Collaborative SourcingKeys to Unlocking Greater ValueJanuary 2012     © 2012 Ariba, Inc. All rights reserved.
Effective Sourcing Remains Critical                                           Top CPO Pressures                           ...
Collaboration is King                                          Top CPO Strategies                                         ...
Evolution of Sourcing                                                                           Community                 ...
Our Panel•   Florian Boehme              Prokurist, Director Consulting & Professional Services              source:net Gm...
Schindler Purchasing ExcellenceJanuary, 19th 2012, FrankfurtAlexandre SayveCorporate Purchasing
Agenda                                               – Schindler                                               – Purchasin...
Schindler© Schindler | MAN | Alexandre Sayve | Page 8
Schindler Lucerne 1874Founder Robert SchindlerPlant 1900                                      Controller 1930Drives 1954  ...
Our product is mobilityHotels      Office buildings   Hospitals               AirportsFactories   Ships              Resid...
We move 1 billion people every dayLeadership through customer service                    2010 Stats:                    Tu...
Purchasing Excellence© Schindler | MAN | Alexandre Sayve | Page 13
Business requirements & Scope overviewUpgrade existing capabilities / enable Schindler                Spend Analysis      ...
Implementation plan 6 months effort to deploy the sourcing solution globally         Program Element                    20...
Lessons learned and results                              The Ariba Sourcing solution was successfully rolled out in our 4...
Key to success                              Strong support from Top Management (From CEO to CPO)                         ...
Keep pushing!© Schindler | MAN | Alexandre Sayve | Page 18
Q&A’s© Schindler | MAN | Alexandre Sayve | Page 19
Collaborative Sourcing: Keys to Unlocking Greater                      Value               ARIBA COMMERCE SUMMIT          ...
Who is source:net?                          Founded: 2002                          Target: „Success and Efficieny in Procu...
What does source:net do?   Specialized and profound results-driven consulting with emphasis on Procurementdata and –proces...
Who did source:net work with in 2011?   Current Customer Samples with Projects in 2011.                Aerospace          ...
Added value of SourcingOnDemand – critical success factors in Sourcing   We successfully support tender projects, driving ...
Maximum Length Sourcing-Procedure   Process greatly varies based on project and customer specific requirements.   If allow...
Sample Categories published on Ariba Network Discovery (AND)   We started using AND in Jul09 for most INDIRECT, but also D...
Sample Posting on Ariba Network Discovery   Example of a recent posting.Quelle: source:net GmbH           ARIBA COMMERCE S...
Sample Posting on Ariba Network Discovery   Example of a recent posting.Quelle: source:net GmbH           ARIBA COMMERCE S...
What„s the effort to publish a posting?   Time-wise generalized effort to publish a posting on Ariba Network Discovery    ...
BestPractice Recommendations for using Ariba Network Discovery   Our Lessons Learned from the past years – also Suppliers ...
Thank you for your attention – Questions?   Florian Boehme      source:net GmbH      Georgenstr. 19      D-80799 München  ...
Collaborative sourcing keys to unlocking greater value
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Collaborative sourcing keys to unlocking greater value

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  • Welcome and introductionOpen to other ideas here, but I planned to open by polling the audience, for the buyers in the audience, by a show of hands…“How many sellers in the audience use linkedin in some fashion to identify or network with potential buyers”?“Now the same question to the buyers in the group…how many of you use linkedin in your buying efforts in some way”?In looking at the strategic sourcing and “what’s next”, we at Ariba have worked extensively with Ardent Partners, a fast growing independent research and consulting group. Ardent points to 3 key requirements for any company interested in better managing their sourcing function: 1) You must have broad and deep visibility into your spend with the ability to take action on the information this spend provides to build sourcing pipelines, better monitor compliance, and so on.2) Processes must be reviewed and improved for greater efficiency and effectiveness in the sourcing process, and3) Improved collaboration is a must. The rate of innovation in business today is unrivaled in any time in history. The reality is that innovation is taking place outside of your company’s four walls – in within your supply base. You must be able to harness this innovation to build and maintain competitive advantages. It isn’t just about savings anymore. CPOs are realizing this…we’ll talk about that in a few minutes…
  • Collaborative sourcing keys to unlocking greater value

    1. 1. Collaborative SourcingKeys to Unlocking Greater ValueJanuary 2012 © 2012 Ariba, Inc. All rights reserved.
    2. 2. Effective Sourcing Remains Critical Top CPO Pressures Source: Ardent Partners, 2011 © 2012 Ariba, Inc. All rights reserved.
    3. 3. Collaboration is King Top CPO Strategies Source: Ardent Partners, 2011© 2012 Ariba, Inc. All rights reserved.
    4. 4. Evolution of Sourcing Community Technology Capabilities CollaborativeBusiness SourcingValue Strategic Sourcing eSourcing Manual Sourcing Time frame © 2012 Ariba, Inc. All rights reserved.
