CONSOL Energy Inc. is the largest producer of high-BTU bituminous coal in the United States. Based near Pittsburgh, Pennsylvania, CONSOL Energy has 17 coal-mining complexes in 6 states and produces coal, gas, and electricity that help fuel U.S. power generation.
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Consol Energy (Mining) Business Transformation Study - SAP Supplier Relationship Management
1. CONSOL ENERGY
STREAMLINING PROCUREMENT:
INTEGRATION REPLACES
CUSTOMIZATION
QUICK FACTS
Key Challenges Why SAP Was Selected
Industry
• Control maverick procurement • Integration with the SAP NetWeaver®
Mining
• Improve inventory and spend visibility Business Warehouse component for
Revenue across CONSOL reporting
US$4.7 billion • Reduce total procurement costs • User familiarity with the SAP® ERP
• Enable pricing updates and budget application
Employees checking • Leveraging of existing IT investments
8,000 • Enable strategic sourcing and collabora- • Easy integration with existing software
Headquarters tion with buyers, suppliers, and end users to enable procurement processes
Canonsburg, Pennsylvania • Reduce administrative costs by auto-
mating invoice processing and reporting
Web Site:
www.consolenergy.com
Implementation Best Practices Low Total Cost of Ownership
SAP® Solution and Services • Alignment of business-driven implemen- • Elimination of customized legacy system
SAP® Supplier Relationship tation project with strategic company • Leveraging of existing IT infrastructure
Management application objectives to increase value to the enterprise
• Strong executive steering team with • Lower training costs due to intuitive
Implementation Partner monthly scope, budget, and functionality interface for purchases
Internal CONSOL Energy resources meetings • Rapid implementation
supplemented by the SAP Consulting • Clear and frequent communications
organization with buyers, suppliers, and end users
• Delivery of initial training by SAP
Consulting, with ongoing support
CONSOL Energy Inc. is the provided internally
largest producer of high-BTU
bituminous coal in the United States. Financial and Strategic Benefits Operational Benefits
• Better-informed financial decisions and • US$25 million delivered value in material
Based near Pittsburgh, Pennsylvania, collaboration with suppliers resulting from and service spend*
CONSOL Energy has 17 coal-mining visibility of procurement and inventory • 40% reduction in paper invoices*
data • 25% reduction in invoice errors due
complexes in 6 states and produces
• Fact-based purchasing based on approved to e-procurement process (procure
coal, gas, and electricity that help fuel commodities from corporate-authorized to pay)
U.S. power generation. To control catalogs • 40% reduction in buyer-transacted
• Lower total procurement costs through purchase orders*
maverick spending and increase automation and improved controls • Fully electronic bidding process*
inventory visibility for reporting and • Reduction in spend by tying purchasing • Improved purchasing and material
to budget checking management
invoicing, the company replaced its • Greater spend visibility
customized legacy system with the
SAP® Supplier Relationship Manage-
ment (SAP SRM) application.
* Within 36 months of implementation
SAP Business Transformation Study
Mining