Of what good is good data if it is not put to good use? Lining up your spend and supplier data in a row is a nice start to your spend analysis journey. But that’s just the beginning. Getting the most out of any spend analysis initiative hinges on how well the insights have been put to use to discover new opportunities or improve sourcing efficiencies. Hear from the practitioners on their data-to-analytics journey and their use cases of leveraging spend analysis to drive better sourcing and procurement decision making.

1. #AribaLIVE
@ariba
Spend Analysis: It’s What You Do With it
That Matters
© 2015 Ariba – an SAP company. All rights reserved.
Speakers
• Hielke Posthumus – ABN AMRO Bank
• Laszlo Adam – CWS-boco
• Petra Kovacova – Ariba, an SAP Company
Moderator
• Keertan Rai – Ariba, an SAP Company

2. #AribaLIVE @ariba
Agenda
© 2015 Ariba – an SAP company. All rights reserved.2
• Overview and Introductions
• Panel Presentations
• Hielke Posthumus, Procurement Development Manager, ABN AMRO Bank
• Laszlo Adam, E-Procurement Manager, CWS-boco
• Petra Kovacova, Ariba Spend Visibility Project Manager, Ariba, an SAP Company
• Q&A

3. #AribaLIVE @ariba
Spend Analysis: It’s What You Do With it
That Matters
© 2015 Ariba – an SAP company. All rights reserved.3

4. #AribaLIVE @ariba
Panelists
© 2015 Ariba – an SAP company. All rights reserved.4
Petra Kovacova,
Ariba Spend Visibility
Project Manager
Ariba, an SAP Company
Hielke Posthumus
Procurement Development
Manager
ABN AMRO Bank
Laszlo Adam
E-Procurement Manager
CWS-boco

5. #AribaLIVE @ariba
Agenda
© 2015 Ariba – an SAP company. All rights reserved.5
• Overview and Introductions
• Panel Presentations
• Hielke Posthumus, Procurement Development Manager, ABN AMRO Bank
• Laszlo Adam, E-Procurement Manager, CWS-boco
• Petra Kovacova, Ariba Spend Visibility Project Manager, Ariba, an SAP Company
• Q&A

6. #AribaLIVE @ariba
The Road from Visibility to Excellence
• Introducing ABN AMRO
 The company
 Our Procurement agenda
 Ariba usage in ABN AMRO
• The Road to Spend Excellence
 Maturity levels
 The Buyer model
 Spend Analysis for baselining
 Applying Procurement levers
© 2015 Ariba – an SAP company. All rights reserved.6

7. #AribaLIVE @ariba
ABN AMRO: A Leading Bank in the Netherlands with
Selective Presence in International Growth Areas
7 © 2015 Ariba – an SAP company. All rights reserved.

8. #AribaLIVE @ariba
External Pressures Drive the
Procurement Agenda at ABN AMRO
Challenges for the Financial
Industry
• Limited top line growth
• Higher Capital Ratio requirements
• Loan restructuring (loss)
Additional challenges for ABN
AMRO
• Multiple Separations and Divestitures
(2007-2011)
• State take-over
• Integration NL parts ABN AMRO
and Fortis
• IPO
Procurement Agenda
• Significant contribution to reduce the bank’s
Cost/Income ratio
• Integrate Procurement processes and systems
• Reduce TCO of systems landscape
• Create transparancy in supply base (incl. CSR
performance)
+ “Normal” development
• Category Management
• Supplier Relationship Mgmt
• P2P integration
• Etc…
© 2015 Ariba – an SAP company. All rights reserved.8

9. #AribaLIVE @ariba
Outside NL:
700 contracts
Ariba Modules in Use throughout Entire
Procurement Cycle
200 projects
75 events (RFx)
€ 60-70M savings
1300 active contracts
with 800 suppliers
>85% coverage
€ 2.0B spend
200,000 invoices
>10,000 suppliers
3 source systems
Sourcing
Spend Vis Contract mgt
200 suppliers
?? Orders/invoices
P2P
© 2015 Ariba – an SAP company. All rights reserved.9

10. #AribaLIVE @ariba
Strategic Busienss Partner.
Innovation, demand
analysis and challenger
role has impact on entire
organisation.
The Development Path towards a
Proactive and Strategic Business Partner
Administrative
Pro active
Strategic
Commercial
*Burt, D.N. (1992). Add value and gain recognition for it. Tijdschrift
voor Inkoop & Logistiek, jrg. 8, nr. 7/8, p. 40-43.
Development
stage
Focussed on
commercial
aspect
Procurement takes
initiative to
stakeholders and
has long-term vision.
2014 2015 2016
Projects together
with stakeholder.
Optimise spend (SE
methodology).
1
4
3
2
Development of the Procurement function
in a four-phase model
© 2015 Ariba – an SAP company. All rights reserved.10

