Vendor Interaction Portal a practical example for Business Process Management at BASF

Transcription

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

2 Outline n BASF We Create Chemistry Strategy n Strategic approach of BASF Information Services and Supply Chain Operations n End-to-End Business Process BASF n VIP - a practical example of Business Process Management n Strategic Outlook n Questions 2

3 Our Purpose We create Chemistry for a Sustainable Future 3

4 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 4

5 Our Values Creative Open Responsible Entrepreneurial 5

6 GS consists of three Areas of Core Business which support BASF s We Create Chemistry Strategy GS support for BASF s We Create Chemistry Strategy GS Areas of Core Business IS Information Services SCO Supply Chain Operations (incl. logistics) BPM Business Process Management 6

7 Business Process Management (BPM) BPM Operating Model BASF`s Strategy We Create Chemistry Business Strategies Regional Strategies Functional Strategies Support our Customers and Businesses End-to-End Processes Strategic Business Process Management Establish End-to-End Process Strategies Ensure Value Contribution Operational Business Process Management Measure & Monitor Process Performance Perform continuous Improvement Process Methods and Tools Impact bottom-line result by linking Process Strategy with BASF Value Based Management Delivering Value through BPM Realize Value by doing the right things right 7

8 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 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 An example of active Business Process Management

9 Scope of VIP 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) VIP Elemica Vendor ERP/system Cloud Solution 9

10 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 10

11 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 11

12 Roll-Out Strategy Direct Procurement # of suppliers # of Purchase Orders # of Invoices Year 1 ~ ~ ~ Year 2 ~ ~ ~ Year 3 ~ ~ ~ Total ~ ~ ~

13 Connectivity Services Definition Automating and connecting electronic end-to-end business processes between internal users and external partners 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 NCM MTO OTC BASF Core Process P2P TM BASF World BASF Process World does not need to deal with external complexities as Gateway Concept manages the complexity, routing and translates information into BASF language 13

14 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 14

15 Questions? 15