Creating value in the
construction industry
How Procurement
Digitalization is…
CONTENTS
 Introductions
 The future vs the present
 The choice to digitalize
 Source-to-pay in construction
 Lessons learned
INTRODUCTIONS
Yaron Nadbornik,
CPO, Sato Oyj
Rowan Lemley, Head of
Product Marketing,
OpusCapita
Peter Andréas,
Sourcing & Trade
Manager, Ramirent
OPUSCAPITA BY THE NUMBERS
Established 1984
~350 Employees
65m € Revenue 2018
3000 Customers with
users in over 100
Countries
Over 1 Million Suppliers
and 100,000,000
eTransactions
Over 40,000,000
products and services
bought & sold
Over 130 Billion € in
payments annually
GLOBAL
PAYMENTS
PAYABLES
AUTOMATION
SOURCING &
SUPPLIER
ENGAGEMENT
RECEIVABLES
AUTOMATION
OPERATIONAL
PROCUREMENT
CASH
MANAGEMENT
Comprehensive
supplier information
management and
agile sourcing for
goods and services.
Improve your cash
inflows and reduce
the time spent
matching payments
to invoices.
Create a centralized
product catalog with
a modern guided
buying experience
with full mobility.
Consolidate and
optimize your in-
house bank and
liquidity
management
functions.
Enable control and
compliance over AP while
dramatically lowering
transactional costs.
Connect directly to over
200 banks, SWIFT certified
for global payment
coverage.
OpusCapita is a platform
that combines source-to-
pay & cash management,
enabling full source-to-cash
process optimization.
HOW WE SUPPORT YOU
CONNECT, TRANSACT
AND GROW ON THE
OPUSCAPITA BUSINESS
NETWORK
Ramirent – equipment rental company
Turnover 2018: 711 MEuro
SALES BY CUSTOMER SECTOR Q4 18
market position in 9 segments
~300 locations
~3,200 co-workers, ~150,000 customers
~25,000 equipment types
Sweden
38%
Finland
27%
Eastern
Europe
17%
Norway
18%
SALES BY SEGMENT Q4 18
Construction
57%Other
25%
Industrial
18%
#1
#1
#1
#1
6
Ramirent Group 18/09/2019
#1
SATO IN BRIEF
7th May 2019 HEADLINE 2019 7
In thriving cities people enjoy a high level of well-being.
• SATO homes 25,800
• Number of personnel 221
• Fair value of investment property €4 billion
• Operating area
• H e l s i n k i M A, Tampere, Turku, Jyväskylä, Oulu in Finland
• St. Petersburg in Russia
• Number of residents ~48,000
• Strategic development programs
• Customer focus
• Digital development
• Diversified housing solutions
The future vs the present (a contrast)
DIGITAL OPTIMIZATION
The process of using digital
technology to improve existing
operating processes and/or
business models.
DIGITAL TRANSFORMATION
The process of exploiting the
latest digital technologies and
practices to create a new
sustainable digital business
model.
THE PATH TO BECOMING A DIGITAL BUSINESS
Gartner, Digital Business Transformation: Closing the Gap Between Ambition and Reality, Ian Cox, Kristin Moyer, 18 June 2018.
Key Challenges:
 History of local business (local purchasing)
 Conservatism
 A general skepticism towards central
agreements
 Low contract compliance
 Lack of basic computer skills
 Poor/old IT systems and lack of integrations
 Too much manual IT work
The State of Digitalization
The choice to digitalize
Save Money
Contract compliance, improved negotiation
leverage
Control & Compliance
Purchasing budget control, sourcing policy
compliance, individual accountability
Drive efficiency
3-way matching, pre-coding invoices, improved
visibility during requisitioning (price/delivery time)
The Choice to Digitalize: Goals
Procurement
Finance
Corporate
Strategy
The Choice to Digitalize: Who Leads?
Inputs
Timing
Starting
point
Outputs
Adjustments
Successes in Source-to-Pay
Ramirent:
 Money & time saved
 Very high contract compliance
 Strong negotiation power
 Quality data in our systems
 Overall process improvements
Ramirent (next steps):
 3-way matching
 Automated ordering
 Assortment optimization
Sato:
 From price optimization to cost
optimization
 High usage rate of procurement
systems
 Leading & decision making with data
Sato (next steps):
 Higher degree of automation and
robotics in supplier base
 Developing all key partnerships into
digital flow from beginning to end
 Leading & decision making with data
Success and next steps
LESSONS LEARNED
Yaron Nadbornik,
CPO, Sato Oyj
Peter Andréas,
Sourcing & Trade
Manager, Ramirent
Digitalizing global trade
One customer at a time
What we do.
How we do it.

