|Trivalor SGPS SA||Cross-industry||22,000||€600 million|
One of the top-ten largest enterprises in Portugal, Trivalor SGPS SA operates as a holding company for more than 15 group businesses across a wide variety of industries. As a group, Trivalor is committed to business innovation that drives IT – and never the other way around. One of its core companies is Sogenave, which is responsible for all procurement activities as well as buying, stocking, and distribution. Dealing with more than 15,000 items distributed by roughly 30 families or categories and nine logistics centers is a challenge – and requires the full attention of Sogenave’s employees. So, when invoices for things such as office products and IT equipment were coming in without POs and causing excess manual work, it became clear that a digital solution was in order.
The goal was to simplify and standardize buying with clear, intuitive catalogs that focus on products and vendors that bring the most value for indirect spend.
Before: Challenges and Opportunities
- Lower costs associated with indirect spend
- Increase spend transparency, reduce legal risk, and establish greater buyer accountability
- Improve negotiating capabilities with vendors for products and services
- Reduce manual work and increase process automation
- Ensure that every IT project supports business innovation and transformation plans
- Integration with the SAP ERP application and other SAP technology
- SAP Ariba Buying solution, which enables fast, guided buying and streamlined catalog maintenance
- SAP Ariba Strategic Sourcing Suite, which unifies sourcing, contracting, and spend management
- Cloud-first strategy aimed at allowing users to work from anywhere and enabling a standardized, consumer-grade user experience without customizations
After: Value-Driven Results
- Creation of group-wide catalogs with fewer categories and a focus on preferred products and suppliers – helping to save money and improve margins
- Standardization of the buying process to increase transparency and traceability, with the goal of establishing a group-wide no-PO, no-pay policy, so that every invoice has a PO
- Better contract management that clarifies contract details and responsibilities for buyers and vendors
- Using the SAP Ariba Commerce Automation solution to increase integration with vendor and client systems – especially for invoicing – and eliminate the time and costs associated with paper-based processes
Of indirect spend managed using SAP Ariba solutions – roughly €10 million per year
Goal for noncore spend categories managed with SAP Ariba solutions
Goal for invoices with a corresponding PO
Helping Business Users and Suppliers Get Maximum Value from SAP Ariba Solutions
Before implementing SAP Ariba solutions, Trivalor struggled with vendor invoices that frequently came in without a PO number. This resulted in lots of manual work and rework to correct accounting errors. The company needed to digitalize the process to make it more transparent and increase accountability for individual buyers.
In order for procurement teams to keep their focus on strategic spend, such as for raw materials and food products, Trivalor looked to bring indirect spend for things like IT equipment and office products under management with SAP Ariba solutions. Careful ramp-up that focuses on educating business users and supporting suppliers continues to be critical to a successful rollout.
Now, catalogs have fewer categories and focus only on preferred products and vendors – helping ensure that internal users are making the right buying choices and that Trivalor can get the most out of every contract. With approximately half of its indirect spend running through SAP Ariba solutions, Trivalor aims to establish a no-PO, no-pay policy across the board. Not only will this give procurement teams greater visibility into what is being spent and where, it will help Trivalor lower costs and improve margins.
SAP is a solid company focused on the future. The road map for SAP Ariba solutions is clear and innovative – and is fully aligned with our procurement strategy. You have a reputation you can count on as well as the innovation and drive of a start-up.Luis Ferreira Board Member and CIO, Trivalor SGPS SA
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