One of the biggest challenges facing multinational corporations is how to establish an efficient purchasing structure. Purchasing is an integral part of corporate performance, and in this day and age - where companies are trying to streamline internal processes in order to improve competitiveness - tackling the inefficiencies in purchasing can often times yield positive results.
Take the Jotun Group for example. Headquartered in Norway, it is one of the world’s leading manufacturers of paints, coatings, and powder coatings. The group has 74 companies and 39 production facilities on all continents, is represented in more than 80 countries, and employs 8,600 people worldwide. With such a large organization, efficiency in purchasing becomes crucial so costs do not spiral out of control.
Jotun was facing a time-consuming manual supplier identification process for new areas of the business. It also found it hard to gather market insights, for example on competitive pricing. And increasing competition among its suppliers and reducing purchasing costs was difficult due to the small size of its supplier database. In short, Jotun was looking for a solution that could facilitate a coherent buying process and data consistency in order to drive down costs and discover new suppliers.
Jotun chose Ariba as its online platform for purchasing largely owing to Ariba’s global reach, reliability, and trustworthiness. The company implemented Ariba Sourcing On-Demand to easily manage sourcing events. In addition, the company started using Ariba Discovery to easily find new suppliers. Leveraging Ariba’s easy to use platform and dedicated customer support, Jotun set up its first event in less than one hour for a packaging RFX for its UK operation.
“Our first event on Ariba Discovery has gone far and beyond our expectations. We were able to deliver savings that cover our initial investment in Ariba Sourcing three times over. This is a great step for my company. I am grateful for Ariba’s support in getting us this far.” Steve Eastman, Commercial & Purchasing Manager, Jotun Paints (Europe).
The company received its first seller responses within 24 hours of posting on Ariba Discovery. The best offers came through Ariba Discovery and resulted in 20 percent cost savings. As a result of the company’s initial experience using Ariba Discovery and Ariba Sourcing, Jotun decided to use the solutions in order to find logistics service providers next.
Download the Jotun Group Case Study to learn more.
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