Roland Berger - Case Study PDF

Digital
Procurement
Discussion document
Jakarta, 23 September 2019

Contents Page
A. Our expertise in procurement and digital procurement 3
B. The future of procurement 15
C. Our digital procurement philosophy 25
D. EPC related procurement 33
This document shall be treated as confidential. It has been compiled for the exclusive, internal use by our client and is not complete without the underlying detail analyses and the oral presentation.
It may not be passed on and/or may not be made available to third parties without prior written consent from .
© Roland Berger 20190918_PLN_Digital procurement v2.pptx 2

A. Our expertise in
procurement and digital
procurement
20190918_PLN_Digital procurement v2.pptx 3

We are a truly global firm with global capabilities – Procurement is a
key topic of our business
Share of procurement related projects
Founded in 1967 in Germany by Roland Berger

Procurement
~10% #200+ professionals with
procurement expertise
50 offices in 36 countries, with around 2,400 employees
#450+ projects with procurement

context in last 5 years
~1,000 international clients
Nearly 220 RB Partners currently serving
Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 4

We offer a comprehensive range of services around Procurement,
while Digitalization is one of our areas of key strengths
Our strength in CPO (Chief Procurement Officer)
CLIENT AND PRODUCT ORGANIZATION
C SUPPLIER P AND SPEND O / SET-UP
C.1 Business Partner Centricity & P.1 360° Strategic Spend Management O.1 Digitization of Procurement
Demand Management (SSM) External effectiveness, internal efficiency
Business partner priorities, cross-functional Strategic sourcing of direct/indirect material
collaboration, demand management and services, comprehensive sourcing O.2 Procurement-Endgame
programs, total/life cycle cost (TCO/TCL) Disruptive elements, scenarios, strategy
C.2 Zero based budgeting (ZBB) P.2 360° Product Value/Cost O.3 Agile & Lean Procurement
Indirect spend control, demand Management (PVM/PCM) Purchase to pay (P2P), incl. source to
management, budget / P&L link Product oriented and customer focused contract (S2C) or requisition to pay (R2P)
value/cost optimization, sourcing programs
Best-Practice set-up
C.3 Supplier Management P.3 Project Procurement Excellence O.4 Strategy, governance, processes, organizati-
Identification, qualification, evaluation, Collaboration of engineering, project on, people, change mgmt., KPIs, savings, etc.
development procurement & commodity/category mgmt.
O.5 Shared Service Center
P.4 Special Sourcing Support Organization, location, procurement factory,
C.4 Supplier Partnership 4.0 Innovation, Best Cost Country, Capex, business process outsourcing (BPO)
Supplier partnership concepts, expectations
& commitments, monopoly/oligopoly P.5 Technology & Commodity O.6 Advanced Methods & Analytics
Strategy (T&CS) Toolbox with, e.g. cost engineering, Linear
Joint strategy of engineering & procurement Performance Pricing (LPP), tear down
C.5 Collaborative Supplier
Improvement P.6 Advanced negotiation capabilities O.7 Procurement Academy
Joint supplier optimization, joint idea Negotiation types & design, tender design, Training, coaching, enablement, e.g.
generation online variants, game theory strategic sourcing methodology

We have a methodology to thoroughly screen the procurement
processes to identify areas that can benefit from digitalization
Procurement process landscape, pain points & potential (selection)
LANDSCAPE
Management Procurement Organization & process Employee
process strategy development management
Core
process Source-to-contract
(S2C)
Technology & Purchase-to-pay
category strategy (P2P)
Project
procurement
Supplier management
Support Supplier risk Contract & Performance Systems & tools

processes management catalogue management management
management (KPI)
Relevant pain point(s) in RPA/AI context Potential of RPA/AI solution: High Low

We also have deep experience in utility procurement – We have
conducted numerous relevant projects
Selected projects in utility procurement Non-exhaustive
COUNTRY CLIENT TITLE DESCRIPTION

1 Global French energy Procurement Developed a procurement optimization plan that integrates 2
and utility company optimization procurement departments through some enablers, esp. IT tools
2 Major European Procurement process Analyzed the procurement process in the plant all over Europe,
electricity producer improvement covering multiple BUs alignment & system assessment
Energy and utility New procurement Defined a transformation strategy for procurement function through
3
solution operator transformation a new centrally managed organization system
Germany energy holding Procurement Developed, piloted and implemented procurement strategies that
4
company transformation program solve the client issue in the high pressure market
Electricity transmission ProReg Implemented a professional, efficient digitalized and compliant

5 system operators procurement at a large German TSO
6 Russian largest territorial Procurement strategy Identified new target organization structure for procurement along
power generator company for budget increase with procurement process modernization and investment mgmt.
7 Global largest natural gas Procurement Developed new procurement unit concept and suppoerted the
company organization implementation, covering organization and IT system assessment

…as well as in the procurement digitalization topics
Selected projects1) in procurement digitalization Non-exhaustive
Company Assignment details

> Cognitive procurement
Vodafone > Concept design and implementation of a digital procurement platform for
category strategies and management
> Organizational design
TUI Group > Design of operating model
> Business case
> Concept design and implementation of a digital procurement platform for
Sanofi category strategies and management
> Feasibility study/concept design and implementation of a digital procurement

Bertelsmann collaboration platform
> Feasibility study/concept design and implementation of a digital procurement

Innogy platform
> Definition of a best practice procurement process framework

SAP > Global implementation of best practices & SAM rollout
> Blue-print design for SAP SAM 7.0
1) Roland Berger and personal references of team members
B. The future of
procurement

There are six major procurement challenges rising across industries
– Technology is changing the future of procurement
Cross-industry procurement challenges
Key challenges Trend1) Impacted industries
Leverage digitized operations – Industry 4.0 + 41% Energy & Utilities
(Leverage data generation and established process optimizations)
Chemicals
Supplier partnerships 2.0 and contribution to optimization of + 34%
business model (Shaping and extending business models jointly with suppliers)
Secure innovation (Securing access to innovation to enlarge/defend the Consumer Goods

+ 29%
competitive position of the company)
Engineered Products
Manage volatility and risk (Managing volatility and corporate risks by making + 20% & High Tech
trade offs between e.g. cost and quality)
Healthcare,
Enhance product value (Continuously optimizing the product and service value + 19%
MedTech & Pharma
to provide customers products with the desired features/performance at minimum cost)
Optimize working capital + 16% Transportation

(Managing and aligning working capital requirements)
Generating savings, ensuring delivery and safeguarding quality Automotive

remain consistently important challenges until 2020
1) Based on average change in importance from 2015 to 2020 in the eyes of ~200 CPOs questioned in the Roland Berger CPO Agenda 2016
Source: Roland Berger, study "The CPO Agenda", 2016 20190918_PLN_Digital procurement v2.pptx 10
In many companies digitalization focuses on efficiency – This will
ultimately dwarf procurement, thus, Procurement must reposition.
Need for action
Procurement today
Procurement tomorrow
> Automation of large
parts of operational,
Procurement
tactical & strategic must
tasks incl.
Tasks Resources negotiations > Reposition itself
> Focus on efficiency > Define a new/
extended value
proposition
Tasks Resources
Today

Technology will add multiple additional value to the existing
procurement process, depending on each scenario.
Future value add of procurement (selected)
Scenario configuration
'The efficient 'The value
machine' generator'
(lean & mean) (handsome & smart)
Minimal cost of procurement Managing/sourcing partnerships
Minimal headcount Generating revenue
Minimizing risks Margin based sourcing
… Sourcing innovation
Core question: What is the future value added of your procurement organization?

Procurement will be turned upside down – Five key factors are
identified to be driving the disruption of procurement
Disruption of procurement
Disruption of Procurement as we know it, will cease to
procurement – Roland
Berger core hypotheses exist
Value creation models of companies (business model, value chain configuration, etc.)
will be reshaped – With (sometimes) completely new requirements for procurement
Technology will fully digitalize procurement & enable real time transparency across
the entire supply chain (from tier x suppliers to the customer)
Majority of strategic & tactical tasks will be automated leveraging AI

(P2P anyway) – Bots will battle bots
The tail end of non-critical commodities will be fully managed (outsourced)

by companies like amazon business
The procurement team will

> Manage 'the system' in real time and only selectively intervene
> Actively steer only selected aspects of critical commodities and suppliers
> Spend the majority of time in optimizing the supply chain with and at the core suppliers
> Focus on value (not only cost), availability, innovation and risks
Our Procurement Endgame will bring massive impact to your
organization
Impact of our Procurement Endgame (estimation)
-5-40% Material
costs -80% Email -50% Procurement
headcount
communication
-40% Time-to-
market -50% Working -30% Cost of
procurement
capital
-80% Order to
customer
+80% 'True'
no-touch
delivery POs
To cope with the changes, there are five levels of technology
digitization process – From the basics to Artificial Intelligence
Five levels of digitalization in procurement 5 Artificial
Intelligence
4 Big Data > AI enables the computer to
answer questions that it could
analytics not answer before
> In many cases AI allows to
3 Robotic Process > Big Data involves the storage
and usage of large amounts of generate value from data pools
2 Enterprise soft- Automation data to gain business relevant that were not accessible with
insights traditional analytic methods
> RPA solutions provide a simple
ware and work- yet powerful remedy for the > Often, Big Data is limited by (or at least much harder)
flow automation problems of the previous levels, either the quality of the > Therefore, AI unlocks a whole
new s-curve of productivity
given their ability to easily underlying data or the ability to
Strategic Impact
> Enterprise software encom-

