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Digitalization: A Crucial Strategy for Business Continuity and Acceleration of the “New normal” in Mexico

SAP Ariba solutions help companies digitally transform and centralize all procurement processes in the cloud.

  • SAP Ariba solutions help companies digitally transform and centralize all procurement processes in the cloud
  • Coca-Cola FEMSA is an example of a successful procurement transformation enabled by SAP Ariba solutions

SAP Procurement Solutions Team | August 5, 2020

Faced with the great challenges brought by the COVID-19 pandemic, which disrupted commerce and therefore global supply chains, having a digital procurement strategy is more important than ever before. This is only exacerbated by the new challenges facing Mexico with the new trade agreement with the United States and Canada.

Digitalization of the procurement function and of the business-to-business commerce network are key to keeping global supply chains intact and ensuring buyers and suppliers communicate and collaborate for best results including compliance and cost reduction. Cloud technology helps companies make their purchasing, compliance and finance processes related to supply chain management both simple and smart by giving buyers and suppliers the tools to manage everything from sourcing to delivery to payment – all in one place in the cloud.

Digitalization is not new, but in these times of disruption and "a new reality" it takes on a new priority. According to The Deloitte Global Chief Procurement Officer Survey 2019, 68 percent of respondents said they understand and have implemented a digital transformation of their sourcing processes by enhancing and automating them with modern IT applications. Likewise, 70 percent of respondents indicated that cost reduction is a priority for their organizations in the next 12 months.

Considering this data, SAP Ariba solutions help meet the needs of companies seeking to automate and streamline spend management across all types of spend with data-backed insights across the organization. The solutions also enable real-time collaboration with suppliers to negotiate cost savings and avoid potential supply chain risks.

Eric Rossati, director of SAP Ariba in Mexico said, “The digitalization of the supply chain is key to ensuring business continuity through this pandemic. SAP Ariba solutions including Ariba Network help simplify the procurement process end-to-end on a centralized cloud-based platform.”

A refreshing purchasing process

An example of a successful procurement transformation enabled by SAP Ariba solutions is Coca-Cola FEMSA, the largest Coca-Cola franchise bottler in the world by sales volume and a Mexico-based company with 49 manufacturing factories and 268 distribution centers distributing a wide variety of products to more than 261 million consumers in 9 countries.

The adoption of a cloud-based solution and digital business network helped centralize procurement and supply chain operations and has led to efficiencies, cost savings and significant improvements in the collaboration between buyer and suppliers.

Coca-Cola FEMSA achieved the following with its roll-out of SAP Ariba solutions:

  • A centralized digital platform which consolidates localized purchasing capabilities and enables strategic purchasing processes
  • Simplified trading and buying functions to help buyers focus on strategic tasks
  • Easy access to suppliers and related data, giving managers insight for better budget control
  • High adoption rate of 80 to 90 percent of buyers and suppliers in the first year of the platform
  • Savings achieved in three years, two years ahead of schedule.

The digitalization of procurement at Coca-Cola FEMSA has helped optimize spend management across the organization in multiple countries. A key element in achieving this was SAP Ariba solutions simplifying the end-to-end source-to-pay process on a single, integrated cloud platform.

 

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