Segezha Group passed to purchases with SAP Ariba

2020: Transition to purchases from SAP Ariba

On June 4, 2020 the Segezha Group company reported that it uses a cloud solution of SAP Ariba for vendor relationship management. Transition to this system will allow to reduce labor input of process of purchases by 20%, and economy from procurement procedures will make 10%. The BearingPoint company acted as the partner in methodology and project implementation.

According to the company, until the end of 2020 transition of procurement procedures of 15 affiliated enterprises of holding to this system is planned. SAP Ariba will be integrated with the data warehouse of SAP BW/4HANA and the NSI system and also – using the SAP Fiori interface with the SAP S/4HANA enterprise management system.

A system will allow Segezha Group to increase cost efficiency of business processes due to standardization and automation of the choice of suppliers, bigger transparency and quality improvement of interaction with them, besides, the centralized control of purchasing activity will be conducted. During the work with suppliers in SAP Ariba risk mitigation, connected with a human factor, decrease in labor costs and growth of satisfaction with process of purchases of all divisions of holding is expected.

For the company specializing in different types of productions, the cloud solution is a good method to use world practices for transformation of purchasing activity and in a short time to pass to the uniform standard, to make it centralized and integrated with other accounting systems. For June, 2020 already 150 employees are users of SAP Ariba, in further plans – to carry out through it more than 90% of purchases by the end of 2020. Pavel Vakhnin, the vice president for information technologies and process automation of Segezha Group commented

For vendor relationship management in Segezha Group a multifunction system which helps to automate a set of business processes of the company is used. The created system serves not only for digitalization of purchasing activity, but also is integrated with other SAP solutions, exchanges with them data and does all business process transparent. Dmitry Pilipenko, the deputy CEO of SAP CIS noted

Start of the SAP Ariba system is the first stage of transition of business processes Segezha Group to a uniform digital format within implementation of an end-to-end system of management based on SAP S/4HANA begun in 2019. The next step is start of the single platform coordinating procurement procedures to production processes, service and repairs, finance and other processes in the integrated chain. Konstantin Popov, the Managing partner of BearingPoint Russia summarized