1 Digitization / Data passes classical ERP systems automate simple and analyze and use the available improvements through
repetitive workflows in a data properly (i.e. 'asking the increased automation of tasks
basis and dedicated applications like
'macro recorder' fashion right questions') that could not be automated
> Having all procurement data MVP (often linked to each other) before
> Today, all sophisticated systems > Sophisticated RPA solutions
available in centralized data include extensive monitoring
bases with global access are either cloud ready or cloud
native and integrate seamlessly and reporting systems to
> Not necessarily fully orchestrate the robot workforce
automated interfaces between > Most of these systems allow for and increasingly leverage NLP
systems yet workflow automation. and other features
However, changes often require
lengthy & expensive IT
projects
Many do, Some get

Everyone does going
all should
Level of maturity
We leverage our cognitive lens approach to deliver process efficien-
cies and clarity about the future skill portfolio of procurement (1/2)
Cognitive lens approach
21st Century Procurement Skills
Spend
High complexity
analysis Strategy
development > The cognitive lens is our approach
Negotiation
matching 21st century skills with
procurement tasks
Gather > The required skills to meet
Problem Solving Skillset business the future challenges in
Creativity
requirements procurement encompass
Request Digital Fluency comprehensive problem solving
quotation Leadership Skills
Complex Problem Solving as well as creativity and
Analytical Capabilities 4 Establish
TCO drivers leadership
2 3 Review
> They enable procurement
professionals to solve complex
1 Human Interaction
supplier
proposals problems in a highly collaborative
Explicit Digital Knowledge Collaborative Problem setting with the support of digital
Determine
PO
Solving Define
tools and transform procurement
Sourcing
Schedule into a digital-first organization
Low complexity
Approve or
reject
Execute supplier
shopping Complete
card qualification
web form
approval
Low collaboration High collaboration

We leverage our cognitive lens approach to deliver process efficien-
cies and clarity about the future skill portfolio of procurement (2/2)
Cognitive lens logic
Rank Top & bottom Rank Task Complexity Collaboration
Automation Augmentation
1 Create & approve strategy 3.54 3.47
4 2 Review & negotiate contract 3.51 3.69
Complex Complex 3 Analyze spend & supply market 2.93 2.56
Complex solution
solitary collaborative 4 Finalize RFx negotiations 2.90 3.35
5 Receive & evaluate proposals 2.88 3.38
3
Cognitive automation Decision support 6 Gather business requirements 2.86 3.58
models
7 High lev. analysis of sup. market 2.86 2.86
Complexity
8 Establish TCO drivers 2.73 2.94

2 9 Execute contract 2.68 3.11
Routine Simple 10 Define performance measurements 2.62 2.87
solitary collaboration Simple solution Ø Average 1.80 2.28
166 Determine type of return process 1.00 1.59
1
Process automation Virtual assistants Create goods issue 1.00 1.59
(e.g. P2P, S2C, …), RPA
168 Return goods 1.00 1.41
Swap goods 1.00 1.41
0 170 Determine if goods are receipted 1.00 1.28
0 1 2 3 4 Determine return requirements 1.00 1.28
Collaboration … … … …

Digital Cognitive Procurement Platform empowers category strateg-
ies with AI, RPA, advanced analytics and collaborative workflows
Conceptual overview
Procurement Category Source to Purchase to Supplier
Strategy Strategy Contract Pay Management
I. Analyse II. Develop III. implement Contract

2. 3. 2. 5.
I.2. Business partner demand I.3. Market Intelligence II.2 Value workshop III.5. Action plan
> Collaborative
> Aggregated > Aggregated > Workflow > Collaborative
> Rule based
> Auto-classified > Automated > Roles & > Integrated
> Virtual
> Standardized > Learning Responsibilities > Smart Contracts
> Synchronized > Process Controls
Data Lake

C. Our example of
digital procurement
approach

Many projects fail, because the 'Why' & 'What' have not been clearly
answered. We will deliver clear guidance on these questions
Focus on essentials
Why? What? How?
What are the key value driver Where do we have

How to scale ?
for the future of procurement? significant gaps?
Procurement Endgame Digital Maturity Assessment Digital Proc. Roadmap

Digitalization of Procurement is more than another IT project – it is
about processes, organization & people. We manage all dimensions
Why Roland Berger?
I Digital
> TerraNumerata, Spielfeld & our Procurement Technology Radar deliver profound
insights on the maturity of digital solutions
> We manage complex IT requirements, but we do not get lost in bits & bites
II Best practice processes

> Digital processes need to be based on the profound knowledge of procurement best
practices – Our Team has created best practice process frameworks for more than
50 Global Fortune 500 companies, e.g. SAP, Bertelsmann, Vodafone, DTAG,
Deutsche Bank, DHL, TUI, Sanofi,…
III Organization & Stakeholder

> Business impact is defined by internal stakeholders. We have designed over 200
leading procurement organizations and know how to manage cross-functional
requirements
> We know the business requirements of a TMT company
IV People & Change Management

> Digital transformation creates both: excitement & fear. Therefore people make the
difference. Our experienced team knows how to motivate and manage team
dynamics

Based on our broad experience, we have identified some "Must
haves" for modern procurement organizations
"Must haves" for procurement organizations
"Must haves" Examples
> Get control on the P2P & S2C processes with modern IT tools
> Create advanced analytics on spend & process (e.g. process
mining) to identify and eliminate Maverick Buying
> Centralize knowledge & methods due to designated category
managers & "Go to stakeholders"
> Define clear processes & governance
> Automate or outsource the tailend spend to the highest
degree (RPA, AI, catalogues,…)
> Deliver business insights & foresights to your business
partners (clear category strategies, Cognitive procurement,…)
> Invest in the "brand reputation of proc." and strategic FTE´s
> Do not forget innovation & risks

Our client is facing the challenges in procurement and material
management – Digital procurement as a key transformation lever
Procurement challenges faced by our client
Digitalization could help
Key challenges faced by procurement team address the challenges
Inventory / revenue [%]
Inefficient procurement and material management
> Inability to bundle material requirements across various
manufacturing centers Demand planning tool
28
> Ineffective procurement management resulting in large
+39% 22 inventory build up
> Little to no visibility about raw material availability and Webcrawling/ real-time pricing
16 costing in the marketplace resulting lack of tool
10 competitiveness in new project pricing
8 > Duplication of part numbers and no updates and
hierarchical material codification have resulted in BOM/ material data mgmt.
unoptimized procurement
> Opportunity to automate some procurement processes to
2014 2015 2016 2017 2018 reduce time and cost P2P Digitization
> Inefficient procurement operations and organization could Blockchain
be streamlined
Client has been unable to manage > The company sources from a large number of distributors
inventory effectively as can be seen locally present in Thailand & has been unable to establish
in the steady growth of inventory Procurement organization
direct relationships with component manufacturers transformation and supplier
and the low turnover rate of 3.1
against the industry benchmark of 7 > Past relationships with suppliers could inhibit ability to rationalization
challenge prices or negotiate better terms
Source: Annual reports, CEO meeting 20190918_PLN_Digital procurement v2.pptx 23
We have 2 modules for digital procurement transformation – Module
A for tools implementation and Module B for transformation
Project approach
Module A: Digital tools1) implementation
Webcrawling
1 Develop and
detail
2 Select
appropriate
3 Support
deployment of Blockchain
requirements2) vendor(s) digital tools
Digitization in in P2P
BOM/material data management
Demand planning
What target do we Which vendor has How we achieve
want to achieve? best capabilities? our target?
Module B: Procurement transformation
1-2 weeks 2-3 weeks 3-4 months
1 Analyze
procurement
2 Implement conventional
saving levers & supplier
organization rationalization
and category What savings can we get
Module B could begin after Module spends with conventional levers?
A is completed or 2-4 weeks
before Module A is completed 3 Execute organizational
redesign for optimized
Where should be procurement organization
focus point for What is optimal procurement
improvement? org. design for max benefit?
4 weeks 8-10 weeks
1) Assumption of tools which are software as a service; 2) On the assumption that requirements are in place and we are just filling in minor gaps in the first week
We identify and implement digital tools across procurement value
chain to unlock substantial benefits
Master Data management Planning & Visibility
Master data 2
Manage material master
BOM qualityManage
improvement
service master Manage vendor master
Planning &
management MO & RTT Demand
Buyer portal Sourcing management Supplier portal visibility
1 Real-time
Sourcing
Buyer interface & SOTPR TeRMS
pricing
Marketplace-based
Spend management tools offering real-time Manage
e-RFx/e-Auction pricing supplier
on-boarding
OPENTEXT M & .Net
procurement
User portal Transactional Procurement
3 4
User Interface Perform Requisition Blockchain
Process Purchase
Service Entry &
Order technology P2P PCard
Virtual digitization tool Perform Supplier
Acceptance Collaboration
Business portal Contract Management Compliant & Assurance

