Clients > Amgen
Amgen
Location: Thousand Oaks, CA
Web: http://www.amgen.com
October - November 2008
eProcurement Strategy Assessment
Background
Amgen currently employs two eProcurement systems covering worldwide indirect procurement. SAP/SRM 4.0 is used for all indirect procurement at Amgen’s European and Asia Pacific sites and for selected project related procurement activities in North America. Ariba 8.1 is used only at Amgen’s North American facilities for all remaining indirect procurement.
With upgrades imminent for both SAP SRM and Ariba Spend Management, Amgen wanted to look closely at eProcurement in both new platforms to determine the optimal future strategy and direction of eProcurement. As a result, The Shelby Group was engaged to perform a strategic software assessment which included an analysis of the financial viability of each software company, future product functionality, procurement best practices, software upgrade/implementation costs, and Return on Investment (ROI).
Challenge
The evaluation included the following scenarios for Amgen's future direction:
- Stay with the existing eProcurement infrastructure
- Upgrade to a global Ariba 9r1 platform
- Upgrade to a global SRM 5.0 platform
- Upgrade to a global SRM 7.0 platform
- Use a Hybrid approach including use of "Best-of-Breed" applications
The challenge in providing a true comparison between each option hinged on the fact that SRM 7.0 is scheduled for general release in Summer 2009. As a result, SRM 7.0 functionality and implementation concerns were based on documentation and discussions with SAP contacts familiar with the scheduled release.
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