For many years South Africa-based brewer SABMiller had used an IT system to control the procurement of temporary staff which was “bolted on” rather than integrated to the main SAP procurement model with a host of unwanted consequences.
The lack of integration meant requests for temporary staff were uncontrolled and more costly than they should have been as well as labour intensive and costly to process.
Bringing in a new TEMS (Temporary Employment Management System) took a year and required the involvement of a cross-functional team.
The result was a reduction in costs, less unnecessary overtime, better use of management time and a more efficient process for vendors. As SAP said in its nomination, under the new system “requirements are met exactly, temporary labour is used appropriately, reasons are tracked and the manufacturing plan is optimised for cost”.
Judges’ comments: “This submission took a fresh approach to reducing costs without resorting to a direct approach of negotiation.”