1) Mars Inc. is a global manufacturer and distributor of food products operating in over 74 countries with over $33 billion in annual sales and 75,000 employees. 2) In 2011, Mars Inc. conducted a survey that found their buyers were dissatisfied with their existing procurement technologies and processes. 3) Mars Inc. embarked on a journey to implement a new strategic sourcing platform called eMSSM from Ariba to transform their procurement function, aiming to be in the top 10% of companies within 3-5 years and increase value creation by 25%.

1. Customer Story: Mars Inc.
Customer
Mark Phillips, Commercial Transformation Director, Mars Inc.
October 13, 2015

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Over the next 30 mins
 A little info about Mars
 What is Commercial
 Our e-Sourcing journey
• The why
• The Approach: What and How
 This is all about change

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Mars: Diverse, Global business
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Mars’ objective is to manufacture and
distribute food products in a manner that
promotes mutual benefits
among all our stakeholders.
– Forrest E. Mars, Sr. 1947
• >$33billioninsales
• Operatingin74+countries
• >75,000Associates

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Worldwide Presence
(% net sales as of December 31, 2014)
10%
Central Europe
& CIS
17%
Asia Pacific
4%
Middle East,
Turkey and
Africa
28%
Western Europe
35%
North America
6%
Latin America
At a glance

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Petcare Drinks (1%)
Symbioscience (<1%)
Food (>5%)
Petcare
Wrigley
Chocolate
Sales by Business Segment
Our business segments
More than 90% of sales are generated from our Petcare, Chocolate and Wrigley segments
Chocolate
Wrigley
Food
Drinks
Symbioscience

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The Mars Culture and Our Five Principles
In the decades Forrest, Sr. led the business, he demonstrated his belief
that a company can only endure and thrive if it is creating mutual
benefits for all those involved .
The next generation of the Mars family, Forrest E. Mars, Jr., John F.
Mars and Jacqueline Badger Mars, led the globalization of Mars,
Incorporated and carried forward their grandfathers’ intent with the
creation of The Five Principles: Quality, Mutuality, Responsibility,
Efficiency and Freedom.
These principles continue to be deeply woven into the fabric of Mars .

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Our reality - 2011 Survey said:
Our buyers are not satisfied with the technology at their disposal
68% of Buyers view their
IT as “Not Fit for
Purpose”
69% of Buyers obtain
Spend Information from
their Suppliers
63% of Buyers either do
not have access to or
never use e-Auctions
54% of Buyers either do
not have access to or never
use e-RFx
44% of Buyers either do
not have access to or
never use Contract
Management tools
73% response rate to the
Commercial IT Survey !!

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The Strategic Sourcing platform journey (eMSSM)
FORM TEAM INVESTIGATE CONSULT DEFINE EVALUATE RECOMMEND

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We started to evaluate the IT sourcing market
We took 12 months to understand:
• The why
• Our needs
• RfP the market
• And make the decision

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Our Key Take Outs from RfP and external conversations
 Strong leadership = Success vs. Weak Leadership = Failure
–Absolute clarity on “the why”
–Complete what is started
–Leaders not delegating understanding: “Walking the talk”
 Focused, Dedicated, & Enabled resources
–Invest in transforming – not incrementing
 Soft targets do not work
–Hard measures included in all objectives, including VP’s
–Transparent & relevant measures
 “Customization is a disaster”
–Leverage existing best practices & implement brilliantly
–Move quickly & evolve

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Definition of transformation (n)
Bing Dictionary
trans·form
change something dramatically: to change somebody or something
completely, especially improving their appearance or usefulness
undergo total change: to change completely for the better convert
something to different energy: to convert one form of energy to
another
Synonyms: alter, convert, make over, transmute, renovate, change
12
Senior Vice President, ARIBA
Global Sales
Don’t just improve the life of your buyers ……
……… transform the life of your buyers

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eMSSM: Our Pilot project
Validate delivery of benefits
Validate our deployment model
Create a critical mass of skills
SCOPE
 Focus on a set of Global Categories
 One category from each segment
 Impacting all regions
TIMING
 Pilot starts early 2013
 Categories “live” planned in Q2, 2014
To generate momentum, we need to plant our first seed!

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Strategy definition and
approval repository
What is eMSSM (ARIBA Sourcing) – the Pilot
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eRFX
MSSM
Contract
Data
SIPM
Buying
Spend
Consolidate all Mars spend
into 1 single dashboard
Integrated e-Sourcing link to
Strategy and contracts
Contract authoring,
review and approval
Dashboards & Reporting
Core capabilities to support MSSM and buying processes
Validate / define the deployment hypostasis

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Why are we doing this?
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In the top 10% of companies in the next
3 to 5 years!!
Value creation increase by 25%.
This will help achieve an ROI of 8:1
Helping Commercial stay cutting edge.
Critical for the attraction of talent
New and improved system and process.
Frees up time to be strategic

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9 Elements in World Class Strategic Sourcing
In PRIORITY order
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1. 2. 3.
4. 5. 6.
7. 8. 9.
Leadership Org Structure Talent
Stakeholder Integration Quality of Strategies Excellence in Execution
Governance IT Tools & System External Benchmarking

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The timeline for MSSM intensification
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PREPARATION PHASE (~3MONTHS):
• Create the Transformation Plan
• Preparation of eMSSM
DEPLOYMENT PHASE (~2MONTHS):
• Enable the region to be self sufficient to execute their
transformation plan
• New training deployed
• Go-live of eMSSM
INTENSIFICATION PHASE (MAX 3 YEARS):
• Implement the transformation plan to create a
sustainable competitive advantage for commercial
through strategic sourcing

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In Summary
Even the best software can deliver zero value
It is all about leadership