Digitalization with the help of SAP Ariba has helped the food exporter cut sourcing time and money.
Food export is a complex business process with many layers starting with the sourcing of raw materials, production, processing and packaging, storage and finally distribution, which is an art and science by itself.
Food and spice shop in Marrakech
In the paper-based world, procurement was an inefficient, labour intensive process with the traceability demand – a growing request from everyone today – difficult to meet. But with digitalization, a lot of the inefficiencies get weeded out and traceability enabled.
For India-based Allanasons Private Limited, a leading manufacturer and exporter of agricultural commodities, digitalization has shaved off 30 percent of its sourcing time and saved nearly 5 percent on costs.
In the export business, quality and delivery expectations are very high, points out Suresh Gadaginavar, General Manager, Allanasons Private Limited. To meet these expectations and also in line with the Indian government’s policies to stimulate growth in export of food commodity, Allanasons decided to digitalize its procurement processes.
To put the digitalization process in motion, it found a one-stop solution to its supply chain needs in SAP Ariba, a leader in spend management. As Gadaginavar says, the ease of use of the solution and also the innovations were the key decider. SAP Ariba eases sourcing, procuring and payments for traders and the open-source framework allows for easy collaborations.
SAP Ariba is the leading spend management solution for digital supply chains
Implemented in record time, SAP Ariba sourcing solution has come as a boon to the Agri exporter which trades 1 million metric tons of commodities, including coffee, spices, pulses, cereals, and frozen meats and fruit every year across 85 countries. A major challenge Allanasons faced earlier was the lack of visibility in spend which has now been sorted out. “The SAP Ariba Sourcing solution has helped Allanasons achieve significant improvements in sourcing cycle times. It has enhanced communication and collaboration both internally and with our suppliers,” says Gadaginavar.
Now on one centralized platform, Allanasons manages more than US$21 million of procurement activity and has standardized direct and indirect purchasing processes.
Adopting SAP Ariba has not only helped Allanasons be more competitive, thanks to quicker decision making, but also thanks to its automated processes many of its employees have been freed up to work on strategic tasks. Also, the single window view of all procurement activity that the platform provides helps Allanasons professionals make more informed decisions on key purchases.
A major ask in today’s globalised world where sustainability is a key driving factor in buying decisions is traceability. SAP Ariba has improved compliance with comprehensive visibility of where, when and how sourcing and procurement happens.
Process automation drives sustainability for digital supply chains
Mr. Gadaginavar says, “SAP Ariba tool is very easy to use and we are very happy.” With 4-5% in savings, we know where that is coming from.