Procurement nation-v procurecon

1. Procurement Nation How procurement has become the backbone of our savings conscious culture

2. Today’s Session The Evolution of Procurement Procurement is the Backbone Let’s Take a Walk: Smarter Spending Success Stories The Future of Procurement – 2011 and Beyond Q&A

3. The Evolution of Spend Management Paper-based On-Premise On-Demand (aka ASP, SaaS ) The Cloud

4. The Evolution of Procurement

5. The Backbone of Our World

6. Procurement’s Impact is Everywhere Look around you – everything has been touched in some way by procurement In a typical day you might encounter procurement’s impact a dozen times or more Let’s take a walk

7. MAP Breakfast on the way to the office

8. $500 Mural Supplier: Local Artist Purchased by: Store Manager $3,500 Restaurant Lease Supplier: Leasing Company Purchased by: Franchise Owner

9. $7,500 Menus Supplier: Corporate Purchased by: Corporate $2,500 Television Supplier: Best Buy Purchased by: Store Manager

10. PROCUREMENT IMPACT SAVINGS $40 / PO processed enough for happy meals per PO for hungry children in the community 10

11. “We can actually see all the orders in process when they are in someone’s cart as well as when they submit. We can also see if the order was successfully transmitted immediately.” – SpendSmart Procurement Team

12. MAP Drive by Moscone Center on the way to the office

13. $15,000 Moscone Center Mural Supplier: Printer Purchased by: Events Manager

14. $10,000 Banners Supplier: Printer Purchased by: Events Manager $60,000 HD Monitor Supplier: Custom TV Purchased by: Moscone Center

15. $25,000 Labor Supplier: Local Union Purchased by: Events Manager $750 T&E $750 T&E $750 T&E $750 T&E

16. PROCUREMENT IMPACT SAVINGS $18 million more than enough to Cover Bill Clinton’s speaking fee, security detail and travel & entertainment expenses

17. “ We scoured the industry looking at vendors in the e -Procurement space. Quickly we eliminated any of the on-premise or what you would call private cloud and that type of opportunity because the value of a multitenant environment, the cost to implement, the maintenance of the product is much better. [Moving to the cloud] was a no brainer.” Greg Tennyson Chief Procurement Officer salesforce.com

18. MAP Stop by to check out new lobby furniture

19. $45,000 Rent-A-Center Sign Supplier: Corporate Purchased by: Corporate $375 Window Washing Supplier: Local Cleaner Purchased by: Store Manager

20. $350 Banners Supplier: Kinkos Purchased by: Store Manager $925 Furniture Supplier: Manufacturer Purchased by: Corporate

21. $125 Company T-Shirts Supplier: Branders Purchased by: Store Manager $145,000 Employee Salary Supplier: Employees Purchased by: Store Manager

22. PROCUREMENT IMPACT SAVINGS $500,000 in 2 months enough to make investments that will lead to greater market share and growth

23. Mike Wilding Chief Procurement Officer Rent-A-Center “We had some adoption problems with prior tools, so we were incredibly pleased by the speed with which we were able to implement an integrated solution that is both easy to use, and incredibly robust. We were able to deploy a complete solution to over 3,000 locations in less than four months. Additionally, we have been able to quickly address new features like the ability to invoice against contract, and define receipt tolerances and invoice approval workflows, which we will roll out in the near future.”

24. MAP Arrive at office, pull HR reports for staffing meeting

25. $30,000 Access to the System Supplier: Taleo Purchased by: Corporate

26. $925 Monitor Rental Supplier: AV Supplier Purchased by: Marketing $13,725 10’ x 20’ Booth Supplier: Skyway Exhibits Purchased by: Marketing

27. $3,000 Team Photos Supplier: Local Photographer Purchased by: Office Manager $8,250 Office Lease Supplier: Leasing Company Purchased by: Corporate

28. PROCUREMENT IMPACT SAVINGS $5 – 7M enough for Filled by giving access to 70 more users to help source jobs 382,618 Jobs / Quarter

