Optimization of indirect procurement

New e-catalog system at bofrost*

bofrost* AG, with more than 10,000 employees and revenues exceeding 1.2 billion euros, faced the challenge of optimizing its procurement process. With valantic’s support, a complete P2P process was implemented in the SAP standard, and a new e-catalog solution was introduced to enable around 70% of orders to be processed via the e-catalog.

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About the company

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bofrost* AG, a leading direct distributor of frozen food and ice cream, employs more than 10,000 people and generates a turnover of over 1.2 billion euros. The company was faced with the challenge of optimizing its procurement process and reducing manual effort. The aim was to map a complete P2P process (procure-to-pay) in the SAP standard and to introduce a new e-catalog solution in order to map around 70% of orders using the e-catalog.

The project

The challenge

The existing procurement process was characterized by a high level of manual and operational effort. This prevented strategic processing of issues and efficient use of resources. In addition, the existing catalog system was not being used optimally, which led to inefficiencies and delays. The company therefore needed a solution that would enable the P2P process to be fully integrated into SAP without media disruptions and significantly simplify the ordering process.

Consulting approach

In order to successfully master the challenge, the selection process for the e-catalog system was divided into three clearly structured phases:

bofrost consulting approach
  1. 1

    Definition of business transactions

    • Elicitation and documentation of the relevant business transactions and the associated processes for a comprehensive catalog of requirements.
    • Prioritization of the requirements, taking into account “K.O. criteria”.
    • Creation of a longlist of potential providers of e-catalog systems.
    • Requesting the requirements catalog via RFI or the provider websites to obtain initial information.
    • Narrowing down the providers to a shortlist for detailed examination.
  2. 2

    Detailed evaluation of suppliers

    • Creation of a sample shopping cart for carrying out a price comparison and as a basis for the request for proposal.
    • Creating and sending a Request for Proposal (RFP) to the providers on the shortlist, including the sample shopping cart.
    • Requesting test access for all providers in order to test the system functionalities in a practical manner.
    • Testing and evaluation of user-friendliness and maintenance options for key users.
    • Evaluation of the RFP results and selection of the most suitable provider.
  3. 3

    Negotiation and contract awarding

    • Conducting negotiations with providers regarding cost models and contract terms.
    • Definition of an implementation plan for the smooth introduction of the selected system and to ensure its long-term use.

Solution and customer benefits

By implementing the e-catalog system, the entire P2P process was mapped in the SAP standard. A key user concept ensures long-term use and maintenance. The standardization of the procurement process reduced manual queries and adjustments and led to a significant increase in efficiency. Operational expenditure in procurement was reduced by a double-digit percentage.

Conclusion

The new e-catalogue system enabled digital mapping of the P2P process, reduced operational expenditure in indirect procurement and increased efficiency by standardizing procurement processes.

Your Contact

Daniel Belka, Partner & Managing Director, valantic Division Smart Industries

Daniel Belka

Partner & Managing Director

valantic