Optimising Indirect Spend and Tail-End Management
As one of the world's leading FMCG with a portfolio of reputable cosmetic brands, L'Oreal puts significant effort in growing its brand through sales and marketing activities. These departments were sourcing and managing over 85 vendors, which contributed to a growing tail-end spend.
Today, it has improved its tail-end spend management with ADAM's payment and purchase management system, as well as integrating ADAM with SAP v5 OCI.
L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety
> Set-up in Malaysia : 1995
> 20 brands available in Malaysia
> 800 employees
ADAM Payment Management Solutions
ADAM Purchase Management Solutions
Punchout Integration on ADAM : SAP v5 OCI
Results from Punchout Integration on ADAM : SAP v5 OCI
Zero Maintenance Cost
The catalogue is maintained and updated by ADAM at zero cost
ADAM’s catalogue eliminates free-form text input allowing for better data harmonisation
ADAM ensured users adhered to L'Oréal's purchasing policy
With ADAM being web-based, no complex installation is required
RM 210,000 Annual Savings
By using ADAM as a payment-on-behalf agent, the company generated 7% monthly savings compared to using other agencies
Reduced By 211 Vendors
Improved tail-end management - With Supplycart acting as a master vendor, the company has reduced its tail-end vendors
Reduced process by 60%
ADAM's purchasing services enabled the users to reduce the number of steps taken in purchasing products and services
Saved time of up to 4 days
ADAM successfully reduced the company's purchasing time from 7 days to 2-3 days
Over 190 Sub-categories matched
ADAM matched 192 subcategories to L’Oreal’s existing 15 categories according to UNSPC standards.
1 Month Integration Process
With L’Oreal’s cooperation, the integration process took place within 1 month - allowing quick accessibility and execution of solution
Khaw Mel Han
Assistant Purchasing Operations Manager at L'Oréal Malaysia Sdn Bhd
Hear From Our Client
L’Oreal implemented a regional internal Purchasing solution utilising SAP ARIBA which went live last September.
One of the Post-Go-live functionalities of ADAM was the punch-out catalogue: this allowed suppliers to integrate their catalogue to SAP. End users can now easily procure items while adhering to our internal approval processes and compliance requirements.
ADAM is currently our only supplier that is successful in integrating an end-to-end punch-out catalog in our testing environment.
Throughout the integration and testing period, the ADAM team were quick in setting up test data, meticulous in integrating ADAM with SAP and Ariba, and proactive in resolving technical challenges, whilst collaborating with our IT team in Shanghai.
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