Fujitsu, a global leader in digital transformation, has revolutionized its procurement function by implementing SAP Ariba Guided Buying. This strategic move has not only streamlined the company’s procurement processes but has also enabled Fujitsu to successfully channel spend towards its First Nations suppliers, demonstrating its commitment to building a more inclusive and diverse supply chain.
Prior to the implementation of SAP Ariba Guided Buying, Fujitsu’s procurement process was decentralized, resulting in limited visibility of its supply chain. This posed significant challenges when it came to channeling spend to their First Nations partners. The company recognized the need for a platform that would establish a single source of truth for all company spend and associated data, empowering employees and managers to make informed decisions while driving forward business strategies and initiatives with purpose.
Nicole Forrester, VP of Purpose, People and Culture at Fujitsu Asia Pacific, emphasizes the impact of the SAP solution, stating that it has provided a platform for Fujitsu to support its diverse supply chain strategy, ultimately enabling the increase of spend with First Nations suppliers.
Overcoming Procurement Challenges with SAP Ariba Guided Buying
To create a more inclusive and diverse supply chain, Fujitsu collaborated with the Indigenous Defence & Infrastructure Consortium (iDiC), an organization dedicated to developing sustainable Indigenous businesses across Australia. Together, they developed a First Nations Supplier portal, providing a dedicated buying channel for Fujitsu’s First Nations suppliers.
Adam Goodes, Chief Executive Officer of iDiC, highlights the significance of this implementation, noting that it represents a meaningful commitment to supporting First Nations people. He believes that Fujitsu’s new guided buying system will provide long-term support and opportunities for Indigenous businesses and communities, contributing to a more equitable future.
Collaboration and Innovation: The Key to Success
Since launching the First Nations Supplier portal, Fujitsu has witnessed remarkable results. The company has increased its spend with First Nations suppliers from $200,000 to an impressive $5.1 million over the last few years. Additionally, Fujitsu has also increased its spend with SME partners to $12.5 million per annum.
The implementation of SAP Ariba Guided Buying has not only benefited Fujitsu’s diverse supply chain but has also streamlined and automated the company’s procurement processes. By establishing a standardized hub for end-to-end procurement activities, Fujitsu has reduced new vendor processing time by over 65%, allowing staff to focus on more strategic tasks. Moreover, the creation of a central contract repository has led to over 2,000 active contract workspaces, with 30% of contracts operationalized for downstream procure to pay.
Angela Colantuono, President and Managing Director of SAP ANZ, recognizes the transformative potential of SAP Ariba for organizations striving for operational excellence and a more equitable, sustainable world. She acknowledges that while there is still work to be done to better support First Nations peoples in Australia and New Zealand, Fujitsu’s implementation of SAP Ariba demonstrates the power of technology in driving purposeful procurement and the meaningful impact it can have on the communities in which it operates.
The Future of Procurement at Fujitsu
Looking ahead, Fujitsu plans to continue leveraging SAP Ariba to create hubs for operational support and standardization of business processes, empowering teams across the Asia-Pacific region. This aligns with the company’s goal of creating a truly centralized and consolidated business that enables a diverse supply chain.
By embracing SAP Ariba Guided Buying, Fujitsu has not only transformed its procurement function but has also set a powerful example for other organizations seeking to make a positive impact on their communities. The company’s success story serves as a testament to the potential of technology in driving purposeful procurement and creating a more equitable and sustainable future for all.
