Elkem Partners with Ivalua and PwC to Enhance Supplier Management and ESG Practices

Elkem's Transformation Journey

Elkem, a leader in advanced silicon-based materials, has embarked on a significant transformation of its supplier management processes with the assistance of Ivalua and PwC. Established in 1904, Elkem's operations span 30 locations globally, employing over 7,200 individuals. It specializes in silicones, silicon products, and carbon solutions, and has been recognized on the Oslo Stock Exchange since 2018, underlining its dedication to Environmental, Social, and Governance (ESG) practices.

In 2024, Elkem reported impressive revenues of NOK 33 billion. However, the company faced challenges with a decentralized supplier management system that hindered effective stakeholder engagement and transparency in achieving ESG goals. The lack of consistency in supplier interactions and process fragmentation were significant issues that Elkem set out to address.

In response, Elkem recognized the need for a powerful solution that could centralize supplier data, streamline management processes, and enhance ESG performance. The procurement of approximately 2 million tonnes of raw materials each year necessitated clear visibility and collaboration with suppliers for effective risk management. As Deborah Ossenkamp, Elkem's Quality Manager for Raw Materials, asserts, "We cannot outsource responsibility for ESG. Our customers and stakeholders expect transparency and traceability."

To tackle these obstacles, Elkem adopted Ivalua’s Supplier Relationship and Performance Management (SRPM) solution. The integration of this system with two existing ERP platforms and a third-party risk assessment tool has revolutionized how Elkem manages its supplier lifecycle. With this system, Elkem now maintains a comprehensive database of several thousand suppliers. Ivalua not only acts as a central repository for supplier information but also improves data integrity by automatically detecting and preventing duplicate entries.

Moreover, the platform standardizes the supplier registration and qualification processes, ensuring consistency across operations. All relevant supplier documents can now be stored securely in a searchable format, making the audit process straightforward and efficient. Risk, performance, and compliance can be monitored through customizable questionnaires, aligning with Elkem's rigorous standards.

Elkem’s Procurement Manager, Emilie Genin, emphasizes the importance of this transformation, stating, "Ivalua was the best fit for Elkem, providing the flexibility we needed while streamlining our operations. Now, we have a unified view of our suppliers, promoting stronger collaboration and breaking down silos that previously existed."

The success of this initiative has not solely relied on the technology implemented but also on effective change management and active engagement with stakeholders. The open communication maintained with suppliers and internal users proved essential in demonstrating the impact and advantages of the Ivalua solution, leading to positive feedback, such as from a customer of Elkem Microsilica®, who remarked that "Ivalua is a first-class system."

Kristin Berrum from PwC elaborates on the transformative journey, highlighting that it involved synchronizing people, data, and processes across various functions. Ensuring that the organization was prepared to embrace these changes fully was crucial for success.

Henrik Nyberg, Sales Director for Northern Europe at Ivalua, shares his enthusiasm about the partnership, stating, "Elkem's journey showcases how companies with detailed supply chain requirements can leverage technology to unlock the maximum value from supplier management and collaboration. We are thrilled to partner with Elkem and PwC."

In conclusion, Elkem's collaboration with Ivalua and PwC exemplifies a forward-thinking approach to supplier management that not only addresses existing challenges but also paves the way for sustainable growth and enhanced ESG practices. Through the combination of innovative technology and comprehensive change management, Elkem is poised to meet the evolving demands of its customers and stakeholders effectively.