Amway (SAP Ariba)

Purchasing department of Amway company

Procurements are conducted by a traditional method – mailing of RFI, RFQ in the email format. Optimization of commercial and qualitative components of the offer to be made during the personal meetings and also teleconferences.

On average on carrying out the tender it is required:

• Indirect procurements – from 1 to 4 months, for category Special events of 6-9 months
• Direct procurements - 6-9 months

Start of the E-Sourcing platform in Amway Russia and Europe

In 2017 the Russian purchasing department started an initiative of implementation of the E-Sourcing platform, for achievement of the following purposes:

• Reduce terms of negotiations
• Increase transparency of process
• Increase the competition at approval of the price, PT & SLA

The main tool of the E-Sourcing platform for achievement of financial performance are electronic auctions. The main condition when using auctions – accurate determination of goods/service. For a pilot project of Amway the service of corporate mobile communication was selected.

When choosing the platform for carrying out a pilot project the providers presented at the Russian market, but with a possibility of expansion on the European region were considered. SAP Ariba was such provider for us.

Results

Financial performance: Saving 58% of rather current rates.

In addition:

• Terms of carrying out the tender were reduced from 4 weeks to 7 rubles of.
• Appreciation from the internal client (IT) in terms of transparency of process, reduction of terms and financial performance.