Achieving next wave of Sourcing Performance requires an optimal balance of Cost Savings, Risk Mitigation and Performance Management. With rising inflation, global competition, and tightening supply markets, eSourcing alone is not enough and organizations need to embrace a step change to make Sourcing “Strategic” in their respective organizations to be competitive. Join this session to hear from world-class organizations who leverage Ariba technology, network and capabilities to build a Strategic Sourcing program and deliver sustainable savings with optimal risk mitigation and high performance.

1. Collaborative Sourcing in the
Networked Economy
May 2013
© 2013 Ariba, Inc. All rights reserved.

2. Agenda
• Introduction
• Panel Discussion
• Key Takeaways
• Q & A
© 2013 Ariba, Inc. All rights reserved.2

3. The Panel Team
Speakers: Elaine Griffith, Sirius XM John de Brun – Top Source LLC
Joe Gigliotti– Jet Blue
© 2013 Ariba, Inc. All rights reserved.3
Moderator : Sundar Kamakshisundaram,
Sr. Director – Solutions Marketing, Ariba, Inc

4. World Class Procurement Excellence
…is essential to be competitive
>85% Spend Under Management
6+% Annual Recurring Savings
72% Compliant Spend
Source: Ardent Partners CPO Rising 2012
Are you World Class?
© 2013 Ariba, Inc. All rights reserved.4

5. Economic
Volatility
Cost Savings Pressure
Sustainability
Focus
Risks of Natural
Disaster
Global Trends are Driving Change in Procurement

6. Top Challenges for CPO’s
© 2013 Ariba, Inc. All rights reserved.
Source: 2012 CPO Agenda, Aberdeen Group
61% of you will have
increased cost
savings targets
44% of these targets will
be greater than
5%
Creating procurement
process efficiencies is
the top priority for CFO’s
& CPO’s

7. In the race for procurement efficiency, inter-
enterprise collaboration is improving
productivity and profits
41%
Improved collaboration across
silos
55%
Better information
sharing
24%
increased
revenue
77%
Increased access
to knowledge
63%Increased marketing effectiveness
43%
Greater market
share
8%
Higher margins
“Networked enterprises were 50% more likely than their peers to have increased
sales, higher profit margins, gain market share, and be a market leader.”
*Source: McKinsey on Business Technology, Spring 2011 – “The Rise of the Networked Enterprise”

8. Agenda
• Introduction
• Panel Discussion
• Key Takeaways
• Q & A
© 2013 Ariba, Inc. All rights reserved.8

9. Collaborative Sourcing in a Networked Economy
Elaine Griffith, C.P.M.
Director - Global Strategic Sourcing
May 2013

10. AGENDA
10
 About Sirius XM Radio, Inc.
 Global Strategic Sourcing (GSS) – Process Overview
 Value Proposition
 eSourcing Data
 Success Stories and Conclusion

11. About Sirius XM Radio - It’s wherever you go!
11
 Background
 Sirius XM Radio Inc. is the world's largest radio broadcaster (measured by revenue), and
second largest subscription media company in U.S.
 Stock listed on NASDAQ: SIRI
 North America presence: USA and Canada (Equity Ownership)
 1990: Sirius Satellite Radio was founded
 2008: Sirius Satellite Radio and XM Radio merged to become Sirius XM Radio, Inc.
 2012: $2 billion stock buyback program announced.
 Financials
 In 2012, SiriusXM reported:
• $3.4 billion in revenue, up 13% vs. prior year
• 23.9 million subscribers, up 2MM vs. prior year
• Enterprise value exceeds $20 billion
 In the News
 Listen everywhere: Online, Smartphone, iPad®, SiriusXM Lynx radio and compatible
internet radios.
 Telematics – “Everything you need streaming to your car”
• In 2012, SiriusXM announced Nissan alliance.

12. Global Strategic Sourcing (GSS)
Process Overview
12
 History:
 July 2010: GSS Startup occurred
 Nov. 2010: Supplier Risk Management process initiated
 May 2012: Supplier Performance Mgmt. (SPM) process initiated
 GSS Process overview:
 Leadership of an efficient and ethical process
 Confirms Addressable Spend via Validation & Analytics
 Prepares Supplier Participants for Sourcing event
 Engages and collaborates with stakeholder community
 Provides Project Management & Cross-functional team leadership
 Implements Risk Management Process for sourcing events
 Utilizes Category Management skills
 Launches Supplier Performance Management Process
 Ariba Sourcing supports:
 Cost Savings and Avoidance
 Identifying Global Suppliers via Discovery
 Efficient Process
 Suppliers equally advantaged
 Mandatory Acceptance Terms
 IT Security, Compliance and Privacy Coverage
 Scoring and Results Reporting efficiencies
Ariba
eSourcing
Ariba
Contracts
Supplier
Perf. Mgmt.
Risk
Manage-
ment
Spend
Validation
&
Analytics
Discovery
Search

