74% of pulp and paper CEOs think that digital technologies create value to external collaboration. (source).

 

It is pretty clear in today’s razor thin margin paper and packaging business that companies have to rethink business processes to remain competitive and better serve customers.  This is especially true for the procurement area.  From securely sharing data in real time, to providing personalized and contextual insights, to changing how companies exchange and offer products and services, collaboration across entire vertical markets is key to value creation. Several trends are redefining the game in procurement and purchasing:

 

Consumer buying experience
Procurement applications must be effortless to learn and use, such as with iTunes, Amazon, or Google. Solution complexity drives lower adoption rates, increased maverick spend, and lost opportunities from not taking advantage of negotiated contract rates.

 

Network of networks

An open network serving a single market (such as travel, suppliers, labor) is valuable to its ecosystem. But a vertical network that connects to other vertical networks in real time is revolutionary and can only be accomplished through a shared set of cloud-based services built on top of an enterprise-class cloud Platform.

 

Business connectivity at scale
The greatest challenge/opportunity in connecting vast ecosystems is the exponential data growth generated and consumed by the network. Connecting millions of partners and processing petabytes of data in real time is the core requirement for a successful business network.

 

 

 

Avery Dennison is a great example of a company that is redefining procurement and working with SAP Ariba to do so.  (Follow them on Twitter @AveryDennison)

 

Though they may not realize it, millions of people around the world use products from Avery Dennison Corporation every day. A global leader in labeling and packaging materials, Avery Dennison manufactures everything from wine labels to road sign materials. In the past, Avery Dennison had multiple procurement systems in place across the company. Operating in over 50 countries, procurement processes were disparate and different geographies all had their own way of working. This resulted in a lack of transparency, while predominately manual processes often led to inconsistencies. To centralize, standardize, and automate procurement processes, Avery Dennison introduced a single platform based on SAP® Ariba® solutions. Today, procurement teams in corporate offices and pressure-sensitive businesses use standard workflows, greatly increasing visibility and eliminating the risk of human error. Plus, automation and paperless processes are saving considerable time, money, and effort.

 

Here are some of the results:

 

  • 87% Of purchase orders managed through the SAP Ariba solutions in North America

 

  • 5 days To process invoices, compared to 23 days in the past

 

  • 400 hours estimated time saved per week by buyers and AP from reduced match exceptions and answering supplier queries

 

 

To read a brief summary of their digital efforts in procurement- click here.

 

 

To learn more about how SAP is supporting other Pulp Paper Packaging companies

 

For more specifically on digital, download our white paper (short reg required) on How Digital Transformation can save Pulp, Paper and Packaging

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