JSC URALCHEM and SAP have announced the launching of the SAP Ariba project aimed at transformation of procurement operations in the chemical holding. URALCHEM is planning to invest about 100 million rubles into this program. Due to the application of a new system, the company is expecting not only to recover the money invested but also to cut down considerably on the overhead costs related to procurement operations within five years.The basic objective in this project is to cut down on costs as well as to optimize operations at all holding enterprises on the basis of automation of procurement, supplier relationship, upgrading of conformity to normative documents, and enhancement of control with simultaneous cost and risk reduction.“Step by step we are implementing the strategy of business-processes automation at the holding, and at present we are setting about to the transformation of procurement management system. Having analysed the automation solutions at the market, we make the choice for cloud solution SAP Ariba, as one of the most effective and promising systems. This system is optimal for solving our tasks and development of our company procurement operations,” Dmitry Boyarkin, JSC URALCHEM procurement director, commented.

“In business network SAP Ariba, URALCHEM will be capable to select suppliers and arrange procurements automatically. It will be feasible due to combined efforts of business-units with sector-oriented solutions locally, in the cloud and on mobile devices. Actual information about costs and strict compliance with normative requirements will assist in optimizing the company’s operations,” Andrei Sharak, SAP CIS Deputy General Director, said.

In September 2016 “URALCHEM” and SAP concluded the agreement on strategic cooperation in the sphere of cloud technologies.

Ariba is the world’s largest specialized cloud network and brings together customers and suppliers worldwide. The Ariba community is comprised of more than 2,000,000 companies, and every two minutes a new participant connects to the network. The latter enables the company to receive access to the global database of suppliers as well as to up-to-date procurement optimization tools. When using Ariba, one is enabled to select reliable and efficient suppliers, optimize their quantity, and computerize procurement processes. Therefore, companies are enabled to reduce labour costs and get a well-adjusted procurement system, just in time and at minimum prices.