Coded Data Electronic Transactions Spend Analytics Integrated Systems Anglo Procurement and Supply Chain Systems Linda Wedderburn and Maurice Mason October 2006 ECCMA Conference: eOTD Cataloguing

“The Long Road” An Industry Perspective of eOTD Cataloguing For Products ECCMA Conference: eOTD Cataloguing

Anglo American ACW – What is it The Process The Challenges The Value Topics

Anglo American: Coding Standards Cataloguing of Materials: Current: –Various including BRISCH in South Africa Standards moving to: –UNSPSC for classification (v.11.2) Considering moving to v 13.2 due to significant enhancements to services section –ECCMA eOTD for cataloguing / codification Still Under Investigation: Coding of services & repairs Vendor standard –Have implemented a “methodology” with a common naming standard and supplier hierarchy. –Manually mapping ERP supplier names to a common name –Multiple standards: D&B; country specific used.

Anglo American ACW – What is it The Process The Challenges The Value Topics

A standardised, structured coding system that will uniquely identify items by their specific properties What is ACW Anglo Content Warehouse

1.Institutionalise a common Anglo classification and coding protocol for purchased materials and services across all of Anglo American 2.Maintain a repository in which to access and store the common coded materials and services 3.In a timely manner, with a focus on the needs of cross-BU category / commodity teams, populate ACW with “fit-for-purpose” quality data based on the ECCMA eOTD coding standard and the UNSPSC classification standard. 4.Enable business value to be delivered by BUs through the use of ACW and the availability of Anglo common codes. ACW Objectives

Model Manage Use Meta Model Rules Workflow Meta Model Rules Workflow Classify Value Extract Enrich Classify Value Extract Enrich Search Subscribe Export Search Subscribe Export Aggregate Syndicate Content Managers End- Users What is ACW

Anglo American ACW – What is it The Process The Challenges The Value Topics

Current Catalogues consist of a list of numbers (stock code) and descriptions Converting the existing catalogue into an ACW format (database) involves 5 Steps: 1.Classification 2.Template Commercialization (Identification Guide) 3.Value Extraction 4.Content Enrichment 5.Template Finalization For new items, will select the appropriate Commercialised template which will guide the cataloguer through the allowed properties / attributes and valid values / reply codes. The Process

What is the item in question? Step 1 - Classification ECCMA identifies items based on the principle of a noun and a modifier (a class) In this case: Tire: Pneumatic; Vehicular ECCMA Concept Identifier:

What do I need to know about this Tire in order to commercially acquire it and manage it in my supply chain? Tire: Pneumatic; Vehicular Type Rim Diameter Width Aspect Ratio Ply Arrangement Ply Rating TRA Tread Material Air Retention Method Load Index and Speed Symbol Tread Pattern TKPH Rating Commercialized Template Step 2 – Template Commercialisation

Tyre –Type –Rim Diameter –Width –Aspect Ratio –Ply Arrangement –Ply Rating –TRA –Tread Material –Air Retention Method –Load Index and Speed Symbol –Tread Pattern –TKPH Rating From: A “wish list” of all attributes / properties we would like to be reflected in our code To: A defined ECCMA class with associated properties standard across the industry ESCIESCN TIRE:PNEUMATIC;VEHICULAR ESPIESPN SERVICE TYPE FOR WHICH DESIGNED TIRE RIM NOMINAL DIAMETER TIRE WIDTH ASPECT RATIO TIRE PLY ARRANGEMENT PLY RATING TIRE & RIM ASSOCIATION NUMBER TREAD MATERIAL TIRE AIR RETENTION METHOD TIRE LOAD INDEX AND SPEED SYMBOL TREAD PATTERN ???TKPH RATING Step 2 – Template Commercialisation

What do I already know about this item from my current catalogue/code? Current Description TYRE BRIDGESTONE 445/95R25 E3 RADIAL 2*SP VHB 445/95R25 (16.00R25) VHB 2* E3 4N Brand Rim Diameter Ply Arrangement Star Rating Tread PatternAspect Ratio Step 3 – Value Extraction

