how clariant optimizes global procurement with ariba and sap · procurement management for strategy...

How Clariant optimizes global

procurement with Ariba and SAP

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2

Agenda

IF CUSTOMER PRESENTATION:

• About Clariant

• Challenges / Optimization needs

• The Need to Optimize

• Project presentation

• Value Proposition of SAP

• Achieving Results with SAP

• Summary


A world leader in specialty chemicals

Clariant focuses on creating value

by investing in future profitable and

sustainable growth.

KEY FACTS

Sales 2012 (CHF m)

6 038

More than

100 Group companies worldwide

EBITDA 2012 (CHF m)

before exceptionals

802

End 2012

~21 202 employees

Represented in

76 countries worldwide

7 Business Units

(incl. discontinued operations)


Profitable growth under way

SALES (CHF m)

2012 + 8 %

2011*

6 038

5 571*

REGIONAL MARKETS Sales 2012: CHF 6 038 million

BUSINESS UNITS Sales 2012: CHF 6 038 million

EBIT (CHF m)

before exceptionals

2012 - 15%

2011*

MARGIN 2012: 8.8 % – 2011: 11.2 %

531

624*

* Restated due to discontinued operations

Industrial &

Consumer …

Performance

Chemicals; 0

Masterbatches; 0

Pigments; 0

Textile Chemical

s; 0

Oil & Mining

Services; 0

Catalysis &

Energy; 0

Functional

Materials; 0

Leather Services;

0

Latin America

225 / +12%

Europe, Middle

East & Africa

699 / 0%

North America

236 / +2% Asia / Pacific

349 / +1%

Middle East & Africa

9%

Asia/ Pacific 23%

Latin America 15% North

America 16%

Europe 37%

MB 19%

PIG 15%

OMS 12%

ADD1 7%

FM 11%

CA 12%

ICS 24%

ADD = Additives

FM = Functional Materials

CA= Catalysts

ICS = Industrial & Consumer Specialties

MB = Master batches

PIG = Pigments

OMS = Oil & Mining Services

EBITDA (CHF m)

before exceptionals

2012 - 4 %

2011*

MARGIN 2012: 13.3 % – 2011: 15 %

802

835*


P2P enablement Targets

• Reduction of NWC

• Cash Flow Savings

• Reduction of Invoice ageing

• P2P Process Speed up

• AP Process Optimization

• Realizing more cash discount

• Process compliance

• Back Log reduction

• Failure Rate Reduction


P2P Process

End-user is creating his

Material request in SAP

To send it to the responsible

Procurement Person

Procurement issues the PO

According the first in first out

principle.

OCR

Scanning

Verifier

Interpret

Transfer

Cockpit

Approval

Manual Handling and plausibility check Payables

http://www.seoonma.de/preise/seo-text-paket/


Traditional “Purchasing Mindset”

Service to the Company

Fragmented supplier base

Negotiate case by case

Local view

etc.

Procurement management for strategy growth

Source of innovation

Faster introduction of new markets

Manage Cash

Exclusive knowledge capture and leverage

Procurement is a strategic key activity

Long term securing of price, volumes, service

Operational Strategic

Imp

act

to C

lari

an

t

Co

st

Sh

are

ho

lde

r V

alu

e

Procurement Evolution @ Clariant

Supplier consolidation / Global lead buyer concepts

Reduce complexity (PRAGMATISM and

SIMPLICITY)

Global view and global negotiation

Supplier consolidation

Tool Standardization

Scope


Catalog Network integration with SAP SRM

Requisition

built from Ariba

Shopping Cart

PO

Generated

Catalog Loading & Collaboration

Contract Terms

& Pricing Applied

Contract Terms/ Pricing

Search ->

Investigate ->

Compare ->

Review ->

Ariba Procurement Content Check Out

Catalog Validation &

Collaboration

Services

Supplier Supplier Supplier

Supplier


P2P system integration

An SAP Company

MM

AP

SRM

eProcurement SRM PO

Standard MM PO

Collaboration , Integration, Transparency, Network

EDI

HTML

cXML

CSV

Business Rule Check

entity

PO Complia

nce

Invoice #

Supplier


Su

pp

lier

Invoice integration technics

PO Flip

cXML

integration

Comma

separated

values / CSV

Roaming

AP

Process to

define

Posting


P2P Process Optimization

End-user accesses one of the

over 250 catalogs and selects

the needed Products and orders

immediately

eInvoice GR

Cockpit

Approval

Payables


Clariant Excellence – the continuous improvement process within

the strategy

KEY FACTS Financial benefits

since 2009 (CHF m)

More than

300 More than

3 600 projects launched More than

4 600 employees trained in

Clariant Excellence

Clariant Excellence (CLNX) is the company-wide long-term initiative

targeting a culture of continuous improvement

LeanSigma as key core methodology to execute improvement

projects

Goal is to sustainably position Clariant at the top levels

of performance

Benefits already realized through Clariant Excellence

2009

2010

2011

2012

CHF m

25 50 75 100

CHF 14 million

CHF 65 million

CHF 114 million

CHF >130 million


Continuous improvement eProcurement

KEY FACTS

Enabled Countries

Worldwide

19 Currently

52% Indirect automation

More than

200`000 Transactions

Technologies

• Ariba Network Catalogs

• SAP Call Off Contracts

• SAP SRM direct OCI

• Winserv SAP Process


Continuous improvement eInvoice

KEY FACTS

PO Coverage Indirect

>95%

Implementation

• Pilot Switzerland

• Germany

• USA

• LATAM

• APAC

Paper Invoices

2012

More than

1.1 Mio.

PO Coverage Direct

>99%


Lessons Learned

Top Management Support!

Understand eProcurement as Key Element and Strategic Tool for Operational Procurement Activities!

Agree on Personal Targets based on the eProcurement Rate!

Clear Organization & Responsibilities

Dedicated Support Functions from Network Provider Necessary


Q&A

how clariant optimizes global procurement with ariba and sap · procurement management for strategy...

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