Contenu connexe Similaire à Procurement Excellence in the Energy & Natural Resources Industry (20) Procurement Excellence in the Energy & Natural Resources Industry1. #AribaLIVE
Energy & Natural Resources Industry Track
– Ariba LIVE 2014
Tuesday, March 18
Brera 1
© 2014 Ariba – an SAP company. All rights reserved.
2. 3:00 PM – 3:15 PM Welcome – Ariba LIVE Energy & Natural Resources Track Overview
Ron Calzolari, SVP South, SAP
3:15 PM – 4:15 PM Panel Discussion - Procurement Excellence in Energy & Natural
Resources Industry
Moderated by Rachel Barger, Regional Vice President, US
Procurement Sales
Jaime Bohnke, CPO and VP Supply Chain, PPL
Cindy Dunham, General Manager, Global Process Architecture for Rio
Tinto Procurement
Lionel R. Jellins, Manager – Global IT Ventures and Operations, Exxon
Mobil
Kathryn Hinton Vice President Supply Chain Management, Tesoro
4:15 PM – 4:45 PM Networking Break
4:45 PM – 5:00 PM Innovation Showcase – Energy & Natural Resources Industry
5:00 PM – 6:00 PM Industry Roundtable for Energy & Natural Resources
6:00 PM – 7:15PM Energy & Natural Resources Networking Reception
Energy & Natural Resources Industry Track
Tuesday, March 18, Ariba LIVE 2014
© 2014 Ariba – an SAP company. All rights reserved.2
3. Introducing Customer Panelists
© 2014 Ariba – an SAP company. All rights reserved.3
Jaime
Bohnke
CPO and
VP Supply chain
Cindy
Dunham
General
Manager, Global
Process
Architecture for
Rio Tinto
Procurement
Lionel
Jellins
Global IT
Ventures and
Operations
Manager for
Procurement
Kathryn
Hinton
Vice President
Supply Chain
Management
Tesoro
Companies Inc.
Exxon
Mobil
5. © PPL Corporation 2014
Procurement Excellence
Ariba Energy & Natural Resources Track
Tuesday, March 18, 2014
6. © PPL Corporation 2014
Content
About PPL
Key Issues Driving Procurement Transformation
Procurement Strategy
Key Achievements / Success
Lessons Learned
7. © PPL Corporation 2014
PPL At a Glance
PPL Stats
– Revenue: $11.9B
– Total Assets: $46.3B
– 18,108 employees
– Major Business Segments:
• Kentucky Regulated
• U.K. Regulated
• Pennsylvania Regulated
• Supply
– More than 10 million utility
customers in the U.S. and
U.K.
Supply Chain Stats
– 2012 SC Spend: $2.2B
– 262 employees
– Center-led reporting with CPO
reporting to CFO
– Category-based sourcing
strategy new to PPL (concept
still rejected)
8. © PPL Corporation 2014
PPL Supply Chain Operating Model
Sourcing & Supplier
Management
Procure-to-Pay
Lean Six Sigma &
Supplier Quality
Logistics
CoP’s - A Structured Approach to KM Transfer, Operational Excellence & Sustainable Results
Business
Plan
Materials &
Service
Planning
EU Supply Chain
Generation Supply Chain
Benefits:
• Business needs shape SCM’s Key
Initiatives & Goal Framework
• Mitigates Cost, Schedule, Performance
Risks
• Assurance of Key Controls horizontal
and vertical across the enterprise
• Ensures Productivity, Innovation,
Customer Satisfaction and Knowledge
Management are institutionalized
The platform and mechanism to increase efficiency and bring together like practitioners to
collaborate, define and promote standards.
