Gaining actual savings from the best-laid sourcing plans requires organizations to put in place a closed-loop strategy – one that addresses operational sourcing as well as the processes around it. An optimal plan would include cutting-edge analytics to drive better decisions, water-tight contract management to improve adherence, and disciplined supplier management to improve performance. Join this session to hear from the experts on how organizations can translate savings from paper to the bottom line through a tightly woven collaborative sourcing process.

1. Matteo Stefani and Barbara Weiss, UCB
Sundar Kamak, SAP Ariba (SAP) / June 15, 2016
Strategic Sourcing in the Digital Economy
Public

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Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the confidential information (per the contract between our companies), and must not
be further disclosed, as stated in the confidentiality clause of that contract. This presentation
contains only intended guidance and is not binding upon SAP or Ariba to any particular course of
business, product strategy, and/or development. Its content is subject to change without notice.
SAP and Ariba assume no responsibility for errors or omissions in this document. SAP and Ariba
shall have no liability for damages of any kind including without limitation direct, special, indirect,
or consequential damages that may result from the use of these materials.

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Speakers:
Matteo Stefani – UCB
Barbara Weiss – UCB
Moderator:
Sundar Kamakshisundaram
The panel team
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public

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Global trends are driving change in sourcing and procurement
Increasing Globalization
• Expansion into new markets
• Global process standardization
• International supply chains
• Increased off/near shoring
Economic Volatility
• Volatility in markets
• Decreased stock valuation
• Slow economic growth
• High expense ratio
More Competition
• Pricing pressures
• New sources of competition
• Decreased budgets and spending
Greater Risk
• Supply chain disruption
• Financial risk and fraud
• Commodity risk
Accelerating Technological Change
• Changing business models
• Faster innovation cycles
• Expanding partnerships and channels
• Leveraging big data for decisions
Regulatory Changes
• Increasing disclosure requirements
• Country-specific regulations
• Industry-specific disclosures

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Creating a challenge/opportunity for procurement
Top 3
Procurement Drivers
54%
cutting cost
51%
becoming more strategic
44%
quality suppliers
Source: Procurement Leaders
Where is there “great” opportunity for
Procurement to increase its contribution?
Percentage of respondents rating the procurement function’s
opportunity to contribute as a “great opportunity”
14%
25%
29%
36%
44%
57%
64%
73%
Serving an
advisory
role in M&A
deals
Expanding
into new
markets /
business
lines
Managing
financial
risk
Managing
working
capital
Managing
risks to
business
performance
Working
with
suppliers to
enhance
product
offerings
Strengthening
relationships
with suppliers
Finding
opportunities
for cost
savings
Source: CFO Research Services

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CPO’s top priorities
Early Engagement of Sourcing Opportunities
New ( or Improved) Technology
Larger and/or More Talented Staff
Better Communication Plan
Better Team Execution
66%
53%
53%
48%
44%
Savings continues to the be #1 driver for CPOs And Strategic Sourcing remains the
quickest path to get there
The CPO’s Top Driver for Future SuccessThe CPO’s Top Priorities ( Next 3 years)
Source: CPO Rising – The Agility Agenda. By Ardent Partners, March 2015
Savings Processes Compliance Innovation People
42%
39%
33%
28% 27%

7. UCB Bio Pharma
Matteo Stefani - Head of Global Purchasing Development
Barbara Weiss - Purchasing Development Manager

8. A prediction

9. VISION 2020 by Ariba - 2013
Ideas for Procurement in 2020 by Industry-
Leading Procurement Executives

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10

11. What happens around us?

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12
Digitalization
Digitalization will drive a new wave of productivity for Purchasing with the
creation of digital business networks and e-market places for buying goods and
services enabling crowdsourcing opportunities

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13
UberizationUberization of the end user experience creating a simpler consumer-like
experience for end users and moving away from technologies tools that focused
on features and functionality

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14
Automation and roboticsProcess automation and robotics in the transactional part of procurement (i.e.
PO creation, Invoicing, Payment, Categorization of spend, automated contract
metadata capture)

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15
Leverage all the business data that Purchasing is sitting on to deliver more
insights on demand to inform strategic decisions and accelerate identification of
innovation and growth opportunities
Analytics and Big Data

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16
Value Beyond SavingsPurchasing organizations will elevate their roles to trusted advisors improving the
function business agility with shorter cycle times and enabling innovation
via suppliers.

17. Strong, accelerating trends requiring a shift to patient value

18. Procurement Priorities 2016
CPO by Deloitte - 2016

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19
Cost & Cash OptimizationFocus on Cost & Cash Optimization: cost savings and payment terms
improvement with the supplier base keeps being the core focus of
procurement organizations today

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20
Focus
Keep on moving more non-core activities outside of the organization.

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21
Increase Spend Influence
Supplier base rationalization and spend consolidation efforts will continue to
drive procurement

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22
Supplier-Enabled InnovationSupplier-Enabled Innovation is still a set of opportunistic activities (66%) versus a
systemic formal approach ( 34%).

