Date: 28th October 2014
Procurement Transformation – Albéa Group
Ariba Commerce Summit - Paris
Aurelie Goubin , Best Practices Procurement Manager, Albéa
2 © 2014 Ariba - an SAP company. All rights reserved.
Statement of Confidentiality and Exceptions
The 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 © 2014 Ariba - an SAP company. All rights reserved.
Agenda
Albéa Group
• Who we are?
• Albéa Procurement Organization
• Albéa 2013’ Procurement Stakes
Albéa Chose Ariba Suite
Global Deployment Planning
Modules’ presentation
Conclusion – Lessons Learned
4 © 2014 Ariba - an SAP company. All rights reserved.
Albéa Group
Global leader in Beauty & Personal Care Packaging
• 16 000 employees
• 38 plants
• 14 countries
• Sales 2013: US $ 1,6 Billion
Products 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.
Albéa Group
• July 2010
AP Beauty is acquired
by Sun Capital Partners’
Private Equity fund V.
• November 2010
Alcan Packaging Beauty
becomes Albéa
2010 2011 2012 2013
• January 2011
Betts is combined
with Albéa,
• November 2011
Acquisition of
Eyelematic
• April 2012
Acquisition of Tex China
• December 2012
Acquisition of Rexam
PC and thus the
dispensing systems
technologies
Sales $US900M
9,300 employees
24 sites
13 countries
Sales $US 1.0B
10,500 employees
30 sites
13 countries
Sales $US 1.6B
16,000 employees
38 sites
14 countries
2004
Cebal and Techpack ,
previously a part of
Pechiney Emballages
become Alcan
Packaging (AP)
Beauty
2004
6 © 2014 Ariba - an SAP company. All rights reserved.
Albéa Group
Some of our main Customers
AMBITION • Be the best global packaging company in the
eyes of our people, our customers and our shareholders
VALUES
• World class partner
• Speed to market
• Quality through continuous improvement
• Broad range of expertise and product innovation
7 © 2014 Ariba - an SAP company. All rights reserved.
Procurement Organisation
Central Procurement team – 2013/4
• Global Lead Buyers per commodities
• Regional Procurement Directors
• Analysts & Ariba specialist
Global spend US$ 1 Bil.
• 70% production items (raw materials,
components, sub-contracting)
• 30% non-production items (energy, transportation,
travel, etc.)
• Global AND diversified Supply Base
Local Procurement team
• Buyers: implement strategies & run projects
8 © 2014 Ariba - an SAP company. All rights reserved.
Procurement – 2013 Stakes
• 17 different ERP systems: difficulty in aggregating data
• Increase of the supplier base complexity with important growth of suppliers in
emerging markets
o Over 15 000 suppliers worldwide
o Quality & 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 contracts
• Continue growth of Albéa & tensed economic situation lead to higher pressure
on prices & cost down
9 © 2014 Ariba - an SAP company. All rights reserved.
Albéa Chosen Ariba Suite
Supplier
Management
Implemented Implemented Implemented Possible Imple.
Reporting
CFT Sourcing
Contract
Management Supplier
Management Procure-to-Pay
Implemented
Public: All Ariba
Users (+/-300)
Public: 40 Buyers Public: 40 Buyers
+ 40 Financial
Controllers
Public: 40 buyers
+ 40 QA + 40 SC
managers
Q1 2013 Q1 2013 Q2 2013 Q3 2013 2015
10 © 2014 Ariba - an SAP company. All rights reserved.
* Data is leveraged from survey as well as product
Global Deployment Planning
Deployment team:
• Procurement BP
• Procurement Director
Timing : 7 Months
Monthly Steering
Committee to follow
process
11 © 2014 Ariba - an SAP company. All rights reserved.
* Data is leveraged from survey as well as product
Modules’ presentation
Sourcing
223 Full Project in 2014 (Q1-3) • Main users: China & Brazil: 70%
• Followed by Europe: 17%
The most challenging module to be adopted
Objectives : • Maximize competition & savings
• Drive internal efficiency through the
events reproducibility
• Insure process compliance : anti-bribe
• Ease Procurement project reporting
Further Developments • Additional RFP templates
• Push for Functionality : Message board and
email posting
12 © 2014 Ariba - an SAP company. All rights reserved.
* Data is leveraged from survey as well as product
Modules’ presentation
Sourcing
3 Sourcing Project
templates available
RFI and RFP Templates
according to commodities
13 © 2014 Ariba - an SAP company. All rights reserved.
* Data is leveraged from survey as well as product
Modules’ presentation
Supplier Information and Performance Management
Objectives : • Enhance collaboration among the different
company’s function and with the suppliers
• Improve communication & actions
efficiencies (limited number of contacts)
• Common & Global tool to Select suppliers
monitor performance
• Improve suppliers overall performance by
monitoring and following up in a
systematic way
Supplier Information Management
initiated in Q2 2013 in waves
Supplier Performance Management
initiated in Q1 2014
(20 Global suppliers)
14 © 2014 Ariba - an SAP company. All rights reserved.
* Data is leveraged from survey as well as product
Modules’ presentation
Supplier Information Management
Buyers questions only: Type of
supplier? Our objectives? Need
for specifics treatments?
EHS: From Regulatory affairs:
Are the suppliers compliant with
regional/global legislations?
Sustainability & Legal: Are the
supplier compliant with Albéa
Policy?
15 © 2014 Ariba - an SAP company. All rights reserved.
Modules’ presentation
Supplier Performance Management
Score easily
accessible depending
on pre-defined weight
Different sources: Report /
Survey
Alerts when score below
target
Scorecard
16 © 2014 Ariba - an SAP company. All rights reserved.
Modules’ presentation
Supplier Performance Management
• Fact based
• Ease the analysis
• Rank suppliers
Reporting available in users’
dashboard or Public Reports
Results were presented to the cap suppliers
during the business review.
Suppliers did appreciate this first trial of 360º
view.
Albéa is one of the most advance customer
for this kind of evaluation
S. Didelot, Global Lead Buyers Caps & Plastic components
17 © 2014 Ariba - an SAP company. All rights reserved.
Modules’ presentation
Contract - Basic
Objectives :
• Formalize contractual process
• Understand existing type of contracts and
locations
• 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.
Modules’ presentation
“Out of the box” self-configuration
Procurement Strategies
Procurement Action Plan
Procurement Budget – “Budget
Form”
From December 2014 to be also used
to register Procurement Savings
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Conclusion – Lessons Learned
•Strong Management mandate needed
•Change management (people) tougher than technical implementations
•You might loose people: capability issues
•System 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 friendly
•Communication, Communication, Communication!!
•In and Outside your company: Buyers & Suppliers !
•Before, During, After the deployment / implementation
•Trainings 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.
Conclusion – Lessons Learned
Deployment Road map (advised) – Phase 1
Spend visibility
6 months Contract Basic
1 – 3 months
Sourcing
3 – 6 months
SIM
2 months SPM
2 – 4 months
APC (Catalogs)
6 months Contract Pro
1 – 3 months SPM
2 – 4 months
Deployment Road map (advised) – Phase 2
Questions