Servica modernized purchase process with SAP Ariba Guided Buying solution

Servica modernized the buying experience for its customers by upgrading its previously used SAP SRM (supplier management) and SAP MDM (supplier catalogs) solutions to the cloud-based SAP Ariba Guided Buying solution. At the center of the modernization was their customers’ (owner companies) purchase portal, through which customers buy products from Servica. Update was inevitable as SAP SRM’s support was coming to an end, and a reliable and extensively tested system was wanted to replace it. The scalability of the system to meet Servica’s future needs, for example with the launch of the wellbeing services counties, was also essential.

Servica Oy is a Finnish in-house company that provides its owner-customers with food, property and cleaning services, equipment maintenance and assistive device maintenance services, as well as material and transport logistics services in the Northern Savonia region. Servica’s service production started at the beginning of 2012 and it currently employs about 1800 people.

Servica’s logistics services take care of their customers’ products cost-effectively until they reach their destination. Modern digitalized purchase solution and a monthly consolidated invoice, as well as site-specific deliveries, are included in Servica’s flexible service.

Servica’s strategy is to deliver excellent customer experiences and to ensure that Servica is able to both network more closely and grow with owner-customers in the future. In addition, the strategic goal is to make operations increasingly sustainable and transparent, as well as more efficient and productive. The project with Islet aimed to support these strategic goals.

Project scope and implemented solution

Based on SAP Ariba Guided Buying and SAP Business Network, the Selma store serves 30 ordering organizations and delivers to more than 4000 different shipping addresses. Through the Selma store, end users can order from more than 8000 items in the Servica catalogue, or from more than 150 other supplier catalogs (direct suppliers).

Selma store offers its more than 2000 users three ordering channels: catalog-based ordering (Servica’s range, as well as direct suppliers), form-based ordering of equipment and supplies, and free text ordering.

Selecting co-operation partner

As its partner for the implementation Servica selected Islet Group, with whom it has a history of well-functioning cooperation in the field of ERP and procurement development.

Servica’s mission is to provide its owners with high-quality and cost-effective services. Furthermore, in line with our strategy, the project aimed for better customer experience, efficiency, productivity, responsibility and transparency. We achieved the goals set for the project, and the cooperation with Islet worked very well. The implementation of the project was professional and the work was flexible in line with our needs. We are very pleased with the cooperation and the end result.

Marko Tuomela

Director of Logistics Services, Servica

Lessons learned and successes of the project

In addition to a successful outcome, the project also gave valuable lessons for similar projects in the future. For example, it is a good idea to start to evaluate, harmonize and clean master data as early as possible, even before starting the project. Succeeding on schedule also requires strong internal coordination and change management. Phasing the business go-live can reduce deployment risks and ensure sufficient capacity of internal resources, for example from the perspective of end-user training and support.

The project is a great example of how, even on a fast schedule, SAP Ariba Guided Buying solution can be harnessed in use with a wide range of catalog items. Cooperation with the core team at Servica was close and effective throughout the project, which contributed to an excellent end result.

Jenni Lonka

CBO – Sourcing & Spend Management, Islet Group

The project was carried out on the agreed timeline, even though its scope was extensive in relation to the implementation schedule. The budget also remained in line with the original estimate, and the cooperation between Servica and Islet was great and positive throughout the project.

Benefits of the solution

The solution resulted in significant benefits in several different areas. It can be used to ensure contract compliance more effectively, for example by minimizing maverick spend by tracking costs at a more accurate level in real time and taking full advantage of volume discounts. The solution is built in such a way that each user is shown only the information that is relevant and correct to them based on the role, as well as only the items and services available for them. Thus, the new purchasing portal enables digitized and efficient processes, and it guides the buyer throughout the process. This saves time, prevents mistakes and ensures contract compliance.

The solution has also contributed to smoother supplier cooperation and increased the level of purchase order automation. It enables close cooperation between the supplier and the customer, on a single platform, throughout the entire process, from catalog to purchase order creation and further to delivery confirmation.

Managing the process with an integrated solution, centrally in one place, ensures better real-time visibility into the organization’s total spend and purchases, and enables the identification and prioritization of key areas for improvement in the overall procurement process.

The procurement process improvement for public sector organizations is timely and important. Servica is a pioneer in providing modern, efficient, and transparent procurement services for its owner-customers. SAP Ariba’s solution is a future-proof, continuously evolving platform that will support Servica’s strategic goals well into the future.

Jenni Lonka

CBO – Sourcing & Spend Management, Islet Group