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23
Risk ManagementIncreased time dedicated to risk management: Financial and Business Risks
assessments keep on being added to new vender creation and sourcing
processes as well as monitoring of geopolitical uncertainty and volatility in
emerging markets

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24
Procurement TechnologyIncreased spend on Procurement Technology and systems to keep on driving the
efficiency of the function.

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25

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26

27. UCB: making lives better every day
Bringing solutions to people living with neurological or immunological diseases
Key facts and figures (2015):
 Revenue: €3.88 billion
 rEBITDA: €821 million
 More than 7500 employees globally
 Operations in ~40 countries
 R&D Spend: 27% of revenue
 Listed on Euronext

28. What UCB stands for
Creating value for patients

29. UCB: reinventing itself, leveraging a solid heritage
1928: Emmanuel
Janssen establishes
UCB in Brussels
1972: A new state-
of-the-art R&D
center in Braine-
l’Alleud, Belgium
1980s: UCB
registers its novel
antihistamine
Zyrtec®
1990s: approval of
Keppra®,
a novel
anti-epileptic
2004: UCB
acquires British
biotech company
Celltech
2006: UCB
acquires German
pharma company
Schwarz Pharma
Today
Combine leadership
in antibody research
& chemistry expertise
to better treat severe
diseases
1928 1952 1972 1980s 1990s 2004 2006 2008-2010 Today
Chemical Group Primary Care Pharma Specialty Bio-pharma
Launch of Cimzia®,
Vimpat® & Neupro®
(CVN)
1952: UCB
discovers Atarax®
U.S. license
awarded to Pfizer
1936: UCB enters
the United States
1936

30. 3 core medicines for patients with severe diseases
 Rheumatoid arthritis
 Psoriatic arthritis (PSA)
 Ankylosing spondylitis (AS)
 Axial spondyloarthritis (AxSpA)
 Crohn’s disease
 Epilepsy adjunctive therapy
 Parkinson’s disease
 Restless legs syndrome

31. UCB response

32. Purchasing Value Model for Doubling our Impact by 2020

33. The Dilemma

34. Can we really blame them?

35. Book Saving
Create e-Sourcing Project
Support suppliers
Encode and Upload a contract
Launch SPM Campaign, Qualify Suppliers
Prepare Discovery Posting
No Doubts
on the Outcome
Doubts
on the Action

36. Our mindset change
Operational
Competence
Continuous
Improvement
Value
Creation
Service
Delivery
from Expertise to Excellence

39. Global Purchasing at UCB
50 Professionals in 11 Countries
VP Global
Purchasing
Travel & Fleet
Marketing &
Commercial
Professional
Services
Technical &
Investments
Purchasing
Enablement
Purchasing
Development
Direct Material
Americas
APAC
South / East
Europe
Northern
Europe
CategoryExcellence
DeliveryExcellence
1100
150
450
150
200
150
50
450
450
150
OperationalExcellence
1
2
3
8
3
2
7
7
4
5
3
4

40. How do we operate today?
• 2 Colleagues at Genpact:
Saving & e-Sourcing SUPPORT
• 3 Colleagues at Genpact:
Tactical Buying (100% e-Sourcing)
• 1 Colleague at Genpact:
Analytics, Reporting, CLM, SPM
• 1 Content Manager at Genpact
Catalog Management

42. A new way of working with our BPO Partner Genpact
Priorities
• E-Sourcing Penetration
On-Going Six Sigma Project
• Contract Compliance
Contract Review & Encoding
• NPS Surveys
Survey Tracking and Action Plan

43. Six-Sigma Project: Dynamic Bidding Penetration increase
Projects in Scope:
All sourcing projects created in the Ariba Sourcing system, having the
savings form in the status “Published” at the time of the extraction (
November 2015) and having one of the following values reported in the
field “eSourcing”: eRFx, eAuction, Dynamic eRFx or No;
Period Considered:
2015
Savings calculation:
All savings reported in the period Jan-Oct 2015 impacting only 2015;
All savings types have been included : EBIT, CAPEX and Cost Avoidance;
BI Calculation:
Project target: increase of the eAuction/Dynamic bidding penetration by 10%,
from 10.82% to 20%;
Approx. 100 Projects managed currently through traditional sourcing will be
negotiated through eAuction/Dynamic leading to an increase of 5,661.74 EUR
savings for each project;
The savings percentage managed through dynamic eSourcing events will increase
by 10%;
5% Estimated total Savings increase after project completion:

44. E-Sourcing Penetration
Our Target: 80% of saving generated through e-Sourcing

45. Thank you
Contact information:
Barbara Weiss
Purchasing Development Manager
Barbara.weiss@ucb.com
Matteo Stefani
Head of Purchasing Development
Matteo.stefani@ucb.com
+32 499 968137

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