Overview
The infrastructure and building materials industry is not only an asset-intensive sector but also relies strongly on the efficient daily procurement of materials at scale.
Martin Marietta operates in upstream and downstream building materials and products, serves residential and non-residential infrastructure projects. In 2023, Martin Marietta realized the need for an effective procurement and master data management (MDM) solution, which would help them bring consistency, integrity, and better margins across their portfolio spanning building aggregates, cement, RMX, asphalt and paving, and specialty chemicals businesses.
To lead this initiative, they partnered with Birlasoft and undertook a procurement and MDM transformation alongside JD Edwards ERP consolidation. With this engagement, the company achieved significant cost savings, enhanced its supplier partnerships, and mitigated operational risks.
The Challenge
#1. Delays in onboarding suppliers and issuing RFIs/RFQs
With a $7bn+ estate, Martin Marietta was managing a vast business estate without a modern MDM solution. This led to a fragmented supplier onboarding journey and caused delays, and operational teams struggled with multiple versions of product data, which led to delays in issuing RFIs and RFQs.
#2. Suboptimal and nonstandard sourcing processes
Martin Marietta lacked an effective procurement solution that could streamline its sourcing processes. Without such solutions, material-intensive businesses typically end up paying varying costs for the same materials and are exposed to supplier risks.
#3. Sourcing decisions made with incomplete data
Martin Marietta’s sourcing teams also lacked effective negotiation capabilities because they were unable to analyze supplier quotes and responses.
The Solution
To mitigate the above challenges, Martin Marietta engaged Birlasoft to transform its MDM, procurement, and contract workflows. This was done in the second phase of a larger four-phase transformation initiative.
Birlasoft achieved this by activating a Hybrid Cloud strategy with Oracle JDE, streamlining the Innovate-to-Commercialize and Source-to-Settle processes. Read the key facets of this solution below.
#1. Enhancing supplier onboarding and sourcing decisions with Oracle Product Hub
The first step was to create a single source of truth about product and materials data and streamline the supplier onboarding experience with the implementation of Oracle Product Hub. This enabled the client to reap the benefits of MDM in their procurement function.
#2. Procurement transformation with Oracle Sourcing Cloud
Oracle Sourcing Cloud, integrated with JD Edwards and Product Hub, enabled us to modernize the procurement function for all LOBs at Martin Marietta. Birlasoft built standard RFI and RFQ creation, management, and awarding workflows in Sourcing Cloud, and activated native workflow approval processes and communication tools to streamline sourcing execution and supplier collaboration.
#3. Enabling effective negotiation with suppliers with Oracle Sourcing Cloud RFx solution
The first step was to implement Oracle Product Hub and create a single source of truth about product and materials data, streamlining the supplier onboarding experience. This enabled the client to reap the benefits of MDM in their procurement function.
Birlasoft also employed a savings tracker program to track and report on savings achieved across sourcing activities at Martin Marietta.
Client Testimonial
“When we were looking for a modern fully integrated supply chain solution, that connects supplier sourcing, qualification, onboarding, all the way to procurement and saving tracker, Oracle Fusion SCM stood out. With us being an Oracle JD Edwards shop, this made sense. With Birlasoft helping us implement this solution, we now have a fully integrated hybrid cloud solution that helps to manage our suppliers and supply chain very efficiently.
Birlasoft has been a strategic partner in our cloud transformation journey, ensuring we are successful with our Oracle Fusion Cloud deployments. Seamless onboarding of suppliers and products, with the enrichment and de-duplication process that flows through workflow automatically, made things a lot easier.”
Birlasoft has been a strategic partner in our cloud transformation journey, ensuring we are successful with our Oracle Fusion Cloud deployments. Seamless onboarding of suppliers and products, with the enrichment and de-duplication process that flows through workflow automatically, made things a lot easier.”
Krishna Muthuperumal
Vice President – Enterprise Applications
Martin Marietta Materials
Martin Marietta Materials
The Impact
The deployment of Oracle Sourcing Cloud, along with the transformation of procurement workflows, delivered lasting benefits for the client.
#1. Cost savings with optimal sourcing decisions
The ability to analyze supplier quotes and make informed sourcing decisions with new capabilities led to cost savings at scale. These were monitored with the savings tracker program.
#2. Enhanced partnerships with suppliers
By leveraging the new communication capabilities of Oracle Sourcing Cloud and streamlining supplier onboarding with Product Hub, Martin Marietta was able to forge better relationships with its suppliers.
#3. Reduced operational risks and margin variance
Lastly, Oracle Sourcing Cloud enabled the sourcing teams to eliminate supplier risks by enabling them to assess the reliability and integrity of suppliers over time.
In addition, the MDM solution enriched product and parts definitions, reducing errors, speeding new item requests, and enhancing the responsiveness of sourcing operations. The sourcing transformation program has helped Martin Marietta enhance profitability and sourcing outcomes across all LOBs.
