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NTT DATA Services digitally transforms procurement

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NTT DATA Services, a global digital business and IT services leader, has adopted the full suite of intelligent spend management solutions from SAP, including SAP Ariba solutions for procurement, SAP Fieldglass solutions for contingent workforce management, and SAP Concur solutions for travel and expense management.

NTT DATA Services transformed its procurement and supplier management functions to drive $125 million in value. Managing more than $1 billion in spend with over 3,700 suppliers across more than 50 countries, NTT DATA digitized its procurement and therefore mitigated supply chain risks (especially important during COVID-19), improved supply chain and procurement efficiency, and reduced costs. 

The procurement solutions created an intelligent, dynamic, and strategic function for procuring direct and indirect materials, services and MRO (maintenance, repair, and operations) for NTT DATA Corp.'s largest division outside Japan. In light of COVID-19, NTT DATA plans to further enable its remote workforce to procure goods and services and enhance user experience and adoption with mobility. The company also plans to work with SAP and its own NTT DATA SAP practice to innovate around machine learning, AI, and robotics.

“We knew that utilizing world-class tools to create a modern procurement function with the help of SAP was going to enable our business to move forward and deliver clear value,” said Jeffrey R. Tramel, NTT DATA Services vice president of Global Procurement. “SAP’s support has been instrumental in helping us build and deploy a standardized set of processes and tools that enables us to reduce cost, enable revenue and mitigate supplier risk now and into the future.”

With clients operating in more than 50 countries around the world, NTT DATA runs a sophisticated, complex global services operation.  

The company embarked on a procurement transformation journey with the help of SAP and its own NTT DATA SAP practice, to centralize its procurement model covering end-to-end processes. That includes sourcing and supplier management, buying and payment, and supplier compliance and risk management.

SAP solutions have enabled NTT DATA to standardize purchasing processes and supplier management, enhance visibility into stakeholder priorities and supplier spend and performance, and maximize cost-saving opportunities through competitions and volume discounts. Furthermore, the solutions provide flexibility for regional and functional groups to manage daily operations while leveraging enterprise-wide best practices.

By automating and streamlining its end-to-end procurement operations, NTT DATA has achieved the following benefits across billions of dollars of spend:

  • Improved supplier selection and collaboration to maximize value and outcomes
  • Simplified procure-to-pay processes to increase visibility and operational control
  • Increased adoption with consumer-grade user experience
  • Improved cashflow management and increased compliance to vendor payment terms
  • Reduced costs aligned with corporate strategy and industry standards
  • Simplified integration of M&A activity
  • Movement of primary spend categories under management to mitigate company risk

For more information, visit www.sap.com and https://us.nttdata.com/en.

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