CPFL Energia, a 101 years utility group operating generation, distribution, services and telecommunications, leading electricitty distribution market with 13% share, with more than 7.5 million customers covering states of São Paulo, Rio Grande do Sul, Minas Gerais and Paraná in Brazil, has recently acquired SAP Ariba Platform, which will substantially reduce time with purchase processes and suppliers research.
CPFL has already implemented its Shared Services Center a few years ago, attending all its subsidiaries with back-office services such as HR, Procurement, Finance and Administrative services. Then, CPFL has started searching for procurement solutions to fulfill its needs and bring more savings when purchasing materials and services, replacing its legacy solution.
SAP has started an exhaustive and detailed team work involving solution architects, sales specialists and IVEs on a business case that could effectively prove to CPFL that they were about to chose THE best solution for its business. SAP Ariba Sourcing Professional, Contract Management, Supplier Information & Performance Management, Procurement Content and Ariba Network with PO and Invoice Automation were the modules involved, and we beat our competitors in all requirements. Some of the benefits CPFL will start to take advantage of are effective sourcing services (from very simple to extremely complex), an enormous source of recruitment models, significantly improve its compliance, optimize its control with processes tracking and measurement, and a strong reduction on purchasing operational load. We estimate total year savings that can vary from US$ 4.4 to 48 million after its full implementation.
This is our largest SAP Ariba deal in Brazil and CPFL has become our first reference in the Utilities segment with this solution. Project setup kick-off will be next week and will be up and running in 1 month. CPFL already has SAP ERP and IS-U/CCS running for more than 10 years and is one of our most important and strategic customers in this region.