Insight into Spend Management from over 80 Operations

“SPiDRE has offered us an easy to use, low cost solution to map our spend across multiple and diverse businesses.This has enabled accelerated access to spend intelligence and quick wins”– Hans Melotte, VP Worldwide CPO Group

Johnson & Johnson

• A global manufacturer of health care products and a provider of related services for the consumer, pharmaceutical, and medical devices and diagnostics markets.
• More than 250 operating companies employ 120,500 people in 57 countries
• SAP and Ariba Buyer & Category Management were selected in 2004 to support P2P processes and sourcing initiatives, to include more than 80 affiliates and operations throughout Europe.

Challenges

• Collect and consolidate the spend across all operatings groups and franchises in Europe to be able to identify and prioritize savings opportunities.
• Set up a procurement organization consisting of European category teams, local purchasing managers and country cluster managers who could keep costs under control and ensure companywide collaboration on all purchasing levels.
• Build a comprehensive sourcing agenda to achieve significant cost savings.

The Solution

• Local affiliate staff export data files from SAP and standardize their spend data with SPiDRE.
• Dimensional Insight manages compliance (on extraction and standardization) and consolidation of these data across all affiliates and operations.
• Dimensional Insight builds the resulting spend cube for J&J Europe.