SAP Procurement Transformation & Managed Services
Global Chemical Manufacturer
Business Context
The organization and its strategic environment
A $3.4B specialty chemical manufacturer with operations in 9 countries needed to centralize procurement operations. Maverick spending exceeded 28% of total procurement volume, and the company had no visibility into global spend categories.
Technology Landscape
Systems and infrastructure before DGT
SAP ECC with SAP MM, 4 regional procurement teams using different processes, no SAP Ariba, manual 3-way matching, and 12,000+ active vendors with no master data governance.
The Challenge
What the client was facing
Decentralized procurement across 4 regions with 28% maverick spending, manual 3-way matching causing 15-day average invoice processing, 12,000+ vendors with duplicate and ungoverned master data, and no global spend visibility.
The DGT Solution
How DGT addressed the challenge
DGT centralized procurement on SAP S/4HANA with Ariba integration, established a 45-person managed procurement center in Hyderabad, implemented automated 3-way matching, and deployed spend analytics with Insights360.
DGT Accelerators Used
Delivery Approach
How DGT executed the engagement
Phased regional rollout starting with the largest region (North America), followed by Europe, Asia, and Latin America over 9 months. Parallel BPO team ramp-up during Phase 1 to ensure seamless transition.
Governance Model
How the engagement was managed
Global procurement steering committee, regional change champions, DGT managed services SLA framework with monthly business reviews, and vendor master data governance council.
Timeline & Phases
The execution roadmap
Assessment & Design
4 weeksSpend analysis, process harmonization, BPO operating model design
North America Rollout
8 weeksSAP Ariba deployment, automated matching, BPO team onboarding
Europe Rollout
6 weeksRegional configuration, vendor migration, team training
Asia & LATAM Rollout
6 weeksFinal regional deployment, global spend dashboard
Steady State
OngoingManaged services, quarterly optimization, spend analytics
Risks Addressed
Key risks DGT mitigated during the engagement
Why DGT Won
What set DGT apart in this engagement
Outcome Metrics
Measurable before-and-after results
| Metric | Before | After DGT |
|---|---|---|
| Maverick Spending | 28% | 13.4% |
| Invoice Processing Time | 15 days | 4.8 days |
| Active Vendor Count | 12,000+ | 7,200 (40% consolidated) |
| Procurement Team Cost | $8.4M/yr | $4.1M/yr |
The Impact
Headline results delivered
"DGT delivered what our Big 4 consultants couldn't — a working procurement center that actually reduced costs while improving compliance. The Hyderabad team feels like an extension of our own."
Linda Hoffman
Chief Procurement Officer, Global Chemical Manufacturer