Removing a purchasing pain point demonstrates wider SRM potential

A fast track implementation of SAP's Supplier Relationship Management (SRM) software by Oxygen Business Solutions has allowed Parmalat Australia to immediately remove a 'pain point' while laying the groundwork for wider roll out of electronic purchasing and supplier management throughout the company.

“Previously our stationery ordering was ad-hoc and there were multiple ways of doing it. Now, we have gained control over the process with all staff using an easy online ordering portal governed by a fast authorisation process.”

Geoff O’Donnell – Parmalat Applications Manager, Group Business Systems

Challenge

 

  • Streamline and better manage online ordering procedures for stationery items
  • Link online ordering to core ERP system to create instant purchase orders and improve accounting and budgeting processes
  • Create authorisation procedures to control administrative processes
  • Lay foundation to later introduce ordering across the company

Solution

 

  • Electronic sales order acknowledgement sent from supplier
  • Fast-track proof of concept implementation of SAP SRM electronic purchasing solution to help manage supplier spend
  • Simple, automated email approval processes for stationery
  • Automatic creation of purchase orders to allow easier order tracking and purchase analysis
  • User-friendly online ordering using shopping cart wizard
  • Control over types of purchase that users make allowing administrative oversight of order and supply
  • Improved visibility and control of office supply spend thanks to new authorisation procedures and integration with core accounting system

Return on Investment

 

  • Faster order processing and improved order confirmation
  • Improved budgeting information to aid supplier contract negotiations
  • Sales processing time reduced from hours to minutes
  • Significant reduction in time spent reconciling invoices - 95% of invoices processed first time

This implementation won an SAP Excellence Award
View our Awards here

Downloads

Download the full Case Study here: Parmalat SRM

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Customer Profile

Parmalat

Parmalat Australia Ltd specialises in the production of branded milk and dairy products and is one of the major manufacturers of milk, yoghurt and fresh dairy products in Australia.

The company has an impressive stable of well-recognised, popular milk and dairy product brands which are sold in both Australia and overseas and these include Parmalat, Pauls, Trim, PhysiCAL, Breaka, Ice Break and Vaalia.

Parmalat Australia is a wholly-owned subsidiary of the Italian based global dairy company, Parmalat SpA, having been acquired by public takeover in August 1998.

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