11. #AribaLIVE @ariba
The BUYER Model Is the Foundation of
Spend Excellence
© 2015 Ariba – an SAP company. All rights reserved.11
Build
baseline
Create
category
strategy
Manage
contracts
Manage
contracts and
category
performance
Under-
stand
supply
markets
Implement
strategy internally
Negotiate with
suppliers
Set up
team and
governance
Execute ReviewYield measuresUnderstan
Select
focus
areas
Build
Identify potential
& develop ideas
Engage
stake-
holders
Build
baseline
Create
category
strategy
Manage
contracts
Manage
contracts and
category
performance
Under-
stand
supply
markets
Implement
strategy internally
Negotiate with
suppliers
Set up
team and
governance
Execute ReviewYield measuresUnderstand
Select
focus
areas
Build
Identify potential
& develop ideas
Engage
stake-
holders
Spend Excellence is a comprehensive approach to bring the
category management process to the next maturity level

12. #AribaLIVE @ariba
Understand the Situation by Creating a
Detailed Baseline
0
1
2
3
4
5
6
7
8
9
2010 2011 2010 2011 2010 2011 2010 2011 2010 2011
Business
Consulting
(non IT)
Audit
Services
Legal
Services
Business
Consulting IT
Professional
Services
Miljoenen
Analyse Spend
 Start at BU/Dept level
 Trend per category/year
 Drill down to cost center, supplier,
product.
 If needed, to invoice level!!
Compare with contracts
 Contracts per category
 Analyse discrepancies
Create shared action plan
 Redirect spend to preferred contracts
 Contract additional suppliers
 Re-tender
 Etc.
+ Top-20 suppliers
BU/Dept/category
Spend
Visibility
Contract
Mgt
Contract Supplier Value
CW21963220 ABC123 62216
CW21963221 DFJ 377 500151
CW21963222 KWE262962 40000
CW21963223 KAAW73 200066
CW21963224 OEWGB 543000
CW21963225 VKEEU 67220
CW21963226 VKKOGJ 522200
12 © 2015 Ariba – an SAP company. All rights reserved.

13. #AribaLIVE @ariba
Yield Maximization by Applying All Procurement
Levers
© 2015 Ariba – an SAP company. All rights reserved.13

14. #AribaLIVE @ariba
Majority of the Procurement Agenda
Realized, but Still Plenty to Be Done
• Significant contribution to reduce the
bank’s Cost/Income ratio
• Integrate Procurement processes
and systems
• Reduce TCO of systems landscape
• Create transparancy in supply base
(incl. CSR performance)
Procurement Agenda Status / Work to be done
 Granular spend analysis
 Shared sourcing pipeline
 Validated savings tracking
 One sourcing process
 One procurement system
 P2P integration
 Migrated from CD to SaaS
 Decommissioning program
 Integrate supplier data
 Shared platform
© 2015 Ariba – an SAP company. All rights reserved.14

15. #AribaLIVE @ariba
Agenda
© 2015 Ariba – an SAP company. All rights reserved.15
• Overview and Introductions
• Panel Presentations
• Hielke Posthumus, Procurement Development Manager, ABN AMRO Bank
• Laszlo Adam, E-Procurement Manager, CWS-boco
• Petra Kovacova, Ariba Spend Visibility Project Manager, Ariba, an SAP Company
• Q&A

16. Our Business Portfolio
> Washroom solutions:
Hand and WC hygiene, feminine hygiene,
washroom and toilet accessories and
special solutions
> Dust control mats:
Dust control mats, personalised logo mats,
aluminium profile mats, industrial mats
> Textile services:
Industry-specific workwear, protective
clothing, cleanroom clothing and safety
equipment, business fashion, linen
11.06.2015 ©CWS-boco International GmbH

17. 11.06.2015 ©CWS-boco International GmbH
Austria Latvia
Belgium Luxembourg
Bulgaria Netherlands
China Poland
Croatia Romania
Czech Republic Slovakia
Germany Slovenia
Hungary Sweden
Ireland Switzerland
Italy
Countries with subsidiaries
CWS-boco Group

18. CWS-boco Group
Facts & Figures
> Part of Haniel Group since 1981
> Foundation: boco 1899 in Hamburg, CWS 1954 in Switzerland,
together on the market since 2001
> 18 countries
> Around 7,500 employees
> € 748 million turnover in 2013
> 51 high-tech laundries
> Every year we wash approximately 28.5 million cotton towel rolls,
7.8 million dust control mats and 83.5 million items of clothing
11.06.2015 ©CWS-boco International GmbH

