Kyungdong Navien (KD Navien), a leading company in the heating and cooling industry, has recently implemented SAP’s strategic purchasing cloud solution to streamline its procurement processes and support its global expansion plans.
SAP Korea, led by CEO Eunyoung Shin, played a crucial role in the successful implementation of the SAP Ariba Source-to-Contract Suite and SAP Business Network, enabling KD Navien to achieve digital transformation across its entire purchasing business. According to Eunyoung Shin, KD Navien’s decision to adopt SAP solutions was driven by several key factors. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)
Firstly, the gradual module scalability offered by SAP’s solutions aligns perfectly with KD Navien’s plans to expand its global business. As the company grows and enters new markets, the SAP Ariba Source-to-Contract Suite can be scaled up to accommodate the increasing complexity and volume of procurement activities.
Secondly, the SAP Business Network, which is the world’s largest B2B network, provides KD Navien with access to a vast global supply chain. This network spans 190 countries and handles over $5.3 trillion in annual commerce, enabling KD Navien to connect with suppliers worldwide and streamline its procurement processes.
Lastly, SAP’s solutions offer continuous upgrades and a user-friendly experience, ensuring that KD Navien can stay up-to-date with the latest procurement technologies and best practices. Additionally, as KD Navien plans to implement SAP S/4HANA in the future, the seamless integration and connectivity between SAP Ariba Source-to-Contract Suite, SAP Business Network, and SAP S/4HANA will provide a cohesive and efficient procurement ecosystem.
Kyungdong Navien Implements SAP Ariba Source-to-Contract Suite
KD Navien collaborated with Zen Consulting, a consulting company specializing in cloud purchasing solutions, to implement the SAP Ariba Source-to-Contract Suite. This suite provides comprehensive supplier lifecycle and performance management functions, enabling KD Navien to access and manage various supplier information within a single system. This centralized approach to supplier management facilitates strategic purchasing decisions and enhances overall procurement efficiency.
The SAP Ariba Source-to-Contract Suite also supports the creation of sourcing documents (RFx) in various formats, allowing Kyungdong Navien to request information, quotations, and prices for products and services from suppliers. This streamlined process increases the transparency of the quotation work and improves work efficiency, ultimately leading to better procurement outcomes.
Leveraging SAP Business Network for Advanced Strategic Purchasing
By integrating the SAP Business Network with the SAP Ariba Source-to-Contract Suite, KD Navien has unlocked advanced strategic purchasing capabilities. The SAP Business Network, being the world’s largest B2B network, connects KD Navien with a vast pool of suppliers across the globe. This access to a diverse range of suppliers enables KD Navien to identify the best sourcing opportunities and optimize its procurement strategies.
To further enhance the efficiency of the procurement process, KD Navien has organized the standard processes of its four corporations into predefined templates within the SAP Business Network. This templated approach allows for quick and easy quotation work, reducing the time and effort required to obtain quotes from suppliers.
Moreover, the digital strategic purchasing process facilitated by the SAP Business Network significantly improves contract information management. By unifying the process and ensuring compliance, KD Navien can strengthen its contract cycle management capabilities and gain greater visibility into procurement data. This enhanced visibility enables better decision-making and risk mitigation throughout the procurement lifecycle.
With SAP’s ongoing innovations, such as the integration of natural language generation AI co-pilot solution Joule into SAP Ariba, and strategic collaborations with organizations like Hana Bank and LG CNS, the future of procurement looks promising. As Kyungdong Navien continues to leverage SAP’s solutions to drive its global expansion and maintain its competitive edge, it sets an example for other companies seeking to transform their procurement processes and thrive in the global marketplace.
