Alfasigma: Infusing Intelligence into Procurement Processes

Executive Overview

One of the top five pharmaceutical companies in Italy, Alfasigma S.p.A.is a market leader in prescription drugs for many primary care therapeutic areas and offers a range of over-the-counter products as well. The company’s research and development department is focused on three main therapeutic areas: gastroenterology, vascular disease, and neuroscience disorders.

As part of a wider procurement transformation journey, the company set up an initiative to digitalize supplier relationship management and simplify procurement processes for indirect spend. The goal was to provide a smart and intuitive purchasing experience that optimizes sourcing and procurement processes in line with procurement best practices.

Before: Challenges and Opportunities

• Inefficient processes for low-value procurement activities
• Suboptimal supply chain processes limiting trading partner collaboration through various channels
• Nonstandardized procurement guidelines, leading to increased costs and maverick spend

Why SAP

• Native integration of the guided buying capability with SAP Ariba Buying and SAP Ariba Catalog solutions, providing a smart and intuitive experience that guides employees to preferred buying channels, processes, and policies
• Deep product knowledge, trusted advice, and an outcomes-focused delivery approach from SAP Advisory Services from SAP Services and Support
• Systems integration and procurement expertise from Techedge

After: Value-Driven Results

• Reduced the execution cycle time for the procurement process and increased process compliance by automating budget-check verification prior to purchase-request approval
• Shortened the supplier collaboration process by digitalizing the exchange of procurement documents
• Minimized stock-out risk and days payable outstanding with the supplier collaboration functionality, allowing suppliers to respond to specific goods and service-delivery requirements
• Reduced the receiving process execution cycle time and errors by configuring receiving functionality to enable users to initiate the process of good receipts or service-entry sheets
• Limited maverick spend opportunities and increased procurement compliance using SAP Ariba Catalog to manage catalogs as an approved source of supply
• Enhanced tactical sourcing capability and digitalized the procurement team’s engagement process