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Procurement withinProcurement within BNP Paribas GroupBNP Paribas Group
P t ti t li d tPresentation to suppliers and partners
March 2012
Outline
1. BNP PARIBAS Group: general overview 1. BNP PARIBAS Group: general overview
BNP Paribas Group story
2. Procurement organisation2. Procurement organisation
BNP Paribas Group story
Corporate values
Business model
ITP ARF organisation chart
Mission
Our human resources
3. Procurement category strategy3. Procurement category strategy
Category organisation: operating model
Category strategy
4. Supplier relationship 4. Supplier relationship Sustainable development
Ethics and deontology rules
Our expectations from suppliers
5. Procurement tool5. Procurement tool
E-sourcing
2
BNP Paribas Group story
Year 1999 2000 December 2011Year 1999 2000 December 2011
Number of Employees 50 000 30 000 80 000 198 400
International presence
France, North African countries, India, Hong Kong…
Main Financial Markets: London,
New York, Frankfurt, Paris,…
83 countries 79 countries
ActivitiesRetail
Corporate Banking
Investment Banking
Specialized Financial Services
Retail
Corporate & Investment Banking
Specialized Financial Services
Retail Banking
Corporate & Investment
Banking
Asset Management & Services Investment Solutions
* Including 55 000 in France
3
Including 55 000 in France
Staff by geographical area
4
BNP Paribas results 4Q2011:Consolidated Groupp
5
A corporate culture of openness and cohesion, founded on common values
CreativityResponsiveness
Speed in the assessment of new
yp
situations and developments, and in identifying opportunities and risksEfficiency in decision making and in action
Encouraging initiatives and new ideasRecognising contributions
Commitment AmbitionCommitment Ambition
Aspiration for challenge and leadershipDesire to obtain team success in the competition where the referee is the client
Commitment to the service of clients and collective accomplishment Exemplary behaviour
6
An international and multicultural Group
Strategy of environmental and social
•Our duty
Adapting our management culture to
•Put in place a policy of environmentalresponsibility
Strategy of environmental and social responsibility Management culture
Adapting our management culture tothe Group new dimensions and aimsand to employees’ expectations
•Our belief
Direct impact of our activities on theenvironmentIndirect impact of our financing andinvestment activitiesOur belief
Enhancing employees’ professionaldevelopment in their interest and in theGroup interest
•Take numerous initiatives showing our socialcommitment around 3 axes
Fight the exclusionGroup interest
•Our management principles
Communicate expectations and
Fight the exclusionFight the discrimination and favour thediversityFavour the transfer of knowledgep
delegate responsibilitiesg
7
An integrated business model
Corporate Customers
Individual Customers
Financials Institutions
Retail Banking
Finance and Development Inspection
GénéraleRetail BankingGroup Tax Department
Group Compliance
Investment SolutionsGroup Legal Department
Group Risk ManagementHuman
Corporate and Investment BankingInformation
Technology & P
Brand Communications &
Quality
Resources
Processesy
“…Because it is diversified but integrated and focused on customers’ needs and demands, this business model has turned out to be robust in a time of crisis and capable of generating
the capital necessary to play a supporting role in the economic recovery ” » B Prot
8
the capital necessary to play a supporting role in the economic recovery… » B. Prot
Retail BankingA new organisation tailored around the business
● 7300 branches
g
● 22 million customers
● Operational entities:
BDDFBDDF
BNL bc
BNP Paribas FortisBNP Paribas Fortis
BGL BNP Paribas
Personal InvestorsPersonal Investors
Leasing Solutions
Arval
International Retail Banking
Personal Finance
9
Investment SolutionsProfessionals and services dedicated to investors
● 30,600 employees
● Strong international presence in Europe and abroad
