sap innovation awards 2021 entry pitch deck
TRANSCRIPT
PUBLIC
Vedanta Aluminium and Power
Delivering Business Transformation and Enabling Intelligent Enterprise
SAP Innovation Awards 2021 Entry Pitch Deck
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Company Information
Headquarters
Industry
Web site
Scope Complex Delhi, India
Primary Metal
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
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Challenge
Solution
Outcome
Vedanta Aluminium & Power
is well on our way to
becoming a future-ready
organization, facilitated by
adoption of digital
technologies at an
accelerated pace. Adopting
SAP S/4HANA is an
important step toward this
transformation that provides
real-time analytics for
enterprise-wide business
insights, thus aiding agile
monitoring and decision-
making.
Ajay Kapur, CEO, Vedanta
Aluminium & Power
Vedanta Aluminium and Power
Vedanta A&P deployed SAP’s Intelligent Enterprise Framework covering core, integration with shop-floor and digitization of supplier side
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.
This is one of the large and full scale SAP S/4HANA and SAP Ariba deployment in a metals industry.
▪ Improved go to market speed and agility
▪ 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)
▪ Improved experience and ease of doing business with suppliers through digital collaboration platform
▪ Higher spend under management through on-line negotiation tools and catalogue based buying (more benefits on slides 7 & 11)
▪ Complex IT structure and technology landscape restricting our responsiveness and agility to market situations
▪ In-consistent business processes across the sectors (Aluminium and Power) and lack of harmonized master data
▪ 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
and delayed vendor payments
The Journey to an Intelligent Enterprise with SAP
10%
Savings achieved
through use of
auction & catalogue
capabilities of SAP
Ariba
$ 31.5 M
Less time to
perform monthly
financial close,
including physical
inventory, with
automation
3 Days
Productivity
improvement for
users with access to
SAP solutions on
many devices
90%
Reduction in
invoice-related
issues thanks to the
automation of sales
processes
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Participating Partner Information
▪ 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
▪ SAP S/4 HANA implementation was done by PwC
▪ SAP Ariba implementation was done by SAP Ariba Consulting
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Business 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
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Project 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
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Project or Use Case Details
25 days
Additional KPIs impacted Through the Initiative
Savings due to
reduction in duplicates
in master data with
standardization of
processes
Range of discounts
achieved from vendors
through timely and early
payment to suppliers
Agility &
Responsiveness
Journey of Intelligent Enterprise
has made us more responsive to
changing customer needs and
improved our Go-to Market speed
VisibilityInto logistics cost and reduced turn
around time for one of the largest
smelting plants. Substantial
leakage and pilferage reduction.
Average reduction in
purchase requisition to
purchase order lead time
across materials &
services
$ 1.5 M
10% - 30%
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Project or Use Case Details
Quotes from Internal and External (Suppliers) Stakeholders
Our Intelligent Enterprise journey with SAP has
helped us transform our finance processes,
we now have standardized processes across
the entire business, no mean feat given the
complexity of our operations.
Our financial consolidation is now automated,
eliminating manual interventions leading to
significant improvements in productivity and
period-end closing.Sonam Donkar
Chief Financial Officer
Vedanta Aluminium and Power
After implementation of SAP Ariba platform, we are getting all
real time data regarding tenders and its very easy to upload all
the offer related documents, subsequently the process
become faster and smoother.
Pradipkumar Parmar
M/s. Siemens Limited
A key Supplier to Vedanta Aluminium & Power
SAP Ariba provided us dynamic, digital collaboration with our
suppliers across the world - strengthen our B2B network.
Partner Training & Change Management was key to our
successRohit Soni
Chief Commercial Officer
Vedanta Aluminium and Power
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Project or Use Case Details
Real time Finance Cockpit Enabled Through S/4HANA
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Project or Use Case Details
Transformed User Interface with Fiori applications and Procurement Analytics Through SAP Ariba
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Business or Social IT (optional) Human Empowerment
Benefits and Outcomes
▪ Removal of duplicates in master data
led to a saving of ~ $ 1.5M
▪ Accurate product costing through use
of standard cost estimate, which
eliminated manual cost calculation.
