Addressing the Asset Intensive industries

In asset intensive industries, the most important direct spend covers the assets themselves - from purchase to maintenance and repair to retirement. The industry is made up of telco, utilities, mill, metals, mining, oil & gas companies.

A few of their unique needs are:

• Long-term supplier stability and risk
• Contractual SLAs for pre and post installation
• Flexibility for installation scheduling
• Equipment shipment visibility
• Subcontracted repair processes

Asset intensive industries is currently dealing with three major challenges:

• Sites and assets are more globally dispersed and remote
• Coordinating availability of technicians and spare parts globally creates costly expedites
• Managing costs, availability, and refurbishment of spare parts can be inefficient

With SAP Ariba Direct Spend you could:

• Synchronize parts and workforce globally to reduce costs and asset downtime
• Manage your predictive and preventive maintenance more cost effectively
• Ensure spare parts availability and manage refurbishment without incurring high costs

Brian owns a mining company and he wants his entire value chain integrated into one system so that the organization could collaborate and support their growth expectations.

With SAP Ariba solutions he was about to achieve 8% cost savings in mission-critical spend through strategic sourcing, reduced sourcing cycle time by 40%, and collaborate on consigned inventory programs to improve equipment maintenance.