SAP ROLL OUT: From İstanbul to the World

Murat Kıncak, Landscape Director ERP COE

AGENDA

Introduction & Unilever

U2K2 Project

Success with SAP Services

Business Driven ERP Strategy

BIG GLOBAL BRANDSTouching 2 billion people everyday

4

UNILEVERBALANCED SCALE ACROSS GEOGRAPHIES

D&E57%Sales

D43%Sales

Balanced scale across categories

Homecare

Savoury, Dressings & Spreads

Ice Cream & Beverages

Personal Care

STRONG CATEGORY POSITIONS

Before PtG

1600

400

Path to Growth

Portfolio change and brand focus

Restructuring and savings

Increase operating margin

2000 - 2004

Conglomerate

Pre 2000

One Unilever

2005 - 2011

Country/CategoryMatrix2005

One Unilever2007 / MCO 2008

4 Categories / 8 Clusters

UNILEVER’S STRATEGIC JOURNEY

8

UNILEVERCOMPASS STRATEGY

Click icon to place chart

AGENDA (Con’t)

Introduction & Unilever

U2K2 Project

Success with SAP Services

Business Driven ERP Strategy

10

We will ...shift our focus to growth initiatives and business

transformation in response to business strategy

Where we were Where we aspired to be Multiple systems deployed at different

countries with many in-flight initiativesUnilever IT Mission

To accomplish our mission, we had to change from as-is to build a harmonized system that is able to

drive future growth

U2K2

Common Business

Processes

StandardInformation

Systems

StandardMaster Data

We will deliver simpler, more cost effective IT solutions... rooted in a

standards driven approach to architecture, key technologies

Simplification and ConvergenceAs-is ERP across countries and Unilever IT mission in 2006

2005 2006 2007 2008 2009-12

U2 Unity1 IT Strategy U2 Design SA Go-Live

Exploratory K2 Feasibility K2 Design

Regional

AA SCOne Supply

Chain

K2

U2K2 HISTORY LINEREGION WIDE BUSINESS RUNS ON INTEGRATED SINGLE ERP 24/7

One Supply Chain

ECC

BI & BIA

SolMan

PI

MDM

SNC

SAP COMPONENTS OF U2K2 LANDSCAPESAP Products that are in being used for U2K2 Landscape

EhP4 EhP5 EhP6

SAP ERP 6.0

Landscape

SCM

Unity RetrofitSouth Africa

ThailandIndonesia

ChinaTaiwan

Hong KongJapan

MalaysiaSingaporeAustralia

New ZealandVietnamEgypt

MoroccoTunisiaAlgeria

PakistanBangladesh

S. KoreaUAPL

Philippines

Our Plan

> 200

Sourcing Units

18 000 users

220 warehouses

What we have achieved is more than plan

Fu

ll Va

lue

Ch

ain

de

sig

n

On

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C

Faster roll-out than plan

Change In Business Model

Additional initiatives

Jigsaw

SaraLee

In Marko

Israel Ice Cream

SNC

GRC

BPM

Life After U2K2

ARIS

Additional geographies

Kenya

Ghana

Nigeria

CDI

Zimbabwe

Mozambique

Zambia

Uganda

Malawi

Russia

Ukraine

Belarus

12 more countries

Unity RetrofitSouth Africa

ThailandIndonesia

ChinaTaiwan

Hong KongJapan

MalaysiaSingaporeAustralia

New ZealandVietnamEgypt

MoroccoTunisiaAlgeria

PakistanBangladesh

S. KoreaIndia

Philippines

The scope has increasedWe remain on time & in budget with no business disruption

U2K2 CHALLANGES; TIME ZONE, LANGUAGES... BUSINESS RUNS ON ERP 24/7

Malaysia / Singapore

Indonesia Thailand UAPLSouth Africa

JapanTurkey Arabia Israel

China, Taiwan, Hong Kong

Australia, New Zealand

VietnamMashreq/Maghreb Philippines

Pakistan, Bangladesh

Central Africa

RUB

Multiplecurrencies &languages

18,000+ Users

40+ countries in 13 different time zones collaborating in virtual teams across Unilever’s AAR region

