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dc.contributor.authorMethi, Gauri
dc.contributor.authorTran, Linh
dc.date.accessioned2021-04-27T19:01:55Z
dc.date.available2021-04-27T19:01:55Z
dc.date.issued2019
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6786
dc.description.abstractThis report is the final result of the consultancy project of Vlerick Business School to Vandemootele NV. The report focuses on the digital transformation at Vandemoortele, including analysis of the reasons of this initiative, how did the project team convince the top management, their strategy to convince people for new way of working and so on. To arrive at the solutions for the above-mentioned questions a lot of literature research, desktop research, qualitative survey, and interviews with internal stakeholders were conducted by us. Vandemoortele (VDM) is a Belgian family owned business and has been in operations since 1899. The company is located in 12 different European countries and specializes in two main segments: Bakery products and Margarines, Culinary Oils, and Fats. In 2018, the company achieved revenue of €1.41 billion, of which more than 12% was expense for indirect goods. Ms. Karolien, our company supervisor, is the Purchasing Manager Indirect Spend initiated the digitalization of VDM’s procurement process in order to improve the company’s overall procurement practice, especially for indirect goods. This digital transformation at Vandemoortele is named Mercurius, the god of trade and commerce. Indeed, the project is in line with VDM’s overall strategy of applying more technology into its operation to become more competitive, especially in this always-changing world, following the 4.0 revolution. Other trends that are moving the procurement practice are global rebalancing between developed and developing economies, outsourcing non-core activities to functional experts, the need for agile change management, and new economic drivers (e.g. ESG factors). Mercurius is a project that aims to install, launch, and roll-out a user-friendly and efficient Source-to-Pay cloud-based system, which provides lean process flows, full integration, and maximum adoption by all end-users (both external and internal). The ultimate goal of this project is to maximize value creation for the whole Vandemoortele Group, and eventually its shareholders, through savings and procedures improvement. To make it successful, VDM partnered with SAP Ariba, which is one of the leading spend management service providers. Ariba was founded in 1996 and was acquired by SAP SE in 2012. Currently, the Ariba Network has more than 3.6 million users located in nearly 200 countries worldwide. Although there are different providers of an e-procurement platform in the market, VDM decided to go with SAP Ariba because of its ease of integration with VDM’s ERP system and full coverage of the whole process from sourcing to payment with focusing on both direct and indirect goods. Moreover, VDM also partners with Accenture to support the company in integration process. Recognizing important organizational change is necessary for VDM to become more competitive, but, at the same time, it is a challenging task to convince people to adapt the new system, especially for some project that has such big impact as Mercurius. VDM decided to use ADKAR model, a reputable and widely used change management model. ADKAR represents the five elements: Awareness, Desire, Knowledge, Ability and Reinforcement. It is believed that every organization should follow these elements in order to achieve a sustainable change. ADKAR is one of the most efficient models as it provides guidelines that focuses first on individual change and eventually achieves the organizational success. It is important to note the two key drives for the success of a new project is timely and informative communication of the change and provide effective training to employees to adopt the change. Therefore, VDM should focus on preparing a robust communication and training plan to reduce employee resistance. While preparing the communication and training plan for this project, a special focus was given to business requestors, central procurement, finance department and suppliers as these are the groups of people who are most affected by this change. Based on the results of the suppliers’ survey and our interviews with internal employees, we believe that there are a few challenges which are faced by Vandemoortele: the instability of Ariba’s upstream modules, three-party partnership (VDM, SAP Ariba, Accenture), personnel turnover, and suppliers’ resistance. In order to handle these challenges, Mercurius team should communicative effectively with both top-management and internal employees to deliver clear messages about SAP Ariba and the project and provide useful training sessions and continuous support to end-users.
dc.language.isoen
dc.titleImplementing digital transformation of procurement process
refterms.dateFOA2021-04-30T08:32:39Z
dc.source.numberofpages65
vlerick.knowledgedomainDigital Transformation
vlerick.supervisorSamii, Behzad
dc.identifier.vperid126207
vlerick.companynameVandemoortele NV
vlerick.companysupervisorDe Maen, Karolien
vlerick.programmeMFM
vlerick.typebusresprojectIn-Company Project


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