    5. 5. Our Panel• Florian Boehme Prokurist, Director Consulting & Professional Services source:net GmbH• Alexandre Sayve Global eProcurement & eSourcing Manager Schindler Management AG© 2012 Ariba, Inc. All rights reserved.
    6. 6. Schindler Purchasing ExcellenceJanuary, 19th 2012, FrankfurtAlexandre SayveCorporate Purchasing
    7. 7. Agenda – Schindler – Purchasing Excellence – Q&A’s© Schindler | MAN | Alexandre Sayve | Page 7
    8. 8. Schindler© Schindler | MAN | Alexandre Sayve | Page 8
    9. 9. Schindler Lucerne 1874Founder Robert SchindlerPlant 1900 Controller 1930Drives 1954 Cars 1890 Lift boy
    10. 10. Our product is mobilityHotels Office buildings Hospitals AirportsFactories Ships Residential buildings Shopping centers
    11. 11. We move 1 billion people every dayLeadership through customer service 2010 Stats: Turnover = CHF 8.2 B EBIT = CHF 980 Mio / 12%
    12. 12. Purchasing Excellence© Schindler | MAN | Alexandre Sayve | Page 13
    13. 13. Business requirements & Scope overviewUpgrade existing capabilities / enable Schindler Spend Analysis Sourcing • Lotus Notes manual process • ATK eBreviate / Synertrade • Massive internal effort cleansing data in • Out dated, expensive and time consuming KG/KWs on annual basis, further manual tools with limited templates & no category cleansing in CP to “categories and group” assistance from vendors. Not integrated main know suppliers, top level data to spend analysis nor Contract Mgmt. reasonably accurate but 2nd & 3rd level untrustworthy. No Integration to SAP or other tools Supplier Management Contract Management • None/Excel • Lotus Notes database • Tool missing, using excel & PowerPoint • Very basic LN database with manual based on SAP inputs. No integration to posting of amended templates. No ability other tools, nor 3rd party data such as to assist on scripting nor reporting on D&B. variations / amendments. Pricing manually posted to SAP. CP Cockpit Significant internal effort to group data into PowerPoint, no automation Vision – ONE fully integrated eSourcing suite globally© Schindler | MAN | Alexandre Sayve | Page 14
    14. 14. Implementation plan 6 months effort to deploy the sourcing solution globally Program Element 2011 July Aug Sep Oct Nov Dec Jan Kick-0. Program & Change Off Phase 1 Management Program Management Schindler Program Management1. Requirement NA gathering & LA Data collection AP EU2. System set-up & System configuration & System Testing & Review Testing customisation3. Training NA LA AP EU4. Go Live NA LA AP EU5. Extension Phase Advanced functionalities training for Increase Sourcing use © 2010 Ariba, Inc. All rights reserved. © Schindler | MAN | Alexandre Sayve | Page 15
    15. 15. Lessons learned and results  The Ariba Sourcing solution was successfully rolled out in our 4 main regions as planned: North America, Latin America, Asia Pacific and Europe  Comments and feedbacks from our team were extremely positive Managed a survey under Ariba Sourcing with an average score of 4.2 out of 5  In total 100 buyers and commodity managers were trained and transferred onto the new tool  12 projects already managed around the 4 zones since training including 2 fully completed  Further training will be required around the world in order to overachieve CHF 690 Mio Sourcing target per year, increase traction and momentum  In addition advanced Sourcing training and tactics including Full TCO approach with cost model transparency to be delivered -> Sourcing 2.0  Planning on developing the template library extensively in order to share knowledge across the region as we have a fragmented organised  Ultimately the goal is to rollout the other modules by 2012-2013 along with a special focus on Spend Visibility first, followed by SPM and CM.© Schindler | MAN | Alexandre Sayve | Page 16
    16. 16. Key to success  Strong support from Top Management (From CEO to CPO)  Detailed communication plan on project  Implication of Buyers and Category Managers at zone & group level during the preparation and implementation phase to improve processes and create momentum  Strong training program including super admin training of regional coordinators in order to support other buyer locally in case of issues / problems on top of Ariba support  Plan additional training later on to increase traction and increase use of tool and more importantly use of advanced functionalities  Avoid implementing all modules / functionalities at the same time if the organisation is not ready  Creating the perfect system from Day 1 is almost impossible – your process and tool will evolve with time and your user community© Schindler | MAN | Alexandre Sayve | Page 17
    17. 17. Keep pushing!© Schindler | MAN | Alexandre Sayve | Page 18
    18. 18. Q&A’s© Schindler | MAN | Alexandre Sayve | Page 19
    19. 19. Collaborative Sourcing: Keys to Unlocking Greater Value ARIBA COMMERCE SUMMIT Frankfurt, 19.01.2011 Florian Boehme, source:net GmbH Seite 20
    20. 20. Who is source:net? Founded: 2002 Target: „Success and Efficieny in Procurement“ Improvement with Tools, Processes and Know-How First provider of „SourcingOnDemand“ (Europe) Marketplace for Airports „AirportSmart“ Clients: Multinational cooperationsQuelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 21