● Business Units:
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Corporate and Investment BankingLocal solutions for global activities
● Around 21,100 employees in 52 countries
g
, p y
● A powerful client-driven business model
Fi t l d t d i● First-class core products and services:
Global leadership in Financing
A European powerhouse in Capital Markets
A world leader in Derivatives
A dynamic Advisory franchise in Europe and Asia
● A reinforced leadership in Europe and in those countries● A reinforced leadership in Europe and in those countries
where our CIB platform is the strongest
11
Outline
1. BNP PARIBAS Group: general overview 1. BNP PARIBAS Group: general overview
BNP Paribas Group story
2. Procurement organisation2. Procurement organisation
BNP Paribas Group story
Corporate values
Business model
ITP ARF organisation chart
Mission
Our human resources
3. Procurement category strategy3. Procurement category strategy
Category organisation: operating model
Category strategy
4. Supplier relationship 4. Supplier relationship Sustainable development
Ethics and deontology rules
Our expectations from suppliers
5. Procurement tool5. Procurement tool
E-sourcing
12
BNP Paribas Group Procurement is part of ITP function
Retail BankingRetail Banking PFIRB
F ti
BGL BNP Paribas
BNL bc(Retail
Banking Italy)
Personal Investors
Leasing Solutions
Personal Finance
BNP ParibasFortis
French Retail
Banking
Arval International Retail
Banking
(BW, First Hawaiian, BMCI…)
Investment Solutions (IS) CIB
Functions
InvestmenInvestmenInvestmenInvestmenInvestmenInvestmenInvestmen
IT and Operations
Struc-tured
Finance(SF)
CTBE TreasuryRPM Corp. Finance
GECDInvestment Partners
(IP)Real
Estate
Investment Partners
(IP)
Investment Partners
(IP)
Investment Partners
(IP)
Investment Partners
(IP)
Investment Partners
(IP)
Investment Partners
(IP)Investment
Partners(IP)
CardifWealth Management
Securities Services
Fixed Income
Group Functions
G Ri k G H T h l i G G lG L l
pCoverageFunctions
B d
Group Tax Department
Compliance & Internal Control
Group Risk Management
Group Human Resources
Technologies and
Processes (ITP)
GroupFinance
Development
General Inspection
Group Legal Department
ARFGroup
Procurement
Brand, Communi-cation & Quality
13
Procurement
Procurement organisation
Group Head of Procurement Executive Committee pProcurement
BDDFProcurement
BWProcurement
ITPProcurement
Global Category
Management
InternationalRetail Banking
(IRB)
Insurance Ukraine PF France France France
BWProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
BWProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BNPP FORTISProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
BWProcurement
ITPProcurement
BDDFProcurement
CIBProcurement
Invt SolutionsProcurement
PFProcurement
ESProcurement
BNLProcurement
Pole / Operational Business Lines
Business Lines
Insurance Procurement
Real estate Procurement
UK Procurement
Ukraine procurement
Turkey procurement
PF France Procurement
ItalyProcurement
France Procurement
CAPEO (Pole/EO/Procurement
ItalyProcurement
France Procurement
CountryBP2S
Procurement
…..
USAProcurement
…..
Morocco procurement
Poland procurement
LASER ….. …..
CAPEO (Pole/EO/Procurement committee) Poland
procurement
Procurement executive committee
Strong functional linkHierarchical link
Group Procurement Management Committee
14
Group Procurement (ITP ARF) organisation chart
Sylviane Le Carré12 - Group CPOMarjo Liukkonen Lazaro123 - Group Deputy CPO
Procurement Executive Committee
Bank of the WestGlobal Category Management
BNLSupports & DevelopmentCoordination of Group Services
Global Category Management
Procurement Marketing & Networks
CIB
BNP Paribas FortisTransformation & Monitoring
Tools & Processes
CSB(Banking services centres)
Travel France
IT Services & ConsultantsLarge Projects
Corporate Services
International Retail Banking
Equipment SolutionsPerformance Monitoring
Procurement for Functions & Business lines
Banking services and Logistics
H d
FRB
Investment SolutionsTransversal Projects
Middle Office
