Case Study

Sagemcom

Optimizing negotiations with suppliers by integrating Ivalua with SAP.

The Company


SAGEMCOM, leading manufacturer of communication terminals, deployed the e-sourcing solution Ivalua within a technical ecosystem relying on SAP, with the technical expertise of OJC Consulting. 


SAGEMCOM is highly reliant on innovation and technological developments with ever faster product renewals. At the center of the organization, the Purchasing department orchestrates every single production cycle, from the identification of needs in raw materials to the delivery of manufactured products. Initially, SAGEMCOM was managing all its production purchases through a custom-made application but the volume, complexity and the volatility of electronic components soon rendered
this unsuitable.


Key Facts 2017

Group Challenges


  Innovation and technological breakthroughs are vital for Sagemcom 

  The impacts on business from volatility, price or supply are critical in manufacturing

  A highly competitive international environment, where volumes and natures of production purchases are important

Solution Deployed


SAGEMCOM chose Ivalua for its functional capabilities as well as its product robustness. In just a few months, SAGEMCOM was using an e-sourcing solution, composed of several modules, including Supplier Management, Sourcing, Contract Management, Strategy & Analytics that has been proven by many industrial groups for the management of production purchases.


Integration


To meet SAGEMCOM technical requirements, OJC Consulting has developed interfaces to automatically export SAP data on a daily basis and automate the complete e-sourcing process. Any purchaser at SAGEMCOM is now able to source his own project in just a few clicks. 


Results



  100% production spend covered by Ivalua

>95% supplier contracts providers managed through Ivalua, representing 800 negotiations carried out over a 3-years period

  Instant application of terms and conditions negotiated with suppliers

  Key internal decision-making tool thanks to qualitative data

  Significant cost reduction in maintenance and IT outsourcing