• Save
Oriflame Presentation to Ariba
Upcoming SlideShare
Loading in...5
×
 

Oriflame Presentation to Ariba

on

  • 1,326 views

 

Statistics

Views

Total Views
1,326
Views on SlideShare
1,326
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
1

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • For more Information Or Products Delivery in Pakistan just Contact

    Cell # 0312-2128556

    Shahzad Munir
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Oriflame Presentation to Ariba Oriflame Presentation to Ariba Presentation Transcript

  • 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA 1
  • Oriflame Purchasing2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • Agenda • Oriflame Business • Global Supply • Purchasing • Ariba for Oriflame2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA 3
  • A Long Term Growth Company 1990 – 2010 : CAGR organic sales of over 16%1600 1,514 €m1400 1,320 1,3171200 1,1091000 918800 766 652 671600 544 447 395400 355 333 325 327 242 181 188200 132 77 90 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Copyright ©2010 by Oriflame Cosmetics SA
  • Introduction to Oriflame • Cosmetics company selling direct • Range of more than 1000 Cosmetic Products • Over 450 new Cosmetic Products each Sales by Region 2010 year • 3.8 million sales consultants CIS & Baltics, 55% • 8,800 employees • Operations in 62 countries of which: EMEA, 30% – Franchisees in 13 countries • Production facilities in Poland, Sweden, India, China and Russia (approx. 50% in- house production) Latin America, 5% • Group Support Office in Stockholm Asia, 10% • Finance in Fribourg • Skin Research Institute in Stockholm • Research & Development Centre in Dublin2012-01-11
  • Product Categories Sales by Category Fragrances 20% Skin Care 25% Colour C. 26% Personal & Hair Care 20% Accessories 9% Skin Care Colour Cosmetics Fragrance Personal & Accessories WellnessTrust & Competence Professional Up-trader & Emotional & Prestige Booster Hair Care Sales Driver Bringing Beauty from Within Enhancer Modernizer Energizer
  • The Oriflame Catalogue• Oriflame’s ”shop window”• New offers and catalogues every third week – 35 languages• Forceful combination of product and catalogue development in Stockholm
  • THIS IS ORIFLAMEOur Logotype &SloganOur Vision To be the #1 Beauty Where we’re going Company Selling DirectOur Mission To Fulfil Dreams Our reason for beingOur Offer Look Great Make Money Have Fun What we offerOur Business What we should beOpportunity best in the world atconcept Brands & Network World Class People & How we create andOur Strategy Products Marketing Service Culture build the business opportunity conceptOur Values & Togetherness, Spirit & Passion How we workOperating Respect People, Focus on Customers, Demand Quality, togetherPrinciples Seek Simplicity and Cost-efficiency, Pursue Long-term Growth
  • Oriflame OrganisationPurchasing is part of Global Supply CEOMarketing & CFO Global Supply COO HR R&D Group Group Group Group Group Logistics Manufacturing Quality Process Planning Purchasing Warsaw Warsaw & Projects Copyright ©2011 by Oriflame Cosmetics SA
  • Our Supply Strategic Direction Better align supply- and Cut lead-times and sales in the group, increase flexibility in sourcing locally where the end-to-end supply appropriate chain Build capacity to support Make the Oriflame growth and increase share experience easy, reliable of in-house manufacturing and friendly for the consultant Copyright ©2011 by Oriflame Cosmetics SA
  • Purchasing Organisation Edwin Koehler VP Purchasing Johan Gillbro Purchasing Development manager Louise Jerneborg Alexandra de Greck Project Manager & Analyst Director Accessories Category Ivana Peijec Contract coordinator Charlotte Haggren Project coordinator Tony Igoe Therese Westerlund Loic Fresne Director Global Director Global Director NPD Indirect Spend Strategic Sourcing Purchasing Ed Mc Phillimy VACANT VACANT Patrick Botell VACANTJohan Gillbro Acting Jennie Ahl Ashima Enjeti Travis Natt Sr Sourcing SR Sourcing Sourcing Category manager Stina Granberg Sourcing Manager Global ConferencesPurchasing Category Purchasing Category Purchasing Manager Manager Manager Purchasing Category India/Asia Manager Manager Category Manager Manager Sr Buyer Components Finished Goods Raw Materials FRA CCS PHC SKC Wellness Petra Dernhagen Category Manager Colin Cowrey Marek Kowalski Global Print VACANT Michael Karlsson Sanna Ruponen Elena Bayeva Sabine Barth Buyer Sr Buyer Components Buyer India Jr Buyer Sr Buyer Sr Buyer Buyer Raw Materials FRA CCS PHC SKC Laura Eckback Coordinator Indirect Spend Yi Ling Admass Badeen Buyer Buyer CCS PHC 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • Sourcing Requirements Hierarchy AQSCIE A Assured SupplyResponsiveness Q Quality C Cost S Service - II Innovation + Environmental & Ethical