Systems, tools and
Contract
PSI, PLATINUM, SCM, Contract Contract Control
Compliance Renewal & Contrast Enforcement and Audit
Management processes to generate
Downstream, Creation & Purchasing & Execution & Performance
management
Upstream Approval Storage Management
Management Closure Evaluation
and communicate
demand to Group
Document Management Procurement
Auto sensing and Inventory Management Paperless,
identification cooperation,
Inventory Inventory Planning/MRP
Receiving, Insurance, Return,
Transfer
Stock Take Downstream, Portal,
P&I, ECM, CONS,
management Warehouse management
Upstream, ECM, xxx)
Share point BCM
Surplus Management
Barcoding Receiving, Put Away Slotting, Plok pack Dispatch
(COSMOS & xxx)
M & .Net, Access
Performance management and tracking system
Performance management 4
Vendor dashboard Spend Analysis (SAVE) IMP Scorecard Spend SCM Cloud iTrack
and continuous improvement analytics M & Net M & Access
Inventory dashboard Cost Database (CoOA) Icode Downstream Performance & Management Reporting System
M & Access Share point M & Access M & Net M & Access Share point PHP

Roland Berger's Procurement Radar accelerates the identification of
suitable digital solutions
DMA – RB Digital Procurement Radar
Established digital procurement solutions
Having worked with almost all larger SRM/eProcurement providers we can match
requirements with provider capabilities
> Excellent industry-agnostic, operational indirect procurement

incl. tendering, slowly expanding into strategic sourcing
> Large supplier network
> Leverages cumulated customer data for additional insights
> Implementation only with integration partners
> Large supplier network

> Offers a rather complete solution for operational procurement
and strategic sourcing
> Offers solutions for direct and indirect spend
> Convenient solution for SAP ERP customers
> Well-rounded solution for both operational procurement and
strategic sourcing
> No supplier network available, only own supplier
> Generally partners with OCI for implementation
> Collaboration platform (e.g., document creation with suppliers)
> Very strong strategic sourcing suite with tendering platform, also
offers operational procurement
> No supplier network yet, but it was recently acquired by
Jaggaer (Pool4Tool) and plans to leverage their supplier network
> Very strong strategic sourcing suite with tendering platform,

offering amazon-like buying experience
> Fresh, modern and intuitive user interfaces
> No supplier network yet, planned to switch network on once
supplier base sufficient (at least 500,000 suppliers)
Innovative digital Procurement Solutions

We select and implement real-time pricing tool to deliver competitive
offers and lower sourcing cost
Overview of web-crawling tools for real-time pricing Non-exhaustive
Overview of real-time pricing Overview of functions/issues the Sources of value for

Client current status tools tools can solve client
> Client is currently using
Procurement tool providers for Real-time pricing and parts' availability
QuoteWin for material
electronics industry data across global distributors and
>Competitive project
costing and quote offers to customers
valuation component manufacturers
> However, there are
following challenges Optimized BOM costing incorporating >Transparent and
which remain to be real-time pricing data in BOM optimized sourcing
addressed: assessment decision
– Tool is not
incorporating real- Advanced features such as filters on
time pricing data supplier, location, lifecycle, RoHS, etc.
>Faster time to quote
Marketplaces offering customized
leading to non- pricing tools with visibility on risks such as
competitive offers obsolescence
– Client does not have
access to the best Additional information on MOQ and
available rates indirect costs considered
globally, especially
manufacturers'
offers
Source: Roland Berger Technology Radar; Roland Berger analysis 20190918_PLN_Digital procurement v2.pptx 27
We select and implement BOM data management tool to improve
and govern material data quality
Overview of BOM/material data management tools Non-exhaustive

> Client is facing the
Overall BOM/material master data Rectification of incomplete, inaccurate,
following BOM
management tools unreliable and duplicated BOM data
>Savings realization
challenges: enabled by accurate
– Inaccurate information on parts
representation of inventory, lead time,
Accurate plotting of product structure
BOM hierarchy supplier & other details
information (n-level hierarchy)
– Absence of internal
manufacturing part
number details in the Advanced functions such as up-to-date >Risk mitigation with
BOM system BOM health and risk status respect to design
– Component/ item BOM data management tools specific change/ obsolescence
duplication to electronics industry
– Inaccurate
calculation of Effective incorporation of changes and
manufacturing revisions in BOMs for various products
parts' lead time,
stock, etc.
We will assist SVI in leveraging blockchain tools to automate
procurement processes while lowering transaction costs
Overview of blockchain tools for procurement efficiency Non-exhaustive

> Client is facing the New-age technology firms offering Advanced receivables financing or
following challenges: blockchain solutions
invoice factoring
>Lowered financing
– High transaction costs/ COGS
costs such as
banking fees
Digitization, automation and enhanced >Secured and
– Manual security in document management and
reconciliation of automated contract/
payment transfers
accounts with exchanges resulting
suppliers in transparent/
– Inefficient contract Established IT firms offering Tracking/tracing of inventory/shipment expedited processes
and information blockchain solutions
exchange processes
with the suppliers >Procurement
– Risk of unsecure efficiency through
Supplier qualification using supplier
transactions network built on trusted blockchain automated payment
e-procurement solution provider with platform settlement and
blockchain technology advanced inventory
tracking
We incorporate P2P tools for automation in ordering, invoicing &
other processes as well as spend analytics
Overview of Procure-to-Pay digitization tools Non-exhaustive

> Client's ERP system is
Tools offering P2P solutions through AI & machine-learning enabled functions
able to automate
suites/ Apps such as intelligent spend classifier, on-
>Improved
some of the procurement
procurement process time delivery predictor and virtual
procurement assistant manpower utilization
> However, there is
significant scope of Automation in purchase requisition,
digitization and ordering and material inwarding >Better decision
manpower utilization processes making and efficient
improvement in the budgeting
P2P processes Inventory management enabling real-
> Many of the current time visibility into inventory data
routine tasks could be >Reduced
automated Invoice and AP (Account Payable) procurement cost
> The business automation with increased efficiency resulting from
intelligence provided and compliance enhanced
by the existing system collaboration with
is still basic & static Collaboration with suppliers through
real-time communication and visibility suppliers
in nature
D. EPC related
procurement

We have strong practice in EPC related procurement - We identified
the best-practice elements for modern procurement organization
Best practice elements for procurement organizations
Key elements "Must haves" Examples
1 Vision, Governance & Strategy > Get control on the P2P & S2C processes with modern IT tools
> Create advanced analytics on spend & process (e.g. process
2 Commodity Management mining) to identify and eliminate Maverick Buying
3 Project Purchasing > Centralize knowledge & methods due to designated category
managers & "Go to stakeholders"
4 Processes
> Define clear processes & governance
5 Organization > Automate or outsource the tailend spend to the highest
degree (RPA, AI, catalogues,…)
6 Committees
> Deliver business insights & foresights to your business
partners (clear category strategies, Cognitive procurement,…)
7 Employee Management
> Invest in the "brand reputation of proc." and strategic FTE´s
8 Controlling/KPIs
> Do not forget innovation & risks
9 Systems & Tools

1 Vision, Governance & Strategy
Commodities with bundling potential should be managed across all

other specific subgroups
Governance – Control logic of client purchasing
Purchasing by Client Group – Overall control by group

strategy, methods & processes purchasing (CSP)
NPM PM
Group Voluntary know-how exchange

Subgroups- initiatives
BUNDLING POTENTIAL
between subgroups (project-

crosscutting based)
control (CSP)
Control by group
purchasing (CSP)
Control by respective
Subgroup subgroup purchasing unit
management (DSP)
(DSP)
TECHNICAL POTENTIAL
NPM: Non-production material, PM: Production material, CSP = Corporate strategic purchasing, DSP = Divisional strategic purchasing

2 Commodity Management
EPC player should apply a 360° approach combining a commodity

with a project view to drive out costs and serve the business units
Commodity management approach – Overview
Commodity view create and eventually
Levers… impact in… reduce cost in
Civil works Large steel Plant Logistics Electrics &
& structural fabrication systems Electronics
steel … Technical Material
lever cost
Large projects
Design
> Large singular
projects EUR >100m
> Extreme cost Logistics
intensive cost
Process
Project view
Small projects lever

> Small
individualized
projects
Material Production
cost
Service
Commercial
> Cross regional lever
collaboration of SER
Regional production Value Engineering
add cost
> Locally managed
spending

3 Project Purchasing
The best practice of project purchasing uses segmentation and

segment-specific across functional cost reduction
Best practice of project purchasing
> Measure generation along spend Project 3 > Early involvement of purchasing to challenge
categories (cross-project, medium- Project 2 needs & specs, e.g. contract-tear-down
to long-term), by e.g.: Project 1 > Cross-functional alignment of price targets
– Value Engineering (Tear-down) before offer is extended
PM-category 1
– Preferred suppliers > Spend segmentation (award timing, role
– Technical supplier workshops/eye- PM-category 2 split)
opener workshop NPM-category 3 > Systematic use of cross-project award
> Separate addressing of indirect roadmaps
spend – Challenge need/quantities > Generation of short- and medium-term
in cross-functional teams Re-negotiation measures in cross-functional teams in order
"speed- to reach buy-out/top-down-targets
> Application of specific levers for Service
boats" > Allocation of methods to project process
service needs, e.g.
"Order Factory"
– Frame contract
> Realization of quick-wins across all
– C-parts catalog
> Systematic management of the "long tail" dimensions via (re-)negotiations
– Availability service levels
> Use of standardized responses to offers of – Systematic actioning/preparation of
otherwise unmanaged small award items negotiations along award roadmap
with request for additional 5-10% – Cross-functional negotiation teams
discount – Re-negotiation of frame contracts
> Establishing of a central organizational – Harmonization of payment terms
unit
Segmentation & segment-specific use of cross-functional cost reduction levers to prepare end execute negotiations & awardings

4 Processes
Before the digital transformation, we should identify and structure

the pain points along the process and digital maturity
Pain point prioritization
Process maturity
Manual document
creation
Limited coverage Missing Intransparency on outline agreement utilization
with Readsoft mandatory Manual price updates
fields
Manual raw material approval process

PR-PO workflow issues
Manual RfX process Unknown lead time
Cumbersome
Mid term focus given
Limited basic SRM Lack of EDI communication required process changes
with tax portal
Limited process flow
Lack of documentation
Lack of process to return goods Poor data quality1) Missing material number
Reporting DWH issues Supply time > client lead time
Limited analytics Insufficient autom. order tracking & reaction

Limited systems usage
Limited advanced SRM
Lack of shipment track & trace Procurement not on eye level
Inventory level issues
Lack of process KPIs Unclear roles & responsibilities Limited coverage with
outline agreements
Digital maturity
Size of bubble = Business impact High Medium Low
1) Vendor & material data, but also lead times, payment terms, mapping/labeling of data etc.

