1. In the Driver's Seat:
How To Successfully Drive Transformation in A Decentralized Global Company
Bunge
Amit Sachdev
Director, Global Procurement Center of Expertise and Transformation Head

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3. Successfully Drive Transformation in a Decentralized, Global Company – Bunge Procurement Story Presenter: Amit Sachdev, Global Director Transformation and CoE Head

4. Agenda Background Where did we came from in Procurement
What started the change
Procurement Transformation Journey – 2011 onwards
Next set of challenges
Lessons Learnt
What could we have done better

5. Bunge – What do we do: Feed and Fuel the world
We process oilseeds, grains, sugarcane and other agri. commodities to make products and ingredients with numerous applications for customers worldwide
NET SALES
EMPLOYEES
$61 B
~35,000
FACILITIES
COUNTRIES
~400
40+
Agribusiness
Sugar & Bioenergy (
Food & Ingredients
Fertilizer
Alberto mentioned that Bunge has a global, integrated and balanced portfolio.
To be specific, we have operations in all the major crop production and consumption markets, with more than 400 facilities in over 40 countries.
We also benefit from leading positions in key markets in agribusiness, food & ingredients and sugar & bioenergy.
And, we have a fertilizer business that is well scaled and focused.
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Global leader in oilseed processing
Global leader in grain and oilseed marketing
21 mmt sugarcane milling capacity producing sugar, ethanol and electricity
Leader in global trade and distribution
Leading producer of oils, margarines & industrial fats in the Americas and Europe
Growing oils share in Asia
Leading corn and wheat miller in the Americas
Fertilizer production and sales in Argentina
Fertilizer port operations in Brazil

6. Where did we come from – Pre 2011
Key issues
Non Availability of Data
Different Procurement Processes
Multiple Systems
Lack of Policy and Procedures
Varying levels of maturity
Low Spend influence
Resources not aligned to support delivery
Local / Regional Market objectives
Benefits capture not a priority

7. In addition, a company that is …….
Decentralized
Old School
Trader’s are King
Procurement is not a Priority

8. What started the change – Benchmark in 2010 revealed significant gaps with best in class
% of Procurement’s influence over spend
Cost savings as % total spend
(Includes cost reduction and cost avoidance)
Bunge Worldwide 2010
Peer Group
Best-in Class
Number of suppliers per Bunge spend
Return on procurement cost (ROI)
Savings by total Procurement Operating costs
Bunge Worldwide
Peer Group
Best-in Class
Bunge Worldwide 2010
Peer Group
Best-in Class
Source: Hackett benchmark; internal Procurement analysis

9. Bunge launched a global Transformation program in 2011 that included HR, IT, Finance and Procurement
Procurement Objectives –
Become a value added business partner
Fast track delivery and sustainment of $100M in value
Apply standard best practices consistently across Bunge
Effective in supplier selection and buying
Efficient in transactions
Influence 85% of Non-commodity spend
Develop deep knowledge of category procurement
Leverage Bunge’s buying power globally
Strongly aligned function from global to local level with the right talent
Upgrade systems to support procurement activities
Endorsed by Bunge ExCo and Sponsored by CFO
To become best-in-class Procurement Function !!

10. Focus on five key areas – and doing it well
Description
Procurement Operating Model
New operating model – how we should function globally
Global and Regional Center of Excellence
Global Category Management for core categories
Offshore Analytics Center
Generate Value
Drive benefits (savings / ROI) in excess of $100 MM annually
Common savings capture methodology globally
Regular reports out to Bunge Ex Co, CFOs and key stakeholders
Talent Management
Align Talent to objectives
Competencies; assess Procurement leadership and Managers globally
Global Procurement Academy
Recognize and Reward, Short & Long term assignments, Succession Planning
Enhance Process
One ‘best in class’ Procure-to-Pay (P2P) process
One system globally
Global Procurement Policy and Procedures
Global and Regional Process owners
Stakeholder Alignment and Communication
Communicate and align key internal stakeholders – Leadership, Business Leads, Operations and our own teams
Measure current perception through customer satisfaction survey - implement an effective communication plan

11. The Operating Model ensures we can be consistent globally, even though we continued to be decentralized company
Initially OpCos did not understand the value; now believe it is a core area
Procurement Operating Model
OpCo CFO
Global CFO
Major responsibilities:
Prioritize and approve major Proc. initiatives
Prioritize Procurement transformation
Review and challenge KPI performance
Talent Management
Procurement Leadership Team
OpCo Proc Director
Global Proc. Director
Global Center of Expertise
One Regional Director did not agree – after a year of aligning, we had to let him go
Major responsibilities:
Set strategic direction
Talent Development
Process Improvements
Spend Analytics
KPI Monitoring & Reporting
Op Co Procurement
Global Category Management
Major responsibilities:
Local sourcing and Supplier Management
Regional Center of Expertise
Local operations
Major responsibilities:
Structure Global agreements, where possible
Coordinate and share knowledge between Op Cos
Vendor Rel. Mgmt.
Institutionalize TCO
Still trying to get the balance right – leader vs. doer
Reporting lines moved from Operations to Finance 11

