SAP Supplier Relationship Management: Natural Gas Supplier Case Study
SAP Supplier Relationship Management: Natural Gas Supplier Case Study will talk about the business situation of a leading Natural Gas supplier in the Middle East. And also, why they chose Kaar Tech for implementing SAP SRM (Supplier Relationship Management) solution.
The Client, established in 1999, is a Gas company based out of Abu Dhabi in UAE. The Client is responsible for the production and processing of Natural Gas in Qatar and transporting the same via an offshore pipeline to UAE and Oman.
Kaar Technologies implemented SAP SRM for the client to improve their procure-to-pay process flow by simplifying, automating, and centralizing all processes. As a result, this SRM solution takes care of the whole e-procurement cycle from start to finish.
Business Challenges and Opportunities:
As a leading oil and gas company, the Client has an extensive supplier base to fulﬁll its business needs. They have close to 3000 suppliers. In addition, they also had 40,000 materials master system. Thus, they were facing many challenges due to existing system limitations. Some of them include,
- Unable to establish a supplier product category relationship
- Manual process to include suppliers for the RFQ process
- Furthermore, there was a lack of a system to keep track of potential supplier list
- Finally, valuable time spent in answering vendor queries on order status
Kaar Tech’s Solution:
The Client engaged with Kaar to implement SAP SRM solution since it met most of the envisioned requirements of its Procurement and Contract (P&D) team. It also included creating an avenue for potential suppliers to register themselves to participate in the RFQ process. The SAP SRM Supplier Self Service component has features to host a portal where suppliers can,
- Register for the RFQ process
- Assign a product category
- Submit responses to RFQ ’s
- Maintain and manage all relevant data
- And also, view order lifecycle data (Status of GR and Invoice)
After: Value-Driven Results
SAP SRM helped the client to streamline operations, enforce compliance with contracts and purchasing policies, and improve overall spend management. Furthermore, the following benefits were also achieved:
- Standardized vendor list for all product categories
- More robust and eﬃcient quotation process
- Lift of new prospective vendors
- Improved best value quotations without compromise on quality
You can download the full case study here.
Additionally, if you are looking to adopt SAP SRM (Supplier Relationship Management) and require a consultation on the licenses or implementation, send us an email at email@example.com. We will get back to you within one business day.