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Etihad Airways drives procurement efficiency

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Etihad Airways’ procurement and supply management (P&SM) department has embarked on a transformation journey to support the airline’s future expansion by implementing SAP’s cloud-based Ariba solutions.
The sourcing and supplier information management solutions will deliver state-of-the-art technology enabling the airline to automate and streamline its source-to-contract processes, and efficiently integrate new suppliers.
The new processes and capabilities will give Etihad Airways clear visibility into its spend and contracts, and provide up-to-date information on all supplier activity. Other significant workflow improvements include a virtual tender board and contract approval procedures to speed up procurement decisions; automated purchase orders to reduce manual and paper-based activities; and access to global suppliers through the SAP Ariba portal.
Through a self-service portal, suppliers will be able to collaborate electronically and participate in online bidding for available opportunities at Etihad Airways and across its partner airlines. Invoices will be digitised to reduce errors and inefficiency, while improving controls and compliance.
Adil Al Mulla, Etihad Airways’ vice-president: procurement and supply management, says: “SAP Ariba will support Etihad Airways’ extraordinary growth by more effectively tapping into the global business network and standardising our processes for purchasing goods and services. It will offer enormous value to our suppliers and our guests, while allowing us to control spending, collaborate with suppliers at the right time, and minimise risks.
“Importantly, as we move towards a complete end-to-end automated procurement system, SAP Ariba will also open up great global opportunities to UAE-based suppliers, further supporting the Abu Dhabi economy and its 2030 vision.”
Robert Webb, Etihad Airways’ chief information and technology officer, comments: “This implementation is a perfect example of how our technology and innovation strategy is reaping benefits for everyone. We continue to share best practices and deliver innovative, cloud-based solutions that drive efficiencies and synergies across Etihad Airways, our partner airlines and suppliers across the globe, while bringing benefits to Abu Dhabi.”
The next phase of the implementation will introduce the contract management and supplier performance management solutions, allowing Etihad Airways to automate and standardise contracts for greater productivity and compliance, and evaluate supplier performance to improve supplier relationships and minimise supply risks.