KPMG at Convergence 2015 EMEA - Case study: How a mobility sector recycler and services organization achieved business transformation enabled by Microsoft technology

0© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Case study: How a mobility sector recycler

and services organization achieved

business transformation enabled by

Microsoft technology

Arie de Jong, ARN

Peter van den Berg, KPMG

SB15ES50

1© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

WelcomeToday’s session

ARN’s business challenges

Arie de Jong,

CEO of ARN

MS Enabled business processes

Peter van den Berg,

Manager at KPMG

Paneldiscussion

Arie de Jong,

CEO of ARN

Ingrid Niessing,

CFO of ARN

Colin Hanekamp,

Director at KPMG

Now on stage: Peter van den Berg, Manager at KPMG

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Participate #askKPMG

vandenberg.peter@kpmg.nl

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Our company

• Extended Producer Responsibility automotive sector

• Designated sector PRO

• Branch organization, owned by:

ARN is overall responsible for regulating the

achievement of the 95% recycling target by a chain of

partners across in the automotive industry.

ARN’s business challengesIntroducing ARN

Arie de Jong

CEO, ARN

Executive Sponsor

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesIntroducing ARN – our mission

“… to boost

sustainability in the

mobility and recycling

industry by exchanging

knowledge, chain

management, recycling

and innovation…”

“… actively contribute

to the creation of

circular economy...”

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesProcessing “End of Live Vehicles” (ELV) in The Netherlands

De-registration Re-use parts Draining fluids

Car dismantler Shredder

Metal separation

Recycling 86%

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesProcessing “End of Live Vehicles” (ELV) in The Netherlands

Post Shredder Technology (PST)

Recycling 86% 95%

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesPost Shredder Technology - Plant layout

Shaking

Water

Air

Filtering

Sieving

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesYour car as source of raw materials

11KG

69KG

26KG

34KG

Metals Plastics

Minerals Fibers

On average, a car yields 170 KG of Shredder Waste

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesOur performance in 2014

• Used parts sales at dismantler (incl. engines)

Product re-use 24,1%

• Metals at shredder companies (54,3%)

• Dismantled ARN materials (5,6%)

• Recycling materials at PST-plant (2,1%)

Material re-use 62,0%

• Energy recovery shredder waste (5,3%)

• Energy recovery ARN-materials (0,2%)

• Energy recovery PST-plant (4,4)

Energy recovery 9,9%

TOTAL 96,0%

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesDid we achieve our objective ?

Prevention

Recycling

Re-use

Incineration with energy recovery

Incineration without energy recovery

Landfill (disposal)

Lansink's ladder Guidance for

waste treatment

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

ARN’s business challengesMaking the right choices

Recycling

Economy Ecology

ECO test

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

IVDM

ARN

Recycling

Services

Advisory

ARN’s business challengesHow did we organize this ?

Fund

Recycling

fees Foundation Car

& Recycling

ARN Car

Recycling

Governance

of the ELV

Recycling

chain

Audit

Educate

Regulate

Certify

ARN Sustainability

ARN Holding

PST Factory

Sustainability

certificationConsultancy

Waste

Management

Recovery

of Shredder

Fluff

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

IT enablement

#askKPMG

vandenberg.peter@kpmg.nl

14© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesIT enabled business transformation

Peter van den Berg

Manager, KPMG

Program manager

A challenging program

• Start position - scattered systems & procedures

• To Be situation

• ONE strategy (one platform)

• Unified way of working across 6 units

• Stick to Standard

• Limited customizations

• Optimal business support

• ARN reached out for support on

• Fit for purpose solutions

• Business definition.

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesMapping ARN’s ambitions

SU

PP

LIE

R

CU

ST

OM

ER

FINANCE & CONTROL

Plan-to-Budget

Record-to-Report

PROCUREMENT

Source-to-Contract

Purchase-to-Pay

PROJECTSResource-to-Project

PRODUCTIONMaterial-to-Product

WAREHOUSINGReceive-to-Leave

SALES

Prospect-to-Order

Order-to-Cash

SERVICESNotify-to-Maintain Request-to-Service

HUMAN RESOURCEHire-to-Retire

CRM

Marketing Social Engagement Campaigns

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesMapping ARN’s ambitions – Generic

Generic

SU

PP

LIE

R

CU

ST

OM

ER

FINANCE & CONTROL

Plan-to-Budget

Record-to-Report

PROCUREMENT

Source-to-Contract

Purchase-to-Pay

PROJECTSResource-to-Project

PRODUCTIONMaterial-to-Product

WAREHOUSINGReceive-to-Leave

SALES

Prospect-to-Order

Order-to-Cash

SERVICESNotify-to-Maintain Request-to-Service

HUMAN RESOURCEHire-to-Retire

CRM

Marketing Social Engagement Campaigns

17© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesMapping ARN’s ambitions – Waste requirements

Generic

SU

PP

LIE

R

CU

ST

OM

ER

FINANCE & CONTROL

Plan-to-Budget

Record-to-Report

PROCUREMENT

Source-to-Contract

Purchase-to-Pay

PROJECTSResource-to-Project

PRODUCTIONMaterial-to-Product

WAREHOUSINGReceive-to-Leave

SALES

Prospect-to-Order

Order-to-Cash

SERVICESNotify-to-Maintain Request-to-Service

HUMAN RESOURCEHire-to-Retire

CRM

Marketing Social Engagement Campaigns

Waste Requirements

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesPST factory process

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesHow the PST factory challenged IT

Opposing

value

streams

Stock

valuation

Dis-

assembly

Custom

booking

logic

Negative

stock

values

Reverse

the BOM

Negative

stock

quantity

PO’s &

recipes

Quantity?

