NTT DATA Services Digitally Transforms Procurement, Drives US$125M in Value with Procurement Solutions from SAP

WALLDORFSAP SE (NYSE: SAP) today announced that NTT DATA Services, a global digital business and IT services leader, has adopted the full suite of intelligent spend management solutions from SAP. That includes SAP Ariba solutions for procurement, SAP Fieldglass solutions for contingent workforce management and SAP Concur solutions for travel and expense management.

The procurement solutions created an intelligent, dynamic and strategic function for procuring direct and indirect materials, services and MRO for NTT DATA Corporation’s largest division outside Japan. In light of COVID-19, NTT DATA plans to further enable its remote workforce to procure goods and services and enhance user experience and adoption with mobility. The company also plans to work with SAP and its own NTT DATA SAP practice to innovate around machine learning, artificial intelligence and robotics.

With the solutions adopted since the project began three years ago, NTT DATA has driven US$125 million in value. SAP Ariba solutions help NTT DATA manage over $1 billion in spend with over 3,700 suppliers across more than 50 countries. Additionally, SAP Fieldglass solutions help manage over 1,300 U.S.-based contingent workers.

“The outcomes to date have been impressive, and I anticipate even more positive momentum to come given the increased efficiency, cost reduction and risk mitigation already achieved,” said Chad Crook, SAP Procurement Solutions senior vice president and global head of Customer Engagement and Adoption. “Amid widespread and accelerated supply chain disruptions, procurement professionals are being challenged to elevate traditional best practices to drive greater strategic business value. With a clear vision of what intelligent spend management means to its business, NTT DATA facilitated its procurement journey strategically and comprehensively.”

With clients operating in more than 50 countries around the world, NTT DATA runs a sophisticated, complex global services operation.

“We knew that utilizing world-class tools to create a modern procurement function with the help of SAP was going to enable our business to move forward and deliver clear value,” said Jeffrey R. Tramel, NTT DATA Services vice president of Global Procurement. “SAP’s support has been instrumental in helping us build and deploy a standardized set of processes and tools that enables us to reduce cost, enable revenue and mitigate supplier risk now and into the future.”

The company embarked on a procurement transformation journey with the help of SAP and its own NTT DATA SAP practice, to centralize its procurement model covering end-to-end processes. That includes sourcing and supplier management, buying and payment, and supplier compliance and risk management.

SAP solutions have enabled NTT DATA to standardize purchasing processes and supplier management, enhance visibility into stakeholder priorities and supplier spend and performance, and maximize cost-saving opportunities through competitions and volume discounts. Furthermore, the solutions provide flexibility for regional and functional groups to manage daily operations while leveraging enterprise-wide best practices.

By automating and streamlining its end-to-end procurement operations, NTT DATA has achieved the following benefits across billions of dollars of spend:

  • Improved supplier selection and collaboration to maximize value and outcomes
  • Simplified procure-to-pay processes to increase visibility and operational control
  • Increased adoption with consumer-grade user experience
  • Improved cashflow management and increased compliance to vendor payment terms
  • Reduced costs aligned with corporate strategy and industry standards
  • Simplified integration of M&A activity
  • Movement of primary spend categories under management to mitigate company risk

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