Deloitte Shared

Services, GBS &

BPO Conference

Creating Enduring

Competitiveness in

the Heart of Europe

– BASF Shared

Services Centre

Berlin, Germany

Dr. Daniel Dornbusch,

BASF Services Europe

22 – 23 September 2015

150 Jahre

Enduring competitiveness in the heart of Europe

Daniel Dornbusch

Senior Vice President, European Shared Services Organization

150 Jahre

To build a competitive Shared Services Center …

3

150 Jahre

… you need the right competencies

4

Thick skin

Strong neck

Being in Berlin Being a buddy

150 Jahre

BASF Segments and Markets

5

Performance

Products

Functional Materials & Solutions

Agricultural

Solutions

Oil & Gas Chemicals Functional

Materials &

Solutions

Health & Nutrition

Consumer Goods

Transportation Energy & Resources

Electronics Agriculture Construction

150 Jahre

BASF Global Finance Shared Service Center Network

6

Montevideo, Uruguay

Ludwigshafen,

Germany

Berlin, Germany

270 of 270

320 of 350

Kuala Lumpur, Malaysia 350 of 650

640 of 1150

150 Jahre

Journey to “World-Class” Finance Services

7

Region 1

Region 2

Region 3

13 7

1

2000 2010 2013

Use of Core ERP Systems

Harmonized Master Data

Harmonization of Activity Split

SSC Local SSC Local

Global Finance Communities

150 Jahre

How do we measure?

8

Hackett Value Grid™

World-Class

1Q

BASF 2010

BASF 2005

BASF 2006

BASF 2007

BASF 2013

Other

Companies

External benchmarking by

Hackett Group

Global Finance KPI reporting in

four categories (P2P, O2C, B2R

and overall)

Process KPIs used in day-to-day

monitoring of service delivery

High

Eff

ective

ness

High

Efficiency Low

150 Jahre

How do we steer?

9

Local company

FTEs transferred FTEs assigned

SSC Berlin

Assigned / Transferred Ratio Cost per FTE

Target 2005: 10% Efficiency

BASF EU

Average SSC Berlin

Target 2005: 40% Efficiency

150 Jahre

Today

How did we perform?

10

Assigned / Transferred Ratio

+1,4% p.a.

Today

Cost per FTE

-30 %

-45 %

150 Jahre

How did we achieve it?

Developing know how through practical day-to-day

experience, end-to-end ambition and projects

End-to-end partnering through functional and cross-

functional projects and initiatives

Establishing dedicated and equal expert career

opportunities

Delivering knowhow in many global project initiatives,

saving BASF more than €30 million in consultancy

costs

Developing talents for BASF. More than 150

employees have been developed into BASF Group 11

150 Jahre

How to achieve enduring competitiveness?

12

Competitiveness in

Finance Services

Assigned FTE

Cost per FTE €

Competence

Automation

driving consequent automation in processes

ensuring effectiveness and compliance in constantly changing environment

managing increased process complexities and increasing speeds of implementation

Efficiency

Compliance

Effectiveness

150 Jahre

Where do we go from here?

13

High

Optimize entire Purchase-to-Pay process chain

(40% FTE reduction in Acc. Payable, better quality,

basis for further end-to-end improvement )

Harmonize and streamline closing activities

(30% FTE reduction in Book-to-Report services,

enhanced quality, faster reporting)

Improved European VAT handling through process

automation

Transfer services for Ludwigshafen site to

Berlin (50% reduction in direct cost)

World-Class

Eff

ective

ness

High

Efficiency Low

Be passive

Be active

Initiatives to set the standard for “world-class”

150 Jahre

In the end, it is all about people

14

Service

Passion

Energy

Diversity

Partner

Sharing

Knowledge Leadership

Training

Development

Ideas

Concepts Success

Learnings

Language

Flexibility

Communication

Teamwork Dynamics

Networking

150 Jahre

150 Jahre

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16 Deloitte Shared Services, GBS & BPO Conference 2015