Batches,

recipes &

stock

validation

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Show involvement & commitment

Manageable scope

Effect = Quality and Acceptation

One plan One planning Business & IT

Periodic review Measure Adjust

MS Enabled business processesTop 5 success factors

1 - Use an integrated implementation approach

2 – Central role for the business case

3 – C-level involvement

4 – Small steps – Big impact

5 – Focus on change and risk management

21© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Hig

hM

ediu

mLow

Low Medium High

Impact

Ris

k

42

1

MS Enabled business processesManaging risks and monitoring change

Risk mappingTracing of risks and the impact of mitigating actions

1

1

2

55

Organizational readinessMonitoring change readiness

3

9

10

87 6

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesResults: how Microsoft Technology is enabling ARN

Financials

• Global chart of accounts

• GL, AR & AP

• Budget

Process manufacturing

• Recipe management

• Quality control

• Potency management

• Track, trace & recall

SCM

• Multi-site warehouse

• Distribution planning

CRM

• Customer/contracts MD

• Lead & opportunity

management

• MS Dynamics

CRM connector

Project management

• Project accounting & invoicing

• Work breakdown structures

Core ERP capabilities

SRM

• Vendor/contracts

master data

• Purchase requisitions

• Vendor self-service portal

Customer Portal

Third party integration (a.o Weigh bridges)Data Analytics

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

95%3rd year

Successfor ARN

>

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Meet our panelists

Ingrid Niessing

CFO, ARN

Arie de Jong

CEO, ARN

ColinHanekamp

Director,

KPMG

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Let’s discuss

#askKPMG

vandenberg.peter@kpmg.nl

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KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does

KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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address the circumstances of any particular individual or entity. Although we

endeavour to provide accurate and timely information, there can be no

guarantee that such information is accurate as of the date it is received or that

it will continue to be accurate in the future. No one should act on such

information without appropriate professional advice after a thorough

examination of the particular situation.

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss

entity. Member firms of the KPMG network of independent firms are affiliated

with KPMG International. KPMG International provides no client services. No

member firm has any authority to obligate or bind KPMG International or any

other member firm vis-à-vis third parties, nor does KPMG International have

any such authority to obligate or bind any member firm. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG

International.

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesExample 1: Car Recycling

Gate

Revenue P*Q Revenue/Cost P*Q

Good ownership2001-2014

OccurrenceNew vehicle sold

2001 2015

Did you know: average vehicle life cycle spans 18 years?

Dismantling

Good stuff can be sold

Recycling fee

Rest scrapped & grinded

Car life cycle

T=0 T=END

Dismantling fee

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesExample 1: How is this solved in Microsoft Dynamics

T=0 T=END

Gate

Recycling feeDismantling fee

Vehicle registrations

40.000 V/M

Vehicle de-registrations

20.000 V/M

Mapping to importer

Invoicing recycling fee

Collection fund

Fee calculation & allocation

Check, audit, and payment P*Q

Fee claim

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesExample 2: PST Control framework – Receive to Leave process

Gate

Supplier

contracts

P*Q

Incoming

materials via

weighbridge

Factory

Module A

(Input)

Outside

storage

Outgoing

materials via

weighbridge

Customer

contracts

P*Q

Overflow

Gate

Dry storage

(Warehouse)

Output module A (1x)

Output module B (8x)

Output module C (7x)

Output module D (6x)

Output module G (1x)

Revenue P*Q Revenue/Cost P*Q

1 2

3

4

5

Payment/

collection

customer

Financial

collection

from

supplier

What is the stock value of Shredder fluff (or WASTE) ?Positive ? Negative ? 0 ? FIFO ? LIFO ? VVP ?

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

MS Enabled business processesThe components of the MSD VDF find their origin in proven practices

Microsoft Dynamics Sure Step MethodologyTechnical foundation for an effective IT implementation

• Microsoft partner best practices for tailoring Dynamics

applications to a customers’ unique requirements

• Detailed system configuration documentation to deliver

Dynamics solutions

• Provides strategic context and defines the components

of the overall business case

• Enables managed innovation within the enterprise via a

structured methodology

• A central deliverable directory for all core methods

• Internal portal makes collaboration easy within KPMG

KPMG’s value delivery frameworkBusiness foundation for an effective implementation

KPMG SharePoint Global internal portal for collaboration