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1VENDOR MARKET ANALYSIS PROCUREMENT OUTSOURCINGSHELL GERMANY, DECEMBER 2009
INTRODUCTIONOil Market Q408 marked an inflection point*
Lower oil & gas prices; weak energy demand
Prudent approach to economic downturn
Standardization , cost reduction and process optimization is required
Outsourcing2*Source: Shell Annual Report Q109
INTRODUCTIONVendor Market BPO services increasing in quality, accuracy, efficiency
Tradicional BPO market increasing CAGR 24%, $450Bn by 2012*
Vendors are getting better...market is growing
Vendors Specialization3*Source: Infosys Market Report, 2009
AGENDAINTRODUCTIONOBJECTIVES---METHODOLOGYPROCUREMENT OUTSOURCING (PO)GENERAL COMPANY OVERVIEW-WHY TO IMPROVE?BPO ENGAGEMENT SCOPE-MAIN SCENARIOSPO-VENDOR MARKET INSIGHTSFINAL COMMENTS4
OBJECTIVESADVISORY VENDOR ANALYSIS REPORT5
PROCUREMENTPO Highlights Procurement processes
Direct- IndirectProcuremet
TransactionalProcesses
Captive vs. BPO solution6
COMPANY OVERVIEWDeutsch Shell  Holding GmbH Shell Germany AG -> lack of corporate information
Deutsche Shell Holding GmbHAnnett Buchholz (Shell?Deutschland Oil GmbH?Information und Presse)?...thanks!Manufacturing, transportation and marketing of hydrocarbons
Revenue 2008: 2,200 mEuro
COGS: 1,800 mEuro
SG&A: 110 mEuro *
ProcurementPers.: 100-120FTE7
COMPANY OVERVIEWSG&A RatioCostSavingsOportunities-> ReachBenchmarks8
COMPANY OVERVIEWSG&A RatioCostSavingsOportunities-> ReachBenchmarks9
BPO ENGAGEMENT SCOPEProcurementProcessCosts (PPC)Procurement Process Costs (PPC) are 1.49% of COGS (2008)
Europe segment Income for 2008 corresponds to 8,809 mEuro, which represent the 33.25% of the total Income of the period for Royal Dutch Shell*.
Shell operation in Germany will be estimated considering**:
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BPO Vendor market Selection