Albéa Group's Procurement Transformation - An Ariba Customer Story

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Procurement executives, though continually challenged to maintain sustainable savings, also face numerous challenges integrating supply risk management with spend management. This is especially true for organisations that focus on reducing costs and limiting working capital levels as a response to difficult market conditions. In this session, Albea Group share show they achieved smarter supplier management and embarked on a journey from being company-centric to customer-centric, and demand-driven, using business networks. Albea Group, Aurelie Goubin, Purchasing Best Practices Manager Ariba Commerce Summit 2014, Paris

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  • 1. Date: 28th October 2014Procurement Transformation Alba GroupAriba Commerce Summit - ParisAurelie Goubin , Best Practices Procurement Manager, Alba

2. 22014 Ariba - an SAP company. All rights reserved.Statement of Confidentiality and ExceptionsThe information and analysis contained herein are the confidential and proprietary materials of Ariba, an SAP Company. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express written permission of Ariba, an SAP Company. The information contained herein may be changed without prior notice.Ariba, an SAP Company provides this document as guidance only to illustrate estimated comparisons between the subject company and other companies with respect to certain key performance indicators and drivers.These material is based upon survey and product data of the subject company, information provided by other companies and assumptions that are subject to change. These materials present illustrations of potential performance and do not guaranty future results, or performance . The materials are provided solely for internal review and use by the subject company. Ariba, an SAP Company makes no representation or warranties of any kind with respect to these materials, and Ariba,an SAP Company shall not be liable for errors or omissions with respect to these materials. 3. 32014 Ariba - an SAP company. All rights reserved.AgendaAlba GroupWho we are?Alba Procurement OrganizationAlba 2013 Procurement StakesAlba Chose Ariba SuiteGlobal Deployment PlanningModules presentationConclusion Lessons Learned 4. 2014 Ariba - an SAP company. All rights reserved. 4Alba GroupGlobal leader in Beauty & Personal Care Packaging 16 000 employees 38 plants 14 countries Sales 2013: US $ 1,6 BillionProducts portfolio based upon 4 core expertise Tubes laminates, plastic tubes Dispensing systems fragrance, lotion, foam, samplers Cosmetic Rigid Packaging mascara, lipstick, lip gloss, jars Beauty solutions, kitting, soft goods & promotional items 5. 2014 Ariba - an SAP company. All rights reserved. 5Alba Group July 2010AP Beauty is acquiredby Sun Capital PartnersPrivate Equity fund V. November 2010Alcan Packaging Beautybecomes Alba2010 2011 2012 2013 January 2011Betts is combinedwith Alba, November 2011Acquisition ofEyelematic April 2012Acquisition of Tex China December 2012Acquisition of RexamPC and thus thedispensing systemstechnologiesSales $US900M9,300 employees24 sites13 countriesSales $US 1.0B10,500 employees30 sites13 countriesSales $US 1.6B16,000 employees38 sites14 countries2004Cebal and Techpack ,previously a part ofPechiney Emballagesbecome AlcanPackaging (AP)Beauty2004 6. 2014 Ariba - an SAP company. All rights reserved. 6Alba GroupSome of our main CustomersAMBITION Be the best global packaging company in theeyes of our people, our customers and ourshareholdersVALUES World class partner Speed to market Quality through continuous improvement Broad range of expertise and productinnovation 7. 2014 Ariba - an SAP company. All rights reserved. 7Procurement OrganisationCentral Procurement team 2013/4 Global Lead Buyers per commodities Regional Procurement Directors Analysts & Ariba specialistGlobal spend US$ 1 Bil. 70% production items (raw materials,components, sub-contracting) 30% non-production items (energy, transportation,travel, etc.) Global AND diversified Supply BaseLo cal Procurement team Buyers: implement strategies & run projects 8. 82014 Ariba - an SAP company. All rights reserved.Procurement 2013 Stakes17 different ERP systems: difficulty in aggregating dataIncrease of the supplier base complexity with important growth of suppliers in emerging marketsoOver 15 000 suppliers worldwideoQuality & Supply Chain assurance, cultural differences, time zone, etc.Cosmetic Industry European and American regulations to be followed by suppliers but no tool to manage documents or contractsContinue growth of Alba & tensed economic situation lead to higher pressure on prices & cost down 9. 