5 Organization
There are 3 basic organization concepts with its each details based
on the ability to fulfil requirements
Three basic organizational concepts, details – Schematic
A.1 Cooperation A.2 "Own unit, legal entity" A.3 Central procurement
> A procurement cooperation is > A separate legal entity offers > A central operational and
owned by different BUs, procurement services to all strategic procurement takes
organized as profit center locations over all procurement tasks
> Bundling of procurement > Profit or cost center > Central procurement owns
services across companies > Business units are forced to use process and tools
the Procurement Unit/legal entity > Physically decentral possible
> Physically decentral possible
Central procurement with Decentralized procurement with Decentralized procurement with
B.4 governed decentral LB B.5 centralized functions B.6 centralized coordination
> Central procurement has full > Central procurement consoli- > Decentralized self-responsible
authority and can even issue dates actively volume and procurement departments
directives negotiates prices mainly in > Central procurement ensures
> Decentral procurement depart- general procurement coordination between business
ments implement directives > Decentralized self-responsible units only & cannot issue any
and serve for the group procurement departments directives
B.7 Pure Lead Buying C.8 Virtual Central procurement C.9 Decentralized procurement
> No centralized procurement > A central information system > No centralized procurement
> Local buyers take on provides the basis for functions
responsibility for group-wide coordination > Decentralized self-responsible
coordination > Decentralized self-responsible procurement departments
procurement departments

7 Employee Management
The Procurement Academy provides employees with the right skills,

methods and tools for a next level of procurement excellence
Procurement academy Project example
Global rollout Objectives

Procurement Academy was implemented through first pilot trainings > Provide Procurement with specific
in Germany before rollout via train-the-trainer in other regions trainings, focus on internal trainings
Global rollout
> Equip employees with right skills,
Roles &
Rollout2) Rollout approach
# sessions planned 20181)
> First trainings through methods and tools to contribute to
May
Aug
Sep
Nov
Dec
Jun
Oct
Apr
Training catalogue
Jul
EU NAO MC AP content manager in
responsibilities 360° PCO
Lever Training
13
18
9
3
3
2
5
4
Germany
> Global trainer network material cost reduction program
extension through train-
Roles and responsibilities for all players in the new11Procurement
Negotiations 3 1 4 the-trainer
> Training volume planned Approach
Academy have been defined Supplier Mgmt (SQE) 4 2 1 2
on job profiles per region
> Skill matrix revised and gaps identified
Language skills 5 - 1 tbd.
> Each job profile with
Roles and responsibilities Commodity Management 10 2 2 3 specific training
requirements (mandatory
> Training catalogue with >10
Sourcing and Tendering 18 5 3 6
Head of Academy > Coordination of training promotion and optional)
Academy concept &

> Interface to business (content / resources)
Technical Training BU 12 4 4 4
> Continuous improvement of trainings
>
>
Capacity planning and controlling Technical
(trainees /Basic
Strategic alignment with Global HR development
trainer)
Training 7 2 1 2
procurement specific and general
training catalogue Content manager > Content development and maintenanceCM Onboarding 7 1 1 2
Trainer
> Training document development and maintenance (DE/EN)
> Trainer network coordination
> Run local trainings
∑ 105 31 19
First international training (outside DE), anchored in Q2/Q3 implementation plan

32
trainings defined
Global procurement academy set up – go-live was March 1, Global > Run international trainings
Roll-out from April Trainings administration (DE)

>
>
>
Interface to training administration (e.g. evaluation, attendance)
Option for individual local adaptation of content / document
Maintaining placement in training catalogue
> Roles & responsibilities for new
Academy concept and training catalogue
>
>
>
>
Administration of facilities
Schedule trainings
Invite participants
Reporting (e.g. attendance, feedback, SAP documentation)
Procurement Academy defined
Academy concept
Regional HR Development
Manager
> Support training promotion
Training catalogue
> Training administration
> Interface to Head of Academy
> Global trainer network with first
trainings defined and network scaled
> Alignment with Global HR development
Line Manager > 360° Product> Evaluate
Cost Optimization
individual skill gaps
Business > Lever Training
> Define personal development plan
Requirements Curriculum
through train-the-trainer in HQ
> Provide resources (Trainers & trainees)
> Negotiations
Regional Procurement Partner > Interface to Global Procurement Academy owner
> Skill matrix > Procurement > Supplier Management (SQE)trainer network
> Support regional
> Capabilities > Technology > Commodity Management
Measurement
Procurement
> General
Administration
>
>
Language skills
Sourcing and Tendering
> Global rollout roadmap with first
> Quality
> Participation
Academy > Planning
> Booking
>
>
Technical Training BU
Technical Basic Training trainings in regions developed
> Commodity Mgmt Onboarding
> More than 150 employees trained in

> Learning > Invitation
effectiveness
Note:
Training
first wave, further ramp-up anchored in
> To be extended after completion of roll-out
> Execution > Procurement Driver License with mandatory
> Train-the-Trainer trainings (by job profile)
Training administration HR Procurement

implementation plan

8 Controlling/KPIs
Procurement controlling should capture four types of data and

indicators and deep dive on the process metrics
Holistic procurement controlling
1 Facts & figures 2 Effectivity (Savings) 3 Efficiency 4 Process Metrics
Objectives • Provide data for procurement • Measure P&L relevant • Analyze efficiency of • Understand if the system is
strategy/tactics savings and procurement procurement organization 'doing the right things'
• Analyze important facts & success in soft and hard • Identify potential over- / or • Measure if the desired
figures of procurement indicators undersizing of proc. functions processes are working
organization • Provide tool for performance • Use specific KPIs that allow • Assure team qualification
management of procurement comparison with benchmarks
team
KPIs • Purchasing volume (current) • Ongoing products cost index • Purchasing hours per project • Procurement project manager
(selection) • Purchasing volume simulation • Project target cost • Number of projects covered by coverage
(3 years) achievement % buyer/project manager • Number of suppliers with
• Contracted purchasing • Project cost planning • Purchasing effort/costs over frame contracts
volume accuracy purchase value • Negotiation training status
• Project list & status • Material quota per project • Time since last RFQ
type
Measurement mainly
Permanent measurement during change

9 Systems and tools
Technology system is vital for the digital procurement transformation,

data quality and transparency should be ensured
Best-practice for systems and tools
Key elements Highlights (selection)
Vision, Governance & Strategy > Global, hierarchical commodity and supplier code
1
> Effective allocation process to ensure data quality
> Harmonized procurement system with global data transparency (80/20)
2 Commodity Management
> Systematic support for efficient processes established e.g. supplier portal, e-catalogue,
workflows
3 Project Purchasing > Use of technology to ensure efficiency and effectiveness
– Digitization / Data basis
4 Processes – Enterprise soft-ware and work-flow automation
– Robotic Process Automation
5 Organization – Big Data analytics
– Artificial Intelligence
6 Committees > Customized, global method toolbox
– Sophisticated methods/advanced levers available e.g. tear down, Linear Performance
Employee Management Pricing (LPP), cost break down, value analysis
7
– Standard approach, templates and other supporting material available
– Methods globally rolled out and consistently applied
8 Controlling/KPIs
– Results globally accessible and leveraged – Link to commodity strategy, measure
management and sourcing management
9 Systems & Tools – Method toolbox globally managed, continuously improved and trained

Procurement
analytics tool
creation for a
manufacturing
company
Project case study
Chicago, August 2019

RB created a spend cube analytics MVP and the digital roadmap for
the procurement team of a North American manufacturing company
Background/objective Background and Challenges to be met by

objectives MVP
> The client, a North American manufacturer of insulation, commissioned
Roland Berger to develop a minimum viable product (MVP) digital
platform and digital procurement ambition
> Historically, the procurement organization has had limited visibility to
timely spend data with analytics managed manually by procurement
> The project had two primary objectives, including: 1) Develop and
implement the MVP in Tableau complete with a spend cube and
interactive charts; and 2) Develop a digital procurement roadmap
Approach
> Develop the spend cube architecture (including data collection, pre-
Procurement digital
processing and cleaning, and spend hierarchy development) Dashboard MVP roadmap
> Develop analytics dashboards and charts via the Agile method
> Implement the dashboards at the client
> Develop the client's digital procurement ambition
> Define the digital procurement implementation roadmap and detail high
priority projects
Results
> Detailed, advanced MVP dashboards in Tableau with data housed in SQL
and core data framework implemented and managed in Tableau Prep
> Detailed roadmap with three waves of prioritized projects to be
implemented in 12-18 months
This project was ideated as part of Client's overall digital
transformation initiative
Project background and objective
Ideation session
outcome
Client had recently completed
Objective for this project
a digital ideation session around Create a first, fully functioning reporting
Big Data in Procurement and analytics dashboard (MVP) to provide
real-time transparency on Client procurement
Out of the session were clear priorities spend
for initial work in regards to data
transparency and visualization Outline functionality for future versions of the
dashboard
Further, it was clear that Procurement
Develop an overarching digital road-map for
and Finance would require a roadmap to
reporting and analytics in procurement
outline a logical development roadmap,
beyond the spend transparency dashboard
including directional execution costs, for
the digitalization of procurement at Client

