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More Henkel Corporate Reporting 2015
Around 150 employees from all functions and business units work together in our new global supply chain company, located in one of the world’s most sustainable buildings, The Edge, in Amsterdam, the Netherlands. From the left: Andrea Hermanns, Chen Zhang, Diego Patruno, May ElMenshawy, Nataliya Soloveva and Marilia Figueiredo use the open space of our new global supply chain office to team up on projects and coordinate tasks.
Continuously simplifying our organization is one of our strategic priorities. We aim to improve operational excellence in all dimensions of our business processes. Building a scalable business model with standardized, digitalized and accelerated processes will help us create competitive advantages in terms of speed, agility and cost efficiency.
Our newly established global supply chain organization blends the knowledge of a company with nearly 140 years of history with the energy and excitement of a start-up. Within this new organization, colleagues from all business units and functions work together in our Amsterdam office. Here, we established a centralized hub for global decision-making for both supply chain and purchasing activities in 2015. The new entity manages supply planning, sourcing, manufacturing, inventory and distribution for all our business units. This harmonization across the entire company will lead to higher process standardization, improved customer service levels and enhanced efficiency – and thereby drive competitive advantages for Henkel.
The global rollout of our global supply chain structure will continue in 2016 and beyond. We achieved our first major milestone in July 2015 with the successful launch in Benelux and Switzerland as well as at the Beauty Care sites in Germany and Slovenia. By 2017, we will finalize the implementation for 30 countries in Europe, with other regions following subsequently.
During the fourth quarter of 2015, we also began establishing our second hub in Singapore. This office will provide support for the Amsterdam office in the Asia-Pacific region.
In 2015, we continued to expand our shared services organization. Already by the end of 2015, we had more than 3,000 employees in six global shared service centers handling key processes for our global organization. We have also successfully integrated these shared services with our global IT in our Integrated Business Solutions organization.
Digitalization at Henkel goes beyond customer-facing platforms. The ongoing implementation of our SAP platforms plays a key role in establishing our scalable business model, and we have successfully completed this process in the Asia-Pacific region. We also made progress on the implementation in Europe in 2015.
As part of our “Sourcing@Best” initiative, we continued to improve cost efficiency and increase the flexibility of our global sourcing processes in 2015. We expanded our eSourcing activities across the entire company.
In 2015, we also introduced our internal digital networking platform Yammer for all employees around the world. From its launch in September to the end of 2015, around 20,000 employees had registered on this platform. It complements the digital workplaces at Henkel and facilitates collaboration and simplified communication across the company.