Transnet and SAA have renewed their Ariba procurement software support and maintenance agreements with arivia.kom in a deal worth a total of R6.7 million. Transnet and SAA have contracted arivia.kom until March 2006.
"This is an interim measure as Transnet standardises on SAP R/3 for all aspects of the business over the next year," says Thagaran Govender, Group CIO of Transnet. "It will, however, meet our mandate to cut costs and generate significant return on investment in the short-term. Developing the Transnet Supplier Network (TSN) procurement portal has saved our business R6 million in software licence fees."
Transnet has been using Ariba for the past five years, automating the previously manual procurement system so that the organisation could derive significant savings from centralising procurement to leverage buying power.
However, in meeting the demands of CEO Maria Ramos`s directive to cut costs, Transnet opted to stop investing in the Ariba programme in 2004. The arivia.kom Ariba team responded to the cost cutting challenges by developing and supporting the TSN in-house portal, with the resultant licence savings.
There are 152 active Ariba users at Transnet`s head office division, 1 061 at Spoornet, 861 at SAA and 56 at Transnet`s pensions division.
"Other benefits that Transnet has realised include delivery lead time, far less or no paperwork, full approval control, total automation and security, more educated suppliers, and better prices," says Sanjay Sewraj, programme manager at arivia.kom.
SAA is using both the Ariba buyer and sourcing modules until March 2006. "Our users are already using Ariba since it went live in March this year. The feedback is extremely positive," says Mike Re, CIO at SAA.
Arivia.kom is a leading South African IT company operating throughout Africa, with a proven ability to implement customised, integrated IT solutions and provide services at whichever global location clients may specify. Its end-to-end services and solutions generate significant business advantages for its clients. It has a thorough understanding of the market sectors on which it focuses and an impressive track record as proof of its capabilities.
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