SAP Innovation Awards 2021 Entry Pitch Deck - Delivering Business Transformation and Enabling Intelligent Enterprise Vedanta Aluminium and Power
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SAP Innovation Awards 2021 Entry Pitch Deck Delivering Business Transformation and Enabling Intelligent Enterprise Vedanta Aluminium and Power PUBLIC
Company Information
Headquarters Scope Complex Delhi, India
Industry Primary Metal
Web site www.vedantalimited.com
▪ Vedanta Aluminium & Power is the largest aluminum producer in India producing more than half of India’s
aluminium with a capacity of 2.2 million tons per annum, or MTPA, and 40% market share in India’s aluminum
sector, exporting value-added products to about 35 countries globally
▪ Its aluminium finds critical applications in key industries such as aerospace, defence, electrical distribution,
transportation, building & construction etc. The company has grown significantly in recent years, and
continues to strive to meet consumers’ increasing demand for aluminum.
▪ It is also one of the largest captive power generators in India. Rapid business growth and changing market
conditions required agility and flexibility, which was getting hampered through existing complex technology
landscape
▪ Vedanta Aluminium and Power decided to begin its journey to an Intelligent Enterprise with the objective of
transforming internal processes along with external collaboration with suppliers
▪ It aimed to deliver large scale productivity and efficiency improvement with next generation process
automation and become a data driven organization by delivering real time business insights to the executive
management
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
The Journey to an Intelligent Enterprise with SAP
Vedanta Aluminium and Power
Challenge
▪ Complex IT structure and technology landscape restricting our responsiveness and agility to market situations
Vedanta Aluminium & Power ▪ In-consistent business processes across the sectors (Aluminium and Power) and lack of harmonized master data
is well on our way to ▪ Lack of system driven product costing processes leading to lack of insight into profitability parameters
• Process inefficiencies resulting in delays like higher turn around time for vendor onboarding, PR-PO, increased supplier risk
becoming a future-ready
and delayed vendor payments
organization, facilitated by
adoption of digital Solution
technologies at an Vedanta A&P deployed SAP’s Intelligent Enterprise Framework covering core, integration with shop-floor and digitization of supplier side
accelerated pace. Adopting of the business. It undertook a S/4HANA greenfield deployment (including additional modules like, MDG, FCC & more), SAP Ariba
for supplier onboarding, sourcing, catalogue, collaboration, & performance management and SAP MII for plant data.
SAP S/4HANA is an This is one of the large and full scale SAP S/4HANA and SAP Ariba deployment in a metals industry.
important step toward this
transformation that provides Outcome
real-time analytics for ▪ Improved go to market speed and agility
enterprise-wide business ▪ Integrated shop floor resulting in automated daily costs of production with accurate product costing and improved profitability insights
▪ Real time analytics for enterprise wide business insights (including view of manufacturing KPIs across maintenance and operations)
insights, thus aiding agile
▪ Improved experience and ease of doing business with suppliers through digital collaboration platform
monitoring and decision- ▪ Higher spend under management through on-line negotiation tools and catalogue based buying (more benefits on slides 7 & 11)
making.
Less time to
Savings achieved Reduction in Productivity
perform monthly
through use of invoice-related improvement for
Ajay Kapur, CEO, Vedanta
Aluminium & Power
$ 31.5 M auction & catalogue
capabilities of SAP 90% issues thanks to the
automation of sales 10% users with access to
SAP solutions on
many devices
3 Days financial close,
including physical
inventory, with
Ariba processes automation
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3Participating Partner Information
▪ SAP S/4 HANA implementation was done by PwC
▪ SAP Ariba implementation was done by SAP Ariba Consulting
▪ PwC’s wealth of experience in SAP S/4HANA deployments helped us put together the right
project and value governance for the SAP S/4HANA project.
▪ PwC identified key areas of value addition and helped us ensure that we remain on course of
value
▪ SAP Ariba Consulting deployed the commercial excellence project by implementing the
modules of Sourcing, Commerce Automation, Contract, Catalog and Supplier Lifecycle and
Performance Management
▪ PwC and SAP Ariba Consulting also worked collaboratively in getting the SAP S/4HANA and
Ariba Solutions deployed for delivering overall business outcomes
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4Business Challenges and Objectives
While Vedanta Aluminium and Power has been using SAP solutions for the last 12 years, owing to the business expansion and growth
as well as existing complexity, the current ERP was unable to keep pace with growing digitalization requirements. Some of the specific
business challenges were:
▪ Lack of standardization of processes restricted business agility and responsiveness to customers
▪ Delayed availability of analytics and reports (four to five days to produce performance reports)
▪ Lack of master data and consistent business processes
▪ Highly customized enterprise platform with significant gaps in end to end process coverage
▪ Lack of standardized process and template for sourcing activities (Low SAP SRM adoption)
▪ Long lead time to onboard new vendors
▪ Poor user experience for vendors with little online collaboration capabilities
▪ Longer PR to PO lead time due to manual activities (~ 45 – 60 days for buying of materials and services)
Key objectives of the intelligent enterprise journey were:
▪ Increased responsiveness to the changing market needs and customer requirements
▪ Harmonize business processes across aluminium and power segment
▪ 100% standardization and unification of master data across the aluminum and power sector.
