BA saves £500,000 with Ariba streamlined procurement

British Airways (BA) is continuing to benefit from the roll-out of Ariba procurement software that has already saved the company more than £500,000.

British Airways (BA) is continuing to benefit from the roll-out of Ariba procurement software that has already saved the company more than £500,000.

The airline has rationalised its purchasing processes and organisation to make the savings across its supply chain. It has introduced more supplier collaboration and reducing running costs.

Ashley Dew, BA sourcing operations manager, said, “We wanted a system that could manage the entire sourcing process from start to finish.”

At the end of the 1990s, BA was spending more than £4bn a year with suppliers. Standardised processes embedded in the Ariba software now allow 9,000 BA staff to raise, register and manage orders for everything from planes to pens. And the procurement team has one central system to manage mandatory preferred supplier lists and events, like tenders and invoices.

Dew told Computer Weekly the software can filter information from different suppliers for a tender, for example, to analyse the value of each against common criteria for faster, more effective decision making.

“Senior managers have good visibility of budgetary information and buyers can see what’s going in the sourcing workflow, while we can spend more of our time on projects that will bring the biggest value,” he said.
“We’re still on our way to building up the supplier side [of the system] and want to get further use out of the auction functionality of the software and deal with more complex events so we can further speed up the process for buyers.”

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