The document discusses BASF's use of the Vendor Interaction Portal (VIP) to manage procurement processes. VIP automates the purchase to pay process from purchase requisition to invoice between BASF and its suppliers. It aims to improve process quality, visibility, and collaboration between BASF and vendors. BASF rolled out VIP to around 4,100 suppliers over 3 years to digitize over 120,000 purchase orders and 145,000 invoices annually. The portal provides an end-to-end view of transactions and simplifies connectivity with external partners. BASF's strategic goals include further digitizing supply chain processes through initiatives like product traceability and an omni-channel approach.

1. Vendor Interaction Portal –
a practical example for Business
Process Management at BASF
Patrick Goett and Ralf Kahre, October 2014
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2. Outline
n BASF – We Create Chemistry Strategy
n Strategic approach of BASF Information Services and Supply Chain Operations
n End-to-End Business Process Management @ BASF
n VIP - a practical example of Business Process Management
n Strategic Outlook
n Questions
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3. Our Purpose
We create Chemistry
for a Sustainable
Future
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4. Our Strategic Principles
We add value as
One Company
We innovate to make our
Customers more Successful
We drive Sustainable
Solutions
We form the
Best Team
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5. Our Values
Creative
Open
Responsible
Entrepreneurial
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6. GS Areas of
Core Business
GS support for BASF’s
“We Create Chemistry” Strategy
Information
Services
IS
Supply Chain
Operations
(incl. logistics)
Business Process
Management
SCO
BPM
GS consists of three Areas of Core
Business which support BASF’s “We
Create Chemistry” Strategy
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7. End-to-End Processes
Business Process Management (BPM)
BPM Operating Model
Establish End-to-End
Process Strategies
Ensure Value
Contribution
Measure & Monitor
Process
Performance
Perform continuous
Improvement
Process
Business Strategies
Delivering Value through BPM
Support our Customers and Businesses
Impact bottom-line result by linking Process
Strategy with BASF Value Based Management
Realize Value by doing “ the right things right”
Regional Strategies Functional Strategies
Methods and Tools
Strategic
Business Process Management
Operational
Business Process Management
BASF`s Strategy “We Create Chemistry”
End-to-End Processes
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8. Vendor Interaction Portal –
Applied Business Process Management in P2P
Define & propose strategic
initiatives & activities
Engage Business to match
needs and initiatives
Develop strategic roadmap
& initiate projects
An example of active Business Process Management
Capture needs
from global
functions
Joint process
design with the
global functions
Jointly work with
providers on the
realization
Pilot and
acceptance
Global roll out

9. Vendor Interaction Portal to exchange documents like purchase Orders and invoices with suppliers
…for Direct Procurement (e.g. Raw Materials, Packaging) cloud portal of Elemica
BASF
Cobalt
(ERP/system)
Vendor
ERP/system
VIP
Elemica
Scope of VIP
Cloud
Solution
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10. 10
What are the goals of VIP?
n Automation of the end-to-end Purchase to Pay process from purchase
requisition to invoice
n Improve the process quality for vendors and BASF
n Improve the quality of invoice in order to avoid questions and payment troubles
n Increase process visibility and transparency for vendors as well as for BASF
n Fast and effective roll out
n Improve collaboration and communication with the vendors

11. 11
VIP from a BASF Perspective
n Real end-to-end view from purchase order creation to receiving the invoice
n Multi tenant cloud solutions instead of BASF`s in-house offering
n Consider the needs and requirements of the business partners
n Make it easy for the business partners, to help BASF to automate processes
(example: country specific invoice creation based on templates, create an invoice
automatically based on purchase order or delivery)
n Involve partners in the evaluation of the improvements

12. 12
Roll-Out Strategy
Direct Procurement
# of suppliers # of Purchase Orders # of Invoices
Year 1 ~ 1.100 ~ 30.000 ~ 40.000
Year 2 ~ 1.700 ~ 60.000 ~ 70.000
Year 3 ~ 1.300 ~ 30.000 ~ 35.000
Total ~ 4.100 ~ 120.000 ~ 145.000

13. Connectivity Services
Definition
Automating and connecting electronic
end-to-end business processes between
internal users and external partners
Shield Customers & External Partners from
Internal Business Process Complexities
“Gateway” Concept – Minimum Access Points to
get in and out of BASF Process World
External Partners
BASF World
BASF
Core
Process
OTC
P2P
TM
…
MTO
NCM
BASF Process World does not need to deal with external
complexities as “Gateway” Concept manages the
complexity, routing and translates information into BASF
language
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14. Strategic Path Forward for BASF
n For improving supply chain processes, we are working on different projects, like
track and trace for products from BASF to the end user through the whole supply
chain
n Track and trace to increase transport visibility
n Omni Channel approach to be able to offer differentiated services in digitalization
of the supply chain for BASF and its partners
n Reduce the efforts to connect business partners through out the supply chain
(customers, logistics and vendors) to come closer to plug and play
n Ease of use, differentiated solutions and services, fast and ease roll out of
solutions, increased agility are the strategic targets of BASF for improvement in
digitalization of the supply chain processes
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15. Questions?
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