A 'minimum viable product' (MVP) dashboard for timely
procurement visibility provides a rapid solution to current challenges
Procurement analytics current state & challenges met by dashboard MVP
Current State Challenges Result
Develop MVP Dashboard with real-time data

Delayed data and No ability to take Current data informs
reporting after month proactive action; proactive cost
closing can only react management
Limited visibility of Inhibited decision- Cloud-based dashboard

the right reports to making with less- always accessible to
the right people than-ideal data the right people
Extensive data Time-consuming, Prep mostly automated

preparation that is resource-intensive to allow focus on high-
repeated each month data preparation value-add activity

The project was comprised of two modules –implementation of an
initial spend transparency dashboard and an digital roadmap
Project Modules
Dashboard Minimal Viable Product Procurement Digital Roadmap
1 Design and implement the MVP for Client
2 Develop the overarching digital procurement road-
map beyond the MVP
• Develop spend cube architecture • Further detail the two other key topics identified in the
– Data collection, preparation and cleaning ideation workshop (Three way match and KPI
Alignment)
– Spend hierarchy development
• Further elaborate digital/analytics opportunities
• Develop dashboard for the procurement function e.g.
– Link spend cube with dashboard – S&OP link
– Develop dashboard (design sprints to – AI supported optimization of inventory levels
define KPIs and visualization)
– Supply chain insights and impact on (raw
• Hand over to Client and training of internal material availability and pricing)
Client users
• Develop an overarching digital ambition and
implementation roadmap for procurement
Fully functional and value-adding MVP to provide Clear overarching roadmap to create state-of-the-art
spend transparency and clear outline of future digital and analytics environment for Client
functional enhancements procurement

1 Dashboard Minimal Viable Product
We implemented 10+ dashboards with and tables for the client

using a structured agile approach
Company overview summary
Key activities and findings
> Key activities:
– Set up the dashboard development process based
on agile sprints for rapid MVP development
– Defined user stories for sprint sequencing and
dashboard content development
> We used a parallel approach, with > We developed the dashboards
– Collected client data and integrated into Tableau agile sprints, to ensure rapid around user stories deliver usable
(including data joins and required manipulation) development of the MVP analytics
dashboard
– Developed 10+ Tableau dashboards, including
charts and tables, in 1-week sprints and refined in
weekly reviews with users
> Findings:
– The agile method is robust for MVP development
and implementation (although appreciation for it
depends on client culture / willingness to adapt)
> By using agile sprints, we were > In the end, we developed 10+
able to deliver usable analytics to dashboards for the client, built on
Procurement every week a robust data framework

2 Procurement Digital Roadmap
We held a series of workshops to evaluate procurement process

status quo and aspiration levels to then define the roadmap
Product and technology overview summary
Key activities and findings
> Key activities:
– Defined the purchasing process landscape to rate
client performance against
– Held a Visioning workshop to rate client
procurement performance on a slack importance-
> To develop the roadmap we first > In a Visioning workshop, we had
performance matrix defined the purchasing process Client stakeholders rate its each
– Held workshops to define procurement process landscape to derive Client process status quo on the slack
purchasing process requirements importance-performance matrix
aspiration levels and target design features
– Developed the digital procurement roadmap with
three waves to be executed over 18 months
> Findings:
– Client is quite rudimentary in its digital toolkit and
could stand to gain a lot of value from execution of
the roadmap
– The workshop formats were largely informing and > We also had stakeholders define > Finally, we held a follow-on
the future aspiration level against workshop to determine the digital
eye-opening to stakeholders in procurement and the status quo of each process to procurement roadmap to be
finance help inform and define target executed through strategic MVPs
process design features in 3-18 months
We leveraged our strong relationship and topic knowledge to win the
project, but execution was far from easy
Key lessons learned
Issues encountered along the way Resolutions
> The client's organization seemed disjointed on project > Align project responsibilities and expectations and participation
prioritization and functional / department participation levels in charter up front
> The client's business did not have a proper understanding of > Ensuring understanding of expectations of the roles, resp-
roles, responsibilities and participation in digital projects onsibilities and level of participation required prior to project start
> Alternatively, raise the flag when project members are not
participating to take corrective action (e.g., redefine participation,
identify an alternative participant, etc.)
> Client participants misunderstood how agile methodology works > Schedule an agile workshop to educate the organization
> Stakeholder communication was lacking and the organization > Ensure full clarity and alignment among all parties on statement
seemed misaligned on what is an MVP up front, particularly in of work and project charters
the project's charter – Define what is desired out of tool at start
– Properly define governance structure up-front to ensure
alignment throughout
> Data was requested in the first touchpoint, but only made > Structure data acquisition into pre-planning prior to SOW sign-off
available 3 weeks and 6 weeks into the project > Pause projects when data not made available

Developing a
multi-sided digital
procurement
platform for the
Swiss banking
landscape
Project case study
January 2019
Developing a multi-sided digital procurement platform for the Swiss
banking landscape
Background/objective
1. Market study 2. Go-to-market strategy
> Push Procurement at Swiss banks to a new standard through digitalization
> Attract selected Swiss banks as interested parties
> Identify first joint pilot projects together with selected banks
> Develop a digital platform specifically for the solution of the pain points of
our shareholders
Approach
> Conducted a market study to evaluate Swiss procurement market volume
and clients' needs
> Developed a product and go-to-market strategy
> Developed a high-fidelity mockup (iPad) 3. Mockup 4. Interviews with clients
> Arranged interviews and meetings with potential clients to onboard them as
early adopters
Results
> Procurement market analysis
> Go-to-market strategy
> Business case
> Platform MVP
> List of potential clients

Initial situation and project approach
ABC is evaluating the potential to offer procurement services to other

third parties in the Swiss Financial center
Project background, objectives and challenges
Context Project objectives

> ABC has recently realigned its strategy and appointed a new > Definition of market pain points and market
CEO to focus on providing infrastructure services for its needs and requirements
shareholders and therefore to better serve and strengthen the > Competitive analysis and identification of
Swiss financial center key trends
> ABC is already providing a wide range of procurement related > Definition of market attractiveness and
services to its shareholders and would like to evaluate the potential customer groups
potential to further broaden its service offering in the field of
> Definition of potential service offering and
Procurement Operations, Procurement Support Services
specification of potential pricing model
and Procurement Consulting Services
> Development of high-level go-to-market
> Best practices from various industries have shown that critical
strategy
mass and system integration is key to success for such
service offerings > High-level analysis of ABC' internal
procurement organization, incl. strengths
> The recently announced strategic partnership with
and weaknesses and high level action points
"Worldline" in the cards business may be a first entry point into
for the future service offering
such a Procurement Third Party/ Utility arrangement
> Action-oriented implementation roadmap
> Therefore, ABC has asked to assess potential customer
groups, market potential, a potential service offering and a > The Project aims at delivering first results
potential go-to-market strategy (the "Project") by the beginning of September 2018
1 Market study
Swiss banking market consists of four types – Five largest banks

already make up 69% of total balance sheet
Balance sheet total Swiss banks [bn CHF; 2017]
Foreign banks (∑ 107) … more
Explanation
Private banks (∑ 43)
11% > High consolidation
of balance sheet
25% … more assets, where the
916 bn CHF 11% largest two banks are
accountable for
≈ 3.25 Other banks (∑ 98) >50% of total balance
trillion 1,025 bn CHF1) sheet volume
10%
CHF … more
> 253 Swiss banks in
total and huge
7%
majority of banks
belongs to
28%
5% 121 bn CHF medium/small size
796 bn CHF 4% banks
228 bn CHF
164 bn CHF
1) Including private banks and foreign banks
Source: SNB; Roland Berger 20190918_PLN_Digital procurement v2.pptx 53
1 Market study
The estimated hypothetic market potential is approx. CHF 20 bn
Market potential analysis for procurement services in Switzerland [bn CHF]

Demand for
Procurement volume 3rd party proc.
(bn CHF)1) Banking Category services1) Comments
~20.4 > Major swiss banks with full-fledged internal procurement
Global banks services (e.g. Credit Swiss) or outsourced procurement
I (UBS, CS) support (Chain IQ – Procurement partner for UBS)
∑: 2 > Outsourced procurement activities entail largely
operational procurement services
8.4
(41.2%)
Midsized/ smaller banks > Cantonal Banks with underdeveloped inhouse procure-
II (Cantonal Banks, ment functions (or no dedicated procurement function)
Raiffeisen, etc.) > General sourcing volume per bank relatively small
∑: 101
Private banks > Relatively little sourcing needs small volumes due to
7.1 condensed and centered operations
(34.8%) III (Bank Vontobel, > Patchwork sourcing volumes (< m 1 CHF) as banks are
Pictet, etc.)
∑: 43 generally small (median AuM < bn 10 CHF)
1.5 Foreign banks > Low sourcing needs due to procurement functions in
(7.4%) home country or already outsourced sourcing activities to
IV (HSBC, BNP Paribas, third-party providers in home market (e.g. Deutsche Bank
3.4 Deutsche Bank, etc.)
(16.5%)
∑: 107 outsourced procurement to Accenture)
1) Roland Berger assessment High Low

