Centralized Procurement Processes and Consolidated Requests by Enforcing S/4HANA Governance with In-App GuidanceCopy Link
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Overview
The manufacturing company faced challenges with decentralized purchasing processes across geographies, leading to missed opportunities for bulk discounts and increased procurement costs. By leveraging Whatfix’s in-app guidance to enforce procurement governance practices in SAP S/4HANA, the company streamlined purchasing, improved cost efficiency, and enhanced supplier relationships.
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The Problem
For similar requirements from a given supplier, multiple requisitions were being created by users across different geographies through their local ERPs. This decentralized approach prevented the procurement teams from centralizing purchases and combining requisitions, missing opportunities to create a single purchase order, contract, or RFP to leverage bulk discounts. The lack of coordination among departments and geographies led to overlapping requirements for the same items, increasing the overall purchasing spend due to a failure to achieve economies of scale.
The Whatfix Solutions
Whatfix enforced procurement governance practices by guiding SAP S/4HANA users to combine requisitions instead of processing them individually. Users were nudged within their local ERPs towards the correct process to consolidate applicable requisitions and create an RFP, Contract, or Purchase Order (PO). In-app guidance was provided across SAP S/4HANA GUI (Desktop) and Fiori on how to search for matching requisitions, combine them, and take appropriate actions on the follow-on documents, thereby ensuring efficient centralized procurement.
Value on Investment
Cost Efficiency: Consolidating purchases enabled better pricing negotiations, bulk discounts, and reduced transaction costs associated with multiple procurement processes.
Streamlined Processes and Consolidated Requisitions: Creating a single PO, RFP, or contract for multiple requisitions eliminated the need for separate approvals, negotiations, and paperwork.
Improved Supplier Relationships: Larger orders encouraged suppliers to offer better terms, prioritize delivery, or provide additional value-added services, fostering long-term benefits like improved quality, reliability, and responsiveness.
Enhanced Visibility and Reporting: Consolidation allowed for higher ERP data quality and better visibility into purchasing activities, accurate tracking, and analysis, facilitating strategic decision-making.
Procurement Compliance and Governance: Combining requisitions into a single PO, RFP, or Contract promoted adherence to internal policies and external regulations, strengthening governance and reducing the risk of non-compliance.
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