19. Procurement at CWS-boco Group
 Purchase spend = 40% of group‘s turnover
 Indirect spend = 23% of total spend of the group
 Group Strategic Procurement Organization in Dreieich and Baar
 Local country procurement organizations
ORGANISATION:
o Decentralized
o Multi-country
o Multi-site
TOOLS:
o Various purchasing
systems
o Various ERPs
o E-mail, Excel
PROCESSES:
o Local processes
o Local standards
o Local best practices
o Low info exchange

20.  Sourcing solution with state of the
art technology
 Set-up standards in sourcing
process
 Improve spend under global
management 10%/year
 Get efficient procurement reports
and visibility under spend categories
 Leverage group‘s volumes – 2%
EBIT improvement YOY
 Share sourcing and spend
management best practices into an
efficient way
Lack of professional procurement
tools
Low spend under control & high
number of suppliers
Sourcing effectiveness & efficiency
vs. expectations
Challenges and Change Drivers
Lack of an efficient way of spend
overview
Lack of source of data for strategic
sourcing planning

21. Implementation Highlights of Ariba
Spend Visibility
Ariba PM
Enrichment
Team
Operations
Support
CWS-boco PM
Stakeholder
IT
IndSpend
DirSpend
Key Success Factors
 Resources (esp. IT)
 Ariba Spend structure
best practice
 Ariba PM driver role
 Ariba report best
practices
 Involvement of the buyer
community
Risk Factors/drawbacks
Implementation timeline: 2014. June-2014 October
Project Organization
 Master Data structure availability
 PO coverage level
 Spend taxonomy matching (!)
 Reports building
 Company and negotiation culture

22. - © 2013 CWS-boco Supply Chain Management GmbHSeite:
Überschrift
22
Benefits:
• Spend extracted from “SAP” countries
• Country coverage: 8/18
• Spend coverage: ~80%
• PO Coverage
• Enrichment strategy (ongoing improvement)
• Supplier enrichment
• Ariba commodity classification
• Supplier parentage
• Different spend reports
• KPIs (PO coverage; nr. of suppliers; nr. of transactions; nr. of
invoices; etc.)
• Indirect spend buyers trained
Ariba Spend Visibility at
CWS-boco Today

23. - © 2013 CWS-boco Supply Chain Management GmbHSeite:
Überschrift
23
Ariba Spend Visibility CWS-boco Today
Challenges:
• Spend category mapping
• Spend report extracts (quarterly closure)
• Spend refinement resources (internal)
• Resources: change agent/PM
• Country procurement involvement
Best Practices:
• Training + refreshment training supported
by Ariba
• Workshop on building own reports
• Penetration tracking (review)
• Stakeholder support

24. - © 2013 CWS-boco Supply Chain Management GmbHSeite:
Überschrift
24
Ariba Spend Visibility CWS-boco Today

25. Implementation Highlights of
Ariba Sourcing
Ariba PM
Consulting
Operations
Training
Support
CWS-boco PM
Stakeholder
IT
IndSpend
DirSpend
CountryProc
Key Success Factors
 Resources
 Involvement
 Scoping
 Commitment
 Controlling
 Easy vs. complex
Risk Factors
 Hidden Gaps
 Expectations
 E-tools usage maturity level
 Change acceptance
 Company and negotiation culture
Project Organization
Implementation timeline: 2014. March -2014 May

26. - © 2013 CWS-boco Supply Chain Management GmbHSeite:
Überschrift
26
Ariba Sourcing at CWS-boco Today
Benefits:
• Sourcing Process Standardization
• Supplier Qualification Standardization (textiles)
• Supplier Code of Conduct Program
• Energy sourcing standardization
• External washing standardization
• RFI/RFP/Auction standardization
• Supplier spot tender standardization (Textiles)
• Best practice sharing
• KPIs (nr. of events; penetration of usage; managed spend with transparency)
• CWS-boco commodity structure
• Sourcing support (internal and external)
• Key user(s)

27. - © 2013 CWS-boco Supply Chain Management GmbHSeite:
Überschrift
27
Ariba Sourcing at CWS-boco Today

28. - © 2013 CWS-boco Supply Chain Management GmbHSeite:
Überschrift
Challenges:
• Usage penetration (country procurement)
• Ariba postings
• Savings and cost avoidances
• Resources:
• Change agent (tracking)
• Template development
Best Practices:
• Internal implementation manager
• Involvement of the buyer community (project
core team members)
• IT involvement
• Stakeholders commitment
• Coaching
• Penetration tracking (change agent)
• Workshops (“team source my event”)
Ariba Sourcing at CWS-boco Today

29. #AribaLIVE @ariba
Agenda
© 2015 Ariba – an SAP company. All rights reserved.29
• Overview and Introductions
• Panel Presentations
• Hielke Posthumus, Procurement Development Manager, ABN AMRO Bank
• Laszlo Adam, E-Procurement Manager, CWS-boco
• Petra Kovacova, Ariba Spend Visibility Project Manager, Ariba, an SAP Company
• Q&A

30. #AribaLIVE @ariba
It’s a Long Road Ahead
Sustaining end user adoption is the key to ensuring long-term benefits
30
Deployment of a new tool often raises questions:
• Where is this information coming from?
• What does it tell me?
• How do I build the reports I need?
• Can I trust the data?
• How do I identify sourcing opportunities and areas for improvement?

