Do you have to source a thousand commodities with thousand item codes at as many as 20 sourcing locations with a few hundreds of vendors spread across many times zones and currencies?
Organizations can no longer afford to ignore the focus on optimizing the entire value chain and extend collaboration to counter these challenges.Dabur is one such fascinating story I heard at Ariba Live 2013 in our breakout sessions that has attained great success by leveraging inter-enterprise collaboration.
Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for over 120 years, Dabur today is India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company.
Dabur’s spend management journey began with streamlining its sourcing process and supplier management. One of the biggest challenges during the initial stages was the lack of an established, standardized and documented sourcing process. Before the team implemented its Ariba initiatives, there were no internal scalable tools and methodology to facilitate sourcing in line with their sourcing strategy. Another external challenge that Dabur experienced was how to manage the diverse set of suppliers spread across the globe. The challenge was associated with dealing with suppliers of different cultures, who spoke different languages and were based in different time zones throughout the world.
Ariba helped build a collaborative sourcing and supplier management program that leverages world class web based technology and tools as well as structured processes expertise and a networked community.
It was fascinating to hear Somit Mukherjee the head of Procurement at Dabur say
”In Our 9 year journey with Ariba each year we have seen significant cost reduction from the benchmarks that we have set, increased transperancy,objective and documented supplier selection and to derive the true Market price of auctioned items”