GLOBAL FINANCE SHARED SERVICES
LESSONS LEARNED SO FAR FROM OUTSOURCING
FINANCE TRANSACTIONAL SERVICES
1
SAFETY FIRST
Sandvik’s objective is zero harm to
our people, the environment we work
in, our customers and our suppliers.
PROTECTIVE
EQUIPMENT
FIRST AID
KIT
ALARM
EMERGENCY
NUMBER
EMERGENCY
EXIT
ASSEMBLY
POINT
JONATHAN NICHOL
With Sandvik since 2008
In Australia since 2007
Recently Australia GFSS
Transition Lead and Head
of APAC Transition PMO
Previously in London
healthcare sector 15 years
Director of Finance
SANDVIK CFO ANZ,
GLOBAL FINANCE SHARED SERVICES
APAC REGIONAL MANAGER
3
SANDVIK AT A GLANCE
Sandvik is a global engineering Group with more than
47,000 employees with a strong
commitment
Sandvik
is to
a Global
enhancing customer productivity, profitability and
safety.
Engineering Group
Our operations are based on unique expertise in materials
technology, extensive knowledge aboutRevenue
industrial processes
and close customer cooperation. This combination, coupled
89
SEK
with continuous investments in research
andbn
development
(R&D), has enabled us achieve world-leading positions in the
following areas:
over 130
countries
• Tools and tooling systems for metal cutting as well as
components in cemented carbide and other hard materials
over
• Equipment and tools 47,000
for the mining and construction
industries as well as various types of processing systems
employees
• Products in advanced stainless steels, special alloys and
titanium as well as metallic and ceramic resistance
materials
4
150
years old
HQ Stockholm
Sweden
SANDVIK FINANCE OUTSOURCING
Initially 29
countries
• AP
85%
• AR
85%
• GA
55%
Global Finance
in Scope
50%
Transactional
in Scope
70%
SANDVIK FINANCE OUTSOURCING
07/13
Transition
12/13
Ramp-up
06/14
Stabilisation
02/15
s
Steady State
PRO’S: PERFORMANCE
COSTBEST
FOCUS
BUY
FLEXIBILITY
SCALABILITY
RETAINED
REDUCED
PROCESS
SAVING
ONTIME
STAFF
CORE
PRACTICE
STANDARDISATION
RESKILLING
ON
DOCUMENTATION
REPORTING
STAFF
BUSINESS
ISSUES
&
BUT NOT SYSTEM
UPSKILLING
CON’S: DISTANCE
LOCKED
POOR
EFFICIENCY
LOSS
TRANSITION
INCREASE
COST
IT’S ALL
OF
INCREASE
SERVICE
ABOUT
INTO
TALENT
AND
INOF
COSTS
OTHER
A AFFECTS
RESIDUAL
PEOPLE
OUT
FUNNEL
FIXED
BUSINESS,
FINANCE
KNOWLEDGEABLE
/DEVELOPMENT
AND
COSTS
OF
TIME
AND
SYNCH
DISRUPTION
ZONES
TERM
NOT
EGFUNCTION
TRAVEL
WITH
CUSTOMER
A CONCEPT
PATH
MARKET
&
CONTRACT
SUPPLIER
STAFF
ANDACCEPTANCE
EXPERIENCE
TRANSITION RISKS/MITIGATIONS:
LACK
IT
EXTENDED
SETUP
OF COMITTMENT
DURATION
ORIT
LEADERSHIP,
SERVICE
LOSS
PARTNERSHIP,
TRANSITION
STAFF
DATA/CONFIDENTIALITY
PROVIDER’S
CONSIDER
EARLYEXPERIENCE
TIMESCALES
AND
BACKFILLING
AS A TEAM
AND
STAFF
RESISTANCE
OVERSIMPLIFICATION
OF
ACROSS
PROJECT
STAFF
2MANAGEMENT
LOCATIONSWHEN
SKILLS
SELLING
9
IT’S ALL ABOUT PEOPLE AND
NOT A CONCEPT
PARTNERSHIP, CONSIDER IT AS
A TEAM ACROSS 2 LOCATIONS
MAINTAIN OWNERSHIP
THROUGHOUT
TOP 3 TAKEWAYS
Q&A
11
sandvik.com
12
BUSINESS AREAS
SANDVIK
GROUP
SANDVIK
MINING
35%
SANDVIK
MACHINING
SOLUTIONS
37%
Share of Sandvik Group’s total invoicing 2013.
Share of Sandvik Group’s operating
profit 2013 adjusted for nonrecurring charges.
Group activities account for -12%
33%
SANDVIK
MATERIALS
TECHNOLOGY
53%
16%
12%
SANDVIK
CONSTRUCTION
10%
3%
SANDVIK
VENTURE
6%
7%