13. GSS Value Proposition
13
 Supplier Risk Review
 Risk Summary Report for Sourcing Project
• Z-Scoring for Privately-held Companies
 Quarterly Key Supplier Risk Report
 NDA’s
 Security, privacy and compliance requirements coverage
 Procurement Project Management
 Trained internal resource
 Professional Sourcing Process
 Optimizing efficiency by utilizing technology (Ariba Sourcing Pro)
 Vetting suppliers to quality for participation in sourcing events
 Generating cash savings
 Supplier Performance Management
 Monthly Touch Point Meetings
 Quarterly Business Review (QBR) Meetings and 360 Feedback Scorecards
 Innovation discussion is a QBR requirement
 Talent Development
 Learning culture: formal learning plan and training opportunities
 Doing: Increasing leadership skills, stretching individuals’ skillsets
 Team recognition

14. Sourcing Data
14
Ariba eSourcing Data:
 Spend under Management by Procurement
trending positively
 RFP Savings Range (vs. Addressable spend): 3% - 73%
 2012 FY Number of Categories: 7
2012 FY
Spend
managed
by
Procure-
ment
Savings
32%
2012 Spend Managed by Procurement
2010 2011 2012
Ariba Event Activity Trends
From Q3 2010 - FY 2012
eRFI eRFP eAuctions eDiscovery
12%
3%
6%6%
12%
3% 3%
RFP’s under Management by Procurement
Facilities
Call Center
Finance
Engineering
IT
Marketing
Broadcast

15. Success Stories
15
SOURCING
 Discovery Supplier Search:
 Data Storage Centers
 RFI:
 Contract Furniture
 RFP:
 Office Relocation and Moving Services
 Contact Preference Management Services
 Auction – Total Savings (vs. baseline):
 Mult-functional printers
 Third-party Quality Assurance Services
 Learning Management Systems
RISK MANAGEMENT PROCESS
 Watch List of Key Suppliers
SUPPLIER PERFORMANCE MANAGEMENT (SPM)
 Incorporated this process for shared services suppliers.- Promotional Print Services
CONCLUSION
 Strategic Sourcing process supports increased savings and risk mitigation.
THANK YOU!

16. Collaborative Sourcing in the Networked Economy
John de Brun
Sourcing Manager, Top Source LLC
© 2013 Ariba, Inc. All rights

17. TopSource is a wholly owned subsidiary of Topco Associates LLC and provides
not-for-resale (NFR) spend management. For 65 years, Topco has leveraged the
scale with its members in procurement to lower product costs.
 Frozen
 Dairy/Bakery
 Grocery
 HBC/GM
 Rx
 Fresh Meat
 Branded Meat
 Produce
 National Brands
For-Resale Programs NFR Spend Programs
TopSource Overview
 Construction
 Equipment
 Hired Services
 IT Telecom
 Logistics & Distribution
 Marketing
 Office Products & Supplies
 Packaging & Supplies
 HR Benefits
 Fuel
 Utilities

18. Our customer network represents collectively over $150 billion in annual retail sales
which includes over sixty grocery retailers, drug stores, wholesalers, food
manufacturing companies, food services, restaurants, and other retail businesses.
TopSource Overview

19. TopSource manages not-for-resale spend on behalf of our wholesale and retail
customers. In addition, TopSource conducts auctions on behalf of all customers
across for-resale and indirect spend.
Spend
Management
eSourcing Center
Of Excellence
 Dedicated eSourcing / Auctions team with wide ranging
experience
 Mature process and capabilities
 Retail and Distribution Strategic Sourcing Professionals
 Sourcing Leverage – over $13 Billion in potential indirect
spend
 Proven sourcing process meshed with enabling technology
(Spend Analytics, eSourcing, and Contract Management)
TopSource Overview
Supplier
Management
 Mature and Strategic Supplier Scorecarding Process
 Financial Risk Assessment
 Price Change Management

20. Sourcing Process – eSourcing
TopSource utilizes a number of esourcing technology tools to conduct its strategic
sourcing process more effectively and to institutionalize their learning.
Sourcing Auction
Contract
Management
Supplier
Management
 Standardize
contract creation
 Store all contract
related documents
 Generate
notifications to
buyers and teams
 Provide robust
search and
reporting
 Utilize Discovery
 Issue RFx and
collect responses
 Store profile
information
 Create category
specific templates
 Drive process
adoption
 Negotiate
price
 Maximize
competition
 Increase
speed to
savings
 Consider
alternative
price scenarios
 Measure
supplier
performance
 Drive
continuous
improvement
 Monitor
supplier
financials
 Manage price
changes

