Business Challenge
V-Guard wanted to effectively operate on a centralized model, and improve their procurement process.
Transformation
IBM implemented Ariba Sourcing module that can address V-Guard's three core objectives – strategy development, sourcing and negotiation, and price management.
Business Results
Achieved
savings in average costConsolidated
different sourcing activitiesRealized
an early return on investmentBusiness challenge story
Transform Procurement
Considered as one of the fastest growing companies, V-Guard started experiencing significant supply chain operational complexities. They operated on a de-centralized model for their procurement process, and multiple teams were involved in sourcing and negotiating materials. As a result, V-Guard’s process of standardizing and managing their spend controls was impacted.
Transformation story
Building an Intelligent Procurement Module
With the help of the Ariba Sourcing module implemented by IBM, V-Guard could address three core objectives – strategy development, sourcing and negotiation, and price management. The implementation bettered the existing operational and decision-making processes, while embracing innovation and digitalization in new business areas. The new system enabled V-Guard to focus on collaborative buying, improve productivity, price point elasticity and go-to-market, and enhance their internal user experience.
Results Story
An unique and centralized procurement journey
Consolidated the Sourcing activity from 6 different divisions to a centralized sourcing hub catering to entire V-Guard.
Achieved standardization in sourcing projects running across business units in V-Guard.
Achieved an early return on investment within 6 months of implementation.
Achieved an average cost savings of around 6% by using Ariba Sourcing.
V-Guard
V-Guard Industries Ltd is a major electrical appliances manufacturer in India, and the largest in the state of Kerala. The company manufactures voltage stabilizers, electrical cable, electric pumps, electric motors, geysers, solar water heaters, electric fans and UPSs. Headquartered in city of Kochi, Kerala, the company now has over 500 distributors, 30,000 retailers, and branches across India. It’s listed with the NSE and BSE since 2008. It was founded in 1977 by Kochouseph Chittilappilly as a small voltage stabilizer manufacturing unit.