Customer Snapshot: Overview
>225 international brands managed
Al-Futtaim’s mission: to keep on growing. Despite owning hundreds of brands marketed through 200 companies in 35 countries, Al-Futtaim refuses to rest on its laurels. To continue growing its business, Al-Futtaim relies on the talents of its employees. The group is overcoming the challenge of keeping its employees up to date on new products, services and regulations by adopting a new philosophy: Run Simple. The same applies to Al-Futtaim Automotive Group’s vision of transforming its procurement process into a more strategic function and simplifying its procure-to-pay processes.
Line of Business
Human Resources, Sourcing and Procurement
Ariba Procure-to-Pay, Ariba Sourcing, SAP SuccessFactors Learning
Number of Employees
Customer Snapshot: History
Founded as a small trading company, Al-Futtaim has grown enormously through acquisitions to become a highly diversified conglomerate.
Customer Snapshot: Business Model
Serving Customers Across the Globe
The Al-Futtaim conglomerate owns more than 225 international brands in the automotive, retail, real estate, and financial services sectors. The group’s more than 200 companies operate in 35 countries across the Middle East, North Africa, and South East Asia. The Al-Futtaim Automotive Group alone is a multibillion-dollar organization, operating in 14 countries and selling more than 250,000 vehicles annually.
Customer Snapshot: Success Strategy
An Employee-Centered Approach
Attracting and retaining the best and brightest people lies at the heart of Al-Futtaim’s business strategy. To ensure its employees stay at the top of their game, the group leverages a blended learning strategy based on the 70-20-10 principle: 70% of learning and development happens on the job, 20% through coaching and mentoring, and 10% in the classroom. By optimizing its procurement operation, Al-Futtaim Automotive’s accounts payable, purchasing, and finance professionals no longer work as disconnected entities. Procurement experts now have the ability and tools to work as strategic business partners.
Employees regularly receive training on new product, service and regulation developments. Traditionally delivered in a classroom, it was becoming difficult to ensure consistent training across so many countries: employees were often away from their offices, for example visiting customers.
Al-Futtaim wanted to enable employees to meet training objectives more easily, and looked to virtual sessions to solve the challenges of low classroom attendance. Al-Futtaim Automotive needed to reshape its vendor relationships to gain better pricing, reduce costs and improve efficiency, evolve tactical purchasing functions into a strategic sourcing department and improve decision making by enhancing spend visibility organization-wide.
Streamlining Processes for a Smooth Ride
Al-Futtaim wanted a market-leading learning and talent management solution, and research led the group to SAP SuccessFactors. The need for a solution to simplify procure-to-pay processes, automate approvals and payments, and streamline reporting led Al-Futtaim Automotive to SAP Ariba.
Enter SAP: The SAP Experience
Streamlining the Engine that Drives a Multifaceted System
Taking a further step toward the group’s new Run Simple strategy, Al-Futtaim Automotive Group chose to streamline its procurement processes with solutions from SAP Ariba. “We implemented state-of-the-art technology to run our online auctions as a first step,” explains Asad Zaidi, Director, Procurement and Performance Improvement at Al-Futtaim Automotive Group. “This put our transformation program on the right track by delivering quick savings that got the attention of management.”
Our iGROW platform, based on SAP SuccessFactors Learning, allows employees to access learning and development at their fingertips. They can view, browse, enroll, discuss, and take part in learning for their professional development – and all this online. This is a major step forward for our staff.— Colin Gow, Sponsor, Al-Futtaim Group
Better Business: Benefits
By providing more ways to learn, take-up rates for employee development courses have risen enormously. Today, over 74% of the workforce use the iGROW learning system. “iGROW really does speak volumes for how vital employee development is to the growth and success of the company,” says John Harker, Group Director – Human Resources. It has never been simpler to learn on the job at Al-Futtaim, while the implementation of online catalogs, electronic invoicing, and mobile PO approval means that Al-Futtaim Automotive Group’s procure-to-pay solution makes processes simple.
Better Business: Run Simple
Simplification Leads to Increased Productivity
Al-Futtaim is on a journey with SAP, learning how integrated, cloud-based solutions can help to simplify business processes and dramatically increase productivity. Al-Futtaim plans to move the entire talent process to the cloud for the whole Al-Futtaim workforce.
The Sky’s the Limit With Cloud-Based Systems
Al-Futtaim Automotive Group has taken the next step in its SAP journey by deploying Ariba cloud-based procurement solutions to handle accounts payable and purchasing. With unified and simplified procurement processes in place, 97% of invoices are now paid without any manual intervention, while 62% of transactions are fast-tracked through catalogs. This has contributed to savings of US$16 million. Len Hunt, president of Al-Futtaim Automotive Group, comments: “With online catalogs, electronic invoicing, and mobile PO approval, our Ariba Procure-to-Pay solution makes processes simple. Now, our parent company looks to the automotive group as a leader in sourcing initiatives.”