What do I already know about this item from my current catalogue/code? Partially Populated Commercialised Template Missing Properties Tire: Pneumatic; Vehicular Service Type for Which Designed Tire Rim Nominal Diameter 25' Tire Width 445mm Aspect Ratio 95% Tire Ply Arrangement Radial Ply Rating Tire & Rim Association Number E3 Tread Material Standard Tire Air Retention Method Tubeless Tire Load Index and Speed Symbol Tread Pattern VHB TKPH Rating Step 3 – Value Extraction

Populating the missing properties to complete the coding process. Tire: Pneumatic; Vehicular Service Type for Which Designed Loader Tire Rim Nominal Diameter 25' Tire Width 445mm Aspect Ratio 95% Tire Ply Arrangement Radial Ply Rating 2* Tire & Rim Association Number E3 Tread Material Standard Tire Air Retention Method Tubeless Tire Load Index and Speed Symbol NA Tread Pattern VHB TKPH Rating 80 Step 4 – Content Enrichment

Sequencing –Affects the automatic description of an item Numbers –Units of Measure (Imperial, Metric, mm, cm etc) –Number Format Text is a little more challenging –What text will we permit (Valid Values / Reply Codes)? –Do we require abbreviations? –What are the translations (Spanish, Portuguese) – ECCMA How Exactly are we going to capture the relevant information about this item into the template we have approved in ACW? Step 5– Template Finalisation

Example - Tyres

ACW To this: Structured, Disciplined Database with: Numeric Fields UOM Attribute Level Search Capability From this: Largely “free text” based system: In order to compare 2 items you would have to read the description – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial VRLS 85 TKPH Tire: Pneumatic; Vehicular Service Type for Which Designed Loader Tire Rim Nominal Diameter 25' Tire Width 445mm Aspect Ratio 95% Tire Ply Arrangement Radial Ply Rating 2* Tire & Rim Association Number E3 Tread Material Standard Tire Air Retention Method Tubeless Tire Load Index and Speed Symbol NA Tread Pattern VHB TKPH Rating 80 The Result

Anglo American ACW – What is it The Process The Challenges The Value Topics

Challenges on the Journey  Selecting appropriate properties - Coding Detail  Abbreviations  Translations  Units Of Measure – (symbols –> ERP limitations)  Defining Valid Values / Reply Codes  Colloquial names  QTAG Process  Metric and Imperial  Enrichment  Time and costs

Are two items the same, when do we have a common item? Stapler Staple Size# 16 Same Item! Challenges on the Journey – Coding Detail

Are two items the same, when do we have a common item? Stapler Staple Size# 16 ColorBrown / Black MaterialMetal/Plastic Different Item! Additional Properties Challenges on the Journey – Coding Detail

?? Template NameProperties PlatinumCoalBase MetalsKumba ROLLER:CONVEYOR Service Type for Which Designed LoaderLoading Iron Ore Handling Tire Rim Nominal Diameter25'25 inch25 Tire Width Aspect Ratio Tire Ply ArrangementRadialBiasRadial Ply Rating 2*132 StarN/A Tire & Rim Association NumberE3E5D4D2 Tread MaterialStandardCut ResistantUltra Cut 350Standard Tire Air Retention MethodTubelessTubeTubeless Tire Load Index and Speed Symbol NAN/A Tread PatternVHBVRLSSuper Rock GripVRL TKPH Rating80 100N/A95 Challenges on the Journey – Valid Values

Data can be categorized in accordance with one of the following quality levels: Level I: The item is identified in terms its source of supply and has a reference sufficient to successfully place an order for the item. (Sufficient for contracting with a specific supplier) Level II: The item is identified and has been assigned a class sufficient to allow the classification of the item for the purposes of spend analysis Level III: The item is identified and partially described, a class has been assigned and some of the properties specified in the Identification Guide for the class have been provided. Level IV: The item is identified and completely described in accordance with the buyer’s Identification Guide (sufficient for competitive bid, identification of duplicates, standardisation analysis, etc). Note: In some instances where the item is considered by the buyer as being a true commodity, that can be obtained from many sources, the level IV description may be sufficient to identify the item and the buyer may refer to the item only by its internal stock number and may not retain the supplier or manufacturer part number. The Coding Continuum