▪ Full finance cockpit with views on
production, sales, power generation
and consumption, inventory, costs, and
so on
▪ Automated calculation process for
base sales prices with reference to
the London Metal Exchange price led
to reduced manual work.
▪ 100% digital coverage of the
processes leading to simplification and
reduction in errors and data duplication
▪ Automated source to contract
process for better control and reduction
of 25 days from Purchase
Requisition to Purchase Order
▪ Enabled ease of business through
supplier self registration
▪ Transformed the way employees
use system. Use of SAP Fiori and
workflow for approval processes has
helped reduce approx. 1-2 days in
end to end purchase & HR processes
▪ Real time operational analytics for
day to day reporting
▪ Visibility on approved supplier,
negotiated prices, contracts &
supplier performances across
business
▪ Use of catalogs has reduced the
load of commercial team by 60%
and end users can procure the
material as required through
approved contracts.
▪ Modernized and Integrated IT
landscape
▪ The HANA based architecture
allows to integrate all other non
SAP systems and leverage HANA
platform as a data lake in future for
predictive and prescriptive analytics
▪ As part of the S/4HANA and SAP
Ariba project, we moved away from
multiple stand alone systems
▪ More simplified integration of SAP
Ariba with S/4HANA through use of
Cloud Integration Gateway
▪ Reduced total cost of ownership
by retiring multiple non-SAP systems
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Architecture
Access
Control
Master Data
Governance
Work Clearance
Management
FI, CO, SD, PM, PP, MM, LAM, QM, FCC
Sourcing
Catalogue
Network
CIG
ad
d o
n Cloud
Integration
Gateway
Ampla MES
SAP Manufacturing Integration
and Intelligence (MII)
SAP Process
Orchestration (PO)
SAP Analytical Dashboards
Data Source and Data Collection
Application and Integration Services
PLC DCS SCADA
Firewall
LIMS
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SAP® technologies used:
Date Number of users
Deployment status
Deployment
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
SAP MaxAttention™
SAP Value Assurance
SAP ActiveAttention™
SAP Model Company
SAP Advanced Deployment
Others:
X
SAP Innovation Services SAP Innovative Business Solutions
01.11.2018 7,800
Live
SAP product
Deployment status
(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
X
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The following advanced technologies were part of the project.
Advanced Technologies (1 of 2)
Technology or use case Product used* Contribution to project and how product used integrates with SAP products
1 Machine learning or artificial
intelligenceRobotic process automation, conversational AI,
AI-based knowledge graph
-
2 Intelligent data managementMulti-cloud, data virtualization and governance, smart
data tiering, persistent memory, data privacy
-
3 Advanced and augmented
analytics• Real-time and streaming analytics, spatial analytics
• Natural language query and generation
• AutoML to identify trends, patterns, outliers
• Predictive analytics (time series analysis and
forecasting, regression, classification)
SAP Lumira For analytics and real time dashboards for management and operational level
Vedanta A&P is currently working on innovation scenarios in production using the
IoT and predictive analytics capabilities.
4 Data and analytics solutions in
the cloud• Unified data and analytics cloud platforms by SAP
• Modern/self-service data to analytics
-
*If this is not an SAP product, explain how it integrates with SAP products.
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The following advanced technologies were part of the project.
Advanced Technologies (2 of 2)
Technology or use case Product used* Contribution to project and how product used integrates with SAP products
5 Advanced cloud integration• API economy (monetization and API marketplaces)
• AI-based or crowdsourced integration
• High throughput, low-latency digital integration hub
SAP Cloud Integration
Gateway
For integration of SAP Ariba with S/4HANA for end to end process of Source to Pay
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 -
*If this is not an SAP product, explain how it integrates with SAP products.
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Additional 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