May 19, 2021

BITZER optimises procurement with SAP Ariba Solutions

Procurement
Sourcing
MaverickSpending
SupplierManagement
2 min
BITZER, manufacturers of air conditioning technology, has announced it is using SAP’s Ariba buying solutions to optimise its procurement operations.

The refrigeration and air conditioning technology manufacturer BITZER has announced today that it has implemented SAP’s Ariba Buying Solutions to optimise its global procurement operations. Based in Sindelfingen, Germany, the company is aiming to drive a more efficient, paperless, and transparent process from sourcing to payment. 

Christian Stenzel, Director of Organisation and IT at BITZER, said: "To overcome challenges and thrive in today's business environment, visibility, resiliency, and agility in our procurement operations are critical. Until now, our employees have procured indirect materials through manual processes. By standardizing on a digitalized procurement process, we are increasing efficiency and transparency across our operation to deliver value for our business."

How will SAP’s Ariba Buying Solution help BITZER’s procurement operations?

With help from the consulting firm apsolut GmbH, BITZER has implemented SAP Ariba Solutions to centralise its procurement operations on a single-base cloud platform, allowing it to continue with its digital transformation process. 

SAP Ariba Solutions, integrated with SAP S/4HANA, aims to drive a more efficient procurement process and ensure closer collaboration with suppliers. According to SAP, the guided buying capability of the Ariba Solution will help BITZER to “reduce maverick spending, provide an intuitive purchasing experience and drive more consistent compliance with purchasing policies such as budget limits, minimum bids, and preferred suppliers.”

Maverick Spending 

Maverick spending, also known as “rogue spending” is defined as external vendor spending which doesn’t follow defined purchasing policies. It is a challenge faced by all professionals in the procurement industry. One reason for this is due to reduced savings on costs. This prevents sourcing teams from fully knowing the amount of capital they have saved associated with a particular contract. 

Another reason it is a problem due to the fact that it is an operational risk since employees are buying from potentially unauthorised suppliers or vendors from outside of their organisation. If an uncertified spare part is purchased, for example, it may increase the likelihood of breakdowns and void manufacturer warranties.

 

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