  • CSR focus • End 2009 Oriflame employed a senior CSR advisor reporting directly to the CEO • Objective during fist half 2010 to develop a strategy for CSR with the Oriflame business • Projects and next steps will be defined as a result of strategy investigation • One of the priorities will be to share experiences with our key suppliers and see how to move forward together Vision: Oriflame wants to work with sustainable suppliers
  • On what criteria do we award businessto suppliers?Criteria for award: AQSCIE – Capacity, lead time, MOQ and service level (Planning, Manufacturing) – Passed quality audit/technical visit (Quality, Packaging Development) – Technical feasibility and support (R&D scale up, Packaging Development) – Total cost : includes freight, duty, origination costs, payment terms etc. (Purchasing) – Supplier status and strategic importance (Purchasing) Copyright ©2011 by Oriflame Cosmetics SA
  • Critical deadlines for suppliers - NPDMonthsbeforelaunch • RFQ received: response time - 5 days from receipt of RFQ13 • Business award – Work can begin12
  • Critical deadlines for suppliers - NPDMonthsbeforelaunch • RFQ received: response time - 5 days from receipt of RFQ 13 • Business award – Work can begin 12 • Tooling initiated 12 • Colour-matching initiated with component supplier: 10 working days from receipt of reference 12
  • Critical deadlines for suppliers - NPDMonthsbeforelaunch • RFQ received: response time - 5 days from receipt of RFQ 13 • Business award – Work can begin 12 • Tooling initiated 12 • Colour-matching initiated with component supplier: 10 working days from receipt of reference 12 • Artwork delivered to component supplier 7
  • Critical deadlines for suppliers - NPDMonthsbeforelaunch • RFQ received: response time - 5 days from receipt of RFQ 13 • Business award – Work can begin 12 • Tooling initiated 12 • Colour-matching initiated with component supplier: 10 working days from receipt of reference 12 • Artwork delivered to component supplier 7 • Component specification issued – Production of components can now start! 5
  • Critical deadlines for suppliers - NPDMonthsbeforelaunch • RFQ received: response time - 5 days from receipt of RFQ 13 • Business award – Work can begin 12 • Tooling initiated 12 • Colour-matching initiated with component supplier: 10 working days from receipt of reference 12 • Artwork delivered to component supplier 7 • Component specification issued – Production of components can now start! 5 • First delivery of components into finished product supplier 4
  • Critical deadlines for suppliers - NPDMonthsbeforelaunch • RFQ received: response time - 7 days from receipt of RFQ 13 • Business award – Work can begin! 12 • Tooling initiated 12 • Colour-matching initiated with component supplier: 10 working days from receipt of reference 12 • Artwork delivered to component supplier 7 • Component specification issued – Production of components can now start! 5 • First delivery of components into finished product supplier 4 • First collection of finished products from supplier – 2
  • Interactions with suppliers Component R&D suppliers Packaging Planning Finished product suppliers Purchasing Copyright ©2011 by Oriflame Cosmetics SA
  • Ariba Purpose and ScopePurpose• Implementation of an e-sourcing system for all purchasing tenders sent to suppliersScope Not in scope• Indirect spend • NPD Project management• Direct spend • Packaging• Accessories sourcing • Creation of structures• Strategic sourcing 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • Ariba the new sourcing solution forPurchasing A web service solution to replace our Excel template RFQs A Tool to drive system improvement and process alignment • Direct Spend , NPD – Emails and messaging to suppliers in one place, automated awards – One to many easy to use internet web interface rather than excel • Indirect SpendsOverall Benefits – Sourcing tool with eauction capabilities to maximize savings & increase spend coverage • Accessories – Emails and messaging to suppliers in one place, automated awards • Raw Materials - Sourcing tool with eauction capabilities to maximize savings & sourcing events 2012-01-11 Copyright 2011 By Oriflame Cosmetics SA
