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SAP Business Suite for Spend Management
SAP Business Suite for Spend Management Mill Product Mining ll Product roducts an Mill Produc INTERNAL ONLY
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Mill Products & Mining Industry at a Glance
In the mill products industry, procurement faces substantial challenges due to complex supply chains, volatile raw material costs, and escalating sustainability demands. The industry's reliance on global sourcing for commodities like metals and packaging materials exposes it to risks such as delays, price fluctuations, and quality concerns. Historically, procurement strategies have been reactive, focusing on cost management rather than strategic planning. However, the digital transformation is revolutionizing procurement practices by providing real-time visibility, predictive analytics, and automation. Technologies like SAP Business Suite enhance supplier relationships and support sustainability objectives. Despite these advancements, manual processes and fragmented systems continue to impede efficiency. In the APAC region, embracing digital technologies, prioritizing sustainability, and building resilient supply chains are crucial for success. Adopting innovative solutions and fostering collaboration across supply chain partners are essential for addressing these challenges and maintaining competitiveness in a rapidly evolving market. By leveraging AI and cloud-based platforms, companies can optimize their supply chains, improve operational agility, and ensure long-term sustainability.
Opportunities
63%
63% of the C-Suite identified cost saving as procurement primary value driver, with 74% identified cost saving as the primary driver for the increasing use of external workforce.
71%
Whilst 71% identified geopolitical risks as a key area for procurement to focus on, only 24% were highly confident in procurements ability to manage risk strategies for different categories, and just 27% were highly confident in procurements ability to manage global risks.
46%
46% identified that AI was the top strategic priority for procurement, and 48% identified generative AI as the top technology trend to be implemented or piloted in the next 18
29%
29% identified that there had been significant improvement in productivity following AI
Source: Economist Impact study, The Resilient Edge – Procurement in an era of polycrisis
13 Days
Spend Under Management
Best in Class Metrics*
Sourcing Savings Rate
Sourcing Cycle Time
88.3%
16.7%
*SAP Customer Benchmarking program
Spend Management Solutions
Mining companies operate in capital-intensive environments where sourcing must be both efficient and compliant. The SAP Strategic Procurement package, powered by SAP Ariba Sourcing, enables companies to identify high-performing suppliers, negotiate favourable contract terms, and source materials and services at the right time and cost. Embedded advanced analytics ensure that sourcing decisions align with project timelines, operational demands, and regulatory constraints. Intelligent Procurement with SAP Joule Joule, SAP’s AI-powered digital assistant, enhances procurement workflows by enabling users to interact with the system using natural language. Procurement professionals can ask Joule to retrieve supplier bid details, check sourcing event statuses, send reminder emails to suppliers, or display the latest purchase requisitions—without switching applications. This real-time, conversational interface accelerates decision-making, reduces manual workload, and improves sourcing cycle efficiency. Streamlined Supplier Lifecycle Management With SAP Ariba Supplier Lifecycle and Performance (SLP), mining companies can standardize and streamline supplier onboarding, qualification, and segmentation. Suppliers are evaluated based on performance, compliance, and risk metrics, ensuring that only the most capable vendors are engaged. Joule supports this process by retrieving supplier registration statuses, invitation details, and alerting procurement teams about unresponsive or stalled onboarding, enabling timely follow-up. Enhanced Collaboration and Supplier Performance SAP Ariba fosters stronger supplier relationships through consistent communication, performance tracking, and automated feedback loops. Performance data is captured and evaluated across all engagements, allowing procurement leaders to make informed decisions and ensure continuity in supplier quality and delivery. Joule makes these insights instantly accessible, allowing for supplier evaluations and proactive performance discussions in real time. Full Visibility and Control Across the Procurement Lifecycle By integrating sourcing, supplier management, and analytics in a unified cloud solution, mining companies gain end-to-end visibility into procurement activities. Users can monitor spend, track sourcing progress, and evaluate contract adherence through real-time dashboards. With Joule, all this information is available on request—eliminating data silos and enabling strategic oversight.