31. #AribaLIVE @ariba
And it Takes More than Just Software to
Get There
© 2015 Ariba – an SAP company. All rights reserved.31
User Adoption Best Practices
• Core user / core team
• Best Practice Center (BPC) projects
• Dashboards, templates
• Regular refinement process
• ACT vs. Custom Taxonomy

32. #AribaLIVE @ariba
Success Mantra #1: Identify the Core
User / Core Team
Who is the Core User/ Core Team ?
• Is the main point of contact on the customer side
• Knows the data and processes
• Knows the Ariba tool on advanced level, trains the end users
• Helps to define dashboards, prepare news and report templates
© 2015 Ariba – an SAP company. All rights reserved.32

33. #AribaLIVE @ariba
Success Mantra #2: Leverage Best
Practice Center
© 2015 Ariba – an SAP company. All rights reserved.33
Best Practice Center Offers You:
• Managed project geared to increase
solution adoption
• Revised offerings include sourcing pipeline,
operational reporting, user guides
• Flexible deployment examples: dashboard
workshops, custom category support and additional
user training sessions

34. #AribaLIVE @ariba
Best Practice Center (BPC) - 2/2
© 2015 Ariba – an SAP company. All rights reserved.34
Sourcing pipeline:
• Goal – improve client’s ability to interpret the information in reports
• Starting point for identifying sourcing opportunities
• Showing the users the “low-hanging fruit”
Outcome:
• Set of reports on commodities, trends, supplier fragmentation presented to
larger audience incl. project sponsor, core business users

35. #AribaLIVE @ariba
Success Mantra #3: See it to Believe it
Dashboards, Templates
• Predefined, easily accessible content
• Customized for different groups of users
• Customized for different types of tasks
(validation, refinement, analysis)
• Users view the data in a consistent way
• News section to promote project success, announce
timeline and milestones
© 2015 Ariba – an SAP company. All rights reserved.35

36. #AribaLIVE @ariba
Refinement process
• Regular classification review process
with pre-defined timeline
• After each enrichment cycle
• Consolidated approach with online
Enrichment Change Requests (ECRs)
• 1 ECR reviewer to ensure a consolidated company view
© 2015 Ariba – an SAP company. All rights reserved.36
Success Mantra #4: Perfection.

37. #AribaLIVE @ariba
Success Mantra #5: What's The
Taxonomy that Works For You
Ariba Classification Taxonomy (ACT)
vs. Custom Taxonomy
• Customer-specific categories known to end users
• Provide more granularity (if supported by data)
• Structure should be product / service based
• Custom taxonomy mapping requires maintenance
• UNSPSC / ACT are known to other companies, suppliers
• Benchmarking options
© 2015 Ariba – an SAP company. All rights reserved.37

38. #AribaLIVE @ariba
In Summary
• Customized reports easily accessible
• Support from core users
• Trustworthy data thanks to refinement
• ACT or Custom taxonomy depending on company needs
© 2015 Ariba – an SAP company. All rights reserved.38

39. #AribaLIVE @ariba
Agenda
© 2015 Ariba – an SAP company. All rights reserved.39
• Overview and Introductions
• Panel Presentations
• Hielke Posthumus, Procurement Development Manager, ABN AMRO Bank
• Laszlo Adam, E-Procurement Manager, CWS-boco
• Petra Kovacova, Ariba Spend Visibility Project Manager, Ariba, an SAP Company
• Q&A

40. #AribaLIVE @ariba
© 2015 Ariba – an SAP company. All rights reserved.40
It doesn't
matter how
many
"resources"
you have if you
don't know how
to use them

41. #AribaLIVE @ariba
© 2015 Ariba – an SAP company. All rights reserved.41
Contact Us
Contact Information: (Panelists)
Hielke Posthumus
Hielke.posthumus@nl.abnamro.com
Laszlo Adam
Laszlo.Adam@cws-boco.com
Petra Kovacova
Petra.kovacova@sap.com
Contact Information: (Moderator)
Keertan Rai
Keertan.rai@sap.com