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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
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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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2© 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.
Participate #askKPMG
[email protected]
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3© 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.
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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4© 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.
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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5© 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.
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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6© 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.
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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8© 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.
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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9© 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.
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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10© 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.
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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11© 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.
ARN’s business challengesMaking the right choices
Recycling
Economy Ecology
ECO test
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12© 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.
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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13© 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.
IT enablement
#askKPMG
[email protected]
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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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15© 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
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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16© 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 – 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
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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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18© 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 processesPST factory process
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19© 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 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
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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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22© 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 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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23© 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.
95%3rd year
Successfor ARN
>
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24© 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.
Meet our panelists
Ingrid Niessing
CFO, ARN
Arie de Jong
CEO, ARN
ColinHanekamp
Director,
KPMG
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25© 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.
Let’s discuss
#askKPMG
[email protected]
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26© 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.
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The information contained herein is of a general nature and is not intended to
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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DELETED SLIDES AFTER THIS PAGE
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29© 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 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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30© 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 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