Wipro implemented a centralized SAP solution for a large global steel company to consolidate disparate business processes across locations. Key elements of the solution included introducing a Central Purchasing Organization to reduce vendor records by 60-66%, simplifying the reporting structure through reducing plants, and implementing materials planning and budget checks to reduce unnecessary indents by 50%. The centralized SAP system provided benefits like improved inventory management, funds management, costing transparency, and strengthened SOX compliance.

1. CENTRAL PURCHASING ORGANIZATION
( CPO ) Ritu Pal
D-42

2. AGENDA
• ABOUT WIPRO
• INDUSTRY LANDSCAPE
• THE OPPORTUNITY
• CLIENT BACKGROUND
• SOLUTION
• BUSINESS IMPACT

3. 3

4. Wipro Ltd (NYSE:WIT) is a global information technology, consulting and outsourcing company with
170,000+ workforce serving clients in 175+ cities across 6 continents. The company posted revenues of
$7.6 billion for the financial year ended Mar 31, 2015.
Wipro helps customers do business better by leveraging our industry-wide experience, deep technology
expertise, comprehensive portfolio of services and vertically aligned business model. Our 55+ dedicated
emerging technologies ‘Centers of Excellence’ enable us to harness the latest technology for delivering
business capability to our clients.
Wipro is globally recognized for its innovative approach towards delivering business value and its
commitment to sustainability. Wipro champions optimized utilization of natural resources, capital and
talent. Today we are a trusted partner of choice for global businesses looking to ‘differentiate at the front’
and ‘standardize at the core’ through technology interventions.
ABOUT WIPRO

5. 5
INDUSTRY LANDSCAPE
With increasingly global services , companies today are challenged with disparate business
processes and the lack of a centralized view of operations. This limits the visibility into an
organization and makes it harder to offer consolidated services to customers.
THE OPPORTUNITY
The client wanted to consolidate its business processes which were spread across multiple
locations, using SAP best practices. In addition, it wanted to integrate all the business units on a
single SAP instance. The client also wanted to reduce the amount of paperwork and ensure that
all checks and approvals via the SAP system had a high degree of transparency.

6. CLIENT BACKGROUND
The client is one of the biggest steel companies in the world with presence in over 60 countries. It is the
leader in all major global markets, including automotive, construction, household appliances and
packaging. The client is also a leader in R&D and technology and holds sizeable captive supplies of raw
materials and operates extensive distribution networks. Wipro was chosen as a strategic partner in
recognition of its capabilities and proven expertise in solution design, application development and
development in the SAP area.

7. SOLUTION
Wipro conducted a detailed study of the client processes, improved the existing processes and
also introduced various new processes related to procurement & supplier management, material
planning, sales, material costing, budget/funds management, controlling, business intelligence
reporting and project system areas. Key highlights of this engagement are listed below :
• Introduction of CENTRAL PURCHASING ORGANIZATION (CPO) across all companies
• Reduction in the number of plants in the new organization structure
• Usage of Material Requirements Planning to reduce the number of indents and paper work
• Usage of available budget checks in integration with procurement and consumption of both
OPEX and CAPEX materials

8. SOLUTION
• Introduction of Automatic Sales Invoicing
• Optimized usage of Microsoft Project Plan in integration with SAP projects systems
• Implementation of Profit Centre Accounting and creation of new reports in controlling area
• Usage of standard procurement in areas such as e-sourcing and e-procurement

9. Business Impact
Wipro successfully deployed a robust SAP solution for the client which resulted in the following
benefits:
• Significant reduction in duplication of vendor master records by 60-66% by implementing Wipro’s
proposal for the introduction of a Central Purchasing Organization (CPO)
• Simplified reporting structure within the organization resulting from a reduction in plants
• Better tracking of goods issues and receipts via SAP leading to an efficient and transparent
inventory management process
• 50% reduction in creation of unnecessary indents through a robust material planning& budget
check process

10. 10
Business Impact
• High degree of transparency in the bid process through E-sourcing. Buyers have no visibility into
vendor quotations before the bid end date
• Highly efficient material purchase process by introducing funds management
• Actual costing/ material ledger ensured calculation of actual price of producing materials
• Processes and user roles defined in the system as per SOX compliance requirements

11. THANK YOU