21. Challenges
Participation
Stakeholder
Engagement
Specifications
Alignment
Award
Risk
Complex
Specifications
Supplier
Financial
Timing
Initiative
Award /
Legal

22. Sourcing - Collaboration
Collaboration
Stakeholder Engagement
Listen
Relationships / Credibility
Invested in Process
Supplier Performance
Feedback
Innovate in Subsequent
Sourcing Initiatives
Suppliers
Repetition / Clarification
Outlier Analysis
Performance Feedback /
Improvements
Risk Abatement
Listen to Alternative
Options

23. Results
• From our inception, TopSource has saved an
average of 13% on everything we touched
• In 2012, TopSource managed almost $313
million in spend over 100 commodities
• Included in the 100 commodities were 48
Aggregated Sourcing Initiatives
• 100% Ariba utilization for Aggregated Sourcing
Initiatives and Contracts

24. Key Insights
Measure for
Improvement
Stick to Defined
Process
Incentivize
Utilization
Feedback to
Suppliers
•Bid Related
•Performance
Educate
Stakeholders
Sourcing
Innovation
Credibility

25. Supply Chain Transformation
Joseph Gigliotti – JetBlue Airways
© 2013 Ariba, Inc. All rights reserved.

26. About JetBlue Airways
JetBlue is New York's Hometown Airline™ with other focus cities in Boston, Fort
Lauderdale, Los Angeles (Long Beach), San Juan and Orlando. Known for its
award-winning service and free inflight entertainment as much as its low fares
JetBlue offers the most legroom in coach of any U.S. airline (based on average
fleet-wide seat pitch) as well as super-spacious Even More Space® seats.
JetBlue is also America's first and only airline to offer its own Customer Bill of
Rights, with meaningful and specific compensation for customers
inconvenienced by service disruptions within JetBlue's control. JetBlue serves
77 cities with 800 daily flights.
© 2013 Ariba, Inc. All rights reserved.26

27. What Drove the Need?
© 2013 Ariba, Inc. All rights reserved.27
Areas of opportunity identified:
• Contract Management
• Sourcing and Procurement
• Policies and Procedures
• Signature Authorization Policy
• Centralized vs. Decentralized Finance
Function
Recap: 3rd Party Internal Controls Assessment
Assessment observations:
• Lack of formalized and documented policies
and procedures
• Lack of the necessary education/training
• Lack of clearly defined requirements and
ownership
• Lack of monitoring
• Insufficient focused resources and
prioritization
• Low volume of purchase orders used
• Services performed without contracts
• Lack of direct finance and accounting
oversight within operating departments
Observations are consistent with the current stage of our corporate lifecycle

28. Common Corporate Evolution
© 2013 Ariba, Inc. All rights reserved.28
Initial
Managed
Standardized
Predictable
Optimized
With company evolution…comes process maturity and predictability
Ad hoc…Heroics!
Intuitive…Repeatable
Standardized…Uniform
Consistent…Well Understood
Time
Maturity
JetBlue
Today

29. Program Vision
© 2013 Ariba, Inc. All rights reserved.29
Corporate
Governance
“Getting Stuff
Done”
Drives
• Lower Costs
• ROIC
• Efficiencies
• Predictability
Balance between controls and JetBlue’s entrepreneurial culture

30. Program Approach
© 2013 Ariba, Inc. All rights reserved.30
Current State
Sessions
PURPOSE: To gain an
understanding of how
different business units use
the Supply Chain Process.
Work Performed:
• Met with key stakeholder
groups, including, Commercial, People, CRE, IT, Airports, Tech
Ops and Working Team to walkthrough and document the
current process
Results- Created 25 detailed process flows include
stakeholder pain points and improvement opportunities
Current State
Process Analysis
PURPOSE: To determine the
root cause(s) of why the
current Supply Chain
Processes are not
consistently followed.
Work Performed:
• Identified key pain points and process inefficiencies with the
current Supply Chain Lifecycle
Results- Identified focus areas for improvement.
1
2
Future State Process
Opportunities
PURPOSE: To consider
business unit suggestions for
improving the Supply Chain
Processes to meet their
needs .
3 Work Performed:
• Using the stakeholder’s feedback from sessions
above, identified areas of opportunity along the current Supply
Chain Lifecycle, including Centralized/Decentralized Finance
functions
Results- Document Business Unit suggestions for Future
State considerations.
Scope: Assessment of the entire Supply Chain and Legal Lifecycle including

