DuluxGroup adopts Ariba for direct spend management


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Home improvement giant DuluxGroup will implement SAP Ariba solutions to simplify and integrate its direct procurement from end to end, as part of a larger push to digitise its business.

The company, which generated revenues of $1.7 billion in 2016, shared its plans at this week’s SAP Ariba Live event, held in Sydney.

“Direct procurement is complex, and to do it right, we need an integrated platform that allows us to automate our processes and collaborate with our partners around the globe in an efficient way on everything from design and sourcing to forecasting and manufacturing execution,” said Ian Griffith, head of procurement, DuluxGroup.

By implementing SAP Ariba’s solutions for direct spend with its SAP Integrated Business Planning system, DuluxGroup plans to digitise its extended supply chain, from integration with its product design and R&D processes all the way through manufacturing execution.

This is expected to provide benefits in quick and accurate sourcing of all materials, faster time to market and innovation, real-time supplier collaboration, better product cost management, stronger compliance, and complete supply chain visibility.

“For years, companies have relied on manual, linear, design-to-deliver processes to select, manage, and collaborate with suppliers of components and raw materials,” said Keith Baranowski, global vice president and GM, direct materials sourcing, SAP Ariba.

“Digital networks are radically transforming this process, and in embracing them, innovative companies like DuluxGroup can deliver efficiencies and cost savings that give them advantage in today’s complex marketplace.”

Also at the event, SAP Ariba announced other customer wins for the last quarter, including Green Cross Corporation in Korea, Fujitsu, Otsuka Pharma and Swiss Post in Europe and Hong Kong Electric in Greater China. More than three million new North American subscribers also embraced the platform’s guided buying capabilities, an innovation which allows procurement organisations to create a contextual experience for buyers that simplifies the process and ensures compliance is maintained.

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