29. “ The budget is tied to the expenses going through the system. Budget managers have the ability to understand what they were spending, when they were spending. And the time spent on the phone, the time spent talking to their finance partner was diminished.” Katy Murray Chief Financial Officer Taleo

30. MAP Lunchtime errands, stop by bank to withdraw cash

31. $23,725 Building Lease Supplier: Leasing Company Purchased by: Corporate $10,250 Building Signage Supplier: Leasing Company Purchased by: Office Manager

32. $5,730 Computers Supplier: CDW Purchased by: IT $2,250 Signage Supplier: Local Printer Purchased by: Facilities $12,000 Pamphlets Supplier: Corporate Purchased by: Marketing

33. $2,000 Awards Supplier: Branders Purchased by: Office Manager $275,325 Employee Salaries Supplier: Employees Purchased by: Branch Manager

34. PROCUREMENT IMPACT SAVINGS $1 million enough for families to keep their homes 303

35. “ Our procurement processes were highly manual.[ Cloud Spend Management] provides greater visibility into, and control over, our spending. Now we have full automation from requisition to invoicing, with tight integration into our back-end financial systems that provides audit trails which track our approvals to ensure that we comply with regulatory requirements. Additionally, we can identify savings opportunities by using the tool to effectively analyze our spend.” Dee Harnish Purchasing Manager Berkshire Bank

36. MAP Lunchtime errands, stop to pick up closet shelves

37. $1,050 Window Signs Supplier: Marketing Purchased by: Store Manager $12,075 Store Front Awning Supplier: Specialty Print Purchased by: Corporate

38. $525,000 Store Merchandise Supplier: Manufacturer Purchased by: Corp. Buyer $1,050 Signs Supplier: Local Photographer Purchased by: Office Manager

39. $750 Employee Aprons Supplier: Corporate Purchased by: Store Manager $3,550 Bags Supplier: Corporate Purchased by: Store Manager

40. PROCUREMENT IMPACT SAVINGS 36 hours per week enough for part-time employees to spend more time servicing customers on the store floor 2

41. “[The cloud]’s traction in our industry does not surprise me at all. The dynamics of the retail business model demand efficient and cost-effective operations. [Cloud-based e -procurement] fits that need perfectly. We’ve been very successful with the software.” Scott Jones Purchasing Agent The Container Store.

42. MAP Back at the office for afternoon webinar

43. $4,125 Webinar Hosting Supplier: ON24 Purchased by: Event Maanager

44. $7,250 Event Sponsorship Supplier: ON24 Purchased by: Partners $250,000 Virtual Tradeshow Development Supplier: Employees Purchased by: Corporate

45. $500,000 Server / Hosting Platform Supplier: Network Purchased by: IT $45,000 IT Services Supplier: Employees Purchased by: Corporate

46. PROCUREMENT IMPACT SAVINGS $1 – 2 million enough to eliminate By investing in solutions that remove the need for travel and all of the environmental damage air travel causes 210 metric tons

47. “The implementation of our [cloud spend management solution] was actually the first time ever an implementation went as planned. We expected it would take two weeks. It took less than that.” Eoin O’Connor Chief Financial Officer ON24

48. MAP Take junior to get new hockey skates after practice

49. $30,250 Building Lease Supplier: Leasing Company Purchased by: Corporate

50. $125 Ladder Supplier: Home Depot Purchased by: Maintenance $375,250 Merchandise Supplier: Manufacturer Purchased by: Corporate

51. $6,750 Merchandise Displays Supplier: Corporate Purchased by: Store Manager $5,250 Signage Supplier: Manufacturer Purchased by: Corporate

52. PROCUREMENT IMPACT SAVINGS $800,000 enough for Sets of hockey gear for inner city sports programs 3,200

53. “I like the ease-of-use. The screen looks like a web page and you only see what’s in your cue, which adds focus. And because the cloud is subscription based, it doesn’t take a lot of internal resources [to implement or maintain].” Dave Howard Director of Central Purchasing Reebok CCM Hockey

