COVID-19/Coronavirus

The CIPS Middle East Conference and Supply Management Awards 2020 on 30 June 2020 at Rosewood Abu Dhabi has been postponed - new event format or dates to be announced.

CIPS and Haymarket Media Group (who deliver events on behalf of the CIPS) have been closely monitoring the situation with regard to Coronavirus on a daily basis and the welfare of our delegates is always front of mind.

In this instance, we have made the difficult decision to postpone the event to the nearest suitable opportunity in the future or to present this as an online, virtual event.

We have not made this decision lightly but we want to ensure we can provide the best experience possible for attendees. If you have booked on the event your booking will be automatically confirmed for the revised date, or event format, which will be announced as soon as possible.   Please accept our apologies for any inconvenience caused and we thank you for your continued support. If you have any questions, please contact us.

OVERALL WINNER AND MOST IMPROVED PROCUREMENT OPERATION - STEP CHANGE

PROJECT: PROCUREMENT DIGITALIZATION PROGRAM

Headquartered in Riyadh, Saudi Arabia, petrochemicals firm SABIC historically managed procurement activities in a labour-intensive manner with very little automation.

However, all this changed when a broader transformation plan to support future growth was implemented. SABIC has now automated 1 million core procure- to-pay transactions for around 180,000 low-value spot buy items. It has introduced automation with complex algorithms to transform procurement, bringing greater efficiency and compliance, while maintaining business agility.

To secure best practice in its cross functional teams, the transformation project used the ‘project butterfly model’, which mirrors a business team with a dedicated IT support team to form an integrated work stream delivering solutions together. While the initial introduction involved regional resources from the USA, Europe and Asia, digital deployment began in Saudi Arabia, then rolled out in phases. By putting effort into teambuilding, SABIC created an atmosphere for collaboration and innovation.

Digitalisation has resulted an 8% saving on competitive bidding and a reduced lapsed time of 73%. It has changed the role of buyers too, who have moved from creating purchase orders manually to working on maintenance, repair and operations (MRO) category management and exception handling. Greater efficiencies will ultimately free up buyers to review newly qualified suppliers, manage distributor/agent relationships, and drive innovation and local business development.

Digitalisation also means that material requirements planning is now reviewed automatically for MRO items using 11 different scenarios to ensure that only the materials required are ordered. The new system has also ushered in automated supplier shortlisting, using category and material mapping to confirm that the right qualified supplier for the material is chosen. Further automated processes ensure materials are bought at the right place in the supply chain and tender bids are scrutinised and quotes compared. SABIC has achieved multiple benefits with its complex, bespoke automation and algorithms, that mimics buyers’ decision- making processes and sourcing logic. The organisation said the ‘robotization’ of many processes has “truly changed the way SABIC handles spot buy purchasing for materials”. Now, more than 80% of the purchase orders for MRO use an automated process rather than being handled by a person, eliminating low-value transactional work and freeing up time for buyers to work on more tactical procurement and category management. While manual intervention for pending transaction is possible if needed, the automation has enabled the same amount of transactions to be handled by just half the original team size.

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