New Version of SAP(R) E-Sourcing On-Demand Solution Helps Customers Cut Costs Through Negotiated Savings
Lennox International and Scotts Miracle-Gro Company Use SAP(R) E-Sourcing On-Demand Solution to Evaluate Supplier Responses in a Collaborative Format
Lennox International Creates Cost-Effective Climate to Expand Market Share
To help sustain and expand its leading position in climate control solutions for heating, air conditioning and refrigeration markets around the world, Lennox International must drive margin expansion and support growth into other segments while still keeping costs under control. With the SAP E-Sourcing ondemand solution, the company was able to create a global sourcing process based on an open technology platform that supports SAP and non-SAP systems and has the ability to quickly deploy key solutions to drive immediate value.
"The flexibility of the SAP E-Sourcing ondemand solution lets our sourcing team use their own templates to quickly migrate meaningful data into our SAP infrastructure," said Kathie Kelsey, manufacturing and supply chain IT manager, Lennox International. "The platform allows Lennox to have a lower total cost of ownership as well as enable a secure IT environment while providing the ability to begin leveraging additional functionality over time, as we are ready to adopt it."
The Scotts Miracle-Gro Company Feeds Savings Through Integrated Sourcing Process
As the world's largest marketer of branded consumer lawn and garden products, The Scotts Miracle-Gro Company needed to drive demand for commodity spend through an integrated sourcing process, as previous attempts using nonintegrated solutions had not yielded acceptable results. As a result, Scotts Miracle-Gro turned to the SAP E-Sourcing ondemand solution to drive sourcing events based on direct material demand from ERP, allowing it to integrate the sourcing process with procurement execution to realize identified savings.
"Our focus was not only to obtain price quotes," said Diane Pekunka, manager of strategic sourcing, The Scotts Miracle-Gro Company. "We needed a solution that would allow us to assess a supplier's capabilities, financial situation and its ability to service Scotts Miracle-Gro. SAP E-Sourcing makes it possible for our key stakeholders to focus on the business while leaving the daytoday operations of the system to SAP."
Embedded Best Practices and On-Demand Services
The SAP E-Sourcing ondemand solution helps customers launch events using sample templates with embedded sourcing processes. These tools help repeat best practices, reduce cycle time and share knowledge among sourcing professionals, while eliminating cumbersome, paperbased supplier negotiations and awards. Standard integration to the SAP backend enables customers to link their strategic source to contract process to their procurement execution systems, helping to ensure that they are buying against negotiated contract terms to drive realized savings and compliance. Ondemand services include customer onboarding and optional valueadded services inclusive of business process consulting, category sourcing strategy expertise and ongoing customer support. With ondemand software, companies can get up and running quickly and obtain rapid time to value.
"SAP E-Sourcing helps customers innovate faster and extend the value of their current investments in SAP Business Suite," said David Marchand, head of SAP E-Sourcing Solution Management, SAP AG. "The integration of data and processes helps ensure consistency with system and business configurations between SAP Business Suite and ondemand solutions from SAP. As a result, customers avoid the data sharing and integration issues that occur when dealing with disparate bestofbreed applications and obtain immediate impact on their business."
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