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Global eProcurement @
Clariant




                        Public

                        Peter Beyeler
                        Group Procurement Services
                        09.01.2013
2   Confidential, Global eProcurement
    Peter Beyeler, Group Procurement Services, 21.08.2012




    A world leader in specialty chemicals


                                                            Clariant focuses on creating value
                                                            by investing in future profitable and
                                                            sustainable growth.

                                                            KEY FACTS

                                                            Sales 2011 (CHF m)     End 2011
                                                            7370                   22149
                                                                                   employees
                                                            EBITDA 2011 (CHF m)
                                                            before exceptionals    Production Sites in

                                                            975                    44
                                                                                   countries

                                                                                    11
                                                            More than
                                                            100
                                                            Group companies         Business Units
                                                            world-wide
3   Confidential, Global eProcurement
    Peter Beyeler, Group Procurement Services, 21.08.2012




    Expansion in high-growth countries
    as key pillar for profitable growth


                                                                                   EUROPE
                                                                                                                  CHINA
                                                                                                           (as part of Asia/Pacific)

                                       14.7% 13%                        48.7% 41.1%                                3.4%   6%


                                        NORTH

         39%                            AMERICA
                                                                    MIDDLE EAST
                                                                    AND AFRICA
         of Clariant’s
         employees work                                                       6.5% 8.7%
         in the emerging                                                                       17.1% 21.7%
         nations of Asia &
         Latin America                                                                      ASIA/PACIFIC
         Sales share by                                     13% 15.5%
         region 2005
         (excl. Süd-Chemie)                                   LATIN AMERICA
         Sales share by
         region 2011
         (incl. Süd-Chemie)
4   Public, Global eProcurement @ Clariant
    Peter Beyeler, Group Procurement Services, 09.01.2013




    Why we do eProcurement

         We do eProcurement to…

         …automate standard transactions and reduce manual errors
         …transferring standard procedures into automated processes
         …dramatically reduce processing time which impact processing cost
         …electronic creation/tracking to streamline approval process and
          increase spending controls
         …facilitate strategic supplier relationships
         …increase the use of preferred vendors
         …eliminate 'maverick' spending
         …reduce material and service costs
         …clear picture of suppliers and its materials
         …reduce Supplier Management cost (by reducing number of suppliers)
5   Public, Global eProcurement @ Clariant
    Peter Beyeler, Group Procurement Services, 09.01.2013




    Development and automation by category



    50%



                                                                                              Packaging             Corporate
    45%                                                                                         21%                  Services
                                                                                                                       26%


    40%                                                                           Technical
                                                                                 Equipments                                Energy & Fluids
                                                                                    22%                      Site &             16%
                                                                                                          Maintenance
                                                                                                           Services
     35%                                                                                                     15%




    30%
                2006        2007        2008         2009   2010   2011   2012

                                                   YTD %
6   Public, Global eProcurement @ Clariant
    Peter Beyeler, Group Procurement Services, 09.01.2013




    Country automation Indirect

                               70%
                                         64%
                                                 59%
                               60%                          57%


                               50%                                49%
                                                                        47%


                               40%
                                                                              36%
                                                                                    34% 34% 34%
                                                                                                33%
                                                                                                      31% 30%
                                                                                                              29%
                               30%
                                                                                                                    26% 25%


                               20%
                                                                                                                              13%

                               10%

                                                                                                                                    0%   0%
                                 0%
7   Public, Global eProcurement @ Clariant
    Peter Beyeler, Group Procurement Services, 09.01.2013




    Global Supplier enablement

                                                            Standard Products such as
                                                               Office Consumables
                                                               Workshop Supply
                                                               Lab Consumables
                                                               Personal Protection Equipment


                                                            Standard Services such as
                                                               Painting Services
                                                               Construction Works
                                                               Corrosion Protection
                                                               Audit Services



