sap innovation awards 2021 entry pitch deck

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Vedanta Aluminium and Power

Delivering Business Transformation and Enabling Intelligent Enterprise

SAP Innovation Awards 2021 Entry Pitch Deck

2PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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

http://www.vedantalimited.com/


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 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


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


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


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



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%



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


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




Real time Finance Cockpit Enabled Through S/4HANA



Transformed User Interface with Fiori applications and Procurement Analytics Through SAP Ariba


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


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


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


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.


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.


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

https://www.sap.com/documents/2020/12/de69ec55-c57d-0010-87a3-c30de2ffd8ff.html

sap innovation awards 2021 entry pitch deck

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