▪ Improved business operations through real time analytics across profitability, sales, production and logistics
▪ Reduced manual intervention and automation of repetitive tasks
▪ Simplified period end financial closure process to reduce time to financial closure
▪ Mobile based activities and approvals through Fiori apps
▪ Pot wise maintenance notification, production confirmation and consumption booking through use of SAP MII
▪ End to end procurement process digitization which includes supplier onboarding & performance, sourcing, catalogue based
procurement, contract management, supplier collaboration by implementing SAP Ariba solutions
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5Project or Use Case Details
Vedanta Aluminium & Power deployed the first large and full scope re-implementation of SAP S/4HANA in the
aluminum and metals sector along with SAP Ariba. The SAP S/4HANA deployment and Ariba project were defined as
immediate priorities based on the intelligent enterprise roadmap prepared jointly with SAP.
The company used its new SAP solutions to streamline a wide variety of business processes, and today, it harnesses the
potential of new technologies such as real time analytics, mobile capabilities and digital platform for collaboration with
suppliers. As part of the project, Vedanta Aluminium & Power rolled out key innovations across its core functions. Additionally,
they used SAP for improving decision-making through the creation of dashboards, which provide:
▪ Management capabilities and a strategic overview of operations for the CEO and CFO
▪ A real-time view of manufacturing KPIs in maintenance and operational areas across the enterprise
▪ Cost-of-production analytics for smelting with daily and monthly views
Besides, analytics and dashboards, S/4HANA delivered a significant improvement in period end closure by automating the
month end financial close process, including the physical inventory process, which used to be the main reason for delay.
Simultaneously, through digitization in the commercial function with Ariba, the following business benefits have been achieved
▪ Process efficiency by eliminating manual paper based processes across PR to PO and enabling supplier self
registration
▪ Reduced PR to PO cycle time through category level demand consolidation and increased usage of catalog based
procurement
▪ Improved visibility, transparency and compliance through standardized system driven processes, use pf pre-defined
templates and use of system driven approach for supplier performance review
▪ Increased savings through auction enabled with SAP Ariba
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6Project or Use Case Details
Additional KPIs impacted Through the Initiative
Average reduction in
purchase requisition to
25 days purchase order lead time Journey of Intelligent Enterprise
across materials & Agility & has made us more responsive to
services changing customer needs and
Responsiveness improved our Go-to Market speed
Savings due to
reduction in duplicates
$ 1.5 M in master data with
standardization of
processes
Into logistics cost and reduced turn
around time for one of the largest
Range of discounts
achieved from vendors
Visibility smelting plants. Substantial
leakage and pilferage reduction.
10% - 30% through timely and early
payment to suppliers
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7Project or Use Case Details
Quotes from Internal and External (Suppliers) Stakeholders
Our Intelligent Enterprise journey with SAP has SAP Ariba provided us dynamic, digital collaboration with our
helped us transform our finance processes, suppliers across the world - strengthen our B2B network.
we now have standardized processes across
the entire business, no mean feat given the Partner Training & Change Management was key to our
complexity of our operations. success
Rohit Soni
Chief Commercial Officer
Our financial consolidation is now automated,
Vedanta Aluminium and Power
eliminating manual interventions leading to
significant improvements in productivity and
period-end closing.
Sonam Donkar After implementation of SAP Ariba platform, we are getting all
Chief Financial Officer real time data regarding tenders and its very easy to upload all
Vedanta Aluminium and Power the offer related documents, subsequently the process
become faster and smoother.
Pradipkumar Parmar
M/s. Siemens Limited
A key Supplier to Vedanta Aluminium & Power
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8Project or Use Case Details
Real time Finance Cockpit Enabled Through S/4HANA
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9Project or Use Case Details
Transformed User Interface with Fiori applications and Procurement Analytics Through SAP Ariba
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10Benefits and Outcomes
Business or Social IT (optional) Human Empowerment
▪ Removal of duplicates in master data ▪ Modernized and Integrated IT ▪ Transformed the way employees
led to a saving of ~ $ 1.5M landscape use system. Use of SAP Fiori and
▪ Accurate product costing through use workflow for approval processes has
of standard cost estimate, which ▪ The HANA based architecture helped reduce approx. 1-2 days in
eliminated manual cost calculation. allows to integrate all other non end to end purchase & HR processes
▪ Full finance cockpit with views on SAP systems and leverage HANA
production, sales, power generation platform as a data lake in future for ▪ Real time operational analytics for
and consumption, inventory, costs, and predictive and prescriptive analytics day to day reporting
so on
▪ Automated calculation process for ▪ As part of the S/4HANA and SAP ▪ Visibility on approved supplier,
base sales prices with reference to Ariba project, we moved away from negotiated prices, contracts &
the London Metal Exchange price led multiple stand alone systems supplier performances across
to reduced manual work. business
▪ 100% digital coverage of the
▪ More simplified integration of SAP
processes leading to simplification and
Ariba with S/4HANA through use of ▪ Use of catalogs has reduced the
reduction in errors and data duplication
Cloud Integration Gateway load of commercial team by 60%
▪ Automated source to contract
and end users can procure the
process for better control and reduction
▪ Reduced total cost of ownership material as required through
of 25 days from Purchase
by retiring multiple non-SAP systems approved contracts.