    21. 21. What does source:net do? Specialized and profound results-driven consulting with emphasis on Procurementdata and –processes. Cleansing Master- a. (e)Sourcing Procurement Consultancy Combinatorial Awardanalysis transactional Data Consolidate ERP RFI (Survey) Evaluation/Selection of RFx-Design Automatic Classification RFP (Proposal- and procurement applications Constraints Definition Normalization of Data Pricerequest „open Standardization-Projects Setting up analysis Proposals“ / concepts) Development of Category Harmonization of Suppliers, Scenario definition Manufacturers a. RFQ (Pricerequests) Management Simulation of requirements Products/Services Auction Benchmarking/Assessment Bidding Implementation of Procurement applications • Cleansing of Data (POs, • Market-transparency and • Organization • Scenrio Building Invoices, Material-/Supplier- intesiving of competition • Processes • Transparency on cost of Master) • Standardization and decision • Systems • Granular Classification knowledgemanagement • Scenrio Configuration in real- • (almost)Real-time • Processstandardization and - time within transparency acceleration Procurement/Sourcing Board decision workshops • Opportunity-Management (Savings Finder)Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 22
    22. 22. Who did source:net work with in 2011? Current Customer Samples with Projects in 2011. Aerospace Automotive Financial Services More Branches ..Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 23
    23. 23. Added value of SourcingOnDemand – critical success factors in Sourcing We successfully support tender projects, driving all procurement and cross-functional levers. Success Factors: Basics Success Factors: Cost Know-how, Expertise and Costinformation and Benchmarks Experience Price-Escalation-Clauses Spend Analysis and Bundling Cost-Structures Specifications Seasonal Price-Movements Contractual Terms Success Factors: Success Factors: eTools Competition Supplier-Databases eRFx Supplier-Ratings eBidding / eAuction Mailing Optimization/combinatorial analysisQuelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 24
    24. 24. Maximum Length Sourcing-Procedure Process greatly varies based on project and customer specific requirements. If allowed/possible, we will start by publishing on Ariba Network Discovery. Ariba Network Discovery Analysis Analysis Posting Expression Optimization RFI RFP Validation RFQ Validation Auction Award of Interest Scenarios Direct Mailings Clarification OptimizationQuelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 25
    25. 25. Sample Categories published on Ariba Network Discovery (AND) We started using AND in Jul09 for most INDIRECT, but also DIRECT, CAPEX & SERVICES projects. Geographical scope of postings is mostly Europe; higher responses rates are recorded in global tenders. Spend (€) Suppliers Alerted * Printed Items (Germany) 150k 3.235 Services: Relocation (Germany) 2 Mn. 7.925 Toner / Ink (Germany) 1 Mn. 1.677 Services: Small Parcel (DE, AT, CZ) 5 Mn. 6.017 Furniture (Germany) 3 Mn. 1.062 Services: IT consulting (Europe) 100 Mn. 7.800 Plastic injection moldings (Austria) 1,3 Mn. 9.120 Packaging (pallets, films, ..) 15 Mn. 2.517 (CH, DE, ES, PT, UK) Furniture (Racks)/Display in Retail Shops 50 Mn. 5.013 (Global) Supplier Responses is typicallyQuelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 between 0,125% - 1% of alerted Suppliers* Seite 26
    26. 26. Sample Posting on Ariba Network Discovery Example of a recent posting.Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 27
    27. 27. Sample Posting on Ariba Network Discovery Example of a recent posting.Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 28
    28. 28. What„s the effort to publish a posting? Time-wise generalized effort to publish a posting on Ariba Network Discovery Task Time (Minutes) Search & find your password, Login 2-3 Minutes Create Posting (Title & Description) 15-30 Minutes Add Commodity (classify) 5-10 Minutes Add Location(s) 1-10 Minutes Additional Information (Contract, Spend, Timeline) 2-3 Minutes Add Preferences (Size, Years in Business, Type, …) 2-3 Minutes … a phone call lasting more than 30 minutes comes in … you loose all work …. No matter how fast or non-fast you are, you will reach thousands of suppliers within round about the times mentioned above. If it even would take 3 hours, it may mean you wasted only SECONDS on each SUPPLIER – isn‘t that amazing?Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 29
    29. 29. BestPractice Recommendations for using Ariba Network Discovery Our Lessons Learned from the past years – also Suppliers are still using their room for improvement. Ariba Network Discovery facilitates OUR approach to the market. Solid Description of needs and esp. requirements (K.O. citeria, which are easy to assess for supply base) Granular and Precise Classification of your product/service Locations may even be classified down to “Bundesland” / State Hide participating supplier list Logistical requirements and PO/order size, along with Incoterms (if applicable) Tender / Business LanguagesQuelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 Seite 30
    30. 30. Thank you for your attention – Questions? Florian Boehme source:net GmbH Georgenstr. 19 D-80799 München Foto Florian.Boehme@SourcingOnDemand.com Phone: +49 (0) 89 20 400 20 12Quelle: source:net GmbH Seite 31

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