                                                            Contract
                                                            •   Clear Product Range
                                                            •   Fixed Prices, Payment Terms and
                                                                Incoterms
8   Public, Global eProcurement @ Clariant
    Peter Beyeler, Group Procurement Services, 09.01.2013




    Supplier enablement Process


                                             - New Catalogs
     Material Group                          - Maverick Spend            - Static Catalog             Catalog
                                                                                                                                           Go Live
     Analysis                                - Cat. Extensions           - Punch Out                Enablement
                                             - Bundle Effects




                                                                                                - eCoordinator                                 eCoord /
                                                                                                                                              eAdmin(PM)

        Procurement                                 Findings                 Solution           - IT (Supplier & Clariant)                                  Ariba enablement
                                                                                                                             Clariant IT      Supplier IT
                                                                                                - Ariba Enablement Team                                           Team




     Catalog Enablement Timeline
        Vendor Know-How Excellent
                                    Vendor Know-How Average
                                                            Complex Catalog (mainly Punch Out) Supplier Know-How
     Week 1                   Week 2                        Week 3          Week 4          Week 5          Week 6           Week 7
9
    Peter Beyeler, Group Procurement Services, 21.08.2012




    Leveraging External Supplier Networks
    How the External Network Integrates
                                          Invoice Automation               Supplier Portal   Procurement
                                                                                               Content
                                                                                                           Suppliers




                                                                                                                cXML


          ERP

                                                     Procurement Content                                        HTML
                             Network                  Invoice Automation
                             Adapter

            AP
                                                                                                                 EDI




                                                                                                                 CSV
10
     Peter Beyeler, Group Procurement Services, 21.08.2012




     How is the network integrated
          800,000+
          suppliers
                                                                                      Search ->
                                                                                    Investigate ->
                                                     Catalog Loading                 Compare ->                 Contract Terms
                                                     & Collaboration                                 Contract
                                                                                      Review ->                 & Pricing Applied
                                                                                                      Terms/
                                                                                                      Pricing
                                                                       Ariba Procurement Content                                    Check Out



                                      Catalog
                                    Validation &
                                    Collaboration
                                                                                                                    Requisition
                                                                                                                    built from Ariba
                                                                                                                    Shopping Cart
                                                Supplier




         Supplier                                                                                                                         PO
                                 Supplier          Supplier                                                                            Generated




                  Services
11
     Peter Beyeler, Group Procurement Services, 21.08.2012




     Organizational eNetwork
              ARIBA                                          Corporate Global Lead GPS


           eAdministrator                           EU           MEA         LATAM       NAFTA     APAC


                                               Germany          Turkey         Brazil     USA      China
          eCoordinator

                                             Switzerland      South Africa    Mexico     Canada     India
            Future Roll
               Outs
                                                France                         Chile              Singapore


                                                   Italy                     Argentina             Japan


                                                  Spain                      Colombia             Indonesia


                                                    UK                         Peru               Thailand

                                                Belgium                      Venezuela            Malaysia

                                                 ARIBA          ARIBA         ARIBA      ARIBA     ARIBA
12   Public, Global eProcurement @ Clariant
     Peter Beyeler, Group Procurement Services, 09.01.2013




     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
13   Public, Global eProcurement @ Clariant
     Peter Beyeler, Group Procurement Services, 09.01.2013

