Implementing a Market Place

Solution to Control Tail End

Spend

eWorld 2016, London QEII Centre

2nd March 2016

Stuart Hobbs

Agenda

INTRODUCTION

OUR NEED TO CONTROL TAIL END SPEND

THE SOLUTION

IMPLEMENTATION

END USER TRAINING

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BENEFITS TO THE BUSINESS6

Introduction

Bombardier is the worlds largest manufacture of trains and planes.

Bombardier Transportation, a global leader in rail technology, offers the

broadest portfolio in the rail industry and delivers innovative products and

services that set new standards in sustainable mobility.

Bombardier is present in over 60 Countries and to date we’ve delivered over

100,000 rail vehicles worldwide

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I am Stuart Hobbs and I lead the Global Strategy for

eProcurement and Consumable products.

I’ve been with Bombardier for nearly five years and in that

time I have held responsibilities for Project Procurement,

Indirect Procurement and eProcurement.

Our Need to Control Tail End Spend

Bombardier is an innovator and regularly needs

products our existing supply base isn’t capable of

delivering.

The need is often urgent and the only way to purchase

the required products is to source a new vendor or

purchase the product using a P-Card.

4 = Vendor with no strategic relevance

This method of purchasing significantly increases our

administration costs by increasing:

Vendor Management

Accounting Processes

Approval Processes

Requestor

P-Card

Purchasing

V

VV

V

V

V

V

V Order DeliveryV V

V

V

VV

V V

V

V

V

V

The Solution

Mercateo approached Bombardier with the concept of a

Market Place Solution.

Multiple suppliers sell their products through the Mercateo

Platform

The wide range of product categories fit with the

Bombardier need and complement our existing Global

Supply base

Mercateo is the single creditor limiting the Account

Administration

The key selling factors are the ability to integrate in to our

existing eProcurement Tools, the wide range of products

and the ability to reduce the number of vendors we have

commercial relationships with

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1000’s of Vendors, Millions of Products

The Implementation

Bombardier uses SAP SRM 7.0 in the majority of our business units

We have a third party integrator who manages connections to suppliers

The process of implementation was very simple mapping exercise

Bombardier uses an internal Material Group mapping code to allocate products to spend categories,

Mercateo uses UNSPCC which they mapped to our Material Groups

Mercateo then mapped our PO transmission to their system using the standard OCI framework

Some testing took place and we were live.

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End User Training

Mercateo is very different to every other vendor we have in our platform and this was

a concern

Basket Optimisation

Multiple suppliers in one transaction

Delivery costs and lead-time

Training the vast number of end users would have a significant cost and would delay

the launch of the platform

We decided to “go-modern” with our training approach and with our communications

team we composed two video’s and I’d like to show one of them to you now.

The Video is in German as this was the first location we launched in,

unfortunately the UK version is still in production and isn’t available today.

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The Implementation

Bombardier uses SAP SRM 7.0 in the majority of our business units

We have a third party integrator who manage connections to suppliers

The process of implementation was very simple mapping exercise

Bombardier uses an internal Material Group mapping code to allocate products to spend

categories, Mercateo uses UNSPCC which they mapped to our Material Groups

Mercateo then mapped our PO transmission to their system using the standard OCI framework

Some testing took place and we were live.

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Benefits to the Business

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Users are actively using our

Frame Agreement partners

more as the only alternative

source is Mercateo

The number of non

eProcurement transactions

has drastically dropped

Bombardier has been able

to remove vendors whom

we have low spend as it has

been diverted to Mercateo

The one creditor approach

has improved our cash

position

The data available is accurate

and up to date, allowing

Bombardier to assess gaps in

the sourcing strategy

Mercateo is a great

benchmarking tool and has

improved intelligence for

negotiations

Q&A?

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