As sourcing and procurement teams have led successful savings projects, companies are now leveraging them to help drive savings in areas beyond what they have done in the past. This session will provide insights into how procurement teams are being asked to drive savings in new areas of spend while collaborating with new suppliers in more strategic ways.

1. Dr. Martin Kotula, Director, Value Engineering EMEA & MEE, SAP Ariba
Laszlo Adam, E-procurement Manager, CWS-boco Group / June 15, 2016
Sourcing Is Now Resourcing: How Sourcing Is
Utilized Beyond Just the Basics
Public

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Increased Globalization
 Expansion into new markets
 Global process standardization
 International supply chains
Economic Volatility
 Volatility in markets
 Decreased stock valuation
 Slow economic growth
Pressure on Margins
 Profitability by segments
 Decreased budgets and spending
 Determination of the cost to serve
Focus on Risk
 Supply chain disruption
 Financial risk and fraud
 Commodity risk
New Business Models
 Shared services organizations
 Business partnerships
 Leveraging big data for decisions
Regulatory Changes
 Increasing disclosure requirements
 Country-specific regulations
 Industry-specific disclosures
CPOs Need Help to Navigate a Changing Environment
Competing Pressures on Procurement Organizations

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…while still needing to focus on key metrics
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 the
#1 driver for CPOs
And Strategic Sourcing remains the
quickest path to get there
The CPO’s Top Driver for Future
Success
The 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%

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CPOs are navigating a changing environment…
• Fragmented supply base
• Volatile markets
• Intricate costing and
pricing structures
• Detailed specs & design
requirements
• Extensive supplier
qualification
• Many line items and pricing
variances
• Existing strategic supplier
relationships
• Supplier contingency plans
• Regulatory and environmental
requirements
Market complexity Category complexity Strategic constraints

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Contingent Labor & Services
28%
Travel & Other Services
11%
Indirect & MRO
23%
Capex
11%
Direct & Supply Chain
27%
After successfully driving spend under management, procurement
leaders are ready to harness all spend categories.
Source: Spend Categories for Global Top 2000

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But the procurement and sourcing systems need to catch up
RESULTS IN:
Supplier data
in disparate systems
Contract leakage
disconnects negotiated terms
procurement execution
Limited process and data
integration to key execution
manufacturing systems
of direct materials
source-to-pay processes
are manual
of contracted direct
materials spend is
non-complaint
of enterprises cannot
integrate sourcing
initiatives into corporate
data management
69% 30% 57%
Sources: Chainlink Research, Paystream Advisors

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Higher average
annual savings where
organizations drive
best price through
e-auctions, global
sourcing, and new
suppliers
Source: SAP Performance Benchmarking
54%
Spend that is contract
compliant at best-in-
class companies,
versus 48%
at all others
Source: Ardent Partners
69%
lower sourcing cycle
time when using
Auction as the
e-sourcing strategy
over RFP
Source: SAP Performance Benchmarking
47%

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Best-in-Class organizations consider eSourcing and
eProcurement critical components
Source: Ardent Partners, CPO Rising 2015: The Agility Agenda, March 2015
Strategic Sourcing – Best-in-Class Utilize Technology…

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What if you could…
Integrate source-to-contract
processes to ERP and
execution systems
Address all categories of
direct and indirect spend
Manage source-to-contract
processes on a single
solution

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Pricing
conditions
Product
Life-cycle
sourcing
Supplier qualification & segmentation
The new way of strategic sourcing of direct materials with a tight
integration into the ERP
Supplier Information &
Performance Management
Contract Management
Professional
Sourcing
Professional
User experience + SAP HANA Cloud Platform + integration SAP ERP and non-SAP
A new layer of innovations to support Direct Materials sourcing
Volume &
price
forecasting
Product
costing
Supplier
perf.
automation
Advanced
optimization
Multi-level
BOM
Service
item
hierarchy
PLM
integration

