2005 Supply & Demand Chain 100 Case Study - Alcoa/Ariba

Topics:
Logistics Planning,
Strategic Management Tools
Tags:
Alcoa Inc.,
Strategic Sourcing,
Sourcing,
Purchasing & Procurement,
Procurement,
Management,
Demand Chain,
Business Operations,
Ariba Inc.,
Strategy
Source:
Cygnus Business Media

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Overview: Alcoa is widely known as the world's largest producer of aluminum and aluminum products, with 350 operating locations in 41 countries, bringing revenue of $23.5 billion a year. However, staying at the head of the pack is not easy. Alcoa's sourcing and procurement team was challenged to decrease the overall spend profile on procured materials by initiating strategic sourcing initiatives, including online sourcing and low-cost country sourcing. To meet their goals, Alcoa's procurement team partnered with Ariba to aid in the global procurement of their major spends areas: aluminum, energy, raw materials and services. The intent was to enable a center-led organization to leverage and align sourcing operations globally and to use strategic sourcing techniques to gain efficiencies.

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