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MONDI Europe & International
Procurement Excellence through Automisation
Beatrix Praeceptor
Procurement Director
April 2016
IN TOUCH EVERY DAY
Our products touch the lives of
millions, every day.
April 2016 1Mondi Procurement Excellence
● Mondi Europe & International
● Procurement Excellence @ Mondi
● Lessons learned
Mondi Procurement Excellence 2April 2016
Content
We are an international packaging and paper Group, employing around 25,000 people across
more than 30 countries.
Our key operations are located in central Europe, Russia, North America and South Africa.
Mondi Procurement Excellence 3April 2016
Mondi Group
Containerboard
Packaging Paper
Europe & International
DivisionSouth Africa Division
Sack Kraft Paper
Speciality Kraft Paper
Fibre Packaging
Corrugated Packaging
Industrial Bags
Extrusion Coatings
Consumer Packaging
Advanced Materials
Consumer Goods
Packaging
Uncoated Fine Paper
Pulp
Uncoated Fine Paper
Containerboard
Africa
Mondi operates locally with more than 100 operations across more than 30 countries.
Mondi Procurement Excellence 7April 2016
Mondi Group – Network
Europe Asia
North America
In 2015, Mondi had revenues of €6.8 billion and a ROCE of 20.5%. Mondi has a dual listed company structure,
with a primary listing on the JSE Limited for Mondi Limited and a premium listing on the London Stock Exchange
for Mondi plc.
Mondi Group 2015 2014 Change (2015 vs 2014)
Revenue €6,819m €6,402m 7%
Underlying EBITDA1 €1,325m €1,126m 18%
Underlying operating profit1 €957m €767m 25%
ROCE2 20.5% 17.2% -
Mondi Procurement Excellence 8April 2016
Mondi Group – Key figures
1 The Group presents underlying EBITDA and operating profit as measures which exclude special items in order to provide a more effective comparison of the underlying financial performance
of the Group.
2 ROCE is underlying profit expressed as a percentage of the average capital employed for the year, adjusted for impairments and spend on strategic projects which are not yet in operation.
● Mondi Europe & International
● Procurement Excellence @ Mondi
● Lessons learned
Mondi Procurement Excellence 9April 2016
Content
Mondi Procurement Excellence 10April 2016
Mondi E&I Procurement
€4,2 bn total spend
(split in 13 categories)
€3,7bn influenceable spend
~39.000 active supplier
(total 130.000)
~ €60m yearly savings
~580.000 POs ~185 FTE for sourcing
~1.000.000 PO-positions ~300 tactical buyer
Key Figures
Mondi Procurement Excellence 11April 2016
Mondi E&I procurement processes and supportive tools
Procurement Excellence
Commercial agreement(price/supplier)Yes
Automation
(SAP / ARIBA / VIA)
DEMAND
No
Source to Contract - S2C
(Strategic sourcing)
Request to Pay - R2P
(Tactical procurement)
Supplier life cycle management
& data transparency
(SAP/SLC & AGORA)
- Transparency on spend data & harmonisation of supplier base
- 360° view of activities with individual supplier across all kernels (existing & potential)
- Digital interface for tactical and administrative interaction between Mondi & supplier
Full visibility and standard approach across Mondi E&I = “one face to the supplier”
Agora – were all data get together
● Overarching business warehouse across all business segments
● Harmonized and standardized automatic download of data from all sources (SAP and non-SAP)
● Customized and compliant user authorization
● 20 Standard available by Plant/Supplier/Category/Material
● Pre-requisits: Harmonisation and common understanding of Material Codes
● Challenge: Benefits on group level vs workload is on local level
Benefits: Savings and Efficiency
Mondi Procurement Excellence 12April 2016
Outlook 2016/2017
● Implementation of „Procurement Portal“
o Procurement one stop shop for all reports and data
needs (static and dynamic)
Mondi Procurement Excellence 13April 2016
SRM@Mondi: a step by step implementation of 8 modules(in all SAP Kernels/BU/BS)
1. Strategy and ambition targets
2. Supplier evaluation (group / local)
3. e-procurement (EDI, catalogues, invoice automation)
4. On-boarding / master data management
5. Activity management (audits, visits, action planning,.. )
6. Classification & risk management
7. RFI, RFX, E-tendering, e-auctioning
8. Contract management
9. Claim management
From different tools and documents one system with all necessary information
2014/15
2016
2017
2013
Mondi Procurement Excellence 14April 2016
Key priority: high automation of R2P
Purchase Requisition
Purchase Order
Order Confirmation / delivery note
Goods receipt Invoice
● Full benefit is achieved through end to end automation of the R2P process