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  • 1. Global eProcurement @ Clariant Public Peter Beyeler Group Procurement Services 09.01.2013
  • 2. 2 Confidential, Global eProcurement Peter Beyeler, Group Procurement Services, 21.08.2012 A world leader in specialty chemicals Clariant focuses on creating value by investing in future profitable and sustainable growth. KEY FACTS Sales 2011 (CHF m) End 2011 7370 22149 employees EBITDA 2011 (CHF m) before exceptionals Production Sites in 975 44 countries 11 More than 100 Group companies Business Units world-wide
  • 3. 3 Confidential, Global eProcurement Peter Beyeler, Group Procurement Services, 21.08.2012 Expansion in high-growth countries as key pillar for profitable growth EUROPE CHINA (as part of Asia/Pacific) 14.7% 13% 48.7% 41.1% 3.4% 6% NORTH 39% AMERICA MIDDLE EAST AND AFRICA of Clariant’s employees work 6.5% 8.7% in the emerging 17.1% 21.7% nations of Asia & Latin America ASIA/PACIFIC Sales share by 13% 15.5% region 2005 (excl. Süd-Chemie) LATIN AMERICA Sales share by region 2011 (incl. Süd-Chemie)
  • 4. 4 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013 Why we do eProcurement We do eProcurement to… …automate standard transactions and reduce manual errors …transferring standard procedures into automated processes …dramatically reduce processing time which impact processing cost …electronic creation/tracking to streamline approval process and increase spending controls …facilitate strategic supplier relationships …increase the use of preferred vendors …eliminate 'maverick' spending …reduce material and service costs …clear picture of suppliers and its materials …reduce Supplier Management cost (by reducing number of suppliers)
  • 5. 5 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013 Development and automation by category 50% Packaging Corporate 45% 21% Services 26% 40% Technical Equipments Energy & Fluids 22% Site & 16% Maintenance Services 35% 15% 30% 2006 2007 2008 2009 2010 2011 2012 YTD %
  • 6. 6 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013 Country automation Indirect 70% 64% 59% 60% 57% 50% 49% 47% 40% 36% 34% 34% 34% 33% 31% 30% 29% 30% 26% 25% 20% 13% 10% 0% 0% 0%
  • 7. 7 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013 Global Supplier enablement Standard Products such as  Office Consumables  Workshop Supply  Lab Consumables  Personal Protection Equipment Standard Services such as  Painting Services  Construction Works  Corrosion Protection  Audit Services Contract • Clear Product Range • Fixed Prices, Payment Terms and Incoterms
  • 8. 8 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013 Supplier enablement Process - New Catalogs Material Group - Maverick Spend - Static Catalog Catalog Go Live Analysis - Cat. Extensions - Punch Out Enablement - Bundle Effects - eCoordinator eCoord / eAdmin(PM) Procurement Findings Solution - IT (Supplier & Clariant) Ariba enablement Clariant IT Supplier IT - Ariba Enablement Team Team Catalog Enablement Timeline Vendor Know-How Excellent Vendor Know-How Average Complex Catalog (mainly Punch Out) Supplier Know-How Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
  • 9. 9 Peter Beyeler, Group Procurement Services, 21.08.2012 Leveraging External Supplier Networks How the External Network Integrates Invoice Automation Supplier Portal Procurement Content Suppliers cXML ERP Procurement Content HTML Network Invoice Automation Adapter AP EDI CSV
  • 10. 10 Peter Beyeler, Group Procurement Services, 21.08.2012 How is the network integrated 800,000+ suppliers Search -> Investigate -> Catalog Loading Compare -> Contract Terms & Collaboration Contract Review -> & Pricing Applied Terms/ Pricing Ariba Procurement Content Check Out Catalog Validation & Collaboration Requisition built from Ariba Shopping Cart Supplier Supplier PO Supplier Supplier Generated Services
  • 11. 11 Peter Beyeler, Group Procurement Services, 21.08.2012 Organizational eNetwork ARIBA Corporate Global Lead GPS eAdministrator EU MEA LATAM NAFTA APAC Germany Turkey Brazil USA China eCoordinator Switzerland South Africa Mexico Canada India Future Roll Outs France Chile Singapore Italy Argentina Japan Spain Colombia Indonesia UK Peru Thailand Belgium Venezuela Malaysia ARIBA ARIBA ARIBA ARIBA ARIBA
  • 12. 12 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013 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
  • 13. 13 Public, Global eProcurement @ Clariant Peter Beyeler, Group Procurement Services, 09.01.2013