Ralf Kahre & Patrick Gött, BASF – “End-to-End Business Process Management”
3 likes2,426 views
The document discusses BASF's use of the Vendor Interaction Portal (VIP) to manage procurement processes. VIP automates the purchase to pay process from purchase requisition to invoice between BASF and its suppliers. It aims to improve process quality, visibility, and collaboration between BASF and vendors. BASF rolled out VIP to around 4,100 suppliers over 3 years to digitize over 120,000 purchase orders and 145,000 invoices annually. The portal provides an end-to-end view of transactions and simplifies connectivity with external partners. BASF's strategic goals include further digitizing supply chain processes through initiatives like product traceability and an omni-channel approach.
Ralf Kahre & Patrick Gött, BASF – “End-to-End Business Process Management”
- 1. Vendor Interaction Portal – a practical example for Business Process Management at BASF Patrick Goett and Ralf Kahre, October 2014 1
- 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 Management @ 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
- 6. GS Areas of Core Business GS support for BASF’s “We Create Chemistry” Strategy Information Services IS Supply Chain Operations (incl. logistics) Business Process Management SCO BPM GS consists of three Areas of Core Business which support BASF’s “We Create Chemistry” Strategy 6
- 7. End-to-End Processes Business Process Management (BPM) BPM Operating Model Establish End-to-End Process Strategies Ensure Value Contribution Measure & Monitor Process Performance Perform continuous Improvement Process Business Strategies Delivering Value through BPM Support our Customers and Businesses Impact bottom-line result by linking Process Strategy with BASF Value Based Management Realize Value by doing “ the right things right” Regional Strategies Functional Strategies Methods and Tools Strategic Business Process Management Operational Business Process Management BASF`s Strategy “We Create Chemistry” End-to-End Processes 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 An example of active Business Process Management 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
- 9. 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) Vendor ERP/system VIP Elemica Scope of VIP Cloud Solution 9
- 10. 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
- 11. 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
- 12. 12 Roll-Out Strategy Direct Procurement # of suppliers # of Purchase Orders # of Invoices Year 1 ~ 1.100 ~ 30.000 ~ 40.000 Year 2 ~ 1.700 ~ 60.000 ~ 70.000 Year 3 ~ 1.300 ~ 30.000 ~ 35.000 Total ~ 4.100 ~ 120.000 ~ 145.000
- 13. Connectivity Services Definition Automating and connecting electronic end-to-end business processes between internal users and 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 External Partners BASF World BASF Core Process OTC P2P TM … MTO NCM 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