PTT Chemical Standardizes Procurement with Ariba
Thai petrochemical manufacturer leverages Ariba solutions to streamline processes and drive savings across organization
SUNNYVALE, Calif., August 31, 2011 – Within many organizations, procurement is still a largely manual process. But not at PTT Chemical Public Company Ltd., a fully integrated chemical manufacturer whose core products include ethylene, propylene, and polymer resins. That's because the company has implemented solutions from Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, to take things online and fuel a competitive, best-in-class process for sourcing goods and services that delivers savings and efficiencies across its operations.
"Procurement tends to be a time and effort-intensive process, especially for PTT Chemical where we structured Procurement as a Shared-Service unit. We procured all goods and services upon requisitions from all companies under our Group" said Khun Wilawan Songjaroen, Vice President of Procurement and Contract Management, PTT Chemical. "But we realized that by introducing e-procurement, we could standardize our processes, minimize processing time, reduce transaction costs and improve contract compliance."
And to do it, PTT Chemical has implemented a range of Ariba solutions, including: Ariba® Sourcing™, Ariba Contract Management™ and Ariba Buyer™. With Ariba's technology in place, PTT Chemical has enabled a standard online sourcing process through which it can more efficiently negotiate best-value agreements and a catalog-based procurement process through which it can drive compliance with them.
In doing so, PTT Chemical has realized the following business benefits:
A more than 50 percent reduction in purchase request to purchase order cycle time
Significant cost reduction in cost per transaction
Improved process standardization and contract compliance
"Through Ariba's technology, we are able to drive more spend through a best practice sourcing process, reach more vendors and create more competition," Khun Wilawan said. The company also has greater visibility into its spend and contracts across categories, which Khun Wilawan says allows it to identify opportunities for savings and adjust its procurement strategy as necessary to drive them to the bottom line.
"By implementing Ariba solutions, PTT Chemical is working towards its objectives of standardizing procurement practices and bringing more spend under management," said Sudhir Grover, Regional Group Director, Southeast Asia, Ariba.
About PTT Chemical Public Company Limited
PTT Chemical Public Company Limited (PTT Chemical) is a fully integrated chemical manufacturer. Its core products–ethylene,propylene, and Polymer Resin –are supplemented by a number of commercially valuable by-products that figure in the production of a wide range of downstream petrochemical products. PTT Chemical is set to play a vital role in spurring Thailand’s industrial and economic growth and in raising the quality of Thai people’s lives.
About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology with the world's largest web-based trading community to help companies discover, connect and collaborate with a global network of partners – all in a cloud-based environment. Using the Ariba®
Commerce Cloud, businesses of all sizes can buy, sell and manage cash more efficiently and effectively. Over #application.suppliers_count#
around the globe use the Ariba Commerce Cloud to simplify inter-enterprise commerce and enhance results. Why not join them? To get on the path to Better Commerce visit: www.ariba.com/commercecloud/
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