|M-Industry||Consumer products||10,000||US$6.5 billion|
To live a better life every day, people need high quality, holistic products that are healthy, sustainable, and safe. M-Industry, a group of 23 Swiss companies that create products for the market-leading Migros retail brand, meets this goal by developing innovative food, beverage, personal care, and home care offerings that customers can enjoy with a clear conscience.
Managing the procurement of so many distinct business organizations is complex. By modernizing its procurement processes and technology infrastructure, M-Industry saw an opportunity to stay ahead of retail trends and flexibly meet consumers’ changing needs. With harmonized processes and digital procurement, the company could enhance its customer focus and support its own strategic growth and profitability.
Before: Challenges and Opportunities
- Help M-Industry’s 23 discrete companies become fit for the future by digitalizing procurement
- Consolidate 12 ERP and non-ERP systems into a single instance of SAP S/4HANA
- Streamline procurement by centralizing, standardizing, and optimizing source-to-contract and procure-to-pay processes
- Increase spend transparency and reduce maverick buying
- Powerful integration between SAP S/4HANA and SAP Ariba solutions
- Cloud-based supplier collaboration capabilities of SAP Ariba solutions
- Comprehensive procurement features available in the portfolio of SAP Ariba solutions
- Professional support for planning, implementation, and ongoing operations with SAP Ariba services
After: Value-Driven Results
- Increased transparency across direct and indirect spend, enabling data-driven insight and action
- Improved supplier collaboration through data and business process integration
- Enhanced process knowledge and best practices, thanks to the expertise provided by SAP
- Reduced costs and increased compliance by reining in maverick spend
- Moved IT procurement infrastructure to the cloud with deep integration into SAP S/4HANA to create a procurement platform for the future, with lower maintenance, upgrade, and support costs
ERP and non-ERP systems consolidated into a single instance of SAP S/4HANA
E-auction savings on packaging materials during a three-month proof-of-concept exercise
Taking Procurement to the Next Level with Automated Processes
With so many companies procuring indirect and direct goods, M-Industry needed to gain control over its procurement activities. The company’s legacy systems were unable to provide insight into either source-to-contract or procure-to-pay (P2P) processes.
Using SAP Ariba Spend Analysis, M-Industry gained transparency into its source-to-contract activities, helping it increase related spend compliance for items such as supplier rebate agreements. Harmonized master data about everything from commodity groups to business partners helped the company better understand procurement trends and patterns. This insight allowed M-Industry to develop valuable KPIs that are helping the procurement team reduce spending and increase savings.
The guided buying capability of the SAP Ariba Buying solution helped the company accelerate its P2P processes. By requiring buyers to use the tool, M-Industry simplified procurement activities and improved compliance with corporate spending guidelines. The intuitive solution made training employees fast and simple.
Upgrading our procurement operations isn’t an IT project; it’s a business transformation project. SAP Ariba solutions made our transformation challenge easier.Marco Illgen Product Owner Procurement, M-Industry, part of the Federation of Migros Cooperatives
Featured Solutions and Services
SAP Ariba Spend Analysis
Organize all spend data from across different systems and identify and prioritize sourcing opportunities more easily.SAP Ariba Spend Analysis
Supplier Lifecycle Management
The SAP Ariba supplier lifecycle management solution is integrated with procurement processes to help you drive spend to preferred suppliers and scale compliance for your entire supply base.More about supplier lifecycle management
SAP Ariba Contracts
Speed up contract cycles by 50% and reduce administrative and legal costs by up to 30% when you rid yourself of the paper and ink.SAP Ariba Contracts
Sourcing for Indirect and Direct Materials
Source services, indirect materials, and direct materials using SAP Ariba Sourcing, SAP Source-to-Contract Suite, or SAP Strategic Sourcing Suite.See sourcing software options
Supply Chain Collaboration Solutions
Share real-time information with all your direct spend suppliers, obtain their commits, and tap network-generated intelligence to achieve complete supply chain visibility.Explore collaboration capabilities
SAP Ariba Buying
Choose this solution to automate your procure-to-order process and integrate with your back-end system to let your ERP handle invoice and payment processing.SAP Ariba Buying