he first two orders were placed by the company’s Base Chemicals business unit at a special event held at
Akzo Nobel’s
headquarters in Arnhem, the
Netherlands. The event marked
an achievement for Base Chemicals, which has led the way in the company’s drive to devise a suitable e-procurement
solution.
”Our original decision to enter this new area of e-procurement made sheer business logic and that has been the case all the way through the development of the initiative,” explained
René Scheffers, General Manager Base Chemicals. “Much the better that our initiative is also of high value to Akzo Nobel as a whole.”
To help launch its common e-procurement
solution, known as “BUY-CEPS” (Business Units’ Common E-Procurement System), Akzo Nobel has connected to BT MarketSite, the first
site of its kind in Europe. This public online marketplace, based in the UK, connects buyers with suppliers to enable the complete
automation of the ordering process for indirect goods
and
services, such as computer hardware and
software, stationery and
maintenance.
The site has connections with the worldwide trading web and Base Chemicals aims to be ordering from 50 suppliers within six months. A target of placing 50,000 orders annually has
also been set, which will represent 50 per cent of the business unit’s yearly
transactions. Efficiency savings using the new system for the planned 50,000 orders alone have been
estimated at EUR 2-3 million.
“This is just the first step to a global Akzo Nobel-wide e-procurement system,” said Ronald Baars, the company’s Director of Purchasing who coordinates the BUY-CEPS initiative.
“Together with the business units, we are creating a common solution for the whole company, enabling us to participate efficiently, and stay competitive, in future market dynamics.”
At today’s launch event, attended by representatives from A.D. Little, British Telecom, implementation partner Atos Origin and e-commerce solution providers SAP and Commerce One,
Paul Brons, the Akzo Nobel Board Member whose responsibilities include Purchasing and IT, noted that the shockwaves reverberating through the world of e-Business have left Akzo
Nobel unruffled.
“We have tried to approach e-Business as a help rather than a hype,” he said. “First we created e-Point, a virtual meeting place on our Intranet for Akzo Nobel staff to share practical
ideas and experiences on e-Business applications. “Now we see BUY-CEPS becoming just one excellent example of this sharing of know-how and technologies in Akzo Nobel’s
diversified business
environment. And, of course, we will progress further.”