9. © PPL Corporation 2014
Key Procurement Transformation Issues
Internal Issues
– Various processes, tools, and stakeholder interactions across operating units
– Manually intensive processes for sourcing, contracting, and requisitioning
• Multiple contracts with same supplier
– Ineffective processes for monitoring spend/contract and supplier compliance
• Tracking Tier 2 Supplier Diversity Spend
– Low e-Invoicing and significant exceptions which increase processing time
– No visibility to discounts taken or available, or effective program to maximize discounts
External Issues
– Electric Utilities:
• Sharing visibility of demand changes for project materials during growth period
– Generation:
• EPA restrictions on coal plants changing spend requirements
• Maintaining high level of service while decreasing overall cost to the business line
Spend
Visibility eSourcing
Contract
Mgmt.
Req/Cat/PO
PO to/from
Supplier
Invoice from
Supplier
Invoice
Approval
/OK to Pay
Dynamic
Discounting
SiPM
Manual Process;
gap identified
Div #1 existing
system
Div #2 existing
system
10. © PPL Corporation 2014
PPL Procurement Strategy
Spend
Visibility
eSourcing
Contract
Mgmt.
Req/Cat/PO
PO to/from
Supplier
Invoice from
Supplier
Invoice
Approval
/OK to Pay
Dynamic
Discounting
SiPM
Ariba
Sourcing
Pro /
Discovery
Ariba
Discount
Pro
Ariba
Spend
Visibility
Ariba
Contract
Mgmt.
Ariba PO & Invoice
Automation
Ariba
SiPM
Ariba
Procure to
Order
Ariba Invoice
Pro
Comprehensive Category Management
• Execute identified FY14 category initiatives to meet savings objectives.
• Continue the development of robust category strategies aligned with key
stakeholders/internal customers.
• Resulting in a well-balanced project portfolio of initiatives for leveraged
spend, competitive bidding, supplier initiated cost reductions, rebates, low
value purchase order efficiency, process/product engineering
improvements, etc.
Supplier Relationship Management
• Deepen relationships with critical suppliers to maximize value.
• Utilize supplier segmentation, internal coordination, supplier performance
measurement and improvement, and supplier collaboration.
Early Payment Discounts
• Automate early discount management from initial offer to
agreement, including prorate or dynamic discounting.
• Implement platform to dynamically capture early payment discounts to
increase revenue generation and cash flow.
Risk Management
• Institute a repeatable and sustainable risk management program to assess
and detect early warnings of potential supply disruptions.
• Establish the process to manage the risk based upon likelihood and
severity of impact
Supplier Performance Management
• Improve supplier performance and meet internal customer business
expectations by focusing on performance results through a Results
Oriented Performance Management (ROPM) program.
• Proactively identify supplier expectations
(safety, cost, quality, service, innovation, etc.) upfront during the scope of
work versus just scorecard reporting at the end of the service or material
delivery.
Utilizing Ariba’s fully integrated and scalable enablement tool, execute a strategy that is aligned
on opportunities around process, technology and organizational structure focusing on:
11. © PPL Corporation 2014
Key Achievements / Success
Opportunity assessment completed.
Revitalized and enhanced enterprise spend analytics.
Deployed category assignments and accountability via
category workbooks and playbooks.
Increased strategic focus, including business needs like
demand management.
Early payment discounts prgram and DiscountPro in
process of being deployed.
Continue deployment of Ariba solution to continue to
aggregate like spend across the enterprise in order to
leverage opportunities, optimize the buy, enhance
supplier relationships, improves supplier performance,
manage risk and drive efficiency.
19. Challenges for Procurement
1. Making it easy to do business with us
2. Skillsets required for Procurement are changing
3. Building Agile Strategies (Market Conditions)
4. Knowing your Supply Chain intimately
5. Reducing the business exposure to Risk
6. Identifying Innovation Opportunities and supporting
7. Keeping across Market Conditions
8. Working to support local Industry
9. Operationalizing Global Processes around the world
Underpinned by core values of Safety,
Environment and Social Licence.