2014 Ariba - an SAP company. All rights reserved. 9Alba Chosen Ariba SuiteSupplierManagementImplemented Implemented Implemented Possible Imple.ReportingCFTSourcingContractManagementSupplierManagementProcure-to-PayImplementedPublic: All AribaUsers (+/-300)Public: 40 Buyers Public: 40 Buyers+ 40 FinancialControllersPublic: 40 buyers+ 40 QA + 40 SCmanagersQ1 2013 Q1 2013 Q2 2013 Q3 2013 2015 10. 102014 Ariba - an SAP company. All rights reserved.* Data is leveraged from survey as well as productGlobal Deployment PlanningDeployment team:Procurement BPProcurement DirectorTiming : 7 MonthsMonthly SteeringCommittee to followprocess 11. 2014 Ariba - an SAP company. All rights reserved. 11* Data is leveraged from survey as well as productModules presentationSourcing223 Full Project in 2014 (Q1-3) Main users: China & Brazil: 70% Followed by Europe: 17%The most challenging module to be adoptedObjectives : Maximize competition & savings Drive internal efficiency through theevents reproducibility Insure process compliance : anti-bribe Ease Procurement project reportingFurther Developments Additional RFP templates Push for Functionality : Message board andemail posting 12. 2014 Ariba - an SAP company. All rights reserved. 12* Data is leveraged from survey as well as productModules presentationSourcing3 Sourcing Projecttemplates availableRFI and RFP Templatesaccording to commodities 13. 2014 Ariba - an SAP company. All rights reserved. 13* Data is leveraged from survey as well as productModules presentationSupplier Information and Performance ManagementObjectives : Enhance collaboration among the differentcompanys function and with the suppliers Improve communication & actionsefficiencies (limited number of contacts) Common & Global tool to Select suppliersmonitor performance Improve suppliers overall performance bymonitoring and following up in asystematic waySupplier Information Managementinitiated in Q2 2013 in wavesSupplier Performance Managementinitiated in Q1 2014(20 Global suppliers) 14. 2014 Ariba - an SAP company. All rights reserved. 14* Data is leveraged from survey as well as productModules presentationSupplier Information ManagementBuyers questions only: Type ofsupplier? Our objectives? Needfor specifics treatments?EHS: From Regulatory affairs:Are the suppliers compliant withregional/global legislations?Sustainability & Legal: Are thesupplier compliant with AlbaPolicy? 15. 2014 Ariba - an SAP company. All rights reserved. 15Modules presentationSupplier Performance ManagementScore easilyaccessible dependingon pre-defined weightDifferent sources: Report /SurveyAlerts when score belowtargetScorecard 16. 2014 Ariba - an SAP company. All rights reserved. 16Modules presentationSupplier Performance Management Fact based Ease the analysis Rank suppliersReporting available in usersdashboard or Public ReportsResults were presented to the cap suppliersduring the business review.Suppliers did appreciate this first trial of 360view.Alba is one of the most advance customerfor this kind of evaluationS. Didelot, Global Lead Buyers Caps & Plastic components 17. 2014 Ariba - an SAP company. All rights reserved. 17Modules presentationContract - BasicObjectives : Formalize contractual process Understand existing type of contracts andlocations Share and consolidate information Insure compliances Anticipate ending period (risks control) Measure KPIs (spend covered per contracts) 18. 2014 Ariba - an SAP company. All rights reserved. 18Modules presentationOut of the box self-configurationProcurement StrategiesProcurement Action PlanProcurement Budget BudgetFormFrom December 2014 to be also usedto register Procurement Savings 19. 192014 Ariba - an SAP company. All rights reserved.Conclusion Lessons LearnedStrong Management mandate neededChange management (people) tougher than technical implementationsYou might loose people: capability issuesSystem experience to be part of the buyers job descriptions?Speed is not the key of success but the accuracy YES (suppliers base, commodity, spend)Make it easy and user friendlyCommunication, Communication, Communication!!In and Outside your company: Buyers & Suppliers !Before, During, After the deployment / implementationTrainings sessions to be organized several times per years for the same users + guides + video conference + .Ariba can be expanded to other function than Procurement 20. 2014 Ariba - an SAP company. All rights reserved. 20Conclusion Lessons LearnedDeployment Road map (advised) Phase 1Spend visibility6 monthsContract Basic1 3monthsSourcing3 6monthsSIM2 monthsSPM2 4monthsAPC (Catalogs)6 monthsContract Pro1 3 monthsSPM2 4 monthsDeployment Road map (advised) Phase 2 21. Questions

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