ITP Procurement
Business lines
Telecoms
Hardware
ITP
Investment SolutionsFRB ProcurementSoftware
Lead buyers with the business linesExample Market data in CIB
15Personal Finance
Missions of the procurement function
Meet the requirements of1
Meet the requirements of business lines / entities regarding external expenses, based on the best cost-delivery-quality ratio for
the Group2
Optimise external expenses by leveraging on unit prices and
volumes and by defining
Define a strategy on tools for industrialising procurement
processes and order
25
standards for products and services procured
processes and order management activities, except for
processes related to accounts payable
Define norms and minimum rules f it i th t b li d Secure supplier relationship
34
of monitoring that can be applied to the procurement processes
Secure supplier relationship
16
Adaptation of our human resources to new missions and stakes
• Building a partnership with HR at Group level in order tobetter promote our function and the opportunities we offer tohigh potentials
11high potentials
• A strong will to build category communities aimed atdefining the operating mode for expense categories andsharing best practices on suppliers, issues and opportunities
22
• Facilitating internal mobility between entities and ITP ARFand vice versa
• Intensification of training efforts especially through the
33
te s cat o o t a g e o ts espec a y t oug t eprocurement academy created in late 2009 with the supportof EIPM
124 buyers trained by the end of 2011
44
17
Outline
1. BNP PARIBAS Group: general overview 1. BNP PARIBAS Group: general overview
BNP Paribas Group story
2. Procurement organisation2. Procurement organisation
BNP Paribas Group story
Corporate values
Business model
ITP ARF organisation chart
Mission
Our human resources
3. Procurement category strategy3. Procurement category strategy
Category organisation: operating model
Category strategy
4. Supplier relationship 4. Supplier relationship Sustainable development
Ethics and deontology rules
Our expectations from suppliers
5. Procurement tool5. Procurement tool
E-sourcing
18
Category organisation Principals of the operating modelp p g
CATEGORY MANAGERS & LEAD BUYERS
ER
S
Entity/Country
Entity/CountryTIE
S
Category CategoryCategory Category Category Category Category
US
TOM
EEntity/Country
Entity/Country
NT
EN
TI
Entity/Country
RN
AL
CU
Entity/Country
Entity/Country
CU
RE
ME
y y
INTEEntity/Country
Entity/Country
PR
OC
PROCESSES & TOOLS MANAGEMENT
19
The category strategy is the base allowing the team to build an action planp
6. Implementation Follow up 1. Category
DefinitionS i b il GS i b il G
5 Strategy by
• Strategies are built at Group, Pole and Entity level
• Strategies are built by ltif ti l t d
• Strategies are built at Group, Pole and Entity level
• Strategies are built by ltif ti l t d
2. The category
within BNP Paribas
5. Strategy by supplier &
Action PlanCategory Strategy multifunctional teams made
of buyers, agents and experts
St t i i d d
multifunctional teams made of buyers, agents and experts
St t i i d dParibas
3. Market Analysis
4. Optimization
Levers
• Strategies are reviewed and updated on an annual basis
• Strategies are reviewed and updated on an annual basis
20
Total cost mindset
Price
TransportPackaging
External costs
HomologationsPurchasing Consumption / DemandCompliance
Quality controls
Internal
Distribution
Stocks
Logistics Production
Compliance Internal costs
R&D Q lit t lDistribution Logistics and Supply chain
Production planning
Project Supervision
Costs at supplier
R&D Quality controls
21
Sustainable procurement
Sustainable development streams
Supplier evaluation• Rating in terms of CSR (Corporate and Social Responsibility)
of the main suppliersCSR annual report: collected indicators on travel and office supplies CSR forms: helping buyers integrate CSR criteria in RFPs (e g temping
The 3 dimensions of sustainable development
CSR forms: helping buyers integrate CSR criteria in RFPs (e.g. temping services, PCs, paper etc.)
