SAP Fieldglass at Roche

SAP Forum

Prepared by Tony Barroco

March 9th, 2016

2

3

Large number of suppliers, often unmanaged

• Impacts our ability to leverage global buying power

• Introduces contractual/ commercial risk

• Lack of regional/ global visibility into spend and supplier performance

Difficulty finding the right talent and engaging that talent quickly

• Business continuity risk

Large number of exceptions to local processes & policies with limited competitive sourcing

• Significant missed savings opportunities

• No assurance that Roche is receiving best quality resources at fair prices

Multiple systems and processes

• Managers with regional responsibility must navigate different processes & systems to support their initiatives

Changing regulatory/legal landscape in Europe introduced additional compliance risks

• Financial and reputational risks

Opportunity Statement:

Baseline State of External IT Labor & Services

4

• Full competitive sourcing

• Comprehensive resource/worker management

Automated and flexible workflows

• Digital contract management and e-invoicing

Solution and Benefits:

European Rollout of Vendor Management System

Quality & Efficiency

Transparency

Cost

Key Benefits

Key Functionality

5

The process for hiring an IT Contractor

6

06.

PMO coordinates

candidate

onboarding, first

day orientation

04.

Roche selects candidates

for interview, final

decision, PMO tracks

feedbacks and supports

01.

Roche Manager

creates job posting

in Fieldglass

02.

PMO performs

Requirements analysis,

dispatch of request, SPOC

for suppliers questions

03.

PMO provides

quality assured

CV selection to

Roche Manager

07.

Worker submits

time & expense

sheet

08.

Roche Manager

approves,

PMO tracks

approvals

05.

PMO creates the

Work Order and the

supplier accepts

09.

PMO runs

Fieldglass accrual

report for Roche

finance

Job

PostingSelections

Work

Orders

Onboardin

g

Time

SheetsAccruals

Current & Planned Integrations

7

Cost Center/WBS

Upload

SSO

Google Calendar

Integration

HR/IT onboarding

integrationTime badging

integration

Automated invoice

postings into SAP

AP with settlement

feedback loop

Current

Planned

Benefits for Hiring Managers

• Benchmarking of each job by

location

• Lower costs

• Less time efforts for administration

• All job postings are competitive

Cost

• Compliance to legal requirements

• Risk management/reduction

• Transparency through Fieldglass

• Numerous reporting options

Transparency

• Pre-qualified CVs

• Wider selection of CVs

• Comprehensive Supplier Management

• Worker performance assessment

• Streamlined processes

Efficiency

• Faster CVs in max. 72 hours

• Automated time reporting

• Online approval process & also via

handheld device

• Automated accrual process

• Other Roche party responsible for

single invoice approval

Quality

8

Full Service VMS/MSPProgram

End-to-end process managed with support form third party

Managed Service Provider

• Ideal for sites with larger volumes (>100 workers)

• Key Benefits:

• Third party MSP can provide resources to support implementation reducing cost/time

• MSP provides local market knowledge, including key labor regulations

• Key Risks or Limitations:

• May negatively impact supplier adoption

Self-Service

(VMS Only)End-to-end process fully managed by internal Roche resources

• Ideal for small to medium-sized sites, with existing internal resources fully supporting the

process today

• Key Benefits:

• Change management effort could be reduced

• Supplier adoption should be higher

• Key Risks or Limitations:

• Roche would need to fully staff implementation and steady-state operations team

• All support activities would need to be performed by Roche (legal, HR, supplier management, etc.)

Deployment Options

9

Results to Date

IT Contractors in Basel & Kaiseraugst:

• The frequency of competitive bids has improved significantly since the June

1st go-live with 78% of orders competitively bid, versus a previous 40% rate

• Competition is driving lower rates with a delta of approximately 9% between

competitive and con competitive requests, with deltas as high as 15% versus

legacy rates

• Improved visibility has allowed us to target specific suppliers and user

communities

• Competition has increased our access to talent

• End user satisfaction is high, with high level of adoption across all of our IT

user communities

• Cycle times have been reduced significantly, improving our ability to staff

projects quickly

10

Supplier & Hiring Manager Feedback

“Timesheet and invoice process never

worked better.”

“Happy with the services with good

support with any questions.”

“I have been amazed with the speed and number of profiles.”

“I didn’t have high expectations and was amazed.”

“The quality was higher than expected, even for niche hires

that we usually struggle to find.”

“The PMO team is really kind and passionate in addressing

questions and support.”

“The experience was brilliant. Until now, we were struggling

to find expertise in manufacturing. With Fieldglass we just

put what we needed in the job description and we got the

right person.”

11

fr. 45.20

fr. 32.67

fr. 30.43

fr. 6.56

fr. 3.33

fr. -4.00

fr. -4.04

fr. -4.20

fr. -4.22

fr. -4.25

fr. -4.58

fr. -9.29

fr. -23.75

Variance vs. Market Rates by Supplier

Reporting Examples

Supplier A

Supplier B

12

Reporting Examples (cont’d)

13

What’s Coming Next

Segmented & Tiered supplier

lists

SOW-based engagements to

be managed through Fieldglass

Updated Job Catalogues

Additional integrations (invoicing,

onboarding, etc.)

Updated Market Rates

Increased compliance

controls

14

Doing now what patients need

next

15

Thank you!

Tony Barroco

Global Category Manager - IT Services

F. Hoffmann-La Roche AG

tony.barroco@roche.com

16