SUNNYVALE, Calif.--(BUSINESS WIRE)--Buying and selling indirect goods and services is a challenge for businesses. But SHI International Corp., a multibillion-dollar global provider of technology products and services and the largest Minority and Women-Owned Business Enterprise (MWBE) in the United States, and AGCO, a leading global manufacturer of agricultural equipment, have found a way to simplify it. Taking a page from the consumer playbook, the trading partners have tapped into Ariba, an SAP Company and the world’s business commerce network, to connect and transact business more efficiently and effectively - and boost their performance and profits in the process. SHI will share its formula for success at Ariba LIVE, the business commerce event of the year, which will take place May 6-8 at the Gaylord National Resort and Conference Center in Washington, D.C. Registration for the event is open today at: www.aribalive.com
The Buyer’s Dilemma
With five locations across North America, multiple ERP systems running at each of them and no standard process in place for purchasing, AGCO often had difficulty understanding what it was buying and from whom. “As a result, we were missing opportunities for significant savings,” said Eric Deese, Purchasing Analyst, AGCO.
In addition, AGCO was still receiving invoices and sending payments manually, driving up costs and error rates.
The Seller’s Struggle
In an effort to streamline the purchasing process for its customers and enhance relationships and retention, SHI began connecting to them electronically. “This required setting up and maintaining multiple point-to-point relationships via EDI, fax, phone, email, print, mail, and stand-alone web catalogs, which was both costly and time-consuming,” said John D’Aquila, Applications Support Manager, SHI.
An Innovative Solution
To overcome their challenges, AGCO and SHI turned to Ariba. AGCO started using the Ariba® Network along with Ariba’s cloud-based applications for sourcing, contract management, spend analysis, supplier and invoice management to drive procurement across its operations. And SHI joined the Ariba Network to create a single, centralized interface through which it could connect with customers throughout Europe, Asia Pacific and North America.
Then the two companies came together. Leveraging the Ariba Network, SHI set up an efficient system for online ordering and e-invoicing specifically tailored to meet AGCO’s needs, complete with:
- Customized catalogs and a continually updated list of top-selling products to simplify the purchasing process for AGCO buyers
- Dedicated representatives to assist in ordering non-catalog items in compliance with corporate policies
- Automated matching of POs and invoices to streamline accounts payable process
- Direct access to SHI support team to drive adoption and ensure success
This, says Deese, enables AGCO to seamlessly transact with SHI, “which saves us significant time and money.” It also provides the company with greater visibility into and control over its spend, which has fueled more favorable contracts and pricing terms. And the automation of invoicing has led to reductions in processing time and faster payments.
For SHI, the no- or low-touch orders executed through Ariba also save time and resources, enabling SHI to focus on strategic initiatives that drive business value and revenue with AGCO and other customers. “Within 10 months after launch, we added 12 manufacturers to AGCO’s catalog and realized 100 percent revenue growth,” D’Aquila notes.
Online social networks and tools have transformed the consumer world by connecting people and information in new ways. And as AGCO and SHI illustrate, the same transformation is now happening in the business world. “Cloud-based networks and applications are ushering in a new model for business,” says Tim Minahan, SVP of Network Strategy, Ariba. “And innovative companies like AGCO and SHI are using them to collaborate in new ways that help drive unprecedented levels of productivity in their sales, procurement, invoice and payment processes.”
Nearly 1 million companies in 190 countries around the world are also using the Ariba Network to connect with a global network of partners anywhere, at any time from any application and transact over $450 billion in commerce on an annual basis. To hear more from AGCO and SHI about the value that it can deliver, visit: http://thenetworkedeconomy.com/are-you-partnering-up-with-your-business-partners-to-drive-e-commerce-efficiencies/, or register to attend Ariba LIVE at: www.aribalive.com
About SHI International Corp.
Founded in 1989, SHI International Corp. is a $4 billion+ global provider of technology products and services. Driven by the industry's most experienced and stable sales force and backed by software volume licensing experts, hardware procurement specialists, and certified IT services professionals, SHI delivers custom IT solutions to Corporate, Enterprise, Public Sector, and Academic customers. With over 1,900 employees worldwide, SHI is the largest Minority and Woman Owned Business Enterprise (MWBE) in the U.S. and is ranked 18th among Everything Channel's VAR 500 list of North American IT solution providers. For more information, visit http://www.shi.com.
About AGCO
AGCO, Your Agriculture Company, (NYSE: AGCO), is a global leader focused on the design, manufacture and distribution of agricultural machinery. AGCO supports more productive farming through a full line of tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage and protein production systems, as well as related replacement parts. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI ®, Massey Ferguson® and Valtra®. AGCO’s products are distributed globally through 3,100 independent dealers and distributors in more than 140 countries worldwide. Retail financing is available through AGCO Finance for qualified purchasers. Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2011, AGCO had net sales of $8.8 billion.
About Ariba, an SAP Company
Ariba is the world’s business commerce network. Ariba combines industry-leading cloud-based applications with the world's largest web-based trading community to help companies discover and collaborate with a global network of partners. Using the Ariba® Network, businesses of all sizes can connect to their trading partners anywhere, at any time from any application or device to buy, sell and manage their cash more efficiently and effectively than ever before. Companies around the world use the Ariba Network to simplify inter-enterprise commerce and enhance the results that they deliver. Join them at: www.ariba.com
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 232,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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