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More Henkel Corporate Reporting 2014
As part of our strategic priority “Simplify,” we aim to drive operational excellence and continuously improve our competitiveness by standardizing, digitizing and accelerating processes, focusing on end-to-end optimization and increased cost efficiency.
Digitization is becoming a key competitive factor for businesses around the world. The move toward a standardized and fully integrated business platform facilitates the acceleration of processes and increased efficiency. This platform provides real-time information which will allow for valuable insights into market developments, better decision-making and faster reaction.
We have already consolidated 21 different IT systems in the Asia-Pacific region into one global SAP platform. In 2014, we started its roll-out in Europe, with the remaining regions to follow. Our objective is to further simplify and therefore reduce the number of internal processes from around 2,200 globally in 2012 to around 800 by 2016. This will reduce complexity, allow us to better manage our global business processes and lead to improved cost efficiency.
In 2014, we also enhanced the digital workplaces for all employees globally and transferred more than 45,000 users to the new platform. This will facilitate the exchange of knowledge and digital cooperation within virtual international teams. During the introductory phase, we have made a wide range of training resources available, including online tutorials, webinars and live consulting sessions.
Over the past years, we have continuously expanded our global shared services, which work in close cooperation with global IT as part of our Integrated Business Solutions (IBS) organization. In 2014, we opened new shared service centers in Cairo, Egypt, to serve the Africa/Middle East region and in Shanghai, China, for Greater China. In total, more than 2,600 employees in six shared service centers around the world manage standardized end-to-end processes.
As part of our “Sourcing@Best” initiative, we continued to improve cost efficiency and increase the flexibility of our global sourcing processes in 2014. We are consolidating our sourcing operations into global hubs, ranging from São Paulo, Brazil, and Dubai, United Arab Emirates, to Shanghai, China, and Rocky Hill, USA. We are increasingly leveraging our eSourcing platform to further digitize, standardize and optimize our sourcing processes. In 2014, the share of eSourcing continued to grow and climbed to 23 percent of total spend.
In parallel, we began the integration of our global supply chain across all business units with our sourcing activities into one global supply chain organization to increase our efficiency and competitiveness. In 2014, we successfully completed the preparation of this process and started the implementation in the first pilot countries.