1. 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

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

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

4. 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.

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

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

7. 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

8. 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

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

10. 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

11. 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: 0161-1-01- 005403

12. 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

13. 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 005403TIRE:PNEUMATIC;VEHICULAR ESPIESPN 026920SERVICE TYPE FOR WHICH DESIGNED 009734TIRE RIM NOMINAL DIAMETER 009737TIRE WIDTH 049442ASPECT RATIO 021458TIRE PLY ARRANGEMENT 017622PLY RATING 021453TIRE & RIM ASSOCIATION NUMBER 015388TREAD MATERIAL 019264TIRE AIR RETENTION METHOD 021457TIRE LOAD INDEX AND SPEED SYMBOL 021491 TREAD PATTERN ???TKPH RATING Step 2 – Template Commercialisation

14. 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

15. 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

16. 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

17. 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

18. Example - Tyres

19. 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 56329845 – 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

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

21. 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

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

23. 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

24. ?? Template NameProperties PlatinumCoalBase MetalsKumba ROLLER:CONVEYOR Service Type for Which Designed LoaderLoading Iron Ore Handling Tire Rim Nominal Diameter25'25 inch25 Tire Width444320300350 Aspect Ratio0.95100195 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

25. 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

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

27. One Common Anglo Number ACW Common Coding 56329845 – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial 965123465 – Tyre Bridgestone Part Number 12345 52368965412 – 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 0.95 2* The Value 125435 – Bridge Stone 25inch 435/95

28. Stock CodeItem Description Imagine a list like this for over 200,000 items!!! 38124011920.5-25AFirestoneL5X-Ply16PlyCRSuper Deep Tread HRB 20.5-25 Super Deep Tread 16Ply L5 HRB 38124205323.5-25AGeneralE3X-Ply12PlySPND LCM23.5-25 ND LCM 12Ply E3 38124208315.5-25 AGeneralL3X-Ply12PlyCRND LCM15.5-25 NHS ND LCM 12Ply L3 38124211317.5-25AGeneralG3/L3X-Ply12PlySPND LCM17.5-25 ND LCM 12Ply G3/L3 38124213126.5-25ABridgestoneL5SX-Ply32PlyUCRSTMS26.5-25 STMS 32Ply L5S D2A 38124213229.5-25ABridgestoneL5X-Ply22PlyCRDL29.5-25 DL 22Ply L5 D2A LS 38124213329.5-29ABridgestoneL3X-Ply28PlyCRRL29.5-29 RL 28Ply L3 D2A 38124213520.5-25ABridgestoneL5X-Ply16PlyCRDL20.5-25 DL 16Ply L5 D2A 38124213629.5-29ABridgestoneL5X-Ply28PlyCRDL29.5-29 DL 28Ply L5 D2A 38124214021.00-35ABridgestoneE4X-Ply36PlyCRRLS21.00-35 RLS 36Ply E4 E2A 38124216120.5-25 AGeneralL5X-Ply12PlyCRSEMI SLICK20.5-25 NHS SEMI SLICK 12Ply L5 38124216617.5-25AGeneralG4/L4X-Ply12PlyCRND LCM17.5-25 ND LCM 12Ply G4/L4 38124216714.00-24AGeneralG3X-Ply12PlySPCHEVRON GRADER14.00-24 TG CHEVRON GRADER 12Ply G3 38124217129.5-25AGeneralL5X-Ply22PlyCRLD25029.5-25 NHS LD250 22Ply L5 38124220835/65R33ABridgestoneL5Radial1*CRVSDL35/65R33 VSDL 1* L5 D2A 38124221814.00-24AFirestoneG3X-Ply12PlySPSuper Rock Grip RB14.00-24 Super Rock Grip 12Ply G3 RB 38124222017.5-25AFirestoneL4X-Ply12PlyCRSuper Rock Grip DT17.5-25 Super Rock Grip 12Ply L4 DT 38124222123.5-25AFirestoneE3X-Ply12PlySPSuper Rock Grip 23.5-25 Super Rock Grip 12Ply E3 38124222223.5-25AFirestoneL5X-Ply12PlyCRSuper Deep Tread LD 23.5-25 Super Deep Tread 12Ply L5 LD The Value - From this:

29. Pivot Table & Data Base Drill Down Capability BrandClassification TRA ClassificationConstruction Ply / Star RatingTyre SizeStock Code BridgestoneCRE4Radial2*24.00R35381245039 37.00R57381245086 X-Ply36Ply21.00-35381242140 L3X-Ply12Ply17.5-25381242229 L5Radial1*29.5R25381245147 35/65R33381242208 X-Ply22Ply29.5-25381242132 38Ply45/65-45381242141 381242142 HRE4Radial2*24.00R35381245081 SPE3Radial2*29.5R29381245079 33.25R29381245080 445/95R25381245148 FirestoneCRE4X-Ply32Ply18.00-25381242588 L4X-Ply12Ply17.5-25381242220 L5X-Ply20Ply17.5-25381242252 SPG3X-Ply12Ply14.00-24381242218 GeneralCRL5X-Ply12Ply20.5-25381242161 16Ply20.5-25381242241 22Ply29.5-25381242171 SPG3X-Ply12Ply14.00-24381242167 The Value – To This:

30. 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

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

32. 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