  • Organization project Ariba Loic Fresne NPD PUR Indirect spend Supplier Raw Material WORK STREAMS DESCRIPTION management • Define process requirements • Loic Fresne • Patrick Botell • Robert • Colin Cowdrey • Process Definition • Define RFQ requirements • Sabine Barth Connolly • Secure process are ready for go-live • Sanna Ruponen • Business Readiness • Secure sign off solution (ACC) • Ariba solution • Ariba • Ariba • Ariba • Ariba • Application Design/Build • Secure interface with IFS • Jaroslav • Jaroslav • Jaroslav • Jaroslav • Secure IFS modifications Kratochvil Kratochvil Kratochvil Kratochvil • IT set up • Hanna Bjelkevik • Hanna Bjelkevik • Hanna Bjelkevik • Hanna Bjelkevik • Documentation of system design • Lead execution of tests • Sabine Barth • Patrick Botell • Robert • Colin Cowdrey • Identify all issues in business • Sanna Ruponen • Hanna Connolly • Hanna Testing • Re-test issues found (ACC) Bjelkevik • Hanna Bjelkevik • Hanna Bjelkevik Bjelkevik • Identify master data that needs to • Sabine Barth • Patrick Botell • Robert • Colin Cowdrey be set up Connolly Master data set up • Load all systems with correct data • Train users and super users • Hanna • Hanna • Hanna • Hanna • Train suppliers Bjelkevik Bjelkevik Bjelkevik Bjelkevik Training and Roles • Sabine Barth • Patrick Botell • Robert • Ed Mc Phillimy • Secure security of IT roles Connolly • Loic Fresne • Therese • Robert • Ed Mc Westerlund Connolly Phillimy2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • Indirect Spends No Data integration with IFS enabled an earlier start Supplier self register on-line to be invited for bidding using generic SPQ 3 Templates built Printing Tender running in Ariba, 10 suppliers invited currently bidding Conference template, to be used for conference tenders Mobile tender with the aim of running an eauction GO LIVE the 28th of April 2012-01-11 Copyright 2011 By Oriflame Cosmetics SA
  • Raw Materials Data to be integrated to IFS, no import, different set up as Direct Spend, NPD 1 RFP Template to be built Commodity tender for different sites e auction as a likely useful option 2012-01-11 Copyright 2011 By Oriflame Cosmetics SA
  • Prior to Ariba situation for Direct Spend MS Excel MS Outlook 3 RFQ is sent in Outlook mail • Many activities were performed manually1 Structures 2 Information are kept in downloaded to • Little time to evaluate and IFS MS Excel manage RFQ responses • No transparency, nor history on events in one place7 Structures 6 RFQ responses 5 RFQ responses 4 Suppliers receive are selected are evaluated in are received in and responds to and cost is MS Excel mail RFQ approved • Internal • External
  • System Overview for Direct Spend Component Event Filling Event Ariba Sourcing Automated Awards 5 templates 1 template RFQ Process to suppliers Step 1 Step 2 Customized Pack Brief Component EXW FG EXW PriceIntegration with IFS Structures Prices, LT, MOQs LT, MOQs IFS System / ERP Transactions OCSA set up Manual duplication of data ? Planning GM MRP, 4 Shifts ? JDA 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • Potential Future situation 2 RFQ’s are • More suppliers can published in compete for the business Ariba1 Structures are kept in • Reversed auction PLM functionality • Help Purchasing to move away from manual work • Intermediate interface will 4 RFQ’s are be from IFS to Ariba evaluated in Ariba • Long term from PLM5 Structures 3 Supplier enter are selected Ariba and respond and cost is to RFQ approved • Internal • External
  • Advantages with Ariba• Automated and stored communication instead of emails – RFQ – Awards • Purchasing to get away from copying and pasting of• Easy to use internet web interface data in Excel• e-Auction capabilities to maximize savings – Indirect Spends and Raw materials• Strategic Sourcing support – Supplier Profile Questionnaires on line• Transparency of data negotiated and agreement made with suppliers 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA 31