Supplier Enablement Business context

1
Supplier Enablement Business context

• 12th September, 2007

2
BPs position on industry document exchange
standards

• BP has joined PIDX and used to be a member of
  CIDX
• BP view standards as a means of reducing
  variability and through that cost.
• Should BP adopt one standard for all its business

3
Some data

• Given this spread across the commodities, what is
  standard would work best for BP?
• PIDX?
• CIDX?
• XCBL?
• GS1?
• EDIFACT?
• IDOC?

4
Global business but varying materiality

• The materiality of the business in terms of
  transactions varies considerably across the
  world
• Africa 2
• Azie 3
• Australia/NZ 5
• Europe 22
• North America 67
• South America 0.4

5
Global spread of transaction percentage
6
Supplier enablement initiatives across the group

• Strategic initiatives are
• i-Buy for indirect procurement (IT, consultancy,
  stationary, etc). Initial implementation will
  focus on the US and UK. The solutions cover
  product and services.
• EP Purchase to Pay for the implementation of SAP
  SRM for all spend for Maddog and Holstein.
• RM Supplier Enablement triggered by systems
  renewal across a number of its businesses and
  geographies.
• Tactical initiatives are
• Finance OB10 electronic invoice processing to
  speed up the payment of invoices and remove
  administration activities.
• Numerous purchase-to-pay initiatives to remove
  invoices from the process using Procurement card
  and increasing spent against contract. These are
  RM European and US initiatives primarily.

7
What is BPs objective with Trading partners
Enablement?
Removing paper and administration from the
interaction between BP and its suppliers for
mutual benefit, agreed once!
BP Processes
Trading partners Enablement
Trading partner Processes
8
Supply Chain process efficiency
Generic Purchase to Pay process flow
Paper, matched To assumed cost
Manually with Build to sheets
By phone or fax
Extend to Retail value
Pay in line With terms
MSI electronically To supplier
Paper, matched To assumed cost
Using an MSI device
Scan delivery On MSI
Pay in line With terms
Scan on Hand Held, transfer To Back Office
Paper, matched To product cost
Back office assisted ordering
Electronically To supplier
Pay in line With terms
Electronic Receipt Settlement
Scan on Hand Held, transfer To Back Office
Back office assisted ordering
Electronically To supplier
N/A
Electronic Receipt Settlement
Vendor managed inventory
Electronically To site for info
Scan matched to ASN
N/A
Improved efficiency step compared to previous line