Requisition to Purchase Order
▪ Enabled ease of business through
supplier self registration
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11Architecture
Firewall
SAP Analytical Dashboards
Sourcing
Cloud
CIG add on
Integration
Gateway Catalogue
FI, CO, SD, PM, PP, MM, LAM, QM, FCC
Work Clearance Access Master Data Network
Management Control Governance
SAP Manufacturing Integration SAP Process
and Intelligence (MII) Orchestration (PO)
Application and Integration Services
Data Source and Data Collection
Ampla MES
PLC DCS LIMS SCADA
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12Deployment
Deployment status Live
Date 01.11.2018 Number of users 7,800
SAP® technologies used:
Deployment status
SAP product (live or proof of concept [POC]) Contribution to project
1 SAP S/4HANA Live ( 01.11.2018) End to end process automation
2 SAP ARIBA Live ( 02.05.2020) Digital collaboration platform with suppliers
3 SAP MII Live ( 01.10.2020) Shopfloor maintenance notification
4 MDG, LAM, GRC, FCC, WCM Live ( 01.11.2018) Supporting end to end requirements of specific processes
If you have used one or more of the services or support offerings from SAP Services and Support during the implementation or
deployment phase, please indicate which one(s) below with an X
X SAP MaxAttention™ SAP ActiveAttention™ SAP Advanced Deployment
SAP Value Assurance SAP Model Company Others:
SAP Innovation Services SAP Innovative Business Solutions
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13Advanced Technologies (1 of 2)
The following advanced technologies were part of the project.
Technology or use case Product used* Contribution to project and how product used integrates with SAP products
1 Machine learning or artificial -
intelligence
Robotic process automation, conversational AI,
AI-based knowledge graph
2 Intelligent data management -
Multi-cloud, data virtualization and governance, smart
data tiering, persistent memory, data privacy
3 Advanced and augmented SAP Lumira For analytics and real time dashboards for management and operational level
analytics
• Real-time and streaming analytics, spatial analytics
Vedanta A&P is currently working on innovation scenarios in production using the
• Natural language query and generation IoT and predictive analytics capabilities.
• AutoML to identify trends, patterns, outliers
• Predictive analytics (time series analysis and
forecasting, regression, classification)
4 Data and analytics solutions in -
the cloud
• Unified data and analytics cloud platforms by SAP
• Modern/self-service data to analytics
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *If this is not an SAP product, explain how it integrates with SAP products. 14Advanced Technologies (2 of 2)
The following advanced technologies were part of the project.
Technology or use case Product used* Contribution to project and how product used integrates with SAP products
5 Advanced cloud integration SAP Cloud Integration For integration of SAP Ariba with S/4HANA for end to end process of Source to Pay
• API economy (monetization and API marketplaces) Gateway
• AI-based or crowdsourced integration
• High throughput, low-latency digital integration hub
6 Industry cloud platform -
7 Blockchain -
8 Internet of Things - Vedanta A&P is currently working on innovation scenarios in production using the
IoT and predictive analytics capabilities.
9 3D printing -
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *If this is not an SAP product, explain how it integrates with SAP products. 15Additional Information
As part of the IT and digital strategy, it was decided to align the enterprise business platform to the current, emerging, and
future needs. This especially includes renewed business processes with real time analytics and mobility to enable data led
decision making. This also gave the company an opportunity to harmonize master data and support key operational and
financial processes as well as provide real time analytics, a mobile enabled analytics capability, and a next generation user
interface.
So, Vedanta decided to begin its journey into an intelligent enterprise with deployment of S/4HANA and Ariba as an enterprise
wide platform for achieving end to end business process digitalization with organization and with suppliers. Considering the
need of delivering tangible business outcome, Vedanta A&P decided to do a re-implementation, which involved a complete
business process re-design with user centric approach. Together the two projects provided a complete end to end
transformation for Vedanta Aluminum & Power.
S/4HANA is aligned with Vedanta’s new IT strategy and intelligent enterprise road map. As part of the road map, this will
enable stakeholder collaboration and innovation by reimagining business processes.
This foundation, provided by S/4HANA and Ariba, will continue to support the company as its needs change and the industry
evolves. The company is working on innovation scenarios in production by taking advantage of the IoT and predictive
analytics capabilities. Future plans include the SAP BW/4HANA, SuccessFactors, enterprise edition of SAP HANA, SAP
Customer Experience solutions, and innovation use cases (ex. Pot failure prediction, ALF3 consumption optimization),
along the road map for the Intelligent Enterprise from SAP.
In 2020, we also created a feature BTS for the S/4HANA deployment, which can be access here - Vedanta Aluminium &
Power: Setting a Foundation for Growth with Intelligent Technology
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16You can also read
