1. Collaborative Sourcing
Keys to Unlocking Greater Value
January 2012
© 2012 Ariba, Inc. All rights reserved.

2. Effective Sourcing Remains Critical
Top CPO Pressures
Source: Ardent Partners, 2011
© 2012 Ariba, Inc. All rights reserved.

3. Collaboration is King
Top CPO Strategies
Source: Ardent Partners, 2011
© 2012 Ariba, Inc. All rights reserved.

4. Evolution of Sourcing
Community
Technology
Capabilities
Collaborative
Business Sourcing
Value
Strategic
Sourcing
eSourcing
Manual Sourcing
Time frame
© 2012 Ariba, Inc. All rights reserved.

5. Our Panel
• Florian Boehme
Prokurist, Director Consulting & Professional Services
source:net GmbH
• Alexandre Sayve
Global eProcurement & eSourcing Manager
Schindler Management AG
© 2012 Ariba, Inc. All rights reserved.

6. Schindler Purchasing Excellence
January, 19th 2012, Frankfurt
Alexandre Sayve
Corporate Purchasing

7. Agenda
– Schindler
– Purchasing Excellence
– Q&A’s
© Schindler | MAN | Alexandre Sayve | Page 7

8. Schindler
© Schindler | MAN | Alexandre Sayve | Page 8

9. Schindler Lucerne 1874
Founder Robert Schindler
Plant 1900
Controller 1930
Drives 1954 Cars 1890
Lift boy

10. Our product is mobility
Hotels Office buildings Hospitals Airports
Factories Ships Residential buildings Shopping centers

12. We move 1 billion people every day
Leadership through customer service
2010 Stats:
Turnover = CHF 8.2 B
EBIT = CHF 980 Mio / 12%

13. Purchasing Excellence
© Schindler | MAN | Alexandre Sayve | Page 13

14. Business requirements & Scope overview
Upgrade existing capabilities / enable Schindler
Spend Analysis Sourcing
• Lotus Notes manual process • ATK eBreviate / Synertrade
• Massive internal effort cleansing data in • Out dated, expensive and time consuming
KG/KWs on annual basis, further manual tools with limited templates & no category
cleansing in CP to “categories and group” assistance from vendors. Not integrated
main know suppliers, top level data to spend analysis nor Contract Mgmt.
reasonably accurate but 2nd & 3rd level
untrustworthy.
No Integration to SAP or other tools
Supplier Management Contract Management
• None/Excel • Lotus Notes database
• Tool missing, using excel & PowerPoint • Very basic LN database with manual
based on SAP inputs. No integration to posting of amended templates. No ability
other tools, nor 3rd party data such as to assist on scripting nor reporting on
D&B. variations / amendments. Pricing manually
posted to SAP.
CP Cockpit
Significant internal effort to group data into PowerPoint, no automation
Vision – ONE fully integrated eSourcing suite globally
© Schindler | MAN | Alexandre Sayve | Page 14

15. Implementation plan
6 months effort to deploy the sourcing solution globally
Program Element 2011 July Aug Sep Oct Nov Dec Jan
Kick-
0. Program & Change Off Phase 1
Management
Program Management
Schindler Program Management
1. Requirement NA
gathering & LA
Data collection AP
EU
2. System set-up &
System configuration & System Testing & Review
Testing customisation
3. Training NA
LA
AP
EU
4. Go Live NA
LA
AP
EU
5. Extension Phase Advanced functionalities
training for Increase
Sourcing use
© 2010 Ariba, Inc. All rights reserved.
© Schindler | MAN | Alexandre Sayve | Page 15

16. Lessons learned and results
 The Ariba Sourcing solution was successfully rolled out in our 4 main regions as planned:
North America, Latin America, Asia Pacific and Europe
 Comments and feedbacks from our team were extremely positive
Managed a survey under Ariba Sourcing with an average score of 4.2 out of 5
 In total 100 buyers and commodity managers were trained and transferred onto the new tool
 12 projects already managed around the 4 zones since training including 2 fully completed
 Further training will be required around the world in order to overachieve CHF 690 Mio
Sourcing target per year, increase traction and momentum
 In addition advanced Sourcing training and tactics including Full TCO approach with cost model
transparency to be delivered -> Sourcing 2.0
 Planning on developing the template library extensively in order to share knowledge across the
region as we have a fragmented organised
 Ultimately the goal is to rollout the other modules by 2012-2013 along with a special focus on
Spend Visibility first, followed by SPM and CM.
© Schindler | MAN | Alexandre Sayve | Page 16

17. Key to success
 Strong support from Top Management (From CEO to CPO)
 Detailed communication plan on project
 Implication of Buyers and Category Managers at zone & group level during the preparation and
implementation phase to improve processes and create momentum
 Strong training program including super admin training of regional coordinators in order to
support other buyer locally in case of issues / problems on top of Ariba support
 Plan additional training later on to increase traction and increase use of tool and more
importantly use of advanced functionalities
 Avoid implementing all modules / functionalities at the same time if the organisation is not
ready
 Creating the perfect system from Day 1 is almost impossible – your process and tool will evolve
with time and your user community
© Schindler | MAN | Alexandre Sayve | Page 17

18. Keep pushing!
© Schindler | MAN | Alexandre Sayve | Page 18

19. Q&A’s
© Schindler | MAN | Alexandre Sayve | Page 19

20. Collaborative Sourcing: Keys to Unlocking Greater
Value
ARIBA COMMERCE SUMMIT
Frankfurt, 19.01.2011
Florian Boehme, source:net GmbH
Seite 20

