ArcelorMittal reports improved procurement processes, better compliance, and increased efficiency with SAP SRM, SAP CLM, SAP ECC, and Ariba eCatalog Management.
That’s why the company has been using SAP Supplier Relationship Management (SAP SRM) for many years. Month for month, it processes 5,800 free-text purchase orders, 8,371 catalog purchase orders, and 5,000 RFQs in SAP SRM. As ArcelorMittal operates globally, and in markets that are experiencing a construction boom and an almost insatiable demand for steel, the company inevitably has a highly diversified product portfolio. These factors make its process and IT infrastructure complex.
SAP Supplier Relationship Management as best practice
ArcelorMittal launched its Integra project to reduce this complexity and harmonize its fragmented procurement processes by introducing a standard procurement system worldwide. That system is SAP SRM 7, which it implemented in most of its locations in 2011 as a ramp-up customer. Anurag Tiwary, head of IT, says: “The great achievement of our Integra project with SAP SRM is to have a standard process for our complex purchasing process with diversified people, different languages, countries, and products. SAP SRM is a very strategic tool, ensuring that we follow the self-service procurement as a best practice.” The company started out with SAP SRM 2, so Tiwary and his team already knew the solution inside out – and they were aware of both its strengths and its weaknesses. Tiwary reports, for example, that users at ArcelorMittal were initially unhappy about the look and feel of SRM 5 and lack of integration with the Enterprise Portal. Even after significant achievements with the system, a continuous improvement project is on the way to improve user friendliness and compliance.