Ariba and Baker Hughes: Transforming Procurement in the Energy Industry

Baker Hughes, a leading energy technology company, has significantly streamlined and optimized its procurement processes in partnership with SAP Ariba. This transformation has had a marked impact on driving efficiency and bolstering supply chain resilience within the organization.

What is Ariba?

SAP Ariba is a cloud-based procurement tool suite designed to revolutionize how businesses manage their spending. It facilitates a range of functions, including:

• Sourcing: Streamlined strategic sourcing of goods and services with greater visibility and control.
• Contracts: Creation and management of a centralized repository for contracts.
• Procure-to-Pay: Automating the procurement lifecycle, from purchase orders to invoices, simplifies the entire process.
• Supplier Collaboration: Enhanced supplier collaboration through SAP Business Network for Supply Chain, improving communication, transparency, and lead times.

Ariba’s Benefits for Baker Hughes

Baker Hughes has reaped substantial benefits by implementing Ariba’s solutions:

• Increased Supply Chain Resilience: Ariba’s solutions give Baker Hughes greater visibility into their supply chain, allowing them to proactively identify potential risks and disruptions. This leads to a more resilient and agile supply chain, even in the face of uncertainties.
• Cost Savings: Automating procurement processes and real-time spend analysis enabled Baker Hughes to reduce operational costs significantly and identify opportunities for savings.
• Improved Efficiency: The streamlined procurement processes powered by Ariba lead to faster cycle times, better contract compliance, and reduced administrative burdens.
• Enhanced Data Visibility: Ariba provides Baker Hughes with centralized, easily accessible data. This empowers decision-making based on real-time insights into spending trends and supplier performance.

Key Success Factors in the Transformation

Several factors were crucial to Baker Hughes achieving success in their procurement transformation with Ariba:

• Change Management: Effective communication, training, and adoption strategies were vital in ensuring that Baker Hughes employees could effectively utilize the powerful tools in Ariba’s suite.
• Strong Partnership with SAP Ariba: Close collaboration with SAP Ariba helped Baker Hughes tailor solutions and processes to meet their specific needs.
• Global Scope: The transformation encompassed 120 countries and 13 languages, highlighting Baker Hughes’ commitment to a large-scale change, maximizing the benefits throughout their organization.

Lessons Learned

Baker Hughes’ journey with Ariba provides valuable lessons for other energy companies looking to modernize their procurement operations:

• Prioritize Collaboration: Collaboration with suppliers and internal stakeholders is key to seamless integration and maximizing the benefits.
• Data-Driven Decisions: Leverage the insights Ariba’s analytics provides to optimize spending and enhance supplier performance management.
• Change is a Process: Embrace the continuous improvement mindset and recognize that ongoing optimization and adaptation are essential.

Conclusion

Baker Hughes’ procurement transformation with SAP Ariba showcases the power of digital technologies in driving efficiency, savings, and resilience in the energy sector. By embracing a strategic and collaborative approach, companies can reap similar benefits, empowering their supply chains to face any challenge.