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Case Study Salzgitter Flachstahl

Digitized central purchasing – Goodbye to paper and faxes in the tendering process

Bild zu FUTURA Case Study Salzgitter Flachstahl

The purchases of Salzgitter Stahl GmbH range from coffee cups to spare parts and from services to a blast furnace. The volume sums up to approximately 185,000 items with a value of about EUR 1.8 billion a year. The steel producer has chosen the eSourcing platform myFUTURA to assist its employees and to electronically optimize the extensive bidding process.

“Bearing in mind a certain process pressure, we took our decision in favour of the eSourcing platform myFUTURA as a tendering system – to cope with the growing demands on purchasing and the challenges that result from it,” says Axel Kresse, project manager for the implementation of myFutura at Salzgitter Flachstahl, about the beginnings. Kresse: “We had to find an instrument to facilitate the procurement process”. The requirement was to implement an IT solution capable of tying in with the existing processes and integrate them within the SAP environment.

Spare parts according to drawings

At Salzgitter, steel is produced in five shifts all around the clock. A potential disturbance would cost the company a lot of money. “To minimize possible downtime, the crucial system components are on stock as spare parts,” says Kresse. Therefore, requirements on procurement at the sixth largest European steel producer are high; it is always important to obtain many different spare parts for the machinery. The most expensive option is to buy it without competition from the manufacturer of the equipment. But whoever has the rights to the drawings, which Salzgitter usually has itself, can produce the necessary spare parts individually. Tenders for the spare parts are published via FUTURA – a very complex process that is partially handled electronically. Kresse gives an outline of the implementation steps: “In the final stage of the roll-out, the drawing archive was combined with the R/3 System and myFUTURA in order to automatically transfer documents related to a specific call for tender.”

Complete SAP process integration

However, myFUTURA not only masters the tendering of materials and spare parts. “We started with materials and created an interface between myFUTURA and the R / 3 system”, says the project manager. The interface works also in the opposite direction. Since myFutura serves to put out for tender complex services at Salzgitter Flachstahl, the project manager illustrates another ‘highlight’. “We are currently tendering the third major service or rather construction work via myFUTURA, a feature that not every system can handle with such an ease.”

The SAP system R/3 alone creates a classic piece of paper in the tendering process. This is sent by mail or faxed and what comes back must again be entered into the system. This old-fashioned process has been completely redesigned with the help of myFUTURA®.

At Salzgitter Flachstahl the ERP-system SAP R/3 and the e-sourcing platform myFUTURA work hand in hand by the way of an integrated interface. For the steel producer, it is crucial that all data input from the e-sourcing platform can be transferred without problems into the business processes of the SAP R/3. The steel producer will go on tendering primarily via its R/3 system, but will also partially distribute tenders online via myFUTURA. Companies receive an invitation tender via e-mail. The login section is accessed by way of a link. This enables them to view and process the current tender in a streamlined process.

Highlights

  • Process optimation with SAP

    Acceleration of the SAP-tendering process due to a supplier connection via myFUTURA®

  • Transparency in the tendering process

    Well-founded evaluation in automatically generated price comparison lists

  • Shorter processing time, higher quality

    Simple tendering of spare parts due to a connection between the drawing archive and myFUTURA®

  • Audit proof documentation in SAP

    Bids for material and services in the GAEB format are automatically created in SAP via interface

Project key data
  • Task SAP-integrated backup in all phases of the efficient processing of the sourcing process
  • Solution E-sourcing platform myFUTURA® as a tendering system
  • Implementation Roll out 2005 / Implementation period about 6 months
  • Type of trade Steel industry
  • About Salzgitter Flachstahl Premium supplier to several major car manufacturers and cost leader for pig iron and crude steel in Europe / 100% subsidiary of Salzgitter AG with approx. 4,500 employees / integrated steel works with three state-of-the-art furnaces / full vertical integration, starting with the production of pig iron through to rolled products

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