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Avebe brings a new level of collaboration and

accountability to their procurement process with Zycus

About the Company:


Avebe is a cooperative owned by potato farmers, and is the world's largest manufacturer of potato starch and
derivative products for use in food, animal feed, paper, construction, textiles and adhesives.
Avebi starch factories in the Netherlands, Germany and Sweden process about 3 million tons of potatoes every year.

Responding to Changing Regulations


The EU changed some important regulations that affected Avebe and many other manufacturing companies that added
value to agricultural products.
Avebe had already started a program that focused on sustainability, efficiency, innovation and cost savings however
focus on cost reductions and sustainability was now brought further into focus.
Avebe hired Marc De Kolf to modernize the procurement function and curb costs. Marc had more than a decade of
experience in procurement and sourcing but the task wasn't simple.

Challenges:
To ensure the organization's strategic goals were met, Marc needed to make changes however there was one big challenge ie
Data. Data would tell him what are the best opportunities for saving, however this was not easily available.
Procurement was a decentralized function and this meant information was not centrally available and was
unstructured. Every plant and department managed procurement independently and there was minimal transparency
and lack of granularity in their data and reporting.
Data Visibility: Data that was available was in silos. Some was found in excel sheets for buyers and some in their SAP
720 ERP system.
Availability of Data: Supplier level data was not available. Avebe as an organization did not know much about the
dealing with their various suppliers. The focus had always been on the product / service they supplied, not on the
entity.

Zycus by making use of analytics and AI is helping achieve our


vision to make procurement from a factory function to an
enterprise function
- Marc De Kolf

SOURCE-TO-PAY SUITE E-PROCUREMENT E-INVOICING SPEND ANALYSIS E-SOURCING CONTRACT MANAGEMENT SUPPLIER MANAGEMENT SAVINGS MANAGEMENT
The Objective:
For Avebe to drive further savings, they needed the following:
Enhance spend visibility and it had to be granular. They needed to be able to identify and categorize purchases
accurately and also map suppliers. Before they achieved these insight, it was much harder to identify savings
opportunities.
Primary objective was to categorize and classify spend data accurately.
Rationalize suppliers and focus not just on quality of products supplied but ensure sustainable supply with limited
risk to the enterprise
It would have been extremely difficult to curb spend without knowing in details, what did the company spend on, how
much and with which supplier.

Zycus Spend Analysis Deployment:


While the procurement function was centralized and policies were put in place Zycus & Avebe worked closely and at
present iAnalyze is being used in Netherlands & Sweden.
Over a period of time Zycus was able to categorize spend data for Avebe and provide them access with supplier level data
across various categories. Plus all of this is now available and accessible on the web.
Data was made accessible to category leaders and buyers and helped them to make informed purchase decisions.
Avebe implemented the solution across all 4 categories, enabling the roll out of the sourcing strategy From buying the
best product to selecting the best supplier.

The results:
The Zycus spend analysis solution provided Avebe's category buyers much more in-depth knowledge about their spend
categories and helped developing effective category strategies.
Relating spend to a product group instead of just suppliers, enabled Avebe to develop KPI's about 'supplier base quality'
and 'product group vulnerability'.

Complete Strategy implemented shows greater results and better savings


then across categories where only partial strategy is implemented

SOURCE-TO-PAY SUITE E-PROCUREMENT E-INVOICING SPEND ANALYSIS E-SOURCING CONTRACT MANAGEMENT SUPPLIER MANAGEMENT SAVINGS MANAGEMENT
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About Zycus
Zycus is a leading global provider of complete Source-to-Pay suite of procurement performance solutions. Our
comprehensive product portfolio includes applications for both the strategic and the operational aspects of
procurement - eProcurement, eInvoicing, Spend Analysis, eSourcing, Contract Management, Supplier
Management and Financial Savings Management. Our spirit of innovation and our passion to help procurement
create greater business impact are reflected among the hundreds of procurement solution deployments that
we have undertaken over the years. We are proud to have as our clients, some of the best-of-breed companies
across verticals like Manufacturing, Automotives, Banking and Finance, Oil and Gas, Food Processing,
Electronics, Telecommunications, Chemicals, Health and Pharma, Education and more.

2016 Zycus Inc. All rights reserved.

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