Leverage Success ,Accelerate Delivery from Turkey ~ 200 Consultants working from Istanbul played critical role in delivering U2K2

U2K2 SCALE AND RESILIENCEBUSINESS RUNS ON ERP 24/7

110mSales Order lines p.a

25mPurchase Order lines p.a

150+Factories

208mInvoice Lines p.a

110k+Stock Keeping Units

250+Warehouses Connected

€18bnRevenue Supported

40+Business UnitsSupported

18,000Business Usersof ERP System

17

R3: Thailand 3

R4: Japan, Malaysia/SG 4

R1: South Africa

Retrofit (Turkey, Israel, Arabia, South Africa) i iiUpgrade

R2: Indonesia

4R3: Singapore UAPL 3

R5: China Group, ANZ 5

July’10 Jan’11

Aug’11

CA: Apr’12

Full scope:ANZ

Full scope:JP, MY/SG

Oct’12

R6: Ms/ Mg, VN 6

R8: CA, India (HUL Intg) 8

R7: PK/BG, PH 7

R9: RUB 9

2007

Q1 Q2 Q3 Q4

2008

Q1 Q2 Q3 Q4

2009

Q1 Q2 Q3 Q4

2010

Q1 Q2 Q3 Q4

2011

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

5

Retrofit Activities (R1, R2, R3, R4, R5, R6)

HUL Oct’11, Jan’12

Upgrade

High Level Programme Overview...

We have been recognized by internaland external customers throughout the project

Customer comments on U2K2 successAAC Compass Award – Wining

through Continuous Improvement

“Compliments must be given to your teams involved on a well

deployed execution "David Pawson, Wholesale Merchandise

Manager, Foodstuffs Sth Island NZ.

“good result, thanks, well managed”Peter McNamara, Senior Business Manager

Grocery 1, Woolworths Ltd

“little if any disruption was noticed by our business during

this period”David Pawson, Wholesale Merchandise

Manager, Foodstuffs Sth Island NZ.

Project Delivery From Istanbul and Singapore Hubs

Leverage Success ,Accelerate Delivery from Turkey ~ 200 Consultants working from Istanbul played critical role in delivering U2K2

SAP Application & Infrastructure Architecture

Design Authority, Technical Change Management

Customizing and Configuration for all SAP

systems

Abap Development for all systems in U2K2 landscape

BI & BI Accelerator Modelling, Monitoring and Reporting

Cutover, Go live & PGLS

Performance Management & Continuous Improvement

Critical Success Factors

Strategy

Business Engagement and

Sponsorship

Strong Governance

Methodology

Collaboration with SAP

Adherence to Timeline & Milestones

Commitment and Can Do Attitude

Winning Culture

Strong Team

Change Management

Communications

Expect the Unexpected

AGENDA (Con’t)

Introduction & Unilever

U2K2 Project

Success with SAP Services

Business Driven ERP Strategy

History of Collaboration “Unilever Turkey & SAP” Towards 20 years of partnership

SAP R3 V2.2 went live in Unilever as 2nd SAP go live in Turkey

SAP R3 V3.0 Wall to wall for all Unilever Turkey

Unity succesfully completed

Unity Starts Arabia, Israel, Turkey

Completion of U2K2 Programme after deployment to over 40 countries

1995

1998

2002

2005

2007

2013

U2K2 Journey Starts Here

Technical Quality Manager (TQM) assignment for U2K2 Programme

Technical QualityManager (TQM)

Support expertsExpertise on demandDevelopersConsultants

EngineeringArchitect (EA)

ISSUESSOLUTIONS

SAP AGS: Global organization with 6,000+ employees in 54 countries backed up by more than 15,000+ developers

CLOSE & EFFECTIVE COLLABORATION WITH SAPSAP AGS & Max Attention model at Unilever U2K2

Global Back OfficeAssistance to embedded support team. Provides functional and technical expertise for resolution.

