PUMA & TEO

A Project/Success Story for Indirect Materials & Services

Heiler Innovation Days

06. November 2008
Reithaus Ludwigsburg
J. H. Buthmann
 Project scope

Š Indirect materials Š Assets (Capex)

„ Spare parts „ Machines
„ Pallets and crates „ Furniture

„ Office material „ Trucks, cars

„ etc. Æ any expense that needs to be

activated
Š Services
„ Cleaning Š Energy/Utilities
„ Maintenance „ Electricity
„ Temporary personnel „ Gas
„ Disposal „ Diesel oil
„ etc. „ Water

Æ everything apart from raw materials, packaging, finished goods

Æ excluding transportation services Æ separate project(s)

PUMA/TEO JHB Heiler Innovation Days Nov. 2008 1

 Project scope

Š Companies
„ Kamps Brot- und Backwaren (incl. Zimmermann)
„ KNL
„ Logi-K
„ Kamps IT
Š Relevant volumes:
„ KBB, Kamps IT, Logi-K 2006 = approx. 163 Mio€ (2006*)
„ KNL = approx. 33 Mio€ (2006*)
Š Locations/departments/users
„ 52 locations:
z 16 plants KBB
z 7 plants KNL
z 2 holdings (KBB, KNL) with 7 – 8 departments
z 27 stand-alone depots KBB Logi-K
„ approx. 150 users
Š Timing
„ until end 2007/beginning 2008

* Source: Manual supplier analysis KBB and KNL 2006 by Purchasing (May 2007),
PUMA/TEO JHB Heiler Innovation Days Nov. 2008 2
 To-be IM&S procurement processes
1. Indirect materials standardized
„ standardized by supplier, catalogue available, no single inquiries, rebate on list
price (e. g. spare parts, office material)
2. Indirect materials user-specified
„ 2a (frame): standardized by Kamps, specified once (e. g. working clothes)
„ 2b (single need): real single, individual need (e. g. special spare part to be
manufactured for Kamps)
3. Services (planned and unplanned)
„ 3a (unplanned, frame): standardized by Kamps, specified once
(e. g. temporary work)
„ 3b (unplanned, single need): real single need, specified individually
(e. g. cleaning of ceiling, consultancy)
„ 3c (planned): fixed agreement for regular services
(e. g. pest control, regular cleanings)
4. Assets
(e. g. equipment and machinery)
5. Energy
(pipeline materials, e. g. current, gas, network)
7. Others
(grocery around the corner)
8. order not in system
(e. g. business travel, fuel)
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 IM&S procurement strategy
Procurement processes matrix KBB

A C

B D

Remarks:
Size of bubbles represent turnover 2006,
Source of data: Manual supplier analysis KBB 2006 by Purchasing (May 2007), data are likely
to contain imprecise supplier allocation (if supplier supplies different material groups) KBB
Procurement strategy defined in Purchasing IM&S workshop May 24, 2007
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 Summary
PUMA IM&S mission:
In order to contribute to achieve Kamps Supply Chain objectives,
Š Kamps Brot- und Backwaren, Kamps Nederland, Logi-K, Kamps IT
Š introduce an integrated, standard, efficient, effective procurement process
Š for all Indirect Materials & Services (excl. transportation)
for all locations/departments
Š in a central system
Š with a project team consisting of representatives of key stakeholders
Š until end 2007/first quarter 2008
Š by step-wise implementation of processes for material groups with biggest process-
related benefit
Š to be measured by
„ reduction in process time for standard portfolio
„ increase of total share of supplier invoices related to an order number in SAP-MM
„ increase of frame agreement utilization rate
„ reduction of total number of suppliers
„ reduction of inventory values
„ achievement of expected savings of 1% measured on a comparable basis in the
first year after implementation

PUMA/TEO JHB Heiler Innovation Days Nov. 2008 5

 Project activity plan (rough)

2007
Project phase Apr May Jun Jul Aug Sep Oct Nov Dec 1st Q 2008
1. Project definition and organization
2. Analysis
3. Strategy/Concept
4. Implementation
Development stepwise
Pilot Tests stepwise
Roll-out stepwise
5. Staff Qualification/Training
6. Monitoring of success/support
7. Information & Communication
holiday periods DE/NL

PUMA/TEO JHB Heiler Innovation Days Nov. 2008 6

 Thanks for your commitment!

PUMA/TEO JHB Heiler Innovation Days Nov. 2008 7

 Kamps Warenkorb - Opportunities
1st step and future potential (Example KBB)

1st step Future potential

100% 100%
80% 80% 30.993
50.519 60% €117.604.59
60%
€147.198.423 40% 8
40% 40.133
20% €45.782.140
20% 20.596
€16.188.316 0%
0%
No. invoices Total net turnover
No. invoices Total net turnover

K-WK potential Others

K-WK 1st step Others

e. g. supplier standardized materials/services e. g. supplier standardized materials/services +

any material/service that is regularly needed
in Kamps
Saving potential in total procurement
process time up to 20 – 50 % = up to Saving potential in total procurement
6.000 to 20.000 hours p. a. process time up to 20 – 50 % = up to
10.000 to 40.000 hours p. a.

1) Source: Invoices and volumes – Manual supplier analysis KBB 2006 by Purchasing
2) Source: Process times: As-is analysis by KBB/KNL plants in May 2007 for standard procurement of Indirect materials and services, including total invoice verification
process and a little estimated average per invoice for Central Purchasing activity) and monthly accrual process by plant managers and controlling
Ø minutes per invoice/order today 128 minutes (from 95 min. cleaning material to 178 min. spare parts)

PUMA/TEO JHB Heiler Innovation Days Nov. 2008 8

 TEO – System and process
Kamps-Intranet (Information & Kommunikation)

Reporting

SAP Business Warehouse (BW)

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 Project Status Report – February 2008
Project activity plan

today
2007 2008
Project phase Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
1. Project definition
2. Internal analysis (processes, volumes, qualification)
3. External analysis (software, providers)
4. Concept
System availability
5. Implementation SRM + catalogue
6. Supplier integration KBB ongoing
7. Key and power user (multipliers) training/Integration test phase KBB
8. Pilot KBB (1 supplier, 1 department)
9. Roll-out KBB
10. Integration other departments KBB
11. Implementation Content Management (PCM)

12. Fine definition and customizing KNL (to be defined)

13. Supplier integration KNL (to be defined)
14. Roll-out KNL (to be defined)

NB: also see detailed roll-out plan KBB

PUMA/TEO JHB Heiler Innovation Days Nov. 2008 10

 TEO Nutzungsrate 2008

TEO-Nutzungsrate

80 74
69
70 63
59
Bestellanteil %

60
50 41
37
40 31
30 26

20
10
0
Juni Juli Aug. Sep. Okt. Nov. Monate

Monate Juni Juli Aug. Sep. Okt. Nov. Dez.

Teo Gesamt in % 59 69 63 74

Nicht TEO 41 31 37 26

Veränderung
10 -5 11
zum Vormonat

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 TEO today …

Š A grown up baby, only 6 months old, but

Š 75 catalogues with
Š 1.200.826 articles and
Š 15.000 orders in the system covering
Š 3 book keeping units over
Š 15 plants & 1 holding with
Š 150 active users

… what we consider success!

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 Flour Price =
Matif + premium + transformation

Spot UK Bread wheat premium as % of Feed Wheat

HGCA Delivered Liverpool

Terminology:
MATIF + premium mix = ready to mill
+ transformation = flour price

Sensitivity:
± €10 swing has an effect
of 5.5M€/yr (550kt)

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 Vielen Dank für Ihre Aufmerksamkeit!

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