E-procurement software is enabling a large biscuit manufacturer to achieve aggressive cost reductions and simplify internal procurement processes, while dynamically procuring indirect goods via the Internet.
Keebler, the second-largest cookie and cracker manufacturer in the United States, has implemented mySAP e-Procurement software, from the leading provider of e-business software solutions globally, in a record time of six weeks.
"After evaluating several other offerings, we knew that selecting SAP as our e-business provider was the obvious choice, enabling us to reduce the cost of our procurement processes, streamline our purchasing systems, limit our inventory on hand and establish standards across our organisation," says Ray Shei, chief information officer at Keebler.
"In opting for the mySAP e-Procurement solution and its seamless integration with existing systems, we were able to leverage our current IT infrastructure and knowledge," he says.
Discussing the importance of e-procurement in the South African context, Simon Carpenter, general manager: mySAP.com at SAP South Africa, says: "In South Africa, where management skills are often in short supply or extremely stretched, the ability to devolve purchasing activities to the user without losing control of the purchasing process provides a compelling argument for the adoption of mySAP e-procurement."
With the SAP solution, Keebler is able to better manage its entire supply chain, as well as procure indirect goods, and automate and integrate with the full range of business processes required for buying products, supplies and services.
With the assistance of SAP and partner PricewaterhouseCoopers LLP, Keebler has been able to successfully centralise and control its purchasing operations across multiple locations and establish a strategic national contract with its key supplier.
"Utilising the mySAP e-Procurement solution for our business has given Keebler a competitive advantage by providing us with the opportunity to proactively prepare ourselves for the future of e-business," says John Westra, project manager at Keebler.
"We are excited to continue partnering with SAP to lay the foundation for continued industry leadership with an e-business platform that allows us to engage in strategic procurement via the Internet," he says.
The mySAP.com e-Procurement solution at Keebler provides the foundation for a SAP system that facilitates direct materials procurement, and more sophisticated supply chain processes.
"As with many concepts there is a definite 'learning curve' effect to becoming a full-blown e-business," says Carpenter. "Implementing e-procurement for indirect procurement provides a low-risk way for any company to embark on the journey towards a collaborative e-business culture and capabilities whilst at the same time achieving meaningful cost savings on the bottom line."
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