Risk Management and Regulatory Compliance The mining industry faces stringent environmental, labor, and operational regulations. SAP Ariba includes tools for proactive risk management and compliance tracking, helping companies adhere to both internal policies and industry standards. Joule plays a role here by alerting users to pending approvals, non-compliant supplier behaviour, or potential sourcing disruptions—ensuring risks are addressed before they escalate. Driving Operational Efficiency and Cost Savings Through automated processes, AI-driven insights, and seamless supplier integration, SAP Strategic Procurement helps mining organizations reduce sourcing costs, shorten cycle times, and improve procurement agility. Joule further enhances this by processing approvals, retrieving sourcing rules or event timing, and surfacing relevant supplier data instantly—supporting a leaner, more strategic procurement function
Top Spend Categories
Travel Expense
Recurring Services
3%
5%
Operational Catalog Spend
10%
Tactical Sourcing
7%
60%
Direct Materials
15%
External Labour
Spend Management Solutions
In remote, hazardous environments like mills and mines, agility and precision in workforce deployment are essential. SAP Fieldglass enables organizations to efficiently source, manage, and track external labor and services, ensuring that the right personnel with the appropriate skills are deployed at the right time. This not only enhances operational productivity but also supports adherence to project schedules, even during fluctuations in labor demand or supply chain constraints. Enhanced Compliance and Risk Mitigation Mining companies face strict safety regulations and environmental standards. SAP Fieldglass mitigates compliance risks by automating critical workflows such as contractor vetting, onboarding, certification tracking, and safety training validation. This automation reduces the likelihood of non-compliance incidents, costly fines, and delays related to contractor readiness or credential expiration. Real-Time Cost Control and Workforce Visibility By offering real-time insight into workforce spend and performance, SAP Fieldglass empowers procurement and operations teams to better forecast costs, manage budgets, and optimize crew billing. This visibility is particularly crucial in operations characterized by high contractor turnover and variable labor needs, where financial oversights can lead to operational inefficiencies and margin erosion. Streamlined Services Procurement through Integration SAP Fieldglass integrates seamlessly with SAP S/4HANA and SAP Ariba, allowing organizations to manage services procurement end-to-end—from requisition and contracting to invoicing and performance tracking. This integration facilitates the smooth acquisition of specialized services such as drilling, equipment maintenance, blasting, or exploration surveys, minimizing procurement cycle times and administrative burdens. Scalable and Flexible Workforce Deployment Commodity cycles often drive rapid changes in production requirements across the mill and mining sector. SAP Fieldglass enables businesses to scale their external workforce up or down efficiently, maintaining operational agility without compromising on governance or visibility. Whether it's a ramp-up for a new project phase or a shutdown for maintenance, the system supports controlled,
AI-Powered Efficiency with Joule in SAP Fieldglass Joule, SAP’s generative AI assistant, adds a new layer of intelligence to workforce management within Fieldglass. It helps enhance productivity by enabling users to: Create Statements of Work (SOWs) using natural language prompts, drastically reducing the time spent on manual documentation. Analyze resumes to match candidates with role requirements quickly and accurately. Translate SOWs into multiple languages , facilitating global contractor collaboration and compliance across multilingual environments. These capabilities not only reduce manual tasks but also ensure faster onboarding, better talent matching, and improved global project execution—all crucial for the highly dynamic mill and mining sectors.
Top Spend Categories
Travel Expense
Recurring Services
3%
5%
Operational Catalog Spend
10%
Tactical Sourcing
7%
60%
Direct Materials
15%
External Labour
Spend Management Solutions
SAP Business Network for Supply Chain and SAP Business Network for Assets deliver unparalleled value to the mill and mining industry by enabling seamless collaboration across suppliers, contractors, and asset managers . These integrated networks provide real-time visibility into supply chain activities, allowing mining companies to track materials, manage inventory, and ensure timely deliveries. The ability to connect with a global network of suppliers and service providers helps to optimize procurement, reduce downtime, and streamline asset management. With advanced analytics, predictive maintenance capabilities, and automated workflows, companies can enhance operational efficiency, lower costs, and improve decision-making. These networks also empower firms to monitor and manage critical assets, ensuring maximum uptime, compliance, and optimal asset performance in an industry where operational continuity is vital.
Real-time supply chain visibility – Gain end-to-end transparency into inventory, deliveries, and supplier performance to reduce delays and improve forecasting.
Optimized procurement and sourcing – Access a global network of suppliers and contractors to streamline sourcing of raw materials, reduce costs, and improve procurement efficiency.
Seamless asset management – Monitor and manage critical mining assets to optimize performance, increase uptime, and extend asset life cycles.
Predictive maintenance – Leverage advanced analytics to predict equipment failures, schedule maintenance, and reduce unplanned downtime.
Enhanced collaboration – Connect with suppliers, contractors, and service providers to improve communication, align project timelines, and ensure smoother operations.
Manage services and material purchases for better maintenance processes
Top Spend Categories
Travel Expense
Recurring Services
3%
5%
Operational Catalog Spend
10%
Tactical Sourcing
7%
60%
Direct Materials
15%
External Labour
Customers are achieving outstanding outcomes
“The reliability and breadth of SAP Ariba solu- tions and SAP Business Network mean we never have to worry about our procurement platform.” Olivier Corteville Head of Procurement Operations and Shared Services, Nexans S.A.
At the forefront of the global shift to a more sustainable energy future
100% of indirect spend through SAP Business Network
“Just nine months after going live, we are purchasing almost all of our goods through SAP Business Network.” Kaharul Zaman S. Putra, Manager of Procurement and Business Support, PT Amman Mineral Nusa Tenggara (AMNT)
One of the largest copper and gold mining companies
95% Of documents managed through SAP Business Network
ThankYou
* Research documentation has been used from work commissioned by SAP Ariba and produced by Economist Impact
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