Global Localization How to reflect customer needs in global operations. Dr. Ulrich Eberhard Global Process Design & Integration Lead

Transcription

1 Global Localization How to reflect customer needs in global operations Dr. Ulrich Eberhard Global Process Design & Integration Lead 1

2 BASF at a glance BASF The Chemical Company The world s leading chemical company Offers intelligent system solutions and high-value products for almost all industries Sales 2009: 50.7 billion Income from operations (EBIT) 2009: 4.9 billion Employees 2009: 104,779 2

3 The six BASF segments are structured according to related products, customer industries and production processes Chemicals Plastics Performance Products Functional Solutions Agricultural Solutions Oil & Gas Inorganics Performance Polymers Dispersions & Pigments Catalysts Crop Protection Oil & Gas Petrochemicals Polyurethanes Care Chemicals Construction Chemicals Intermediates Paper Chemicals Coatings Performance Chemicals 3

4 BASF operates 6 Verbund sites worldwide, the largest of which is in Ludwigshafen, Germany, as well as close to 330 production sites Europe North America FREEPORT FLORHAM PARK GEISMAR ANTWERP LUDWIGSHAFEN NANJING HONG KONG KUANTAN SINGAPORE P Regional headquarter Verbund site Selected production site SÃO PAULO South America, Africa, Middle East Asia Pacific 4

5 Verbundsite Ludwigshafen is the largest chemical site in the world Verbundsite Ludwigshafen Area of 7.1 km² ~2,000 buildings ~115 km streets ~205 km rail tracks ~2,000 km pipe network ~17 million tons of incoming and outgoing goods per year 5

6 BASF s global performance is reflected in the region Middle East Middle East 17 sites Thereof 6 manufacturing sites 8 countries: United Arab Emirates, Jordan, Kuwait, Saudi Arabia, Oman, Iran, Bahrain, Qatar ~650 Employees 6

7 As the leading chemical company we see these global challenges as huge opportunities A growing and aging world population Urbanization Energy requirements and climate protection Globalization and new markets Megatrends Energy and Resources Housing and Construction Health and Nutrition Mobility and Communication Demographic Change 7

8 Example: when building or renovating we can all contribute to energy efficiency and climate protection with BASF s help Housing and Construction A ready-mix concrete keeps the construction process flowing smoothly even at widely varying temperatures and increases the lifespan of buildings A thermal insulation composite system increases insulating performance by up to 20% whilst the raw materials required are reduced by up to 50% A topcoat being applied on steel or aluminum reflects heat away from buildings and saves energy cost for cooling Black pigments ensure that dark surfaces remain up to 20% cooler on hot days lead to lower temperatures as well as less strain on the building material 8

9 The significant increase in interregional trade requires globally harmonized processes North America 1,000 18,000 South America 22,000 23,000 1,000 17,000 Europe 1,000 1,000 8,000 78,000 Asia Pacific 3,000 53,000 Increase Complexity factors: Number of suppliers ~60,000 Number of production sites ~330 Number of products 1) ~70,000 Number of ordering customers 1) ~135,000 1) BASF inter-company and external customer business 9

10 To support the global challenges BASF is further transforming towards a global, customer focused process driven supply chain Cross-functional processes Transformation FUTURE Dimensions of Change People Organization Process model to segment customers IT infrastructure Functional Silos PAST Performance management Quality assurance Regional / Local focus Global focus 1) 1) Global harmonization of processes and tools where applicable and feasible 10

11 The global process transformation program is set up in a way that allows for maximum improvements within each process Senior Project Accelerator Project characteristics Spanning across all regions, Business Units and functions Optimization and harmonization of four key business processes of BASF (Order to Cash, Non Conformance Management, Purchase to Pay and Planning) Mission Provide BASF Group-wide process excellence and innovation through end-toend process harmonization and governance across regions, Business Units and functions Expected benefits Annually contribution to earnings Increased customer satisfaction through improved delivery capability and reliability Serve customers better Goals Efficiency 11

12 Example: BASF contributes to serving its customers better Consolidation of customer service functions in support of sustainable and continuous improvement of operational excellence Foundation for transparent customer service level management, closed-loop performance management, effective training and career management with skilled workforce Optimized service quality and service efficiency considering business specifics and regional requirements 12

13 Example: enhanced transparency along BASF s supply chains through supply chain event management is critical to our competitive advantage Creation of transparency along BASF s global supply chains Monitoring on a real time basis of order and transport relevant data and performance critical events Support our customers in case of delays Basis for business process improvements like increase in delivery reliability Supply chain event management is a philosophy 13

14 Example: supply chain transparency provides additional transparency and consistency in supply chain analysis as a strategic enabler for BASF Complete regional and global view to ensure global consistency and validity of logistic process information One global business warehouse application as Single point of information Logistic basic information on order fulfillment and inventory Measurement concept for manual process interventions in order fulfillment processes (hands free ordering) 14

15 Example: better integrated planning leads to increased forecast accuracy and higher performance for customers Increased internal efficiencies Increased delivery capability based on an increased forecast accuracy Reduced Inventory through mathematical safety stock optimization based on required service levels and forecast accuracy Example: BASF manages ~60 integrated supply networks External suppliers Customer Reduced number of rush freights as result of higher delivery capability based on an improved forecast Reduced slow moving and expired products based on improved forecast accuracy 15

16 Supply Chain Management delivers competitive advantage through optimization of cost, service and capital Service Deliver Competitive Advantage Costs Capital 16

17 BASF's supply chain players contribute to the value-adding business strategy Logistics Costs (internal/service providers) Inventories Process optimization Supply Chain Qualification Knowledge Management We earn a premium on our cost of capital We form the best team in industry BASF The Chemical Company We help our customers to be more successful We ensure sustainable development Delivery Reliability and Accuracy Leadtime Specific Customer Solutions Transportation and Storage Safety Resources protection Working together ensures our long-term success. The strengths of each individual team member are our assets. Our employees competence helps us to understand our customers better and give them what they need to make them more successful. 17

18 Thank You! Dr. Ulrich Eberhard Global Process Design & Integration Lead 18