11. Sourcing Is Now Resourcing:
How Sourcing Is Utilized
Beyond Just the Basics
Laszlo Adam
E-procurement Manager
Madrid, SAP Ariba Live 2016
©CWS-boco Supply Chain Management GmbH
Best Practices in creating and managing RFPs in
CWS-boco Group

12. Introduction
CWS-boco Group a
Haniel Holding member
 Textile Care (boco) &
 Washroom care (CWS)
 Floor Care (CWS)
 Belongs to Haniel Holding (Metro/ Media
Markt/Saturn Group, Takkt, ELG)
 757 Million Euro Turnover (2012)
 18 Countries (Europa + China)
 45 Laundries, 100-s of logistics hubs
 1.2+ Million wearer
 250 thousand CWS installations

13. Indirect Procurement at CWS-boco
 Purchase spend = 40% of
group‘s turnover
 Indirect = 23% of total
spend of the group
 Central Procurement org. in
Dreieich
 Local (country) Procurement
Capex MRO Professional services
1st level Logistics Fleet Operations Real estate mngt.
Utilities mngt. Travel mngt. Insurance
Information Services Facility mngt. Facility management
E-procurement
Indirect Procurement Categories

14. SAP Ariba in CWS-boco Group
 Ariba Sourcing Pro
2014 May (Indirect and
Direct Procurement)
 Ariba Spend Visibility – 2014
November
 Ariba Procure-to-Pay
and and Ariba
Contract Management
under evaluation

15. Why did we choose the SAP Ariba solution?
©CWS-boco Supply Chain Management GmbH
Vision –
Full suit
solution
Maturity
&
Process
Benefits
 We targeted a vision to improve our strategic
procurement efficiency
 “We chose now for future” – system partner with
continuous product improvement
 We were looking for a solution and partner with fast &
efficient implementation
 One system for all strategic procurement activities
 We targeted a strategy roadmap to achieve
procurement excellence – we needed an enabler
 We looked to set up new strategic sourcing processes
and we needed a speed enabler
 We needed to improve spend under management
drastically
 Leverage group‘s spend volume
 Face suppliers to real time competition
 Speed of negotiations
 Opportunities of Ariba Network to explore markets and
suppliers
 Faster – better – more flexible

16. Increasing Ariba Sourcing Pro usage
SAP SuccessFactors
 Usage scoping
 Continuous templating
 Training
 Sourcing champion(s)
 Monitoring & mentoring (!)
 Success Stories
 Communication (!)
 Support
 Lack of strong stakeholder support
 Commitment
 Buyers experience and tradition
 Cultural elements
 Distance
 Organizational dynamics,
environment
Challenges

17. The “rocking way” to source …
 “Ariba is a tool to do public postings”
 “Ariba is an auctioning tool – we do not do auctions”
 “Our supplier selection process often lasts for months,
we have a very complex way to select the suppliers, this
is not fitting us, just simple supplier selections”
RFP
RFI
Auction
Postings
BUT

18. Back to origins …
 What are our challenges?
 How do we source today?
 How could we collaborate better?
 How could we faster?
How could SAP Ariba
help us do our job
easier, faster, better?
Aconcagua basecamp

19. Saving by resource …
E-Mail, Excel
Program
Template in
Ariba Sourcing
Integrated
sourcing
process
SupplierCodeof
ConductProgram
 Less effort =
less resource
 Finish faster
 Get visibility
 Sustainability
Savings

20. Saving by speed …
High number
demand, low
value,
“immediate”
Template in
Ariba
Sourcing
SmallProjects
 Meet speed
expectations
 Reduce errors
 Less effort=less
resource
 Transparency in
sourcing cycle
and success rate
Savings

21. Saving by collaboration…
E-Mails, Excels,
disrupted
systems,
disrupted
processes
Ariba Project
Management,
collaborative
project work
One system
collaboration and
channeled
information flow
Demand-design-
source-purchase
 Streamlined
communication
 SPEED
 Transparency
 Significantly less
resource
 Customer
satisfaction
 More winning
opportunities
Savings

22. Questions & Answers

23. - © 2013 CWS-boco Supply Chain Management GmbHSeite: 23
Thank you!

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