Lessons Learned: SAP Sourcing 7.

0 Ramp-Up
Implementation at H.J. Heinz
Bill Durbin and Christopher Yope
[
Real Experience. Real Advantage.
[
Introduction to Heinz
Founded in 1869 in Pittsburgh, PA by Henry John Heinz
Today, headquartered in Pittsburgh and famous on six continents for its
iconic brands
With products in more than 200 countries around the world, Heinz is
the most global U.S.-based food company
The Heinz brand is a $4+ billion global icon
Record Sales of $10.7B+ In FY11
Global Spend of $4.5B+
Key Heinz markets
North America
Europe
Asia Pacific
Rest of World
Real Experience. Real Advantage.
[
Leading Heinz Brands Around The World
Real Experience. Real Advantage.
[ In This Session
Understand how SAP Sourcing fits into Heinzs Global
Procurement Strategy
Understand the planning and requirements needed to
implement SAP Sourcing on premise
Hear results delivered and benefits obtained by implementing
SAP Sourcing 7
Project Savings Management and Reporting in the tool
Improved contract authoring, management, and reporting
One single source of truth, globally equivalent
Learn best practices when it comes to leveraging Key Users,
global rollouts, and SAP Sourcing administration
Real Experience. Real Advantage.
[ Heinzs Path to World Class Procurement
Developed
our
Strategy
Invested in
our People &
Processes
Implementing
the System
Backbone
Real Experience. Real Advantage.
[
Establish the Foundation
Platform for Future Growth
Get Capabilities Current with Competition
Globally Upgrade & Integrate Business Processes
Standardize IS Platform in SAP
Drive Visibility, Productivity and Efficiency
What is Keystone?
Real Experience. Real Advantage.
[ How SAP Sourcing Supports the Procure to Pay Process
Keystone Procure to Pay Benefits
Full visibility of spend
Proactive compliance via effective workflow and improved buying tools
Increased buyer effectiveness through touch less PtP transactions
Common and measurable global PtP process
Platform to enable global sourcing
Standard global metrics and reporting

Establish Business
Requirement
Develop
Sourcing
Strategy
Negotiations /
Contracting
Place Orders
Receive Goods
/ Services
Pay Supplier
Manage / Continuously Improve
Supplier Relationship
SAP Sourcing
Real Experience. Real Advantage.
[
Keystone Global Implementations
ECC
Direct Procurement
SRM
Indirect Procurement

E-Sourcing
Sourcing, Projects and Contracting
US,
Europe

Continental
Europe

North America, Europe, India
Indonesia, China, Australia, New Zealand

Real Experience. Real Advantage.
[ SAP Sourcing Scenarios and Landscape
Business Scenarios Implemented:
RFI
RFP
RFQ
Auctions
Project Management
Savings Tracking
Contract Lifecycle Management
Supplier Self Registration
Single Global Application
SAP Sourcing On Premise (Ramp Up)
Better Heinz Infrastructure Fit
Real Experience. Real Advantage.
[ Why Ramp-Up
Higher risk, but . . .
Improved user experience at par or better than Legacy
Functional Improvements in 7 versus 5.1
Project management ability to integrate our 7-Step
Sourcing process and links to all downstream documents
RFx improvements including reporting and event
management
CLM improvements master and sub agreements,
generation
Vendor management links to our ECC back-end
system

Real Experience. Real Advantage.
[
11
Integration Strategy
SAP ECC Replication
Standard Materials, Vendors, Currencies, UOMs,
Company Codes, Plants, Payment Terms, Incoterms,
Purchasing Organizations, Purchasing Groups
Custom Adaptor Exchange Rates
Worked with SAP to develop
Now standard to work with PI
SAP SRM Replication
Custom program to get vendor master from the SRM
standalone locations
Real Experience. Real Advantage.
[ Implementation Timeline
Blueprint to Go Live in 4.5 months
Real Experience. Real Advantage.
[ Global Roll Out Timing
Accelerated Rolled Out Ahead of Global ECC
Initial Go Live: July 18
th
US and Europe
Further successful rollouts:
Canada September 2011
Indonesia October 2011
India October 2011
China December 2011
Australia December 2011
Real Experience. Real Advantage.
[ Metrics
300+ people trained
70+ Strategy projects being managed in the tool
300+ Sourcing Projects
$1 Billion tendered
High level of adoption globally



Real Experience. Real Advantage.
[ Project Management Design
Used the Heinz Global 7 Step Sourcing Process as our
Framework
Built into the Schedule Tab
Templates, Attachments, etc.

