Empower 2016

Supplier Transparency,

Governance and Onboarding

HenkelSeptember 2016

Empower 2016

Supplier Transparency,

Governance and Onboarding

HenkelSeptember 2016

2

Sandra FeiselHenkel - Corporate Manager IT Consulting Sourcing

Sandra FeiselHenkel - Corporate Manager IT Consulting Sourcing

Johannes HiergeistHenkel - Global Process Manager Strategic Sourcing

Johannes HiergeistHenkel - Global Process Manager Strategic Sourcing

Daniela SchubertIBM - Senior Consultant for Procurement Solutions and

Team Lead Procurement Solutions Services DACH

Daniela SchubertIBM - Senior Consultant for Procurement Solutions and

Team Lead Procurement Solutions Services DACH

Speaker and Project Member

3

Who we are�Who we are�

1.1.

Purchasing Sourcing SuitePurchasing Sourcing Suite

Supplier Registration and QualificationSupplier Registration and Qualification

2.2.

3.3.

Agenda

4

Who we are�Who we are�

1.1.

Purchasing Sourcing SuitePurchasing Sourcing Suite

Supplier Registration and QualificationSupplier Registration and Qualification

2.2.

3.3.

Agenda

5

Who we areHenkel at a glance 2015

Almost

50,000employees worldwide

Almost

50,000employees worldwide

43%of our sales generated

in emerging markets

43%of our sales generated

in emerging markets

€2.9 bnadjusted1 operating

profit (EBIT)

€2.9 bnadjusted1 operating

profit (EBIT)

61%of our sales generated

by our top 10 brands

61%of our sales generated

by our top 10 brands

139 yearsof brand success

139 yearsof brand success

1 Adjusted for one-time charges/gains and restructuring charges.

Around

€18.1 bnsales,

+3.0% organic

sales growth

Around

€18.1 bnsales,

+3.0% organic

sales growth

6

Who we areGlobal footprint

• Henkel products and technologies available

worldwide

• Employees from 125 nations

• Strong presence in emerging markets:

43% of sales, 55% of employees

• 170 manufacturing and 21 major R&D sites

around the world

7

Who we areGlobal leading positions in consumer and industrial businesses

Adhesive TechnologiesAdhesive TechnologiesLaundry & Home CareLaundry & Home Care Beauty CareBeauty Care

Industrial BusinessIndustrial BusinessConsumer BusinessesConsumer Businesses

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Who we are�Who we are�1.1.

Purchasing Sourcing SuitePurchasing Sourcing Suite

Supplier Registration and QualificationSupplier Registration and Qualification

2.2.

3.3.

Agenda

9

Global Supplier

System (SAP)

Henkel e2e Sourcing Plattform - EmptorisAll Main Henkel Sourcing Processes in One Cycle

Supplier

DataBase

Supplier

Delisting

Registration &

Qualification

Onboarding

Sourcing

Planning & Workflows

Sourcing

Agreement

Supplier Lifecycle Management

Project Initiation/ Sourcing Requests

Sourcing Plans

SourcingTasks & Events

Tender

Auction

Classical Negotiation

Contracts

Commercial Termsheets

Price Lists

Evaluation – Strategic & Operational

Development

Registration

Basic Compliance

General Onboarding

Blocking & Unblocking

Master Data

Approval Workflows

All processes available in the Emptoris Sourcing Suite!

Request for Information

10

Henkel e2e Sourcing Plattform – EmptorisThe following Emptoris Modules are used:

Supplier

DataBase

Supplier

Reporting

Delisting

Registration &

Qualification

Sourcing

Planning & Workflows

Sourcing

Agreement

Supplier Lifecycle Management

PGM

PGM ESP

ECM

SLM

SLM

VSM

Cognos Cockpit

PGM

PGM SLMESP ECM

PGM Program Management

SLM Supplier Lifecycle Management

ESP Sourcing

ECM Contract & Agreement

VSM Master Data

Modules

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Who we are�Who we are�1.1.

Purchasing Sourcing SuitePurchasing Sourcing Suite

Supplier Registration and QualificationSupplier Registration and Qualification

2.2.

3.3.

