albéa group's procurement transformation - an ariba customer story

Date: 28th October 2014

Procurement Transformation – Albéa Group

Ariba Commerce Summit - Paris

Aurelie Goubin , Best Practices Procurement Manager, Albéa

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The information and analysis contained herein are the confidential and proprietary materials of Ariba, an SAP Company. No part of this publication may be reproduced or

transmitted in any form or for any purpose without the express written permission of Ariba, an SAP Company. The information contained herein may be changed without

prior notice.

Ariba, an SAP Company provides this document as guidance only to illustrate estimated comparisons between the subject company and other companies with respect

to certain key performance indicators and drivers.

These material is based upon survey and product data of the subject company, information provided by other companies and assumptions that are subject to change.

These materials present illustrations of potential performance and do not guaranty future results, or performance . The materials are provided solely for internal review

and use by the subject company. Ariba, an SAP Company makes no representation or warranties of any kind with respect to these materials, and Ariba,an SAP

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Agenda

Albéa Group

• Who we are?

• Albéa Procurement Organization

• Albéa 2013’ Procurement Stakes

Albéa Chose Ariba Suite

Global Deployment Planning

Modules’ presentation

Conclusion – Lessons Learned


Albéa Group

Global leader in Beauty & Personal Care Packaging

• 16 000 employees

• 38 plants

• 14 countries

• Sales 2013: US $ 1,6 Billion

Products portfolio based upon 4 core expertise

Tubes laminates, plastic tubes

Dispensing systems fragrance, lotion, foam, samplers

Cosmetic Rigid Packaging mascara, lipstick, lip gloss, jars

Beauty solutions, kitting, soft goods & promotional items


Albéa Group

• July 2010

AP Beauty is acquired

by Sun Capital Partners’

Private Equity fund V.

• November 2010

Alcan Packaging Beauty

becomes Albéa

2010 2011 2012 2013

• January 2011

Betts is combined

with Albéa,

• November 2011

Acquisition of

Eyelematic

• April 2012

Acquisition of Tex China

• December 2012

Acquisition of Rexam

PC and thus the

dispensing systems

technologies

Sales $US900M

9,300 employees

24 sites

13 countries

Sales $US 1.0B

10,500 employees

30 sites

13 countries

Sales $US 1.6B

16,000 employees

38 sites

14 countries

2004

Cebal and Techpack ,

previously a part of

Pechiney Emballages

become Alcan

Packaging (AP)

Beauty

2004


Albéa Group

Some of our main Customers

AMBITION • Be the best global packaging company in the

eyes of our people, our customers and our shareholders

VALUES

• World class partner

• Speed to market

• Quality through continuous improvement

• Broad range of expertise and product innovation

http://www.pg.com/

http://www.avon.com/


Procurement Organisation

Central Procurement team – 2013/4

• Global Lead Buyers per commodities

• Regional Procurement Directors

• Analysts & Ariba specialist

Global spend US$ 1 Bil.

• 70% production items (raw materials,

components, sub-contracting)

• 30% non-production items (energy, transportation,

travel, etc.)

• Global AND diversified Supply Base

Local Procurement team

• Buyers: implement strategies & run projects


Procurement – 2013 Stakes

• 17 different ERP systems: difficulty in aggregating data

• Increase of the supplier base complexity with important growth of suppliers in

emerging markets

o Over 15 000 suppliers worldwide

o Quality & Supply Chain assurance, cultural differences, time zone, etc.

• Cosmetic Industry European and American regulations to be followed by

suppliers but no tool to manage documents or contracts

• Continue growth of Albéa & tensed economic situation lead to higher pressure

on prices & cost down


Albéa Chosen Ariba Suite

Supplier

Management

Implemented Implemented Implemented Possible Imple.

Reporting

CFT Sourcing

Contract

Management Supplier

Management Procure-to-Pay

Implemented

Public: All Ariba

Users (+/-300)

Public: 40 Buyers Public: 40 Buyers

+ 40 Financial

Controllers

Public: 40 buyers

+ 40 QA + 40 SC

managers

Q1 2013 Q1 2013 Q2 2013 Q3 2013 2015


* Data is leveraged from survey as well as product

Global Deployment Planning

Deployment team:

• Procurement BP

• Procurement Director

Timing : 7 Months

Monthly Steering

Committee to follow

process




Sourcing

223 Full Project in 2014 (Q1-3) • Main users: China & Brazil: 70%

• Followed by Europe: 17%

The most challenging module to be adopted

Objectives : • Maximize competition & savings

• Drive internal efficiency through the

events reproducibility

• Insure process compliance : anti-bribe

• Ease Procurement project reporting

Further Developments • Additional RFP templates

• Push for Functionality : Message board and

email posting




Sourcing

3 Sourcing Project

templates available

RFI and RFP Templates

according to commodities




Supplier Information and Performance Management

Objectives : • Enhance collaboration among the different

company’s function and with the suppliers

• Improve communication & actions

efficiencies (limited number of contacts)

• Common & Global tool to Select suppliers

monitor performance

• Improve suppliers overall performance by

monitoring and following up in a

systematic way

Supplier Information Management

initiated in Q2 2013 in waves

Supplier Performance Management

initiated in Q1 2014

(20 Global suppliers)




Supplier Information Management

Buyers questions only: Type of

supplier? Our objectives? Need

for specifics treatments?

EHS: From Regulatory affairs:

Are the suppliers compliant with

regional/global legislations?

Sustainability & Legal: Are the

supplier compliant with Albéa

Policy?




Score easily

accessible depending

on pre-defined weight

Different sources: Report /

Survey

Alerts when score below

target

Scorecard




• Fact based

• Ease the analysis

• Rank suppliers

Reporting available in users’

dashboard or Public Reports

Results were presented to the cap suppliers

during the business review.

Suppliers did appreciate this first trial of 360º

view.

Albéa is one of the most advance customer

for this kind of evaluation

S. Didelot, Global Lead Buyers Caps & Plastic components



Contract - Basic

Objectives :

• Formalize contractual process

• Understand existing type of contracts and

locations

• Share and consolidate information

• Insure compliances

• Anticipate ending period (risks control)

• Measure KPIs (spend covered per contracts)



“Out of the box” self-configuration

Procurement Strategies

Procurement Action Plan

Procurement Budget – “Budget

Form”

From December 2014 to be also used

to register Procurement Savings



•Strong Management mandate needed

•Change management (people) tougher than technical implementations

•You might loose people: capability issues

•System experience to be part of the buyers job descriptions?

•Speed is not the key of success but the accuracy YES (suppliers base, commodity, spend)

•Make it easy and user friendly

•Communication, Communication, Communication!!

•In and Outside your company: Buyers & Suppliers !

•Before, During, After the deployment / implementation

•Trainings sessions to be organized several times per years for the same users + guides + video conference + ….

•Ariba can be expanded to other function than Procurement



Deployment Road map (advised) – Phase 1

Spend visibility

6 months Contract Basic

1 – 3 months

Sourcing

3 – 6 months

SIM

2 months SPM

2 – 4 months

APC (Catalogs)

6 months Contract Pro

1 – 3 months SPM

2 – 4 months

Deployment Road map (advised) – Phase 2

Questions

albéa group's procurement transformation - an ariba customer story

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