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2012-01-11   Copyright ©2011 by Oriflame Cosmetics SA   1
Oriflame
                                                  Purchasing




2012-01-11   Copyright ©2011 by Oriflame Cosmetics SA
Agenda

                                      •     Oriflame Business
                                      •     Global Supply
                                      •     Purchasing
                                      •     Ariba for Oriflame




2012-01-11   Copyright ©2011 by Oriflame Cosmetics SA            3
A Long Term Growth Company


                                    1990 – 2010 : CAGR organic sales of over 16%
1600
                                                                                                                                                         1,514
       €m
1400
                                                                                                                                         1,320   1,317


1200
                                                                                                                                 1,109


1000
                                                                                                                          918


800                                                                                                                766

                                                                                                     652    671

600                                                                                            544
                                                                                       447
                                                                                395
400                                                       355            333
                                                 325             327
                                          242
                            181    188
200                  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 Dublin
2012-01-11
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               Wellness
Trust & 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 ORIFLAME

Our Logotype &
Slogan

Our Vision                          To be the #1 Beauty                          Where we’re going
                                   Company Selling Direct


Our Mission                            To Fulfil Dreams                          Our reason for being


Our Offer                Look Great      Make Money       Have Fun               What we offer

Our Business                                                                     What we should be
Opportunity                                                                      best in the world at
concept

                 Brands &        Network          World Class         People &   How we create and
Our Strategy     Products        Marketing         Service             Culture   build the business
                                                                                 opportunity concept

Our Values &                  Togetherness, Spirit & Passion                     How we work
Operating           Respect People, Focus on Customers, Demand Quality,          together
Principles        Seek Simplicity and Cost-efficiency, Pursue Long-term Growth
Oriflame Organisation
Purchasing is part of Global Supply




                                        CEO



Marketing &     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
                                                                                                                                                                                             VACANT
Johan Gillbro Acting         Jennie Ahl           Ashima Enjeti           Travis Natt                                 Sr Sourcing                 SR Sourcing               Sourcing                                 Category manager
                                                                                             Stina Granberg                                                                              Sourcing Manager            Global Conferences
Purchasing 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 Supply
Responsiveness




                     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 business
to 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 - NPD
Months
before
launch

     • RFQ received: response time - 5 days from receipt of RFQ
13

     • Business award – Work can begin
12
Critical deadlines for suppliers - NPD
Months
before
launch
         • 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 - NPD
Months
before
launch
         • 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 - NPD
Months
before
launch
         • 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 - NPD
Months
before
launch

         • 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 - NPD
Months
before
launch

         • 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 Scope

Purpose
• Implementation of an e-sourcing system for all
  purchasing tenders sent to suppliers

Scope                                     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 for
Purchasing
 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 Spends
Overall 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            Phillimy


2012-01-11                                    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 manually
1 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
                                                                                  place




7 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 Price
Integration 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
                     Ariba
1 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 PLM

5 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

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Oriflame Presentation to Ariba

  • 1. 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA 1
  • 2. Oriflame Purchasing 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • 3. Agenda • Oriflame Business • Global Supply • Purchasing • Ariba for Oriflame 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA 3
  • 4. A Long Term Growth Company 1990 – 2010 : CAGR organic sales of over 16% 1600 1,514 €m 1400 1,320 1,317 1200 1,109 1000 918 800 766 652 671 600 544 447 395 400 355 333 325 327 242 181 188 200 132 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
  • 5. 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 Dublin 2012-01-11
  • 6. 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 Wellness Trust & Competence Professional Up-trader & Emotional & Prestige Booster Hair Care Sales Driver Bringing Beauty from Within Enhancer Modernizer Energizer
  • 7. 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
  • 8. THIS IS ORIFLAME Our Logotype & Slogan Our Vision To be the #1 Beauty Where we’re going Company Selling Direct Our Mission To Fulfil Dreams Our reason for being Our Offer Look Great Make Money Have Fun What we offer Our Business What we should be Opportunity best in the world at concept Brands & Network World Class People & How we create and Our Strategy Products Marketing Service Culture build the business opportunity concept Our Values & Togetherness, Spirit & Passion How we work Operating Respect People, Focus on Customers, Demand Quality, together Principles Seek Simplicity and Cost-efficiency, Pursue Long-term Growth
  • 9. Oriflame Organisation Purchasing is part of Global Supply CEO Marketing & 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
  • 10. 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
  • 11. 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 VACANT Johan Gillbro Acting Jennie Ahl Ashima Enjeti Travis Natt Sr Sourcing SR Sourcing Sourcing Category manager Stina Granberg Sourcing Manager Global Conferences Purchasing 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
  • 12. Sourcing Requirements Hierarchy AQSCIE A Assured Supply Responsiveness Q Quality C Cost S Service - II Innovation + Environmental & Ethical
  • 13. 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
  • 14. On what criteria do we award business to 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
  • 15. Critical deadlines for suppliers - NPD Months before launch • RFQ received: response time - 5 days from receipt of RFQ 13 • Business award – Work can begin 12
  • 16. Critical deadlines for suppliers - NPD Months before launch • 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
  • 17. Critical deadlines for suppliers - NPD Months before launch • 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
  • 18. Critical deadlines for suppliers - NPD Months before launch • 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
  • 19. Critical deadlines for suppliers - NPD Months before launch • 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
  • 20. Critical deadlines for suppliers - NPD Months before launch • 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
  • 21. Interactions with suppliers Component R&D suppliers Packaging Planning Finished product suppliers Purchasing Copyright ©2011 by Oriflame Cosmetics SA
  • 22. Ariba Purpose and Scope Purpose • Implementation of an e-sourcing system for all purchasing tenders sent to suppliers Scope 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
  • 23. Ariba the new sourcing solution for Purchasing 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 Spends Overall 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
  • 24. 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 Phillimy 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA
  • 25. 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
  • 26. 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
  • 27. Prior to Ariba situation for Direct Spend MS Excel MS Outlook 3 RFQ is sent in Outlook mail • Many activities were performed manually 1 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 place 7 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
  • 28. 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 Price Integration 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
  • 29. Potential Future situation 2 RFQ’s are • More suppliers can published in compete for the business Ariba 1 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 PLM 5 Structures 3 Supplier enter are selected Ariba and respond and cost is to RFQ approved • Internal • External
  • 30. 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
  • 31. 2012-01-11 Copyright ©2011 by Oriflame Cosmetics SA 31