More performance, less risk

As an industrial service provider for the chemical and pharmaceutical industries and related process industries, Infraserv Höchst works with some 3,000 suppliers from more than 20 countries. The company procures construction, maintenance and services as well as capital goods and materials with an annual procurement volume of more than EUR 200 million.

These purchases are necessary to ensure that the company can reliably provide services to its own customers, many of whom are located in Industriepark Höchst.

More flexible use sought

Quality, price, creditworthiness, contractual compliance, environmental protection, innovativeness, safety and service are just some of the criteria for selecting and evaluating suitable suppliers. Particularly in the procurement of services, purchasing organizations should rely on effective, IT-supported evaluation processes for this purpose, since services are less tangible than products.

That's why Infraserv Höchst decided to enhance its existing solutions by implementing SAP Supplier Lifecycle Management (SLC).

"The goal was to reduce the number of interfaces while becoming more flexible in the use of the system"

explains Ralf Sommer, who is responsible for procurement controlling and processes in the central Procurement & Supply Management function at Infraserv Höchst and was the commercial manager of the SAP SLC implementation.

The industrial services company was supported by the SAP consulting firm 2Bits.

Implementation project according to plan

Infraserv Höchst chose to implement the SAP solution for strategic supplier management because it integrates best with its existing SAP ERP and SRM environment.

The implementation went according to plan in seven months and included design, implementation and Hypercare support, from go-live to the transition to regular operation. In the process, the SAP standard was supplemented by minor modification-free developments.

They enable the deletion of wrongly meant or incorrect supplier evaluations and the subsequent addition of evaluators. In the "Negotiation Sheet" extension, all important supplier information is summarized on one page, which buyers benefit from during negotiation talks, for example.

The consulting firm 2Bits, which specializes in SAP purchasing solutions, contributed to the project's success. In addition, Simon Dengler from Infraserv's Central Functions and Logistics competence team, who was the IT lead for the SLC implementation:

"The 2Bits consultants stood out for their understanding of commercial processes and extensive experience with SAP-based procurement solutions."

High response rate from departments

SAP SLC has optimized Infraserv Höchst's supplier qualification process. For example, after registration, every potential supplier must submit a self-disclosure if required, for example, on acceptance of Infraserv's Code of Conduct.

If the supplier passes the qualification, further information may follow, such as a credit check. Strategic suppliers and suppliers with high risk potential are regularly assessed with SLC on the basis of individual questionnaires for the specialist departments and purchasing department.

The simple questionnaire technique and high user-friendliness are key advantages of the application. Efficient process handling with SAP SLC enables Infraserv to manage an increasing number of suppliers more effectively and minimize risks.

"Of course, customers also benefit from this"

says Ralf Sommer.

"By systematically selecting and qualifying suppliers, we can best tailor our services to their individual requirements."