Vendor Interaction Portal – a practical example for Business Process Management at BASF Patrick Goett and Ralf Kahre, October 2014

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Outline

n  BASF – We Create Chemistry Strategy

n  Strategic approach of BASF Information Services and Supply Chain Operations

n  End-to-End Business Process Management @ BASF

n  VIP - a practical example of Business Process Management

n  Strategic Outlook

n  Questions

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Our Purpose

We create Chemistry for a Sustainable Future

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Our Strategic Principles

We add value as One Company

We innovate to make our Customers more Successful

We drive Sustainable Solutions

We form the Best Team

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Our Values

Creative

Open

Responsible

Entrepreneurial

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GS Areas of Core Business

GS support for BASF’s “We Create Chemistry” Strategy

Information Services IS

Supply Chain Operations

(incl. logistics)

Business Process Management

SCO

BPM

GS consists of three Areas of Core Business which support BASF’s “We Create Chemistry” Strategy

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End-to-End Processes

Business Process Management (BPM) BPM Operating Model

Establish End-to-End Process Strategies

Ensure Value Contribution

Measure & Monitor Process

Performance

Perform continuous Improvement

Process

Business Strategies

Delivering Value through BPM

Support our Customers and Businesses

Impact bottom-line result by linking Process Strategy with BASF Value Based Management Realize Value by doing “ the right things right”

Regional Strategies Functional Strategies

Methods and Tools

Strategic Business Process Management

Operational Business Process Management

BASF`s Strategy “We Create Chemistry”

End-to-End Processes

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Vendor Interaction Portal – Applied Business Process Management in P2P

Define & propose strategic initiatives & activities

Engage Business to match needs and initiatives

Develop strategic roadmap & initiate projects

An example of active Business Process Management

Capture needs from global functions

Joint process design with the global functions

Jointly work with providers on the

realization Pilot and

acceptance Global roll out

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Vendor Interaction Portal to exchange documents like purchase Orders and invoices with suppliers …for Direct Procurement (e.g. Raw Materials, Packaging) cloud portal of Elemica

BASF    Cobalt  

(ERP/system)    Vendor  ERP/system  

VIP    

Elemica  

Scope of VIP

Cloud Solution

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What are the goals of VIP?

n  Automation of the end-to-end Purchase to Pay process from purchase

requisition to invoice

n  Improve the process quality for vendors and BASF

n  Improve the quality of invoice in order to avoid questions and payment troubles

n  Increase process visibility and transparency for vendors as well as for BASF

n  Fast and effective roll out

n  Improve collaboration and communication with the vendors

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VIP from a BASF Perspective

n  Real end-to-end view from purchase order creation to receiving the invoice

n  Multi tenant cloud solutions instead of BASF`s in-house offering

n  Consider the needs and requirements of the business partners

n  Make it easy for the business partners, to help BASF to automate processes (example: country specific invoice creation based on templates, create an invoice automatically based on purchase order or delivery)

n  Involve partners in the evaluation of the improvements

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Roll-Out Strategy Direct Procurement

# of suppliers # of Purchase Orders # of Invoices

Year 1 ~ 1.100 ~ 30.000 ~ 40.000

Year 2 ~ 1.700 ~ 60.000 ~ 70.000

Year 3 ~ 1.300 ~ 30.000 ~ 35.000

Total ~ 4.100 ~ 120.000 ~ 145.000

Connectivity Services Definition

Automating and connecting electronic end-to-end business processes between internal users and external partners

Shield Customers & External Partners from Internal Business Process Complexities

“Gateway” Concept – Minimum Access Points to get in and out of BASF Process World

External Partners

BASF World

BASF Core

Process

OTC

P2P

TM

…

MTO

NCM BASF Process World does not need to deal with external complexities as “Gateway” Concept manages the complexity, routing and translates information into BASF language

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Strategic Path Forward for BASF

n  For improving supply chain processes, we are working on different projects, like

track and trace for products from BASF to the end user through the whole supply chain

n  Track and trace to increase transport visibility

n  Omni Channel approach to be able to offer differentiated services in digitalization of the supply chain for BASF and its partners

n  Reduce the efforts to connect business partners through out the supply chain (customers, logistics and vendors) to come closer to plug and play

n  Ease of use, differentiated solutions and services, fast and ease roll out of solutions, increased agility are the strategic targets of BASF for improvement in digitalization of the supply chain processes

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Questions?

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