23. Internal
Antitrust Reminder
All discussions will strictly conform to the antitrust and competition laws. If
anyone is unsure as to whether a topic or a question is appropriate, they
should not raise the topic or question until they have had an opportunity to
discuss it with counsel. If an inappropriate topic or question is raised,
please immediately object and that topic/question will not be discussed.
23 © 2014 Ariba – an SAP company. All rights reserved.
24. Internal
Sourcing and
Acquisition COE
Planning &
Reporting
Vice President
Procurement
Efficiency Contracting
& Controls
Payables
Strategic
Procurement
Supply Chain
Global IT Ventures
and Operations
Fuels, Lubes, and
Corporate
Refining & Supply
Projects, Drilling, &
Exploration
Production
Chemicals
Sourcing Procurement
National Content &
Supplier Diversity
ExxonMobil Procurement Organization
• Became a global organization since merger in 2000
• Under Procurement Leadership Team organized along the business clients, focusing
on unique Sourcing Categories
• Total 2,600 people, 1/3 of which are in Business Service Centers at locations in
Prague, Buenos Aires and Bangkok.
24 © 2014 Ariba – an SAP company. All rights reserved.
25. Internal
Who We Are, and What We Do
We provide expertise in procurement, materials supply chain management and
payables so that the B/L’s can focus on their core business
160K
active suppliers
37
countries
$55G
actionable spend
$528G
disbursements
2600
People:
40 average age
51 nationalities
73 languages
$2.9G
inventory
© 2014 Ariba – an SAP company. All rights reserved.25
26. Internal
Procurement Vision
• A world-class procurement organization that is:
indispensable to internal business partners;
known for its integration with customers’ strategic business plans, break
through cost-reduction and revenue-enhancing solutions, and sound controls
that protect the corporation’s assets and flawless execution of service
offerings, the pacesetter in the procurement industry;
known as the leader for commodity expertise, market knowledge, focused
skills with core business processes, constructive supplier
relationships, operational efficiency, and technological superiority in electronic
transactions,
a great place to work; where employees have impact and are valued.
26 © 2014 Ariba – an SAP company. All rights reserved.
27. Internal
Sourcing
Contract
Management Procurement
Invoice
Management
Buyer; T&ESourcing Contract Mgt Ariba Network
4,000 RFxs
annually
15,000
agreements
T&E: 70,000 users
Buyer: $350M in
annual spend
$6B automated spend
1.1M transactions
Global users Global users T&E: Global
Buyer: Global;
primarily Corp/IT
North America Only (95%)
Buyer (5%)
SolutionUsageScope
suppliers
On Premise Solution and Ariba Supplier Network Customer
13-Year SAP Ariba Relationship
27 © 2014 Ariba – an SAP company. All rights reserved.
29. Internal
• Procurement IT solutions often driven by User Experiences at Home
• High level of Cyber-security required for Commercial Transactions
• Integration of eCommerce solutions with Large O&G ERP systems required
• Ability to perform Cross-catalog searches across eCatalogs, Inventory, and
Material Master components
• Enhance IT Competence of Procurement Professionals
• Supplier Partnerships required to implement new systems (i.e. eCatalogs)
• Ability to facilitate full PtP Systems in remote ventures
Industry Challenges
29 © 2014 Ariba – an SAP company. All rights reserved.
35. Questions for Our Panelists
© 2014 Ariba – an SAP company. All rights reserved.35
Notes de l'éditeur Perhaps a point regarding the challenges of operationalizing global processes across geographies and business units? This is a view of the Ariba Solution set at a high level. At this time Rio Tinto is using the Source and contract modules predominantly to reduce S2C to cycle times. During this year there are projects to simplify the sourcing and contracting process for Rio Tinto. Rio Tinto has the Supplier Information & Performance Management module deployed but its suitability is still being determined.Additionally Rio Tinto is a long time user of the Network. Over the next 12 months Rio Tinto intents to standardize the use of the Network across regions. Update people details and actionable spend # for EMDC BRC