54. MAP Arrive home, crank up some music and start dinner

55. $0 Streaming Radio Supplier: Pandora Purchased by: Listener

56. $10,000 Site design / Maintenance Supplier: Web Consultants Purchased by: Marketing / IT

57. PROCUREMENT IMPACT SAVED $600,000 enough for songs on iTunes to review and add to the Pandora Genome Project 465,116

58. “As we remain laser-focused on growing our business it is important to have the right financial tools in place for to ensure effective management of spend within established budgets. We’re pleased to use cloud spend management as one of the primary tools to assist us in our ongoing commitment to that financial goal.” - Steve Cakebread , CFO at Pandora

59. MAP Dinner is served!

60. $8,000 Signage Supplier: Manufacturer Purchased by: Corporate $30,850 Mall Lease Supplier: Westfield Purchased by: Corporate

61. $876,200 Merchandise Supplier: Manufacturer Purchased by: Buyer

62. $500 Cooking Demo Supplies Supplier: Grocery Purchased by: Chef $2,500 Employee Aprons Supplier: Corporate Purchased by: Store Manager

63. PROCUREMENT IMPACT SAVINGS $500,000 per month enough for Healthy, nutritious meals for hungry children 50,000

64. MAP Curl up with a down comforter and call it a day

65. $50 Safety Cones Supplier: Home Depot Purchased by: Office Manager $48,250 Building Signage Supplier: Display Company Purchased by: Corporate

66. $263,000 Merchandise Supplier: Designer Purchased by: Buyer $3,250 Electric Bill Supplier: PG&E Purchased by: Store Manager

67. $15,000 Cash Register Supplier: Manufacturer Purchased by: IT $35,000 Seasonal Employee Supplier: Temp Agency Purchased by: Store Manager

68. PROCUREMENT IMPACT SAVINGS $60 – 69 million enough for new retail outlets to remain more competitive with TJX in key geographic areas 30

69. We All Make It Happen

70. We All Make It Happen

71. And It’s All Happening in the Cloud

72. What is the “cloud”? Lots of definitions, lots of “false clouds” The cloud should not be confused with ASP SaaS On Demand A true cloud solution Is built on a single line of code Can be up and running in a matter of days Does not require extensive set-up, maintenance and upgrade fees

73. Road to Success Leads to the Clouds

74. The Cloud is the Most Cost Effective Year 1 Year 2 Year 3 Implementation Hardware Database / Middleware Software Fees Implementation Hardware Database / Middleware Software Fee Implementation Hardware Database / Middleware Software Fee IT Support Maintenance Professional Services Software Fees IT Support Maintenance Professional Services Software Fees IT Support Maintenance Upgrade Professional Services Software Fees Software fees Software fees Software fees Software fees Software fees Software fees

75. Innovation in the Cloud Traditional Dev Model Lengthy Independent Upgrades Difficult Independent Implementations Multiple Code Bases Non-viable long-term business model Cloud Dev Model Quick and Simple Upgrades Rapid Implementation One Optimized Code Base Sustainable Business Model VS Cloud Platform

76. Cloud Spend Management One platform to control 100% of indirect spend e -Procurement Expense Management Dashboards & Reporting Benchmarks Easily integrate and extend the value of existing investments Open APIs Out of the box connectors

77. 77 5.5% to 16% HARD Savings Driver Benefit Competitive Bidding 2-5% Hard Cost Savings Preferred Supplier Enforcement 1.5-5% Hard Cost Savings Process Efficiency 1-2% Savings, 55%+ cycle time reductions Visibility & Control Risk Mitigation Accurate Invoicing 1-2% Hard Cost Savings Early Pay Discount 1-4% Hard Cost Savings

78. Summary Procurement has evolved – so must your organization Smarter spending is all around us – we all have opportunities to take advantage Those who have made the move to smarter spending have reaped tangible results Don’t be confused by marketing buzzwords – there is only ONE cloud

79. A Q & Thank You! Rob Bernshteyn CEO Coupa Software [email protected] 650.931.32 www.coupa.com