o End to end collaboration is required across the supply chain (Operations/logistics, procurement, finance)
● 50-70 % of our R2P process will run automatically (excl. good receipt)
o Available tools give us full flexibility – some plants have reached this level already
● Prerequisites:
o Dedicated resources required (Business Process Owner and local teams for implementation)
o Release strategy in place
o SRM and e-procurement implementation
Benefit: Transactional time savings of 20 - 25 Minutes per PO/invoice within supply chain
Mondi Procurement Excellence 15April 2016
e-procurement (Ariba) to support the automation
● E-catalogues
o Content
o (Punch out)
● E-transactions
o Purchase order
o Purchase confirmation
o Invoice
● Prerequisites:
o Supplier Master Data cleaning
and central on-boarding
o Aligned strategy, roles and
responsibilities for sourcing
activities (catalogue
negotiations)
Benefits: 50 – 70 % automation and move resources from administration of P.O. to sourcing activities
● Mondi Europe & International
● Procurement Excellence @ Mondi
● Lessons learned
Mondi Procurement Excellence 16April 2016
Content
Mondi Procurement Excellence 17April 2016
Lessons learned
● Share the vision:
○ Common understanding of strategic importance – at all levels of the organisation
○ Share the “big picture” and decide on platform with “the end in mind”
○ Focus on procurement excellence
● Do not underestimate the complexity:
○ Concept definition
○ Pre-requisits
○ Interdependencies (topics and functional areas)
○ Cross functional collaboration
● Good project management is key:
○ Business and IT integration and shared accountability for project success
○ Communication
○ Change management
… and of course: choose the right tool & implementation partner
Mondi Procurement Excellence 18April 2016
Thank you for listening
Happy to answer all questions
IN TOUCH EVERY DAY
Forward-looking statements disclaimer
This document includes forward-looking statements. All statements other than statements of historical facts included herein, including, without limitation, those regarding Mondi’s financial position, business strategy, market growth and developments,
expectations of growth and profitability and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as ‘believe’,
‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘shall’, ‘risk’, ‘intends’, ‘estimates’, ‘aims’, ‘plans’, ‘predicts’, ‘continues’, ‘assumes’, ‘positioned’ or ‘anticipates’ or the negative thereof, other variations thereon or comparable terminology. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mondi, or industry results, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such forward-looking statements and other statements contained in this document regarding matters that are not historical facts involve predictions and are based on numerous assumptions
regarding Mondi’s present and future business strategies and the environment in which Mondi will operate in the future. These forward-looking statements speak only as of the date on which they are made.
No assurance can be given that such future results will be achieved; various factors could cause actual future results, performance or events to differ materially from those described in these statements. Such factors include in particular but without any
limitation: (1) operating factors, such as continued success of manufacturing activities and the achievement
of efficiencies therein, continued success of product development plans and targets, changes in the degree of protection created by Mondi’s patents and other intellectual property rights and the availability of capital on acceptable terms; (2) industry
conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for Mondi’s products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers and the
competitors of Mondi and potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in Mondi’s principal geographical markets or fluctuations of exchange rates
and interest rates.
Mondi expressly disclaims
a) any warranty or liability as to accuracy or completeness of the information provided herein; and
b) any obligation or undertaking to review or confirm analysts’ expectations or estimates or to update any forward-looking statements to reflect any change in Mondi’s expectations or any events that occur or circumstances that arise after the date of
making any forward-looking statements, unless required to do so by applicable law or any regulatory body applicable to Mondi, including the JSE Limited and the LSE.
Mondi Procurement Excellence 19April 2016
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