Sustainable Salmon Farming and the Future of Digital Procurement

Salmon Farming

Sustainable Salmon Farming and Digital Procurement Future

It’s not hyperbole to claim that the employees at Evonik Industries are dedicated to innovation, whether it’s through fuel-efficient tyre development, COVID-19 vaccine development at breakneck speed, or sustainable salmon farming. Innovation is essential to the expansion of Evonik Industries, one of Germany’s top speciality chemical companies.

“We strive to improve life on a daily basis. According to Thomas Meinel, senior vice president and head of indirect procurement at Evonik Industries, “We build products with features that make the end consumer product extremely exceptional. We are raising salmon using a more environmentally and climate-friendly method of feeding. By providing the lipid nanoparticles that transport these gene-based vaccinations against COVID-19, we assisted in the research and manufacturing of the first mRNA vaccines.

Salmon Farming

The basis of business resilience is digital.

I contacted Dr. Marko Lange, product manager for SAP Chemicals, for his opinions on industry modernization after hearing Meinel speak at the most recent SAP International Conference for Chemicals in Madrid, Spain.

He claimed that Evonik Industries stands out for its vision in business modernisation, bringing in SAP S/4HANA and other SAP solutions, in a world that has been upended by geopolitical crises and the resulting skyrocketing prices and shortages.

In these uncertain times, Dr. Lange remarked, “ERP is a hot topic again in the chemical sector because an ERP platform enables company resiliency across supply chains and operations.” Insights, simulations, and decision assistance are offered by a next-generation ERP system to assist you in understanding the disruptive effects on your organisation and in taking appropriate action. It provides granular, real-time information on what is happening and the effects, making it a true ally in running your business.

A Strategic Business Partner Is Procurement

Every division at Evonik Industries has undergone a digital transformation. Meinel discussed during the conference how the next phase of his company’s digital transformation was procurement.

“Procurement is becoming more and more a factor in make or purchase decisions to take advantage of bigger chances in a world that is changing quickly and has new business models,” said Meinel. “Sourcing managers are in charge of a company’s global strategy, therefore they still require traditional procurement abilities. They must, however, be able to operate remotely and collaborate well with groups of internal coworkers and outside vendors. Platforms built on the cloud offer a lot more opportunities for supplier scouting.

As employees take on additional duties, managing the procurement experience in a digitalized world calls for various skills from them. Meinel claimed that Evonik Industries’ sourcing managers were strategic relationship managers who continuously innovated, not just on aspects like pricing but also by working as a team to negotiate and build supplier relationships.

Data from connected procurement improves efficiency

Evonik Industries required precise audits in addition to real-time data visibility into contract management for everyday operations, much like companies in many industries that are significantly influenced by mergers and acquisitions.

According to Meinel, the goal of becoming digital is to create end-to-end process efficiency, thus everything we do must be connected. We can transform procurement by integrating data across systems as we produce, sign, store, and manage contracts that frequently move between departments and locations around the globe with SAP Ariba solutions and SAP Analytics Cloud.