Source: SNB, Swiss Cantonal Banks, Roland Berger 20190918_PLN_Digital procurement v2.pptx 54
1 Market study
Purchasing volumes differ across banking types – Professional

services, IT and real estate already account for 80% of total spend
Purchasing volume split per bank group classification [bn CHF]
Spend Outsourcing Bargaining Midsized/
category possible1) power2) Global banks smaller banks Private banks Foreign banks Total spend
Professional
services 3.1 0.6 0.2 0.3 4.1
IT software &
hardware
3.0 2.5 0.5 0.9 6.9 ≈ 80%
Real estate 1.5 2.6 0.2 0.7 5.1

Marketing &
Public relations
0.3 0.8 0.3 0.6 2.0
General
services
0.2 0.3 0.1 0.2 0.8
Human
resources
0.1 0.1 0.1 0.4 0.7
Travel &
entertainment 0.3 0.1 0.1 0.3 0.8
∑ Total spend ~ 8.4 bn CHF ~ 7.1 bn CHF ~ 1.5 bn CHF ~ 3.4 bn CHF ~20.4 bn CHF
Average spend per bank ~ 4 bn CHF ~ 67 m CHF ~ 45 m CHF ~ 32 m CHF
Average spend under management ~ 80% ~ 50% ~ 60% ~ 80%
> Would banks also be willing to synchronize technical IT landscapes with other banks to enable cross-bank spending consolidation?
> Do banks have a significant spend volume and what negotiating power do banks have in the respective spend categories?
> What are the needs beyond leveraging bargaining power? (e.g. quality "seal" for suppliers, external workforce vetting)
> …
Source: SNB; Roland Berger 1) Can savings be realized by consolidating spends across other banks 2) Several providers available;20190918_PLN_Digital
provider switch possible, etc. v2.pptx
procurement 55
1 Market study
Large banks tend to have their own centralized procurement unit

whereas i.e. cantonal banks have decentralized procurement units
Procurement organizations Operative procurement
BiC2) vs. Strategic Organizational Shared service
Bank type Average procurement structure center Resources
Global banks
(UBS, CS) ✓ ≈ 20 FTE > Centralized plus decentral ✓ ≈ 200 FTE
I counter-parts within
∑: 2 Both
business units
Midsized/ smaller banks ✓ ≈ 1-3 FTE > Centralized ≈ 5-20 FTE

BiC ~10%
(Cantonal Banks,
II Raiffeisen, etc.) N/A > Decentralized within ≈ 2-5 FTE
∑: 100 Ø ~90%
business units
Private banks
BiC ~40% ✓ ≈ 1 FTE > Centralized ≈ 3-5 FTE
(Bank Vontobel,
III Pictet, etc.)
Ø ~60% N/A > Decentralized within ≈ 1-2 FTE
∑: 43
business units
Foreign banks N/A1) > Centralized at ≈ 1-3 FTE
BiC ~20% headquarters
(HSBC, BNP Paribas,
IV Deutsche Bank, etc.)
∑: 107 Ø ~80% N/A1) > N/A N/A – part of
business unit staff's
1) Fully centralized at headquarters 2) BiC = Best in Class
daily business
1 Market study
ABC major procurement trends to gain importance based on Roland

Berger studies
Procurement trends
Change in impor- Relevance for
tance (CPO Agenda) surveyed banks2)
1)
1 Leverage digitized operations – Robot process + 41% 60%

automation to support the E2E process digitization
2 Apply smart sourcing concepts and supplier partner- + 34% 30%

ships to advance business models jointly w/ suppliers
CPO Agenda
3 Secure innovation by gaining trend insights and + 29% 20% > Compiled
access to innovative partners/suppliers feedback from 200
managers around
Manage regulatory requirements and the globe with
4 + 20% 70% responsibility for
establishing organizational risk assessment procurement
> Identified industry-
5 Enhance product value by continuously + 19% 40% specific and cross-
optimizing the product and service value industry
procurement
challenges
6 Optimize spends by managing and aligning + 16% 20%
working capital requirements
1) Based on average change in importance from 2015 to 2020 in the eyes of ~200 CPOs questioned in the Roland Berger CPO Agenda 2016
2) Based on already conducted interviews with Swiss banks – For how many of the 21 surveyed banks is this an important topic?
Source: Roland Berger, study "The CPO Agenda" 20190918_PLN_Digital procurement v2.pptx 57
1 Market study
Hypotheses are derived from trends and compared with banks'

interviews
Hypotheses
Hypotheses Procurement trend
Many banks are lagging behind the digitalization of procurement and have to catch up; but
this is also a change for banks to be independent of path dependencies of the existing IT Leverage digitized
E2E digitization environment when deciding on implementing new tools operations
Partnerships with suppliers in the context of smart procurement are becoming more Apply smart
Smart important; however, banks lack the tool set to generate strategic insights to shape sourcing
procurement partnerships with suppliers concepts
Digital/ Many midsized/ small banks lack a required mindset and appropriate resources to set up Secure
innovation unit own internal innovation unit and exploit the potential of agile collaborations with start-ups innovation
Manage
Regulation and Banks stumble with the implementation of regulatory requirements; this could be a possible
regulatory
compliance starting point for a 3rd party procurement service
requirements
Product value Consistent focus on quality and operational excellence is key; providing procurement Enhance product
focus savings services to the banks is not a focus topic value
Spend Financial institutions struggle to optimize their spend management by improving their Optimize
working capital through cost-effective measures, such as supplier contract handling, product
management bundling, introduction of digital products and tools spends

2 Go-to-market strategy
Interview insights lead to the development of the ABC sales strategy

and provide guidance for the pricing of the procurement platform
Go-to-market overview
Interview overview
and feedback ABC sales development Platform pricing
Screenshot
> 19 interviews conducted > Strategy on lead acquisition, > Reflection on relevant pricing strategies
> Interview partners are potential attraction and long-term > Grouping of offering packages in two
customers, supplier as well as development to generate revenues key packages
competitors > Overview on available marketing > Pricing and time reflections of customer
> Clear statements and opinions on tools to support clients in their perspectives
ABC procurement platform decision-making process
> Awareness on how to generate > Setting of potential target pricing
> Better understanding of customers' leads – Options from initial closed guidelines
willingness to pay for specific community to active lead
services purchases

Customers need to be supported in their platform usage process

from the early acquisition phase to ensure recurring revenues
Lead conversion
1 Acquisition
Social Campaigns, Business
SEM SEO PR > User testing to get familiar with platform
Networks Contests Development
> Acquisition of both customers and
In-person Strategic suppliers ("chicken-egg problem")
Affiliates Blogs Email …
demonstration partners
2 Activation
1 Acquisition > First service needs to be free for a limited
Campaigns, time
Contests > Early payments only when clear benefits
3 Retention
4 Referrall > Creation of emotional and system-based
Homepage/Landing page
Emails & Alerts lock-in effects
> Full registration on platform step-by-step
Product Features Emails &
System Events & 3 Retention Referral camp. 4 Referral
Time-based Features
> Objective is to get a high customer
involvement
Blogs, Content Ads, Lead Gen, > Word-of-mouth as the most efficient method
Subscriptions, etc
ABC- 5 Revenue
Business
procurement.com development > Customers who trust the system do not
need check single payments
> Subscription as basic income – Add-on to
additional revenues
High potential for ABC Medium potential for ABC Low potential for ABC
Example: To foster sales we ramped-up a call center and acquired

fresh customer leads which we handed over to our sales agents
Example – Pragmatic rump-up Successfully running
after only 3 weeks
Clients (e.g., Cantonal banks) Procurement platform Sales team
Loyalty premium if client

stays with ABC for >1 year
6
Outbound Basic
acquisition subscription
team
Signs the contract
4 Premium Payout of provision
subscription 5
Scheduling of Sale of customer Independent
1 appointments 2 lead to freelance agent
… sales agent
3 Meet the customer and sell the product
> Quality leads by > Quality sales agents by selling > High impact by providing strong
standardized/trusted sales the leads (no "no-show") incentives
approach

We further setup processes and the necessary teams to drive the

business – Tool-supported implementation of sales within 1 day
Example – Processes for the matching service Example pipedrive sales
Win subscribers
Qualifi- Organi- Mee-

Offer Contract
cation zation ting
Identification Scheduling Information Demon- Member

stration link
Sign-up Profile
link completed
Offline Skype
Call
meeting meeting
Contract
Price list
signed
Daily performance tracking via
CRM updated Calendar Demand Invitation sent Registration
(Interest) updated assessment completed intuitive sales tools
(e.g., pipedrive)

3 Mockup
We will shape and establish the leading procurement platform for

Swiss clients in their respective footprint
Target picture
Product
and project
Banks Procurement
manager manger
Procurement
community Dashboards
Procurement Excl.
network exchange
Procurement
platform
Consulting Infrastructure
firms providers
Services Solution
Goods
Technology Information External
workforce pods
Suppliers
provider

