Telephone Organization of Thailand Selects SAP to Lower Supply Costs and Automate Sourcing

July 10, 2003 by SAP News 0

New Implementation of mySAP™ Supplier Relationship Management Includes Thailand’s First Electronic Bidding Capability

SingaporeSAP Asia Pacific today announced that the Telephone Organization of Thailand (TOT) has selected mySAP™ Supplier Relationship Management (mySAP SRM) to streamline procurement and lower related sourcing costs. To be utilized by more than twenty-five employees and ten suppliers, the implementation is estimated to achieve a significant 74 percent reduction in procurement costs for TOT from its initial proof of concept. Through the strategic sourcing capabilities of mySAP SRM, TOT has achieved a major milestone as the first company in Thailand to offer an electronic bidding process to its suppliers.

Powered by SAP Netweaver™, SAP’s comprehensive integration and application platform, mySAP SRM, covers the full supply cycle, from strategic sourcing to operational procurement and supplier enablement, leveraging consolidated content and master data. mySAP SRM synchronizes and automates business processes with the total supply base, on a continuous basis, for all purchased goods and services. Companies can qualify new suppliers, manage contracts, and enable suppliers to participate in e-procurement and sourcing easily and cost-effectively.

“SAP’s business software will enable us to become a nimble telecommunications company,” said Suwit Satayarakvit, executive vice president, Corporate Resources, Telephone Organization of Thailand. “By using mySAP SRM, we will be able to shorten our order to payment cycle, provide electronic real-time sourcing capabilities, automate procurement and approval processes, and tighten our supplier collaboration. In addition, we will gain complete visibility of purchasing activities across multiple business units, allowing us to leverage spend analysis for implementing improved procurement and sourcing strategies.”

“This is a marked improvement from the days when the organization was using a paper-based bidding and evaluation process, which was time intensive and costly,” said Mr. Satayarakvit. “With mySAP SRM, we can immediately reduce our procurement costs and free up our staff to focus on higher value and more customer-centric activities now that the process is automated. These benefits are then passed along to our customers.”

The implementation of mySAP SRM will connect ten of TOT’s key vendors and twenty-five key purchasing professionals into an easily managed and collaborative supplier network, allowing TOT to compress sourcing cycle times and reduce supply costs through automated competitive bidding on contracts. The automated supplier relationship management capabilities eliminate redundant and low-value procurement activity such as manual order entry and managing multiple points of supplier contact.

“We have found over the years that companies depend on their suppliers to deliver an increasingly large percentage of value to customers, which means effective management of the supply base is key to profits,” said Alan Sedghi, Managing Director, SAP India and Thailand. “In tough times like these companies must efficiently manage spend across an enterprise. As a leading provider of enterprise business software solutions, our mission is to enable the best-run companies in the Asia Pacific region to achieve higher levels of transparency and integration in their purchasing activities so that they can achieve a clear business advantage.”

About mySAP SRM
mySAP SRM maximizes return on supplier relationships across all categories of spend at all times. The solution covers the full supply cycle, from strategic sourcing to operational procurement and supplier enablement while leveraging consolidated content and master data. With mySAP SRM, companies can qualify new suppliers and manage contracts, automate cross-company processes with all suppliers, and enable suppliers to participate in e-procurement and sourcing easily and cost-effectively. Companies can gain complete visibility of purchasing activities across multiple business units and heterogeneous systems, allowing them to leverage global spend analysis for implementing improved procurement and sourcing strategies.