the interest in advancing and continuing to modernize led the company to evolve towards the SAP Ariba platform. In 2019 the functional analysis was carried out and in January 2020 the deployment began. Despite the pandemic, the deadlines have been met and it has been operational in Spain since January 2021. The goal is that, in three years, it will be operational in all the countries in which the company operates. Supplier adoption has been satisfactory and currently 80% of them in Spain are using the platform.
SAP brings together the Community of Purchasing managers in the first CPO Circle in Spain to analyze challenges and trends
- For its part, Repsol sought to improve expense management and cost savings. After 15 years working with highly personalized purchasing systems, the company considered that the time had come to modernize processes and switch to a platform that would also allow the company’s 330 buyers to gain agility and manage a volume of of purchases of 5,000 million euros. The project was launched in March 2020 with three essential principles: “fit to standard”, the processes had to be standard and homogeneous to avoid the problems of the past; “value-based prioritization”, the implementation of the functionality had to be prioritized according to the return it would provide and “digital approach” with partial launches based on releases to start delivering value as soon as possible. In 10 months (January 2021) all the buyers were working with SAP Ariba and from the first year the investment had begun to be profitable. The total time spent on the provisioning process has been significantly reduced.
José Manuel Saldaña, head of the Department of Systems for the Supply Chain, Cybersecurity, Information Technology and Communications at Navantia, explained the transformation of the company’s supply chain:
- Navantia, With more than 300 years of history, it began the digital transformation of the purchasing area in 2014 with the deployment of SAP Ariba, further strengthening it from 2018 with the company’s digital transformation strategic plan. Both during the pandemic and today, the challenges and problems that most companies are facing are not having such an important impact on Navantia’s supply chain because due to the type of product they manufacture, which is slow to , its processes are developed up to five years in advance. It has a group of more than 7,000 suppliers, of which more than 2,000 are active annually. In the field of sustainability, Navantia has created the Seaenergies division specifically for the global development of green energies: offshore wind and hydrogen to commit to sustainable growth and energy transition and autonomy.
Meanwhile, Ramón Zumárraga, Director of Purchasing Services at Iberdrola, explained the iBuy project, with which the company seeks, in addition to optimizing and digitizing its purchasing and supplier management, to improve its sustainability by ensuring that of its suppliers:
- Iberdrola attaches great importance to sustainability and, aware that it depends not only on its own actions, but on its supply chain, it has set itself the strategic objective that, in 2022, 70% of its main suppliers – those with an annual volume of at least one million euros – develop sustainable practices. This objective was an integral part of the iBuy project, supported by SAP Ariba and GoSupply since 2019. Iberdrola has defined what a sustainable supplier is based on 47 parameters and monitors them to see how they evolve, in addition to defining improvement plans to help them achieve that goal. objective. Today it monitors more than 1,700 major providers. In the future, Iberdrola plans to strengthen the measurement and reduction of emissions to meet its demanding objectives and deepen its supply chain made up of more than 22,000 suppliers worldwide.
George is Digismak’s reported cum editor with 13 years of experience in Journalism