Agenda

12

Creating a Compliant and fully Approved Supplier in one Process

Supplier Onboarding Process

Emptoris Request

Management

Supplier

Registration

Basic Compliance

Questionnaire

Onboarding

Questionnaire

Master data

QuestionnaireSAP Workflow

� Request workflow starts in Emptoris Request Mgmt

� Resp. Purchaserappoves or rejectsrequest

• SSC creates

Registration for

the supplier

• Upon successful

completion

supplier receives

an account for

Emptoris

• Basic Compliance

questionnaire

created

automatically after

Registration

• Upon successful

completion

supplier receives

flag “Approved for

eSourcing”

• Approver releases

assessment and

approves creation

of supplier in SAP

• If there are no

issues with

supplier’s

answers, SSC

releases

• If all conditions are

met, SSC initiates

a workflow for

supplier master

creation in SAP

• SSC master data

team approves

and creates

supplier in SAP

Purchaser/SSC SSC/Supplier SSC/Supplier/Purchaser SSC

Approval Approval

*SSC = Shared Service Center,

Approved for

eSourcingReady for

Business

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Request content:

• Supplier Information

• Supplier Contact

• Reporting Entities

• Invoicing Information

• Country of Request

Initiation of Supplier OnboardingStarting an Onboarding Request of a New Supplier

1414

Initiation of Supplier OnboardingCreate Onboarding Request in Request Management

Fill out Onboarding Request and send for Approval

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Perform Supplier OnboardingSteps of Supplier Onboarding at Henkel

After supplier submits each questionnaire, it needs to

be reviewed & released internally

• Every new supplier needs to first register at our e2e

Sourcing Platform Emptoris and then fill out subsequent

questionnaires:

Registration QuestionnaireRegistration Questionnaire

Basic Compliance QuestionnaireBasic Compliance Questionnaire

Master Data QuestionnaireMaster Data Questionnaire

General Onboarding QuestionnaireGeneral Onboarding Questionnaire

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Perform Supplier Registration Registration Questionnaire to supplier

Questionnaire Structure:

1. Introduction & Authorizations

• Person filling the questionnaire

2. Company & Contact

• Company name & address

After supplier submits his registration, SSC

reviews and releases it.

• Shared Service Center creates an

account of the supplier in Emptoris

• Supplier receives an email with his login

and password and an invitation email

with direct link to Basic Compliance

Questionnaire

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Questionnaire Structure:

• Key Account with contact details

• Company Group (Parent Company) with details of Company Group

• Financials: Self - disclosure of financial Company details (from last 3 years)

• Confirmations like

• Vendor-Code of Conduct, Conflict of Interest, Privacy Policy

• Availability of an Ecovadis Assessment

• Availability of an TFS Audit report

*TFS = Together for Sustainability

Perform Compliance QuestionnaireSupplier fills out Basic Compliance Questionnaire

After supplier submits his answers, internal review and release

Release � Supplier is “Approved for eSourcing”

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Exemplary Questionnaire content:

• Introduction / Authorization

• Company & Contact

• Bank Data

• Invoice Presenter: Address & Bank details

• Alternative Payee: Address & Bank details

• Ordering Address

• Goods Supplier: Address

• Fiscal Supplier: Address

Perform Master Data QuestionnaireSupplier fills out Master Data Questionnaire

After supplier submits his answers, internal review & release

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Exemplary Questionnaire content:

• Certificates (e.g. ISO 9001)

• Insurance

• Written commitment to a Sustainability Code

• Quality Management System

• Assessment of ‘Supply Base’ according to ethical standards of Henkel

• SHE Annex / TFS Audit

• Acceptance of Henkel Audits

• Henkel Terms & Conditions

• Etc.

After supplier submits his answers, internal assess if all questions were

answered based on Henkel’s internal requirements.

Release of Compliance + Master Data + General Onboarding

� Supplier is “Ready for Business” and will be transferred to SAP

Perform General Onboarding QuestionnaireSupplier fills out General Onboarding questionnaire

2020

Review of all answers and in case of critical questions approver needs to provide a

comment

General Onboarding QuestionnaireReview answers

2121

General Onboarding QuestionnaireApproval

• Approver receives an email notification

• Approver clicks on “Release”

• Approver reviews the questionnaire and takes

decision to approve or reject it

Final approval step before supplier can be created in SAP

Thank you! Thank you!