12. 2011– 2014 Influenced Spend ($MM)
Influence in Indirect spend continues to increase – resulting in cumulative savings of $500 MM
2011– 2014 Influenced Spend ($MM)
Insights
Total Procurement Spend - $3.0 B
Influenced Spend: Continues to increase every year
Focus on some of the more difficult areas:
MRO
Business Admin. Services,
Travel
Energy
Logistics
Savings: 4 – 6% every year since 2011; cumulative savings of ~$500 MM
Capital
$100
Operational
$2,200
Savings
$125
$125
$1,900
$1,800
$100
$1,450

13. Acquiring, developing, deploying and rewarding talent is fundamental to our success
Top 100 Managers assessed by an external firm – received individual feedback in person
Completed /Ongoing
Underway
Talent Management – Building Blocks
Not started
Planning & Analytics
Talent Acquisition
Performance Management
Rewards & Recognition
Learning & Development
Workforce Segmentation and planning
Sourcing and screening
Enterprise objectives alignment and cascading
Rewards and recognition strategy
Personal development and learning plans
Success profile and competency design
Interviewing and selection
Monitoring and feedback
Rewards and Recognition program
Rotation and mobility practices
Career mapping / Path
On-boarding and off-boarding
Individual performance management process
Rewards and recognition program administration
Training
Succession planning
Coaching / Mentorship
Recognize top 10 performers; celebrate their success in Leadership meetings
High performers moved to global or significant projects for short duration
Set up online Proc. Academy – easy win, teams believe company investing in their development
Leadership Development

14. Global Process Owner (GPO) MDM and Spend Analytics
‘One system and One Process’ with strong governance is critical for effectiveness and efficiency
One System
SAP / SRM
Executed in 70% of the countries globally; full implementation by end of 2015
125 way to buy existed only in North America
One Process
One Global Procure to Pay design
Localized for tax and business requirements
Metrics launched to measure efficiency and effectiveness
Owner works with both Procurement and Finance
Global Process Owner (GPO)
Global Process owner model for “end-to-end” process management and governance
Regional Process Owners to drive execution
Struggling to get Master Data and Analytics right !
MDM and Spend Analytics
A consistent Material & Vendor Master data
Uniform taxonomy for Material Master Groups
Governance
Solution for spend information and predictive analysis

15. Getting everyone aligned and working towards a common goal has probably been the most time consuming task
Five Regional CFOs – supportive but different level of Procurement understanding
Key Stakeholders in Transformation Journey
Businesses still question savings
Influence in Operations up but need further collaboration
High dependency; struggling with its own transformation
CFOs
Business and Operations
Global and OpCo Procurement Team IT
ExCo
Supportive but is Procurement a strategic advantage – not sure
Strong alignment with all after three years. However varying levels of maturity
Many a times we gave up ‘speed’ to get it ‘right’

16. Benefits captured % of Procurement’s influence over spend
Cost savings as % total spend
(Includes cost reduction and cost avoidance)
3.5 – 4% of total spend
70% spend influence in 2014
Bunge Worldwide 2010
Peer Group
Best-in Class
Number of suppliers per Bunge spend
Return on procurement cost (ROI)
Savings by total Procurement Operating costs NA
4.5 – 5.5 last 3 years
Bunge Worldwide
Peer Group
Best-in Class
Bunge Worldwide 2010
Peer Group
Best-in Class
Source: Hackett benchmark; internal Procurement analysis

17. We believe it will take us ~5-6 years from the start, to fully transform and be close to best in class
Transformation Journey
Area of Focus
Pre Transformation
Wave 1
Wave 2
Old Ways
Many Ways
Low influence
Manual
Local objectives
Spotty talent
Small savings
Clear governance
Global and Regional objectives aligned
Benefits focused
Transparent
Strong talent
One system
One process
Improved data
Extend influence
Higher benefits- 2X
Global
Data Smart
Talent driven
Higher automation
Shared Services
Prepare to Excel
Getting Basics Right
Pre 2011

18. Lessons Learned – ‘Evolution’ better than ‘Revolution’ sometimes
Key Lessons
Support from the top essential
Target few areas but do them well – helps to get everyone focused
Alignment is key – shared objectives
Right vs. Speed – Pace of change should account for company culture and regional situation / constraints
Be opportunistic – leveraged Finance and IT transformation for Process imp.
Right team is keen to winning
And celebrate successes …..
Manchester United – know how to win !!

19. What would we have done differently
Clear message from the top ‘Procurement provides competitive advantage …’
Over communicated with stakeholders in a language they understand – Executives struggle with Procurement speak, and Operations Managers find it too Consulting
Aggressively reached out to businesses
Data driven from the start rather than waiting for processes enhancements
Structured approach to learning from mistakes – launched P2P processes in multiple countries /regions and still struggle every time with system / training / change management

20. Contact Details:
Company: Bunge
Name: Amit Sachdev
Title: Global Procurement Director Transformation & Center of Excellence Head
Phone:

21. Session #WS07 www.sig.org/eval In the Driver's Seat:
How To Successfully Drive Transformation
in A Decentralized Global Company
Speaker:
Amit Sachdev
Bunge