JOHANNESBURG, South Africa, February 19, 2021 – / African Media Agency (AMA) / – Successfully running a business in times of uncertainty requires decision makers to have full visibility into all aspects of the business to be able to make accurate and informed decisions.
For one of the largest global organizations in South Africa, siled and decentralized procurement systems and processes across multiple business units left it blind and without the visibility it needed to better serve the business.
“At the time (2012), we had 15 business units within the South Africa region, each of which used different procurement processes and different systems,” says Hendrik Steynberg, vice president of supply chain operations and systems. by Sasol. “This left us with disparate master data and no visibility from one end of our supply chain to the other. We wanted a single, integrated platform from purchase to payment that would give us a clear vision of spending and the ability to quickly onboard, engage and manage suppliers. “
Sasol is an integrated global chemicals and energy company that supplies, produces and markets a variety of high-value product streams in 31 countries. The company employs more than 30,000 people and generates revenues of more than $ 21.7 billion. Sasol manages more than R50 billion in spend at 12,000 global suppliers.
To centralize and standardize its purchase-to-pay processes, Sasol chose SAP Ariba, the world’s largest purchasing platform that facilitates commercial transactions worth $ 3.2 trillion annually in 190 countries.
“The reliability and versatility of SAP Ariba were the two key ingredients that improved our level of service to the organization,” says Steynberg. “By standardizing our procurement processes, it allowed us to have better visibility into our spending while improving efficiency and significantly reducing costs.”
Sasol implemented SAP Ariba Sourcing, Ariba Supplier Information and Performance, Ariba Contracts, and Ariba Network. One of the key benefits of choosing SAP Ariba was its integration with SAP enterprise resource planning solutions. The implementation was designed to help. Sasol standardizes its procurement operations in South Africa. Ariba Sourcing has also been implemented within its operations in Eurasia.
Since implementing SAP Ariba, Sasol has enjoyed better visibility into the end-to-end procurement process. “We have achieved a 50% cost reduction on accounts payable within the South Africa region, and a 95% rate on on-time supplier payments through electronic invoicing,” says Steynberg.
It adds that 75% of the total procurement transactions within the Southern Africa region are now conducted through the Ariba Network. “Our automated processes have also reduced the time it takes for the supply chain to process purchase requests and issue purchase orders. This has contributed to a higher supplier satisfaction score as we are able to provide simplified communication and greater transparency on the status of the procurement processes. “
Cameron Beveridge, Regional Director for Southern Africa for SAP, praises the work done by the implementation team. “Sasol has elevated its procurement processes to better accommodate modern demands and has achieved outstanding gains in efficiency, cost reduction and transparency. The new digital procurement platform has also empowered Sasol with accurate, real-time information on its total procurement spend, and will continue to support the business as it scales its operations around the world. ”