SAP Ariba Solutions Realized: Stories of Effective Implementation and Forward Thinking - SID 51777

SCCC Experience on SAP ARIBA Value Realization
Panittra Silanon, Head of Group Procurement

2Siam City Cement Public Company Limited ©SCCC | All Rights Reserved.
SCCC Group Company Profile (INSEE Brand)
• The cement player in Thailand, founded in 1969 and listed in Thailand stock exchange
• Net sales of c.THB34bn (US$1 Billion) in 2016
• Over 4,000 staffs across all lines of business in Thailand. Total 6,300 staffs in all operating countries
• Export to 13 countries in Asia and South Africa
• 12 companies under the group and 1 JV company
IT services
Business Portfolio
Cement & Mortar (Core)
Concrete and Aggregate Power and Coal (Share Holding)
Lightweight block
Wood replacement material
(Fiber Cement)
Waste Mgt & Industrial
Cleaning Servies
Indonesia
Total Capacity 26.5 M ton per year
Cement footprint & Capacity (New)
INDONESIA

SCCC wants to achieve the best value and sustainable future for our
stakeholders.
World class operational and technical excellence
One of the Largest Cement Facility in the World

Organization and Functional Excellence have started together with
technology adoption to transform the business
Procurement is part of the journey

SCCC Procurement Strategy
to become a World Class procurement organization in digital era
EfficiencyStrategic partnership Reliable supply Capability & Transparency
Strategic
Objectives
Goal and
target
Commercial success
Optimize total cost of
ownership with % Benefit
saving
Create additional value with
cash improvement, revenue
generation
Create value for our
internal business
partners with joined
project KPI, business
insight
Develop a stable and
competitive supply base
• Supplier
consolidation
• On time delivery
• Inventory
improvement
Ensure efficient and
effective procurement
cycles
• Increase contract and
automated spend
• Reduce PR/PO lead-
time
Enhance capabilities &
ensure transparency
• % people qualified
• Satisfactory Audit
result
Key Enablers
for Operating
Model
Collaboration model
and governance
Role & Structure
enhancement
People Development
and Performance Mgt
Leadership &
innovation culture
with Business
Acumen
Process & Information
With Procurement System & Tools

Need (PR)
Source
and
Qualify
RFQ and
Selection
Contract/
Catalog
PO &
Confirm
order
Receive Payment
Procurement System Development
for Procurement transformation and excellence
23/08/2017
ARIBA Sourcing
(e-RFQ/ e-auction)
ARIBA Content
Mgt
(e-catalog)
ARIBA Contract
Mgt
(e-contract mgt)
ARIBA Supplier
Information Mgt
(e-qualification)
ERP
(CORE)
Cloud based solution
Doc Mgt & Report
Mobile Device
(e-invoicing)
Business Report (2015) Business Analytic & Procurement Dashboard (2015/2016) Content & Document Management (2016)
P2P Process (2015)
(2016)
(2015)
PR/ PO Approval via mobile (2015)
ARIBA Network
(e-transaction)

ARIBA integration benefits
for Procurement Transformation
• Strategic Sourcing Process standardization and implementation
• Category Intelligence in the system
• More advance technology experience & Promote innovative culture
• BI report for better analytic and decision
Efficiency
• Punch-out catalog for low value items: “ZERO” PO lead-time. Reduce MDM, Users Self-Services with online shopping experience
• Supplier Collaboration via auto PO Sending and confirmation
• Approval flow to ensure collaboration and alignment
• SAP Fiori on mobile for faster approval
Reduce workload in transaction and paper work for buyers.
Customer services was improved by 30% faster PO lead-time ,
+10% Contract, and -15% HC optimization
RAPID capability building in strategic sourcing across the group with same STANDARD, and support
faster integration
Capability

Commercial
success
• Category management Implementation
• ARIBA E-auction to drive competition
• Sourcing standard (e-RFP, e-auction) was enforced with transparency
Achieved double cost saving with more professional sourcing approach,
more time to explore new ideas & supplier co-creation
Transparency
• Increase Procurement Process compliance & Control
• Avoid price manipulation and error via seamless flow of P2P Process
• Avoid maverick spend
Enhanced transparency with records, seamless data flow,
and proactive sourcing with enforcement resulting in good audit result
Reliable supply
• 24/7 Delivery confirmation to reach +10% on time delivery
• Consolidate low value items suppliers by catalog (Reduce >300 suppliers or -15%)
Faster, up-to-date, Available communication channel with suppliers
Enable new sourcing model to consolidate suppliers
ARIBA integration benefits
for Procurement Transformation

Business Performance Success
Procurement Transformation
4.7
1.5
2.5
2.0
4.6
5.4
APAC Same
Industry
Cross
Industry
SCCC
2014
SCCC
2015
SCCC
2016
% Benefit Saving
Benchmark by global consulting firm
in 2014
“Significant progress made towards building a world-class
procurement organization” – Global Consulting Firm
“Procurement has earned a seat at the table; proactive contributor
and responsive to our requests, creating value for their partners” – SVP
Manufacturing
Organization improvement
Q2 2016
Q2 2017
Commercial improvement
Since Procurement transformation journey in 2015, The team has
demonstrated major improvement on organization excellence and
delivered higher performance with double cost saving benefits,
significantly contributing to company performance in 2015-2017 and
support regional expansion – SCCC Group CFO

Overall Winner
Procurement and Supply Chain
Team of the Year
Most innovative use of Technology
Best People Development Initiative
ProcureCon Asia, Singapore, 11-13 July 2017
SCCC Procurement won
3 CIPS Supply Management Awards 2017 ASIA

INDG-SCCC won 3 Awards from Ministry of Digital Economy and Society,
Thailand
23/08/2017
A Distinguish Awards
Business Enablers Projects
e-Procurement (ARIBA Solution)

Key Learning
8RIGHT

Right Direction with clear business objectives, and right
ARIBA/ IT Solutions1
Drive Strategic
Sourcing
Increase
Efficiency
Enhance
Capabilities
Be strategic business partner

Procurement
Experts
Procurement
Super Users
IT Experts on
P2P
IT Implementer/
Product owners
Right Team for implementation and change management
with a mix of dedicated functional experts and IT experts2

15Siam City Cement Public Company Limited ©SCCC | All Rights Reserved. 23/08/2017
User helpdesk/
Procurement Clinic
Right Engagement to all people in ecosystem with timely
communication during pre and post go-live3
Buyer Training 80
hrs
40 Supplier Events for > 500
suppliers
User Roadshow &
Training > 200 persons
Companywide
communication
Top Mgt/ Approver
training
Finance/ Legal
involvement20% Proc Super
users
User helpdesk/
Procurement Clinic

Right Partner with strong collaboration for enablement,
technical improvement, and value realization enhancement4

Right Measurement of utilization and its
benefit regularly5
• Monthly Monitoring and update
• Team and individual KPI
• Measure In-Process and bottom line
contribution
• Gap analysis and Solutions

Right Capabilities development along the way with
Digital technology mindset6
Internal/ External
experience sharing
Procurement
Academy
External
seminar
Expert
Talk
Functional
Skills training

Right Recognition for the change agents to encourage
adoption7

Right Commitment to deliver excellence from top to
the whole team & partners8

Moving forward

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SAP Ariba Solutions Realized: Stories of Effective Implementation and Forward Thinking - SID 51777

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