21. Who is source:net?
Founded: 2002
Target: „Success and Efficieny in Procurement“
Improvement with Tools, Processes and Know-How
First provider of „SourcingOnDemand“ (Europe)
Marketplace for Airports „AirportSmart“
Clients: Multinational cooperations
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 21

22. What does source:net do?
Specialized and profound results-driven consulting with emphasis on Procurementdata and –processes.
Cleansing Master- a.
(e)Sourcing Procurement Consultancy Combinatorial Awardanalysis
transactional Data
Consolidate ERP RFI (Survey) Evaluation/Selection of RFx-Design
Automatic Classification RFP (Proposal- and procurement applications Constraints Definition
Normalization of Data Pricerequest „open Standardization-Projects Setting up analysis
Proposals“ / concepts) Development of Category
Harmonization of Suppliers, Scenario definition
Manufacturers a. RFQ (Pricerequests) Management
Simulation of requirements
Products/Services Auction Benchmarking/Assessment
Bidding Implementation of
Procurement applications
• Cleansing of Data (POs, • Market-transparency and • Organization • Scenrio Building
Invoices, Material-/Supplier- intesiving of competition
• Processes • Transparency on cost of
Master)
• Standardization and decision
• Systems
• Granular Classification knowledgemanagement
• Scenrio Configuration in real-
• (almost)Real-time • Processstandardization and - time within
transparency acceleration Procurement/Sourcing Board
decision workshops
• Opportunity-Management
(Savings Finder)
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 22

23. Who did source:net work with in 2011?
Current Customer Samples with Projects in 2011.
Aerospace Automotive Financial Services More Branches ..
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 23

24. Added value of SourcingOnDemand – critical success factors in Sourcing
We successfully support tender projects, driving all procurement and cross-functional levers.
Success Factors: Basics Success Factors: Cost
Know-how, Expertise and Costinformation and Benchmarks
Experience
Price-Escalation-Clauses
Spend Analysis and Bundling
Cost-Structures
Specifications
Seasonal Price-Movements
Contractual Terms
Success Factors: Success Factors: eTools
Competition
Supplier-Databases eRFx
Supplier-Ratings eBidding / eAuction
Mailing Optimization/combinatorial
analysis
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 24

25. Maximum Length Sourcing-Procedure
Process greatly varies based on project and customer specific requirements.
If allowed/possible, we will start by publishing on Ariba Network Discovery.
Ariba Network
Discovery Analysis Analysis
Posting Expression Optimization
RFI RFP Validation RFQ Validation Auction Award
of Interest Scenarios
Direct Mailings Clarification Optimization
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 25

26. Sample Categories published on Ariba Network Discovery (AND)
We started using AND in Jul09 for most INDIRECT, but also DIRECT, CAPEX & SERVICES projects.
Geographical scope of postings is mostly Europe; higher responses rates are recorded in global tenders.
Spend (€) Suppliers Alerted *
Printed Items (Germany) 150k 3.235
Services: Relocation (Germany) 2 Mn. 7.925
Toner / Ink (Germany) 1 Mn. 1.677
Services: Small Parcel (DE, AT, CZ) 5 Mn. 6.017
Furniture (Germany) 3 Mn. 1.062
Services: IT consulting (Europe) 100 Mn. 7.800
Plastic injection moldings (Austria) 1,3 Mn. 9.120
Packaging (pallets, films, ..) 15 Mn. 2.517
(CH, DE, ES, PT, UK)
Furniture (Racks)/Display in Retail Shops 50 Mn. 5.013
(Global)
Supplier Responses is typically
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012 between 0,125% - 1% of alerted
Suppliers* Seite 26

27. Sample Posting on Ariba Network Discovery
Example of a recent posting.
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 27

28. Sample Posting on Ariba Network Discovery
Example of a recent posting.
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 28

29. What„s the effort to publish a posting?
Time-wise generalized effort to publish a posting on Ariba Network Discovery
Task Time (Minutes)
Search & find your password, Login 2-3 Minutes
Create Posting (Title & Description) 15-30 Minutes
Add Commodity (classify) 5-10 Minutes
Add Location(s) 1-10 Minutes
Additional Information (Contract, Spend, Timeline) 2-3 Minutes
Add Preferences (Size, Years in Business, Type, …) 2-3 Minutes
… a phone call lasting more than 30 minutes
comes in … you loose all work ….
No matter how fast or non-fast you are, you will reach thousands of suppliers within round
about the times mentioned above. If it even would take 3 hours, it may mean you wasted
only SECONDS on each SUPPLIER – isn‘t that amazing?
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 29

30. BestPractice Recommendations for using Ariba Network Discovery
Our Lessons Learned from the past years – also Suppliers are still using their room for improvement.
Ariba Network Discovery facilitates OUR approach to the market.
Solid Description of needs and esp. requirements (K.O. citeria, which are easy to assess for supply
base)
Granular and Precise Classification of your product/service
Locations may even be classified down to “Bundesland” / State
Hide participating supplier list
Logistical requirements and PO/order size, along with Incoterms (if applicable)
Tender / Business Languages
Quelle: source:net GmbH ARIBA COMMERCE SUMMIT, Frankfurt, 19.01.2012
Seite 30

31. Thank you for your attention – Questions?
Florian Boehme
source:net GmbH
Georgenstr. 19
D-80799 München
Foto
Florian.Boehme@SourcingOnDemand.com
Phone: +49 (0) 89 20 400 20 12
Quelle: source:net GmbH
Seite 31