Oracle Customer Success — Kakao Corp.

Kakao Corp.

Kakao Cuts 30% Lead Time to Source Suppliers with Oracle ERP Cloud

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By standardizing our procurement processes with Oracle Sourcing Cloud, we provided fairer bidding opportunities and shortened the lead time for sourcing suppliers by up to 30%. The solution also enabled us to improve supplier quality and achieve cost efficiency.

— Jackie Sung, Part Manager, Purchase Part Department, Kakao Corp.

Kakao Cuts Lead Time to Source Suppliers by 30%, Enhances Enterprisewide Collaboration, and Increases Business Agility with Oracle

Kakao Corp. is a mobile platform provider that offers a wide range of services—including mobile apps for chatting, messaging, content sharing, payment and banking, music, ebusiness, shopping, and vehicle hire—to over 170 million global users. With year over year growth of 83% and an expanding service portfolio, Kakao aims to become the world’s leading mobile platform.
 
Kakao wanted to standardize its procurement processes, such as Request for Proposal (RFP) for suppliers, and support the growth of mobile services. 

Hyungsoo Park Kakao IT Business Manager Speaks on ERP Cloud

 
 
Challenges
  • Automate the bidding and sourcing processes for suppliers in various industries, such as music streaming and gaming, and allow the company to quickly find the right suppliers to support its expanding mobile services
  • Increase operating efficiency by enabling employees to easily and securely view and share procurement data, such as FinTech services, anytime, anywhere
  • Provide the flexibility for suppliers to quickly access the procurement system without embedding ActiveX controls
Results
  • Reduced time to source suppliers for its mobile platform services by up to 30% by automating supplier selection processes, such as RFP, quotation, and bidding, with Oracle Sourcing Cloud, enabling the business to easily compare supplier responses side-by-side and make faster award decisions  
  • Raised the quality of suppliers by quickly expanding the pool of suppliers with an electronic bidding system and multi-channel sourcing support, such as sending bidding notice to various portal sites
  • Increased employee productivity by providing complete visibility into sourcing activities and key metrics and allowing staff to rapidly access procurement data via mobile devices
  • Improved work efficiency across the enterprise by leveraging online collaboration features and various business intelligence tools to easily share procurement data, such as price, quality, and supplier evaluation, with experts and other team members
  • Increased business agility by using Oracle Sourcing Cloud Service’s object linking and embedding technology to rapidly grant system access to suppliers without requiring them to go through security checks, such as ActiveX regulations and accredited certification
  • Enhanced security for sensitive procurement data, such as pricing for artificial intelligence software, by eliminating continuous patch upgrade with Oracle’s powerful security features and minimizing impact on on-premises environment
 

 

Compared to other solutions, Oracle Sourcing Cloud Service offered faster deployment and higher system availability. Oracle’s global standardization and easy configuration capabilities also contributed to the decision.

— Jackie Sung, Part Manager, Purchase Part Department, Kakao Corp.

Execution

After evaluating various solutions via proof of concept (POC) and product demonstration, Kakao deployed Oracle Sourcing Cloud Service to build a cloud procurement system. It went live with the new platform in just two months.

About Kakao Corp.

Headquarters

 
Jeju City, Korea

Employees

 
2,738

Annual Revenue

 
US$1.3 Billion
Established in 2014, Kakao is a mobile platform company that operates Korea’s top mobile messenger service, KakaoTalk, and the country’s leading web portal, Daum. Kakao also provides an expanding range of mobile services across community, entertainment and social gaming, fashion, finance, transportation, and lifestyle. KakaoTalk, which is available in 15 languages and used in over 230 countries, has become a useful and popular tool for global communication.
 

Partners

Kakao engaged Oracle Partner, SE Partners to build a standardized procurement system based on Oracle Sourcing Cloud Service. SE Partners provided technical support, consulting service, and user training.  It also assisted Kakao to resolve issues around the Personal Information Protection Act and ensured the procurement system met business needs.
“Collecting supplier data is integral to our procurement team. SE Partners was responsive to our requests and helped us to rapidly resolve regulatory issues. The service provided by SE Partners was valuable to our business, enabling us to gain an optimized procurement system with Oracle,” Sung said.
Published:  Aug 25, 2017