Market
Analysis
3
Stage
Business
Needs
2
Stage
Portfolio
Analysis
1
Stage
Gate Review
1
Gate Review
2 Gate Review
3
Gate Review
4
4
Stage
Strategy
Execution
Strategy
Implementn
5
Stage
6
Stage
7
Stage
Strategy
Development
Continuous
Portfolio
Improvement
Create understanding
of the portfolio
Establish Business
Needs: short, med and
long term (5 yrs)
Understand supply
market
Agree the appropriate
strategy
Secure agreement
and contract
Effect delivery of the
strategy
Ongoing delivery against
business needs and our
Procurement goals
Real Experience. Real Advantage.
[
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Project Management Details
Two types of projects:
Strategy
At the portfolio level - tomatoes, dairy, resin, energy, etc.
Leveraging tool to track compliance
Approvals by procurement leadership
Sourcing
At the market basket level
Tie into strategic projects
Level at which financial savings are tracked
Approvals by procurement finance to ensure integrity of
numbers
Savings details can be linked to various profit and loss
(P&L) buckets
Real Experience. Real Advantage.
[ Project Management Workflow
Sourcing Project Workflow
Strategy Project Workflow
Real Experience. Real Advantage.
[ Project Management Financials
18
Financials Tab the bottom portion of
the tab allows the entry of the one-time
savings, ongoing savings, and brand
allocation.
Real Experience. Real Advantage.
[
19
RFx Design and Details
Simplified the RFxs down to 4 options:
RFI (General)
RFP (General)
RFQ (General)
RFX with Collaborative Scoring
Consolidated our spend categories so that they represent our
material groups
Enabled us to streamline our reporting / drill down
Information / Questions Library
Pre-populated with content in order for the buyers to quickly
and easily bring in value-added material for their suppliers
Able to utilize the daily synced exchange rates for global events
in multiple currencies

Real Experience. Real Advantage.
[ Auctions Design and Details
Leveraged standard SAP configuration for auctions types
Created variants when it comes to anonymous or leading
bidding
Made adjustments to what fields are on the schedule
area for simplicity
Still allow for flexibility around auction closes
Trained out best practice of going from a project into an
auction to carry over the relevant data
Efficiency in setup
Real Experience. Real Advantage.
[
21
Contract Lifecycle Management Design/ Details
Enabled 4 types of contracts:
Indirect Master Agreement
Direct Master Agreement
Master Service Agreement
Confidentiality/NDA Agreement
Sub-agreement usage is highly utilized (with subsidiaries)
Currently not using the line item functionality
Will start when fully integrated with SAP ECC
Clauses and templates were loaded prior to go live
Workflow Approval is triggered by agreement maximum
value
Real Experience. Real Advantage.
[ Contract Lifecycle Management Benefits
Facilitates Global Master Agreement with a supplier
Link in multiple regional sub-contracts
With Integration to ECC (future release)
One stop shop for authoring, editing, and approvals
Legacy
No Electronic Storage
Paper Based Approvals
Labor Intensive Audit
Process
SAP Sourcing
Global Repository
Electronic Approvals
System Generated
Audit reports
Real Experience. Real Advantage.
[
23
Global Reporting
Previously, Heinz did not have an ability to report out data
consistently
Disparate legacy systems or no system
Key metrics are now the same across the globe
No longer decided by the region or business unit
Single source of truth
Key reports include -
Stages / Linkages of Strategy and Sourcing projects
Procurement Negotiated Savings
Sourced spend by supplier / category (based on events)
Visibility to sourcing opportunities both regionally and globally
Real Experience. Real Advantage.
[ Bolstering Adoption
Strong Executive support
Usage / training mandates essential
One set of globally consistent process
The whole Heinz procurement world on same tool / same
metrics
Regional Administrators
Onsite or at least in same time zone
Key users
Engage early
Give them additional training
Training
Instructor led
Simulations
Real Experience. Real Advantage.
[ Lessons Learned
Enroll executive support and make sure your program is
driven from the top
Establish Key User network early
Metrics and reporting are big value drivers for the
business
Ensure users are trained before go live
Communicate, over communicate, then communicate
some more
Value comes from increased visibility of global projects
and savings
Global Template Build it once, get it globally
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Real Experience. Real Advantage.
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]
Thank you for participating.
SESSION CODE:
1301
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