You've invested tremendous time and money into implementing one or more instances of SAP SRM, PM or MM. Why not the the most out of them? Capture more spend and more suppliers and eliminate your catalog management burden. Hear from companies that have successfully leveraged cloud-based solutions and business networks to extend the reach and ROI of their existing procurement software from SAP, providing an improved user experience, enabling all spend categories, reducing costs, and improving compliance.
6. #AribaLIVE
A World Leader in Specialty
Chemicals
Corporate Presentation, February 2013
Clariant focuses on creating value
by investing in future profitable and
sustainable growth.
KEY FACTS
Sales 2012 (CHF m)
6038
More than
100Group companies
worldwide
EBITDA 2012 (CHF m)
before exceptionals
802
End 2012
~21202employees
Represented in
76
countries worldwide
7
Business Units
(incl. discontinued operations)
7. #AribaLIVE
Our Vision. Our Mission
Our Vision
Where we want to go
We aim to be the global leading company for
specialty chemicals and to stand out by
above-average value creation for all of our
stakeholders.
Our Mission
How we aim to get there
We build leading positions in the businesses we are
active in.
We adopt functional excellence as part of our
culture.
We create value through appreciating the needs of
our customers, our employees,
our shareholders and our environment.
8. #AribaLIVE
Procurement Value Added for the
Adoption of Functional Excellence
improve the procure to pay process
transferring standard procedures into automated processes to reduce manual errors and gain process speed
reduce requisition to order cycle times and lack of requisition to order efficiency
facilitate strategic supplier relationships and increase the use of preferred vendors
reduce supplier complexity
reduce material and service costs (negotiation and contracts)
enforces compliance to contract
reduce material costs and increase spending controls
streamline approval process
e-procurement empowers requestors leaving the purchasing professionals to concentrate on more added
value activities than operational purchasing
9. #AribaLIVE
Procurement Evolution @ Clariant
9
Traditional “Purchasing Mindset”
Service to the Company
Fragmented supplier base
Negotiate case by case
Local view
etc.
Supplier consolidation / Global lead buyer
concepts
Reduce complexity (PRAGMATISM and
SIMPLICITY)
Global view and global negotiation
Supplier consolidation
Tool Standardization
Procurement management for strategy
growth
Source of innovation
Faster introduction of new markets
Manage Cash
Exclusive knowledge capture and leverage
Procurement is a strategic key activity
Long term securing of price, volumes,
service
Scope
Operational Strategic
ImpacttoClariant
CostShareholderValue
12. #AribaLIVE
Common P2P Process
Enduser is creating his
Material request in SAP
To send it to the responsible
Procurement Person
Procurement issues the PO
According the first in first out
principle.
OCR
Scanning
VerifierInterpretTransferCockpitApproval
Manual Handling and plausibility checkPayables
14. #AribaLIVE
P2P System Integration @ Clariant
An SAP Company
MM
FI
SRM
eProcurement SRM POs
Call Off & Standard MM POs
Collaboration , Integration, Transparency, Network
EDI
HTML
cXML
CSV
Business Rule Check
entity
PO
Compli
ance
Invoice
#
Supplier
15. #AribaLIVE
P2P Enablement Targets
• Reduction of NWC
• Cash Flow Savings
• Reduction of Invoice ageing
• P2P Process Speed up
• Proc & AP Process Optimization
• Realizing more cash discount
• Process compliance
• Back Log reduction
• Process compliance and failure rate reduction
16. #AribaLIVE
Lessons Learned
Top Management Support!
Understand eProcurement as Key Element and Strategic Tool for
Operational Procurement Activities!
Agree on Personal Targets based on the eProcurement Rate!
Clear Organization & Responsibilities
Dedicated Support Functions from Network Provider Necessary
18. #AribaLIVE
Disclaimer
This presentation contains certain statements that are
neither reported financial results nor other historical
information. This presentation also includes forward-
looking statements.
Because these forward-looking statements are subject
to risks and uncertainties, actual future results may differ
materially from those expressed in or implied by the
statements. Many of these risks and uncertainties relate
to factors that are beyond Clariant’s ability to control or
estimate precisely, such as future market
conditions, currency fluctuations, the behavior of other
market participants, the actions of governmental
regulators and other risk factors such as: the timing and
strength of new product offerings; pricing strategies of
competitors; the Company's ability to continue to receive
adequate products
from its vendors on acceptable terms, or at all, and to
continue to obtain sufficient financing to meet its liquidity
needs; and changes in the political, social and
regulatory framework in which the Company operates or
in economic or technological trends or conditions,
including currency fluctuations, inflation and consumer
confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as
of the date of this document. Clariant does not
undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect
events or circumstances after the date of these
materials.
Ariba’s On Demand applications and the Network generate measurable value to organizationsBuyer’s experience significant savings that fall right to the bottom lineSome savings are obvious (see above) but others less so. For example, a large Oil company was able to significantly cut inventory of replacement parts in its refineries due to the visibility into order status the network provided. This visibility not only enabled the managers to focus on the operations instead of whether a critical shipment was going to come, but also enabled them to reduce the excess inventory they needed as safety stock to ensure the refinery didn’t go downSuppliers experience savings through the automation of non-value added activities (like AR clerks having to call their customers each month to see when payments will be made)Suppliers also see top line growth from participation on the network – including net new business and increased wallet share with existing customers