Groupe ADP: Their procurement digital transformation
Groupe ADP was first founded in 1945 and has grown to be an international leader in airport design and operations, with $4.9bn in revenue and 25,000 employees worldwide. The digital transformation of their procurement operations was always going to be a challenge because of constrained resources and a strict regulatory environment.
Objectives of procurement digital transformation
Their objectives were to improve company’s profitability by optimising spend, increase spend under procurement management, increase customers’ satisfaction by reducing operative constraints and accelerate Corporate Social Responsibility initiatives.
They partnered with Ivalua on the project who were presented with a series of challenges to provide an effective solution under some tight constraints. This included doing more with the same number of procurement resource, transform administrative resources into procurement professionals and abide by a strict & changing regulatory environment.
Groupe ADP are based in Paris, France but operates 25 airports worldwide, meaning all teams needed to be linked with the procurement solution wherever they were located. The company has more than 21,000 suppliers, 6500 internal users, 700,000 prices declared in the catalogue and 50,000 purchase requests every year.
“The human factor is key. Procurement teams need to feel that time invested upfront will pay off on the short or medium term. Today, my procurement teams are proud of their tools and processes. They are solicited by internal and external professionals to share their experience,” says Dominique Etourneau CPO at Groupe ADP.
Lessons learned from procurement digital transformation
The accurate identification of items in the order lines was identified from the start of the project as a major challenge for the optimisation of the logistic flows. The study also pointed out the weaknesses of existing tools in the process of formalising and processing.
There were also poorly performing search tools, perfectible ergonomics, double entries, non- consolidated data. This meant there was a challenge in place to bring together on a single platform all the parties involved in the purchase order flow, by providing a unique purchase orders portal connected with SAP
“The implementation of the Ivalua e-procurement module has enabled us to bring together all the stakeholders from purchasing to supply chain on the same platform,” Renaud Rebitz Purchasing Project Manager at Groupe ADP. “In addition to facilitating team collaboration, information sharing, and data centralisation, the Ivalua platform provides powerful opportunities for improving productivity.”
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