1. In many companies, procurement has recently grown in strategic importance. The BMW
Group is no exception to this trend. The company realized that manual, labor-intensive
purchasing processes were no longer economically viable and that B2B eCommerce would
both streamline purchasing processes and reduce the overall costs of the goods and
services the company purchased. Essentially, the BMW Group believed that implementing
B2B eCommerce would reduce manual intervention in the purchase of standard items and
give procurement professionals more time for value-added activities, including sourcing
supplier relationship management.
In April 2000, the BMW Group decided to undertake a strategic project to completely
rationalize its technical purchases worldwide. Dubbed the MeRCUR (MMarketplace for
eelectronic PRROCCUURREMENT) technical purchasing project, the initiative automates all of the
BMW Group's indirect material purchasing throughout the world. "As one of the
undisputed technological leaders in the automotive market, the BMW Group sets extremely
high standards for our technical purchases," according to Robert Bauer, Head of Technical
Purchasing Strategies, Methods and Processes at the BMW Group. "We are not interested
in half measures. Our MeRCUR project does not just encompass a few sub-divisions; it will
be used to process all purchases for indirect materials."
NEW PROCUREMENT PROCESS
The BMW Group's goal was to implement an Internet-based system that allows individual
buyers to order indirect goods and services directly from their own PC, thereby lightening
the load on its purchasing departments. To achieve its objective, the company required an
easy-to-use, yet robust, browser-based system that did not require specialized knowledge
on the part of the end-user. They also needed a solution that supported access to
multimedia catalogs and incorporated a straightforward, yet powerful, search function. In
addition, a technology leader itself, the BMW Group required the solution to be based on
leading-edge marketplace technology.
BMW GROUP SELECTS ARIBA B2B COMMERCE PLATFORM
After a comprehensive analysis of the options available, BMW selected the Ariba B2B
Commerce Platform, Ariba Commerce Services Network (Ariba CSN), and Ariba Buyer to
provide a comprehensive Internet-based eProcurement solution. The Ariba solution allows
end-users to purchase indirect goods and services with little or no training; integrates with the
BMW Group's existing ERP systems; and provides frictionless access to its suppliers, as well
as a host of commerce services. "We chose Ariba because of the seamless integration of the
entire Ariba global platform, its proven performance, and its high level of reliability," says
Bauer.
Specifically, the BMW Group relies on the Ariba Buyer WalkUpTM User Interface to guide
less experienced end-users through the order process, while providing a "power-user"
“We chose Ariba because of the seamless integration of the entire Ariba
global platform, its proven performance, and its high level of reliability.”
– Robert Bauer, Head of Technical Purchasing Strategies, Methods and Processes, BMW Group
ariba@work
SOLUTION OVERVIEW
Business Profile
With more than 110,000 employees, the BMW Group is
one of the most popular quality vehicle manufacturers in
the world. BMW cars and motorcycles satisfy even the
most demanding customers — customers who appreciate
technical innovation.
Hardware and Software
Hardware: Sun
Database: Oracle
Networking: Cisco
Storage: EMC²
Application Server: WebLogic
Business Benefit
The BMW Group uses the Ariba® B2B Commerce
Platform™, including Ariba Buyer™ and the Ariba
Commerce Services Network™, to streamline its
procurement of indirect goods and services throughout
its worldwide operations. Ariba Buyer provides an easy-
to-use eProcurement solution that allows the BMW
Group to channel routine purchases of standard goods
and services to preferred suppliers, reducing costs and
leveraging purchasing professionals for other value-
added tasks. The Ariba Commerce Services Network
provides the BMW Group with access to supplier
catalogs, transaction routing, and other valuable
commerce services.