PROFESSIONAL SERVICES

NTT DATA Services Drives US$125M in Value with Agile Procurement Solutions from SAP

Headquartered in Plano, Texas, NTT DATA Services is a division of the Japan-based NTT DATA Corporation. NTT DATA serves clients in over 50 countries and generates US$4 billion in annual revenue. The company’s portfolio of digital business and technology solutions delivers insights and outcomes to the companies they serve – from manufacturing and insurance to life sciences and healthcare.

 

MAIN GOALS

  • Achieve nimble, scalable, and centralized procurement
  • Fully integrate SAP solutions for spend management
  • Support rapid global growth
  • Realize savings and operational efficiencies

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THE CHALLENGE

Building a global procurement team from the ground up

With the acquisition of Dell Services, NTT DATA needed to establish a core global procurement organization that could effectively manage a massive increase in supplier spend. The company embarked on a two-year mission to create a lean, agile team. They wanted to build, deploy, and manage standardized procurement processes and tools to maximize supplier value and enable more company revenue.

In fact, the procurement team had a specific target: to achieve $100 million in value capture over the two-year acquisition of Dell Services.

THE SOLUTION

Choosing a global procurement transformation with integrated SAP solutions

NTT DATA’s new procurement organization sought a center-led approach where its team of experts could capture efficiencies of centralized supplier and spend management while providing flexibility to different regions and business groups to stay involved in local purchasing. By choosing SAP® Ariba® solutions, with SAP Concur® solutions to support employee travel and expenses and SAP Fieldglass® solutions to provide for contingent labor needs, NTT DATA had an integrated procurement solution that could amplify the team’s expertise globally.

To ensure it met its savings goals, the procurement team created a three-dimensional spend cube identifying saving targets for both Dell Services and NTT DATA. The team also created a contract repository within SAP Ariba solutions using the SAP Signature Management application by DocuSign and deployed several components of the SAP ERP application to support better integration with existing employee, payment, and financial reporting systems.

THE RESULTS

Achieving procurement excellence that exceeds spend savings targets

NTT DATA’s successful implementation of SAP Ariba, SAP Concur, and SAP Fieldglass solutions has exceeded the company’s key procurement milestones.

With the solutions adopted since the project began three years ago, NTT DATA has driven $125 million in value. SAP Ariba solutions help NTT DATA manage over $1 billion in spend with over 3,700 suppliers across more than 50 countries. Additionally, SAP Fieldglass solutions help manage over 1,300 U.S.-based contingent workers and earn NTT DATA $3 million in annual rebates in contingent labor sourcing.

The SAP Ariba Collaborative Sourcing bundle also helped NTT DATA acquire critical personal protective equipment (PPE) for its consultants working in healthcare settings during the COVID-19 pandemic while saving the company over $1 million annually.

How the numbers add up for NTT Data Services

By automating and streamlining its end-to-end procurement operations with SAP, NTT DATA has achieved the following benefits across billions of dollars of spend:

  • $125 million+ in value achieved since implementation

  • $1 billion+ in spend and 3,700 suppliers managed

  • $3 million+ in annual rebates from contingent labor sourcing with SAP Fieldglass solutions

  • 99% of services spend, more than 1,200 suppliers, and 1,200 contracts migrated to SAP Ariba solutions

 

FUTURE OUTLOOK

Simplifying and automating procurement to support fast-changing work environments

In the midst of the COVID-19 global pandemic, over 90% of NTT DATA’s global workforce is working from home. And with the vast majority of NTT DATA’s spend in direct or indirect support of clients, servicing customers around the world has emerged as a new and urgent challenge.

NTT DATA plans to further enable its remote workforce by working with SAP and its own NTT DATA SAP practice to innovate around machine learning, artificial intelligence and robotics.

 “We are not going back to where we were before COVID-19,” says Tramel. “We will have more people off-site and will probably have a smaller office footprint. We are going to have to find new ways to contract with different suppliers globally to get the things we need for our clients.”

With a rapidly changing work environment, NTT DATA is exceeding spend savings targets and supporting at-home workers and remote clients all over the world with integrated spend management solutions from SAP.

NTT DATA Services succeed with a lean, global transformation of procurement

NTT DATA Services assembled a world-class procurement team with integrated solutions from SAP – including SAP Ariba, SAP Fieldglass and SAP Concur solutions – to create a scalable, nimble procurement operation.

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