Revolutionizing Sourcing in EPC Contracting with E-Sourcing and Oracle ERP Integration – Al-Arrab Contracting Company, Saudi Arabia

Background: Travel Food Services, a diverse business with operations spanning travel services, food outlets, and retail stores, faced challenges in managing their procurement processes efficiently. Manual and disjointed methods led to delays, inaccuracies, and increased operational costs. In a bid to enhance operational efficiency, reduce costs, and improve vendor relationships, the company has decided to implement a Safal’s comprehensive Procure-to-Pay (P2P) software solution.

Objective:

• Streamline the sourcing and procurement lifecycle for construction materials, equipment, and services.
• Improve collaboration with suppliers while ensuring transparency and compliance.
• Achieve operational efficiency through integration with Oracle ERP.

Implementation:

1. Comprehensive Needs Analysis:

• • Conducted a thorough analysis of Al-Arrab’s sourcing and procurement workflows, identifying pain points and areas for improvement.
  • Outlined specific objectives and key performance indicators (KPIs) for the E-Sourcing implementation.

2. E-Sourcing Software Selection and Customization:

• • Collaborated and aligned Safal for E-Sourcing software with the specific needs of EPC contracting.
  • Customized the software to support multiple sourcing events, including RFx, e-auctions, and supplier evaluations.

3. Oracle ERP Integration:

• • Integrated the E-Sourcing software seamlessly with Al-Arrab’s Oracle ERP system.
  • Ensured real-time data synchronization between sourcing events and the ERP, eliminating data silos and improving accuracy.

4. Supplier Collaboration Portal:

• • Introduced a supplier portal to enhance communication and engagement.
  • Enabled suppliers to submit bids, respond to RFx events, and access real-time information on sourcing opportunities.

5. Automated Approval Workflows:

• • Configured automated PR & PO integrated with Oracle ERP.
  • Streamlined the approval process, ensuring compliance with project budgets and financial regulations.

6. Real-Time Reporting and Analytics:

• • Implemented robust reporting features to provide stakeholders with real-time insights into sourcing activities.
  • Utilized analytics to track supplier performance, evaluate cost savings, and optimize sourcing strategies.

Results:

• Operational Efficiency: Achieved a 35% reduction in sourcing cycle times, improving overall operational efficiency and accelerating project timelines.
• Cost Savings: Identified cost-saving opportunities through competitive sourcing events, resulting in a 20% reduction in sourcing-related expenses.
• Enhanced Collaboration: Strengthened collaboration with suppliers through transparent communication and real-time information sharing.
• Compliance Assurance: Improved compliance with financial regulations and project budgets through automated approval workflows integrated with Oracle ERP.

Conclusion: The implementation of Safal’s E-Sourcing software integrated with Oracle ERP at Al-Arrab Contracting Company has been a transformative success. This case study highlights how technology integration can streamline sourcing processes, improve collaboration with suppliers, and drive significant cost savings. Al-Arrab now stands as a leader in leveraging cutting-edge solutions for procurement excellence in the competitive landscape of EPC contracting in the Kingdom of Saudi Arabia