Anglo American ACW – What is it The Process The Challenges The Value Topics

One Common Anglo Number ACW Common Coding – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial – Tyre Bridgestone Part Number – Tyre Bridgestone 435/95 R25 Standardised Long Description: Tire: Pneumatic, Vehicular: Service Type for Which Designed: Loader Tire Rim Nominal Diameter: 25' Tire Width: 445mm Aspect Ratio: 0.95 Tire Ply Arrangement: Radial Ply Rating: 2* Tire & Rim Association Number: E3 Tread Material: Standard Tire Air Retention Method: Tubeless Tire Load Index and Speed Symbol: NA Tread Pattern: VHB TKPH Rating: 80 Standardised Short Description: Tire Pneumatic: Loader 25‘ 445mm * The Value – Bridge Stone 25inch 435/95

Stock CodeItem Description Imagine a list like this for over 200,000 items!!! AFirestoneL5X-Ply16PlyCRSuper Deep Tread HRB Super Deep Tread 16Ply L5 HRB AGeneralE3X-Ply12PlySPND LCM ND LCM 12Ply E AGeneralL3X-Ply12PlyCRND LCM NHS ND LCM 12Ply L AGeneralG3/L3X-Ply12PlySPND LCM ND LCM 12Ply G3/L ABridgestoneL5SX-Ply32PlyUCRSTMS STMS 32Ply L5S D2A ABridgestoneL5X-Ply22PlyCRDL DL 22Ply L5 D2A LS ABridgestoneL3X-Ply28PlyCRRL RL 28Ply L3 D2A ABridgestoneL5X-Ply16PlyCRDL DL 16Ply L5 D2A ABridgestoneL5X-Ply28PlyCRDL DL 28Ply L5 D2A ABridgestoneE4X-Ply36PlyCRRLS RLS 36Ply E4 E2A AGeneralL5X-Ply12PlyCRSEMI SLICK NHS SEMI SLICK 12Ply L AGeneralG4/L4X-Ply12PlyCRND LCM ND LCM 12Ply G4/L AGeneralG3X-Ply12PlySPCHEVRON GRADER TG CHEVRON GRADER 12Ply G AGeneralL5X-Ply22PlyCRLD NHS LD250 22Ply L /65R33ABridgestoneL5Radial1*CRVSDL35/65R33 VSDL 1* L5 D2A AFirestoneG3X-Ply12PlySPSuper Rock Grip RB Super Rock Grip 12Ply G3 RB AFirestoneL4X-Ply12PlyCRSuper Rock Grip DT Super Rock Grip 12Ply L4 DT AFirestoneE3X-Ply12PlySPSuper Rock Grip Super Rock Grip 12Ply E AFirestoneL5X-Ply12PlyCRSuper Deep Tread LD Super Deep Tread 12Ply L5 LD The Value - From this:

Pivot Table & Data Base Drill Down Capability BrandClassification TRA ClassificationConstruction Ply / Star RatingTyre SizeStock Code BridgestoneCRE4Radial2*24.00R R X-Ply36Ply L3X-Ply12Ply L5Radial1*29.5R /65R X-Ply22Ply Ply45/ HRE4Radial2*24.00R SPE3Radial2*29.5R R /95R FirestoneCRE4X-Ply32Ply L4X-Ply12Ply L5X-Ply20Ply SPG3X-Ply12Ply GeneralCRL5X-Ply12Ply Ply Ply SPG3X-Ply12Ply The Value – To This:

Identifying Items –Who else uses the same/similar item? –Do I have duplicate items in my stores (between BU’s)? Standardisation/Rationalisation –Show me all 51 inch tires in my business/Anglo American –Do I need to specify a particular attribute (speed rating on a bearing), do I pay a premium for it? Procurement - the item specification is in the code –Reverse Auctions –Tenders –Collaborative Purchasing –Finding the right code to order an item ACW will enable the following questions to be answered: The Value

Do faster & smarter !!! With business value delivered quicker The Road Forward

Coded Data Electronic Transactions Spend Analytics Integrated Systems Anglo Procurement and Supply Chain Systems Linda Wedderburn and Maurice Mason October 2006 ECCMA Conference: eOTD Cataloguing