eMRO procurement in the food industry
Integrate MRO purchasing with eProcurement
The best change is the one that the user doesn't even notice. At SPITZ in Upper Austria, exactly this feat was achieved by perfectly integrating an actively used ordering system into the eProcurement platform. And although the user is using the familiar front end, the data quality in the background has improved significantly, leading to more efficient vendor invoice management (VIM) in the existing P2P process.
"We are delighted to have implemented this project," says Christoph Froschauer, project manager in technical purchasing at Austria's best-known manufacturer of food and beverages. And this even though the task was daunting: "The analysis of the structures of financial accounting, purchasing and controlling alone was a challenge - but the insight into the structures of our corporate group generates sustainable benefits." In the process, new necessities kept coming up, so the path was created over long stretches while walking - which didn't make project management any easier: "The fact that the requirements kept changing was difficult for both sides. But DIG proved to be the perfect partner with productive de-escalation and rapid implementation!"
Complex structures and releases
A determining factor of the project was the connection to the ispro-NG maintenance software, where the stock-keeping of the articles is also managed or, in part, the goods receipt is posted. "In this way, the colleagues retain the familiar overview in the area of MRO purchasing as well." And the colleagues can be many: three divisions with a wide variety of machines in the production of food and beverages; per division its own technicians, maintenance staff and warehouse staff, as well as a higher-level central technology department. This structure brings with it a wide variety of requesters in MRO purchasing and an enormous variety of user-related approval processes, reports Froschauer: "Someone from central engineering can order something for one division, for example, but where the cost center is assigned to another division. Likewise, a shopping cart can be filled by multiple users." Among others, the cost center manager and the project manager are involved in the approval process, which is user-specific for each item - and, depending on the value limit, other people up to the CEO. The approvers for the individual users can be adapted by SPITZ itself.
Special Process Free Text Orders for MRO Purchasing
The BANF (requisition) is created for MRO purchasing in ispro and transferred to the e-procurement platform DIG.procure via an interface. Here, the existing catalogs are automatically searched for the required MRO items and the hits are placed in the shopping cart. If none is found, a free-text item is added to another shopping cart, for which a separate approval process involving technical purchasing is provided: "We check the requirement, clarify the technical details and then obtain a corresponding quotation. This can also involve a service, e.g. painting a wall or similar."
DIG plays an important role in the standardization of master data.
Hub for SAP and ispro-NG
Even before approval, the MRO order is simulated via an interface to SAP in order to avoid errors: "It can happen, for example, that a posting is to be made to a cost center for which there is no longer any budget. Or that the cost center description in ispro does not match the one in SAP, the G/L account is not correct, and so on. Then the system reports an error, which the user has to take care of. Over time, this leads to the standardization of master data." Only when no contradiction arises from the order simulation and the necessary approvals are available is an order number created in SAP and the order status of the respective MRO items communicated to ispro via DIG.procure via a second interface: "In this process, the information on the items, which can be in split shopping carts in DIG.procure as described above depending on the user, catalog or free text, is returned to the original shopping cart in ispro." In the process, it can happen, for example, that a release is only available for the catalog items: "Therefore, each item is provided with the necessary information so that the user is informed in detail."
MRO procurement: Full information for all systems involved
By DIG.procure taking over the full information management in the process of MRO procurement (MRO purchasing), users can continue to work in the familiar ispro environment. In addition, the transfer of information from the current content catalog ensures that data (e.g. prices) is updated in ispro: "In this way, all information is continuously standardized, which is a significant advantage for us." In general, the standardization of master data adds value to procurement efficiency, as Froschauer emphasizes: "Whether it's payment or delivery terms, a change of name, or even changed contact persons at the supplier: Because all master data is replicated twice a day, we get the order out on the same day despite any contradiction. During the introduction of DIG.procure, we were also shown where, for example, freight costs, goods receipts or payment targets had been created differently." However, the free text masks also ensure more information quality in the order thanks to the predefined data structure.
E-procurement with hundreds of thousands of articles
In addition to the integration of ispro-NG, DIG.procure offers all departments full access to hundreds of thousands of articles: In addition to 4 internal catalogs (e.g., of the IT department), 11 others are available - partly as content catalogs, partly via OCI punchout, and web stores can also be searched for the most part via background search. "This allows for convenient price comparison." Since going live in July, about 120 users have been using the system. By the end of November, 2,530 orders with a volume of 5.5 million euros had been placed. With this performance, SPITZ is one of the top examples of high user acceptance: "Our colleagues appreciate the simplicity and clarity of the system. The reliable transfer of the shopping cart into our own system after a punchout is a huge advantage for us."
Orders via EDI or PDF to the supplier
As soon as the purchase orders have been approved and checked in SAP, they go to the supplier - either via EDI route or as a PDF in SPITZ design by mail. Incoming invoices that come via EDI are transferred to the VIM in SAP for clearing. A total of three posting options are available for goods receipts: These can either be made directly in DIG.procure and transferred from there to SAP or vice versa. Or directly in ispro, where this information finds its way into SAP via the eProcurement platform.
- simple and clear system
- reliable shopping cart transfer
- Order transmission via EDI or mail/PDF
- Clearing of incoming invoices
Orders via EDI or PDF to the supplier
As soon as the purchase orders have been approved and checked in SAP, they go to the supplier - either via EDI route or as a PDF in SPITZ design by mail. Incoming invoices that come via EDI are transferred to the VIM in SAP for clearing. A total of three posting options are available for goods receipts: These can either be made directly in DIG.procure and transferred from there to SAP or vice versa. Or directly in ispro, where this information finds its way into SAP via the eProcurement platform.
100% order fulfillment and minimal free text orders as a goal.
Froschauer sees two objectives for the future: "Firstly, we are currently checking with the financial accounting department which procurements still bypass the system and whether these can be mapped in the system. In any case, it is our wish to run almost 100% via e-procurement and thus reduce maverick buying to zero." The next step will then be to minimize the number of free-text orders: "To do this, we will make as many catalogs available as possible - DIG's various catalog types will also support us in this."
More about the integration of the ispro-NG maintenance software.
Learn more about DIG's multi-supplier catalog
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