Supplier relationship management from IBM and SAP

Executive summary

The goal - Sustainable operational savings

Do you have a consolidated corporate-wide view of spending across your consumer product operations? With the supplier relationship management solution from IBM and SAP we can help you control, manage and strategically leverage procurement for sustainable operational savings.

The advantage - Don’t leave your supply-based decisions to chance

Purchased goods and services represent over 50% of sales for manufacturing companies, and a 1% reduction in this cost can generate the equivalent contribution of a 3.3% increase in sales.

Reduce unneeded inventory. Consistently acquire goods at the best available prices. Effectively manage supplier relationships. Efficiently process sourcing and procurement.

We are uniquely positioned to help you get the most value from your suppliers. To transform your supply chain—for reduced costs, increased productivity and the ability to quickly adapt to market opportunities or threats. Using leading SAP software and drawing on our proven methodologies, vast consumer product industry experience, along with innovative technologies and best practices we can help you:

The benefits - Our approach—successfully teaming with our clients

IBM has a track record for SAP implementations with unique distinctions.

The ROI - Long-term success

Our history of partnering with consumer product companies to transform their businesses has given us the ability to share our "lessons learned." The reality is that all suppliers are important, and managing the extended supply base is the key to sustainable savings. Supplier and supply management is the most immediate and tangible lever in:

Our approach enables rapid self-sufficiency. We help you determine required knowledge, establish coaching and mentoring relationships, provide formal project team training and conduct evaluations to measure the knowledge gained.

Business view

The goal - Make and execute informed decisions on demand

Do you have consistent vendor and transactional data across your supply chain? Are your communication processes effective? Cut costs and improve profitability. Deliver value. With a collaborative and integrated framework, you can leverage technology to streamline supplier relationship management. Make informed, timely decisions and cost-effective execution of those decisions across the enterprise and with suppliers, on demand.

The advantage - We deliver on our promises

Together IBM and the former PwC Consulting have won more awards around the world than any other SAP implementation partner. We have won SAP's Award of Excellence every time it has been offered, for eight years running. And we have ranked number one in client satisfaction among SAP integrators.

As the leading integrator of business process transformation leveraging technology solutions, we use a proven, benefits-driven approach that differentiates us from the competition. We:

The benefits - Reap the rewards of collaborative supplier relations

Our solution focuses on bottom-line results—to help you reduce the costs of goods sold by reducing the cost of procurement, throughout the company. Improve supply-related efficiency and enhance the value of supplier relationships. Capitalize on strategic sourcing.

Compress cycle times

Reduce process costs

Lower unit prices

The approach - A global procurement organization in the works

One of our clients, a world-leading agribusiness which provides innovative brands to grocers and the food chain, has rolled out a standardized procurement process across 4 major geographies—CH, UK, France and USA—and is moving forward, as we speak. Before turning to IBM and SAP for their supplier relationship management solution our client experienced:

80% of our clients' spend is now aggregated. Their results include:

The financial advantage - Lower costs and faster procurement

Supplier relationship management from IBM and SAP is designed to offer significant economic benefits. We can help you:

Technical details

The issues - Integrated framework with leading-edge technology

Supplier relationship management is an emerging discipline in the business world. IBM and SAP converge the processes of collaborative design, strategic sourcing and procurement into a collaborative and integrated framework. This framework integrates data across the organization to streamline communication processes so employees can make informed, timely supplier decisions.

The benchmark - Longest standing and strongest alliance

IBM has been an SAP global alliance partner since 1989.

The components - An implementation created for your requirements

Let your business requirements drive your implementation priorities. Whether it's operational procurement, strategic sourcing, supplier enablement or content management, IBM Business Consulting Services can assist you in crafting an implementation plan to optimize your returns.

In addition, our middleware and hardware technologies, such as IBM WebSphere® and IBM eServer systems, have been tested to run congruently with SAP applications. Your implementation may include:

The implementation - A successful major initiative roll out

A world-leading agribusiness for grocers and the food chain, has rolled out a standardized procurement process across 4 major geographies—CH, UK, France and USA—accounting for 80% of their spend. Before turning to IBM and SAP our client had different processes for different departments, sites and geographies and was employing manual administration for purchasing.

IBM provided installation, configuration, interfaces, testing, procurement process redesign, change management, training, supplier adoption, rollout preparation and diagnostics. We implemented a central system landscape, including:

The cost of ownership - A low risk, high benefit implementation

IBM boasts a track record of measurable results and an approach that has resulted in 99% of our implementations realizing on-time, on-budget delivery. Supplier relationship management from IBM and SAP is designed to:

We're here to help

Questions? Contact an IBM-SAP specialist.