How Procurement Digitalization is Creating Value in the Construction Industry

  • 1.
    Creating value inthe construction industry How Procurement Digitalization is…
  • 2.
    CONTENTS  Introductions  Thefuture vs the present  The choice to digitalize  Source-to-pay in construction  Lessons learned
  • 3.
    INTRODUCTIONS Yaron Nadbornik, CPO, SatoOyj Rowan Lemley, Head of Product Marketing, OpusCapita Peter Andréas, Sourcing & Trade Manager, Ramirent
  • 4.
    OPUSCAPITA BY THENUMBERS Established 1984 ~350 Employees 65m € Revenue 2018 3000 Customers with users in over 100 Countries Over 1 Million Suppliers and 100,000,000 eTransactions Over 40,000,000 products and services bought & sold Over 130 Billion € in payments annually
  • 5.
    GLOBAL PAYMENTS PAYABLES AUTOMATION SOURCING & SUPPLIER ENGAGEMENT RECEIVABLES AUTOMATION OPERATIONAL PROCUREMENT CASH MANAGEMENT Comprehensive supplier information managementand agile sourcing for goods and services. Improve your cash inflows and reduce the time spent matching payments to invoices. Create a centralized product catalog with a modern guided buying experience with full mobility. Consolidate and optimize your in- house bank and liquidity management functions. Enable control and compliance over AP while dramatically lowering transactional costs. Connect directly to over 200 banks, SWIFT certified for global payment coverage. OpusCapita is a platform that combines source-to- pay & cash management, enabling full source-to-cash process optimization. HOW WE SUPPORT YOU CONNECT, TRANSACT AND GROW ON THE OPUSCAPITA BUSINESS NETWORK
  • 6.
    Ramirent – equipmentrental company Turnover 2018: 711 MEuro SALES BY CUSTOMER SECTOR Q4 18 market position in 9 segments ~300 locations ~3,200 co-workers, ~150,000 customers ~25,000 equipment types Sweden 38% Finland 27% Eastern Europe 17% Norway 18% SALES BY SEGMENT Q4 18 Construction 57%Other 25% Industrial 18% #1 #1 #1 #1 6 Ramirent Group 18/09/2019 #1
  • 7.
    SATO IN BRIEF 7thMay 2019 HEADLINE 2019 7 In thriving cities people enjoy a high level of well-being. • SATO homes 25,800 • Number of personnel 221 • Fair value of investment property €4 billion • Operating area • H e l s i n k i M A, Tampere, Turku, Jyväskylä, Oulu in Finland • St. Petersburg in Russia • Number of residents ~48,000 • Strategic development programs • Customer focus • Digital development • Diversified housing solutions
  • 8.
    The future vsthe present (a contrast)
  • 9.
    DIGITAL OPTIMIZATION The processof using digital technology to improve existing operating processes and/or business models. DIGITAL TRANSFORMATION The process of exploiting the latest digital technologies and practices to create a new sustainable digital business model. THE PATH TO BECOMING A DIGITAL BUSINESS Gartner, Digital Business Transformation: Closing the Gap Between Ambition and Reality, Ian Cox, Kristin Moyer, 18 June 2018.
  • 10.
    Key Challenges:  Historyof local business (local purchasing)  Conservatism  A general skepticism towards central agreements  Low contract compliance  Lack of basic computer skills  Poor/old IT systems and lack of integrations  Too much manual IT work The State of Digitalization
  • 11.
    The choice todigitalize
  • 12.
    Save Money Contract compliance,improved negotiation leverage Control & Compliance Purchasing budget control, sourcing policy compliance, individual accountability Drive efficiency 3-way matching, pre-coding invoices, improved visibility during requisitioning (price/delivery time) The Choice to Digitalize: Goals
  • 13.
    Procurement Finance Corporate Strategy The Choice toDigitalize: Who Leads? Inputs Timing Starting point Outputs Adjustments
  • 14.
  • 15.
    Ramirent:  Money &time saved  Very high contract compliance  Strong negotiation power  Quality data in our systems  Overall process improvements Ramirent (next steps):  3-way matching  Automated ordering  Assortment optimization Sato:  From price optimization to cost optimization  High usage rate of procurement systems  Leading & decision making with data Sato (next steps):  Higher degree of automation and robotics in supplier base  Developing all key partnerships into digital flow from beginning to end  Leading & decision making with data Success and next steps
  • 16.
    LESSONS LEARNED Yaron Nadbornik, CPO,Sato Oyj Peter Andréas, Sourcing & Trade Manager, Ramirent
  • 17.
    Digitalizing global trade Onecustomer at a time What we do. How we do it.

Editor's Notes

  • #5 Founded 1984, approximately 400 employees, 65m€ in 2017
  • #7 Ramirent Group’s reportable segments as of October 1, 2018 are: Sweden, Finland, Eastern Europe, Norway. On December 3, 2018, Ramirent announced that it had signed an agreement to divest its Danish equipment rental business. The divested Danish operations will be reported as discontinued operations in the fourth quarter 2018 onwards.
  • #14 Making the choice to digitalize is based on what input? Also, where do you start and how long is your planning. What adjustments have you had to make along the way
  • #17 Don't underestimate the need of resources needed for keeping the data up to date Go live with the system/supplier batches first when it is 100% done Make sure the suppliers are committed Price/product updates Order confirmations etc. Have integrations in place before golive  reduce double keyentry Leave or postpone categories which are challenging or too complicated for your organisation