Procurement CSR optimisation levers
Hardware: packaging optimisation, energy savings, printing on both sides etc. Postage & mail: dematerialisation of mail optimisation of the CO2Postage & mail: dematerialisation of mail, optimisation of the CO2 produced by the supplier’s vehicles Long-term car rental (ARVAL): choose the “cleanest” vehicles and vehicles which consume the least or dieselTravels (train, plane, vehicles): control the number of km / ETP (supplier reporting)reporting)Paper consumption: control the consumption of paper / ETP (supplier reporting)
22
Outline
1. BNP PARIBAS Group: general overview 1. BNP PARIBAS Group: general overview
BNP Paribas Group story
2. Procurement organisation2. Procurement organisation
BNP Paribas Group story
Corporate values
Business model
ITP ARF organisation chart
Mission
Our human resources
3. Procurement category strategy3. Procurement category strategy
Category organisation: operating model
Category strategy
4. Supplier relationship 4. Supplier relationship Sustainable development
Ethics and deontology rules
Our expectations from suppliers
5. Procurement tool5. Procurement tool
E-sourcing
23
Ethics and deontology rulesThe rules of conduct concerning relationships between BNP ParibasGroup employees and suppliers set up professional and personalbehaviour rules organized around 5 keywords:
• Compliance with national or international laws, regulations or professional norms applicable to the entities.
• Reputation : In their relations with suppliers, BNP Paribas employees represent p pp , p y pthe Group and contribute to its reputation. They must therefore adopt a behaviour in line with BNP Paribas' ambition in this area at all times
• Fairness in the suppliers selection process• Confidentiality on BNP Paribas internal information and on information• Confidentiality on BNP Paribas internal information and on information
concerning the suppliers• Independence :
• During sensitive periods (RFP, negotiation, consultation), the employees likely to take t t th d i i ki di tl i di tl t t i tl f ift I it tipart to the decision making, directly or indirectly, must strictly refuse any gift, Invitation
or other benefit of any amount• Outside sensitive periods as referred to above, an employee may accept a gift in so far
as its value and/or its frequency is reasonable, i.e. neither disproportionate as compared to the usual business relations nor higher than the maximum value set bycompared to the usual business relations nor higher than the maximum value set by the compliance manager of his entity
• Declaration of any personal link with a supplier when the employee’s role within the Group implies dealing with this supplier.
24
Our expectations from suppliers
Service quality at competitive costs and ethical business conduct are equally important to us Service quality at competitive costs and ethical business conduct are equally important to us
• Ethical and sustainable business conduct, particularly in terms of Corporate Social
• Ethical and sustainable business conduct, particularly in terms of Corporate Social
• Cost optimisation• Service quality assurance and reliability• Cost optimisation• Service quality assurance and reliability particularly in terms of Corporate Social
Responsibility• Compliance with Procurement Norms• Full transparency and reporting on
commercial “pipe” for major suppliers
particularly in terms of Corporate Social Responsibility
• Compliance with Procurement Norms• Full transparency and reporting on
commercial “pipe” for major suppliers
Service quality assurance and reliability• Rapid response capability• Ability to support BNP Paribas in its
processes such as M&A, investments etc. • Ability to offer customised / tailored
Service quality assurance and reliability• Rapid response capability• Ability to support BNP Paribas in its
processes such as M&A, investments etc. • Ability to offer customised / tailored commercial pipe for major suppliers
• Ability to provide innovative solutions• A high level of flexibility
commercial pipe for major suppliers• Ability to provide innovative solutions• A high level of flexibility
b ty to o e custo sed / ta o edsolutions
• Quarterly business review for major suppliers
b ty to o e custo sed / ta o edsolutions
• Quarterly business review for major suppliers
25
Outline
1. BNP PARIBAS Group: general overview 1. BNP PARIBAS Group: general overview
BNP Paribas Group story
2. Procurement organisation2. Procurement organisation
BNP Paribas Group story
Corporate values
Business model
ITP ARF organisation chart
Mission
Our human resources
3. Procurement category strategy3. Procurement category strategy
Category organisation: operating model
Category strategy
4. Supplier relationship 4. Supplier relationship Sustainable development
Ethics and deontology rules
Our expectations from suppliers
5. Procurement tool5. Procurement tool
E-sourcing
26
E-Sourcing
• An internet tool enabling BNP Paribas to getAn internet tool enabling BNP Paribas to get information from their suppliers and Internal users in a standardised manner at all the stages of the Purchasing management strategy (definition of
d RF t t )needs, RFx, contracts...)• Benefits
Confidentiality of informationBidders monitoringBidders monitoringExchange platform between bidders and buyers Creation of a buyers community that can access the RFI/RFP content Possibility to set the format of answers Support the bids analysisRFP history
27
