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British American Tobacco: Transforming Indirect Procurement

Customer Testimonial Video

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  • /demos/mmov/videos/transforming-indirect-procurement-british-tobacco-wells-06-ctv-01.mp4
  • Introduction
  • Why SAP?
  • Gaining Visibility
  • Enabling Change
  • Achieving Compliance
    • British American Tobacco is a truly global tobacco company, with brands in more than 180 markets. Discover how the organization is using SAP Supplier Relationship Management (SAP SRM) to enable change, achieve compliance, and gain greater visibility of spend.

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  • In BAT, we've got direct procurement, and we've got indirect.
  • Now direct procurement was a very mature part of what we do.
  • But then we looked as far as indirect and saw that basically there was
  • different levels of maturity throughout BAT.
  • And certainly for the spend that we saw,
  • we saw there was going to be just a great opportunity as far as what we could actually do.
  • There were two other contenders,
  • but then the decision was made as far as SRM was the technology to be used.
  • The integration efficiencies were there, but also what SRM actually is.
  • It's a holistic system that actually supports the total procurement process.
  • And it was certainly applicable as far as what we needed.
  • What we saw was budget holders around the world doing a good job but certainly not actually
  • doing the right things as far as what professional procurement is all about.
  • So we found counties in the world where there were say 200 million U.S. of
  • spend with no procurement department.
  • So we created a vision as far as what we could do to unlock
  • the indirect value of the company and use,
  • basically, processes, people, as well as technology,
  • to make this a sustainable change within BAT.
  • Now we've actually got SRM in place in a number of markets around the world.
  • Just with one click you can see the combination of what's in SRM
  • but also what's in that back-end system.
  • And for instance, I can go into a country now and do a vendor analysis
  • and see a report as far what spend has been done over any period in just literally one click.
  • Within the program started for BAT, initially it was based on the top 15 countries in the world.
  • But then as the program commenced, it was recognized
  • this is actually a bigger opportunity than we basically saw.
  • And it expanded out to 38 areas and 38 BAT markets.
  • So the scope as far as what we cover now is 74 countries.
  • Certainly with all of those countries it is a combination of what's needed the people aspects,
  • the process aspects, certainly the change management,
  • and for specific countries the technology.
  • The change management, basically, that is a key element, because as we recognize
  • with the indirect side of spend in our company,
  • it touches around 75% of the individuals in the company.
  • As far as the technology, the new capabilities that we see, certainly the
  • visibility of spend that we never have seen before is being one of the actual benefits,
  • and we certainly see that as a capability that we just couldn't achieve in the past.
  • We certainly see the benefit as far as compliance.
  • So when a sourcing activity is completed within an operating market
  • by having the technology embedded throughout the organization,
  • it gives you the ability to have the compliance but then see the compliance
  • as far as that sourcing activity is being used by the business.
  • And that's certainly one of the capabilities that we didn't have in the past.