For critical incident 7x24h support

Embedded Support Team at UnileverIssue analysis, tracking, and resolutionFacilitate real-time team-up with back officeExecutive reporting and review meetings.

Truly global teamEA from GermanyTQMs from Ireland, Germany, India

CLOSE & EFFECTIVE COLLABORATION WITH SAPSAP AGS & Max Attention services provided for Unilever

“The support from SAP AGS helped & secured the success of U2K2 implementation.” SAP AGS help at Plan: We had many questions around solution

sizing, options as well as current known application limits. As a result of the excellent workshops delivered, we could provide crystal clear statements to the Unilever business that then aligned the requirements with possibilities similarly some of our assumptions were validated for a healthy and scalable solution.

SAP AGS help at Build: Supply Chain Management-Expert on Demand helped us for implementation of SAP Supply Network Planning. Several questions with regards to SNP optimizer settings and operations were solved in a timely matter and we enjoyed seamless integration of the Project team, SAP engineers and SAP developers.

SAP AGS help GL-phase: We were very appreciative of the attention during GL phases by onsite experts. This helped reduce the overall processing time of the priority issues and helped with coordinating of the activities between parties in a timely and professional matter. Without continued attention for resolving some priority issues that threatened our GL plan, we would have needed to re-plan some activities to compensate the time lost that would lead significant additional costs.

SAP AGS help at Run: SAP provided a quick response and efficient solution for a serious performance issue we were having with 4 BAPIs in SCM Solution. Within 2 weeks 4 standard SAP Notes are released that are all positively tested. After the solution was implemented, the corresponding programs run significantly faster that saves us few hours during peak hours.

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Jun

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Mar

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Ju12

Sep

12D

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Dat

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(GB

) Expected DB size (no activities)

Expected size byutilizing typical opt.Potential

~ 400 GB

Continuous improvements saved several millions of secs CPU and DB time

SAP helped us recognize and eliminate unused custom code

SAP delivers services and provide best practices for data volume management

Landscape Optimisation

Functional Improvements

Technical Performance Optimization services(s)

Business Process

Performance

Optimization

service(s)

Preventive Services,

Health checks

Recommendation & Review(Downtime

Optimization)

Data Volume

Management

Intensive Care On Site Support

help land projects safely

Hana CO-PA Accelerator

On Site BPM MDM, SCM

SNC Process Review

Review and optimize E2E

Process

New Patches and Releases

7/24 emergency

handling by AGS

Intensive care

MAX ATTENTION FOR UNILEVER SAP AGS & Max Attention services provided for Unilever

Scalability & Sizing

workshops

Roll Out, Upgrade on time & Run SAP like a factory

SAP APO Process

Optimization

Localization

Roll Out Implementation & Technical Upgrade

Innovation

BAU Support

Final Result

Prototyping and

Experts on Demand

AGENDA (Con’t)

Introduction & Unilever

U2K2 Project Details & Deliverables

Success with SAP Services

Business Driven ERP Strategy

Unilever’s journey with SAP

1 Desktop100,000 Users

4 Transaction Systems (SAP) managed as 1

Core Systems1 HR1 Digital 1 Information

1 Collaboration 4,000 Sites

From more than 200 Local ERP Systems & Processes

THE HEART OF OUR VALUE CHAINALL TRANSACTIONS FLOW THROUGH ERP

BUSINESS INTELLIGENCE

PLANNING DATA

SHARED SERVICES MARKETS

MANUFACTURER RETAILERSUPPLIERS DISTRIBUTOR SHOPPER

Systems

CONVERGED FROM 200+ SYSTEMS TO 4

MANUFACTURER RETAILERSUPPLIERS DISTRIBUTOR SHOPPER

4 SYSTEMS

But…our Business has become more globalWe need to further harmonize

DEVELOP 4X

Reduce complexity and manage four systems as OneTo meet local needs and run our business globally

FOR SCALE, RESILIENCE & SPEED

THANK YOU