3 Mockup
Prototype – Digital Procurement Platform
Purchase of services
(e.g. market information, consulting,
services and
external staff)
Added Values: Rate cards, company

presentations and service factsheets
Easy digital processes with optional

support by experts

3 Mockup
Prototype – Market Insights
Market reports and benchmarks for a

transparent analysis of supplier
performance
Market trends about innovative

solutions and service providers

3 Mockup
Prototype – Compliance
Health checks and vetting of potential

providers
Minimizing third-party risks, ensuring

security and compliance

4 Interviews with clients
We have conducted interviews with Swiss and German banks, as

well as with potential suppliers
Interview partners
Swiss Banks German banks

Bank Role Bank type Bank Role Bank type
Credit Suisse Senior project manager Global bank Sparkasse Hannover Project manager Savings bank
Credit Suisse Project manager; product owner - Global bank Stadtsparkasse Düsseldorf Department manager Savings bank
investment product platforms
Urner Kantonalbank Project manager Cantonal bank
Urner Kantonalbank Head of finance Cantonal bank Others

Swiss Accenture Consultant
Obwaldner Kantonalbank Head of PMO Cantonal bank
KPMG Outsourcing consultant
Schaffhauser Kantonalbank Project manager Cantonal bank
Deloitte Consultant
Zuger Kantonalbank Project manager Cantonal bank
Cantonal bank German Metacarp CEO

Schwyzer Kantonalbank Manager project and processes
Thurgauer Kantonalbank Project and process manager Cantonal bank
Basler Kantonalbank Procurement manager Cantonal bank
Berner Kantonalbank AG Senior project manager Cantonal bank
St.Galler Kantonalbank AG Project and process manager Cantonal bank
Zürcher Kantonalbank Senior project manager touch- Cantonal bank

point management & innovation
Several meetings with potential clients conducted – We gained good

confidence regarding their specific needs
Overview of selected meetings
Further meetings in Jan/Feb 2019

Bank Bank Bank Bank
# Date Name Participants Name Participant Role Remarks:
1 15.01.2019 Vontobel Reto Schäppi Head Ops, & Logistics Meeting verschoben
(Managing Director)
2 21.01.2019 Bank
Raiffeisen Bank
Adrian Gassmann Bank
Head Str. Procurement Bank
n/a
# Date Name Participants
Jens SchneiderName Participant Role
Strategic Sourcer Remarks:
1 TBD Luzerner Kantonalbank Michael Girsberger Head Corp Develop. Terminfindung seiten
Marcel Hurschler CFO
2 TBD Zürcher Kantonalbank Ralph Hottinger Head Logistik Terminfindung seiten
3 TBD Novartis Wolfgang Rauch Head Procurement Terminfindung seiten

Michael Zaugg, Head of Rolf Brunner, Head of Stephan Zilker, Head4 of
TBD Appenzeller Kantonalbank Martin Wälti Head Strategy Terminfindung seiten
Procurement and Service (Executive Services and Ana Presa,
Benjamin Hohler, Head of Management) Head of Procurement
Operations … more meetings in coordination (e.g. Valiant, private
bank)
▪ Very interested and ▪ Very positive feedback ▪ Interested and positive
positive feedback ▪ Willing to join the feedback
▪ Clarifications ongoing, initiative as early ▪ Follow-up with Head of
early adaptor feedback adopter Procurement in Jan.,
late January afterwards early
adaptor decision
Meeting: Meeting: Meeting:
November 26th November 27th December 12th Member of ABC' supervisory board

Several interview partners confirm the need of a procurement

platform and their willingness to pay for specific services
Potential customer feedback (1/2)
"I can safely speak for a variety of executives "I see no problem, why a small fee should "Monthly payment would probably be the most
and confirm absolutely without any problems prevent us from using this platform." popular purchase option for average services. "
that a fee would be absolutely no obstacle Senior project manager, Stadtsparkasse Project manager, Sparkasse Hannover
when using the platform." Düsseldorf
Project manager, Credit Suisse
"The implementation plays a crucial role here. "Should it be urgent and we definitely need an "If we need the express service, whichever the
Of course, the concept you mentioned sounds express service, we would certainly be willing case may be, we would be willing to pay over
very interesting, but ultimately it's all about to pay between 5-8 percent more." 10-15% more."
implementation and usability. If this model Head of finance, Urner Kantonalbank Project manager, Credit Suisse
turns out to be meaningful, we will also use
this platform for the long term."
Senior project manager, Credit Suisse
"We are willing to spend what we do on other "We would definitely be interested and - if we are "The most important thing is the onboarding of
lead generation platforms: 15-20% of the satisfied - would pay significantly more than customers. It has to be easy and simple. Best
respective customer budget. But we are surely for example with KPMG or EY." case, you only ask for first and family name. After
interested in such a platform." Product owner, Credit Suisse that, you need to make sure to receive more
Supplier information afterwards."
Software supplier

Several interview partners confirm the need of a procurement

platform and their willingness to pay for specific services
Potential customer feedback (2/2)
"If all the test procedures and reviews from the "Money would play a very minor role here. It is "Within our market, everyone knows the time
responsible decision-makers are positive, we more important, in my view, to what extent the pressure that exists on important projects from
would definitely pay for it. The presented service will satisfy us later and whether we can the very beginning. So it is important to know that
service would definitely meet with interest from see an increasing benefit compared to other there is an express service. It can even be
us and many more banks.." services in this area.." assumed that at least every 10th user would use
Project and process manager, Thurgauer Project manager, Sparkasse this service. Time pressure is a continuous
Kantonalbank Hannover problem and would justify a readiness to pay
more than 5 percent at the standard price (if
not more). "
Product owner, Credit Suisse
"First and foremost, I see no problem in paying
for it. So far, the concept is already sounding
very good and I can definitely say that we "You can easily calculate from 5% upwards for
would have an overriding interest in such a an express service." "We are used to pay a price for lead generation
platform." Project manager, St. Galler Kantonalbank based on the overall budget size of our clients."
Head of project management, Zürcher Supplier
Kantonalbank
"After a successful test phase and positive "Since independence is definitely important to us,
"It will be quite an obstacle for suppliers to pay feedback from employees and executives - who even with respect to different platforms, we would
upfront. However, if we could upload our have also dealt with it intensively – we would definitely prefer the monthly purchase option.."
company presentation or get some ads space, definitely pay more than for the big four." Department manager, Stadtsparkasse
then it looks more promising." Project manager, St.Galler Kantonalbank Düsseldorf
Supplier

Banks have a clear view on procurement pain points and needs –

Exemplary quotes from current interviews to illustrate the pain points
Client feedback on functional/emotional needs
"Cross-bank partnerships rarely work. Despite many attempts, we were "We are currently digitizing the procurement
unable to implement joint projects.", process with focus on RFI/RFP end-to-end
Head of Procurement, Cantonal Bank using Coupa.",
Head of Procurement, Private Bank
"After processing our spends via an
external procurement provider, we
had little transparency on potential new "We would like to find ways to
service providers and trends.", source smarter from big suppliers
Category Manager, Major Bank to realize spend savings.",
Managing Director,
"The supplier vetting is very time- Cantonal Bank
consuming. We would need a seal of
approval, which in the best case
scenario would also be accepted by
FINMA.",
Head of Services, Foreign Bank "The efficient management of market data in
terms of procurement efficiency and license
"We consistently consider our own clients also as potential service compliance has been underdeveloped for a
providers for tenders. This is a clear differentiator for us. We are aware that long time and is a field in which we will
we cannot search for the absolute optimum price at the same time.", definitely continue to invest.",
Managing Director, Cantonal Bank Head of Strategy, Private Bank

RPA and AI for
E2E procurement
process
automation of
chemicals player
Project case study
May 2018
We established E2E procurement process optimization/automation
and digital procurement roadmap using SAP, SRM, RPA, AI
Project case study
Background/objective
Pain point analysis IT solution overview
> Global organization with heterogeneous processes
> Limited degree of process automation – support mainly via
standard SAP functionality
> Too much time spent on operative activities, not enough time for
strategic procurement processes
Approach
> Pain point analysis and best practice benchmarking to identify

improvement levers
> Piloting of numerous state-of-the-art IT tools To-be processes Implementation roadmap
> Definition of to-be processes on level 4 16
> Compilation of clear implementation roadmap incl. business

The as-is and to-be process landscape have been described for
each process step
case, resource planning etc. Overview to-be process landscape

> Each process step of the
procurement core processes has
Illustrative
been documented on level 3
Results
– As-is process and systems
– To-be changes and systems
> Processes for S2C and P2P have
been aligned with regions (APAC,
AMERICAS, EMEA) in two
workshops each
> P2S and Supplier Mgmt. processes
have been aligned with global
responsibles
> E2E target process picture for procurement

> Multi year digital roadmap for procurement Styrolution Template_RB-NEW.pptx 16
> Broad involvement of global organization for testing and

selection of tool as basis for implementation
> First RPA bot in production, AI roadmap defined
The project had the objective to improve the efficiency and quality of
the client's procurement processes
Reduce effort Enhance capabilities

> Improve procurement process efficiency > Implement solutions to reduce operational
significantly procurement and enhance strategic sourcing
> Maximize automation through standardization, > Implement organizational capabilities & measures
harmonization and digitalization of the with regard to suppliers, stakeholders and
procurement processes procurement

The procurement process house was established as central
framework for analysis and recommendations
"Procurement Process House"
Management Procurement Employee

processes Target setting
strategy management
Supply chain
Finance/
Accoun-
Core
ting
processes
Plan-to-strategy Source-to-contract Purchase-to-pay
Manufacturing
Supplier management
…
Product
management Support Perform. Data quality Tools & systems
processes management (KPIs) management development

In a first step, pain points were assessed along the value chain (1/2)
Pain point mapping

x x x
Management Procurement Target
processes strategy setting
Employee management
Core Enhance x x x
processes
Enhance x
Supplier management
x Enhance x x
Support Performance Data quality Tools
processes management (KPIs) management & systems development
No major pain: Medium pain: Major pain: # of pain points: #

In a first step, pain points were assessed along the value chain (2/2)
Core processes Procurement

Plan-to-strategy Enhance Enhance Enhance Enhance
Category Market Strategy Stake-holder Strategy Review &

classification analysis definition approval execution update
Source-to-contract: Outline agreements Purchase-to-pay

Quotation Negotiation & Agreement Exceptions management
Specification RfX process
evaluation Awarding implementation
x x x x x
Order &
Order / Goods / service Invoice
PR1) delivery
call off receipt process-ing
x Source-to-contract: Spot buy & projects x
monitoring
x x x
Quotation Negotiation &
Specification RfX process Claim
evaluation Awarding
(light) (light) management
(light) (light) x
x x x x
Supplier management Enhance
Supplier Supplier Supplier Supplier b

Supplier Supplier Risk
identification selection evaluation classification development phase out management
x x x x x
No major pain Medium pain Major pain # # of pain points

1) PR: Purchase requisition

Then all pain points were clustered and prioritized depending
whether it was a process or IT issue
Pain point prioritization
Process maturity
(is it a process problem?)
26 27 Focus
19
for near term
1 implementation
21 28
20
25
4 15
14 24 18
22 71)
8
23 11
Mid term focus 16
13 17 given required 6
9
10
process changes
2
12 5 3
29
Digital maturity
Business impact: High/Medium/Low
(is it an IT problem?)
1) Vendor & material data, but also lead times, payment terms, mapping/labeling of data etc.

The full range of digital tools was evaluated
Overview digital tools for Procurement

5 AI/ Big Data
4 SRM New solutions that improve
analytic capabilities, end-
3 RPA Software solutions built to-end process efficiency
to support operative and formerly difficult to
2 Tools Solutions that provide procurement processes support areas incl. NLP
automation of and support strategic and unstructured data
1 SAP Different tools and standardized tasks sourcing
addons to SAP that across different
Content Demands to improve fit with help solve specific applications
Procurement demands. needs, e.g., automated by mimicking humans
New ERP release S/4HANA conversion of email
promises substantial conversation to SAP
improvements
Maturity
Ease of
implementation
A mix of different solutions is needed for optimal setup of procurement

Different digital tools address different aspects of the procurement
processes
Overview of application area for different tools
Management Procurement Target

processes Employee management
strategy setting
Core 3 4 SRM 2 Tools & 1 SAP

processes RPA

5 AI/ Big Data 5 AI/ Big Data
Supplier management
Support Performance management Data Quality 5 AI/ Big

Tools & systems management
processes (KPIs) Management Data

Several pilots were conducted to evaluate the performance and fit of
the tools
5 AI/ Big Data

4 SRM > No pilots
3 RPA > Testing of three
2 Tools > Pilots in all SRM systems with
regions >30 users and
1 SAP > Netfira intensive IT
completed
> Workflow > Elemica successfully workshops
> Diverse logistics completed
> Diverse demands > Rollout proposed
platforms
> Readsoft

3 RPA
RPA pilots in all regions successfully completed – Request to move

into production quickly
Summary RPA pilot
> Focus on ease of use and tactical

deployment by business
> Four pilot use cases implemented (one in
each region Procurement, one for
Finance)
> Very positive reaction by whole
Procurement community and beyond –
growing longlist with more than xx ideas
> Collateral benefit: RPA introduction serves
as vehicle to optimize and harmonize
processes globally
– Detailed review of each use case
required
– Pilot proved significant room to "learn
from each other" within a region/team
and across regions
> Clear business case for rollout given

The as-is and to-be process landscape have been described for
each process step
Overview to-be process landscape Illustrative
> Each process step of the

procurement core processes has
been documented on level 3
– As-is process and systems
– To-be changes and systems
> Processes for S2C and P2P have
been aligned with regions (APAC,
AMERICAS, EMEA) in two
workshops each
> P2S and Supplier Mgmt. processes
have been aligned with global
responsibles

The target architecture builds on SAP ERP as core transactional
systems
Procurement target application landscape (simplified)
Suppliers Suppliers Suppliers
> Suite approach for SRM
solution selected over
Supplier best-of-breed solution
network > SAP ERP remains target
Full-service SRM
Suppliers
system for operative P2P
Analytics platform processes but indirect
PRs are place through
RfX tendering platform SRM system
Request indirect Catalogues, guided Logistics suppliers > Impact of HANA migration
material buying and S/4 rollout to be
considered
Supplier management Logistics platform EDI suppliers
> Specialized logistics
Supplier tendering platforms
RfX, tendering platform
portal/registration EDI/ communication needed as no adequate
solution provided by SRM
Request direct providers
material SAP ERP (HANA database) RPA
> Several EDI as no "one
SAP FI SAP MM SAP SCM & APO size fits all" available
3-way match component P2P component P2P component
AI

Measures were documented in detailed templates incl. milestones
and detailed calculation/ramp-up
Business case measure templates
> A template was completed for each
of the measures, detailing
milestones, responsibilities etc.
> Calculation logic, assumptions and
ramp-up over time is made
transparent

Initial roadmap developed, detailed schedule and regional
sequencing as next step
Roadmap high-level
2018 2019 2020
SAP HANA database migration
(incl. EDI, Workflow
tools) S/4 xxx
EDI
Other (smaller) demands
RPA Establish CoE/global task force
Rollout xxx
Potential rollout outside Procurement
SRM xxx xxx module xxx

xxx
xxx module xxx
xxx xxx
Big Data, xxx xxx

AI xxx xxx
Legend Legend Legend Details tbd

FTE have been mapped to the Process House as basis for the
business case
FTE baseline – Sub-process view
Management
processes Procurement strategy Target setting Employee management
Supply Plan-to-strategy xx
chain Category Market Strategy Stakeholderap Strategy Review &
classification analysis definition proval2) execution update Finance/
x x x x x x Accounting
Source-to-contract: Outline agreements xx Purchase-to-pay xx
Specification RfX process Quotation Negotiation & Agreement Exceptions management
x evaluation Awarding implement- x
x x x x ation x
Manu- Order / Order & deliv. Goods / Invoice
PR1) call off monitoring service process-ing
facturing Source-to-contract: Spot buy and projects xx x x receipt x x
Specification RfX process Quotation Negotiation &
x (light) (light) evaluation Awarding Claim
x x (light) x (light ) x mgmt. x
Other
Supplier management xx
(HR,
Supplier Supplier Supplier Supplier Supplier Supplier phase Risk manage- marketing,
b
Product identification selection evaluation classification development out ment
legal, …)
manage- x x x x x x x
ment
Support Tools & systems
Performance mgmt. (KPIs) Data quality management
processes x x development x
Detailed Excel file available Total: 156 FTE

x Number of FTE in sub-process x Number of FTE in process

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Digital

Jakarta, 23 September 2019

A. Our expertise in procurement and digital procurement 3

B. The future of procurement 15

C. Our digital procurement philosophy 25

D. EPC related procurement 33

© Roland Berger 20190918_PLN_Digital procurement v2.pptx 2

20190918_PLN_Digital procurement v2.pptx 3

Founded in 1967 in Germany by Roland Berger

50 offices in 36 countries, with around 2,400 employees

#450+ projects with procurement

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 4

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 5

Support Supplier risk Contract & Performance Systems & tools

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 6

COUNTRY CLIENT TITLE DESCRIPTION

Electricity transmission ProReg Implemented a professional, efficient digitalized and compliant

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 7

Selected projects1) in procurement digitalization Non-exhaustive

Company Assignment details

> Feasibility study/concept design and implementation of a digital procurement

> Feasibility study/concept design and implementation of a digital procurement

> Definition of a best practice procurement process framework

20190918_PLN_Digital procurement v2.pptx 9

Secure innovation (Securing access to innovation to enlarge/defend the Consumer Goods

Optimize working capital + 16% Transportation

Generating savings, ensuring delivery and safeguarding quality Automotive

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 11

Minimal cost of procurement Managing/sourcing partnerships

Minimal headcount Generating revenue

Minimizing risks Margin based sourcing

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 12

Majority of strategic & tactical tasks will be automated leveraging AI

The tail end of non-critical commodities will be fully managed (outsourced)

The procurement team will

> Enterprise software encom-

Many do, Some get

Low collaboration High collaboration

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 16

8 Establish TCO drivers 2.73 2.94

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 17

I. Analyse II. Develop III. implement Contract

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 18

20190918_PLN_Digital procurement v2.pptx 19

What are the key value driver Where do we have

Procurement Endgame Digital Maturity Assessment Digital Proc. Roadmap

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 20

II Best practice processes

III Organization & Stakeholder

IV People & Change Management

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 21

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 22

Business portal Contract Management Compliant & Assurance

Performance management and tracking system

and continuous improvement analytics M & Net M & Access

Source: Roland Berger 20190918_PLN_Digital procurement v2.pptx 25

> Excellent industry-agnostic, operational indirect procurement

> Large supplier network

> Very strong strategic sourcing suite with tendering platform,

Innovative digital Procurement Solutions

Overview of real-time pricing Overview of functions/issues the Sources of value for

Overview of real-time pricing Overview of functions/issues the Sources of value for

Overview of real-time pricing Overview of functions/issues the Sources of value for