31. Project Team Created
© 2013 Ariba, Inc. All rights reserved.31
PMO Team
• Process Effectiveness
• Supply Chain SME
Working Team
Ariba Support
Finance and Legal VPs
Project Sponsors
Spend
Approval
Sourcing
Contract
Development
Purchasing and
Invoicing
Performance
Management
• Sourcing SMEs• FP&A • Legal and
Contract
Management
SMEs
• Procurement
and AP SMEs
• SPM SMEs
Policy/Procedure/Training Support
Additional Stakeholders: IT, Finance, Corp Comm, Audit
“Customers” – Business Units End Users
Process
Support
• Procurement
Operations
SME
BPs

32. Current State Analysis
© 2013 Ariba, Inc. All rights reserved.32
Power Users Recent Adopters Potential Promoters
Current State Assessment Approach
Identified key BU users to complete current state analysis

33. Current State “Subway Map”
© 2013 Ariba, Inc. All rights reserved.33
Mapped current BU processes. Confirmed process inconsistencies
• “We are unsure when to loop Supply Chain in so we
may be missing opportunities for sourcing savings &
sometimes perform our own sourcing”
• “Project SMEs (Third Party Business Partners) acting
as a Sourcing Team are helpful to have involved due to
lack of internal knowledge”
• “Sourcing & AFE approval is time consuming”
• “There are too many non integrated approvals today at
various points in the process:
AFE, PO, GR, Invoice, Contact, etc and they are taking
too long”
• “Some Business Units perform mini RFPs within their
own area if they have the knowledge & the resources”
• “We track contract expiration manually because they
are not in a monitoring tool”
“We have recently started utilizing
Supply Chain & have seen the value
of the process for savings & effective
vendor selection”
Current Process What’s Driving the Variation

34. Root Cause Analysis - “Fishbone”
© 2013 Ariba, Inc. All rights reserved.34
Determine
whether there
is lack of a
consistent &
integrated
Supply Chain
Process
SPEND APPROVAL SOURCING CONTRACTING
PO & NON PO
RECEIVING
INVOICING PERFORMANCE MANAGEMENT RENEWAL PROCESS
Only Opex
Sourcing
by SC
Uncertainty where
SC involvement is
required & when it is
not since no policy
exists
RFP Process
may be lengthy
due to untimely
responses, not
enough
resources
RFP Process not
leveraged for last min
requests
Some large projects
are done with no
RFP

35. Using Analysis to Shape our Future
© 2013 Ariba, Inc. All rights reserved.35
JetBlue’s Refined Supply Chain Process should be…
• Governed by JetBlue’s New Corporate Supply Chain Policy
• Clearly Defined and Agreed-Upon supply chain criteria for all stakeholders and end
users
• Jointly Planned , Coordinated and Approved with Business Units, Supply Chain and
Appropriate Stakeholders
• Timely executed
Supply Chain Lifecycle
Future State Success depends on…
Clear Roles, Responsibilities and Processes
Future State Goal: Develop and Implement an Integrated Supply Chain Process to capture
more spend under management.
Spend
Approval/
AFE
Sourcing
Contract
Development
Purchasing &
Payment
Performance
Management
1 2 3 4 5

36. Proposed Future State Process
© 2013 Ariba, Inc. All rights reserved.36
Opportunity Solution Objective
Early Involvement • Supply Chain plugged into periodic planning processes
(Annual and Quarterly)
Multiple Sourcing Methods • Creating three Souring methods that enable the
business and keep Supply Chain focused on larger
opportunities
Standardized Templates • Standard templates for sourcing, contracting and
performance management
Utilize Process Automation • Workflow and validation functionality to facilitate proper
review protocol
Business Partner Performance
Monitoring
• Provide the proper protocol for documenting,
escalating and resolving business partner performance
issues
Goal
Increase spend
under
management
while enabling
business units to
get things
done…
Spend
Approval/
AFE
Sourcing
Contract
Development
Purchasing &
Payment
Performance
Management
1 2 3 4 5
Improved decision-making, role clarity and accountability driven
by tools, guidelines and process changes

37. Sourcing Future State
Spend Threshold
• Annual Supplier or Project Spend
Qualitative Threshold
This is the first time working with this BU
Category is complex and specifications are
not very thorough
Requires through understanding of TCO
Requires advance project management
skills
Potential ancillary revenues might be
generated from the acquired services
Large cross-functional team
Potential external consultant involvement
“Center-led” Approach: Level of Supply Chain Involvement
Business Unit
Product/Service
Need
Business Unit Driven
Business Unit/Supply
Chain Driven
“Self-Service”
Supply Chain
Team
Spend Threshold
• Annual Supplier or Project Spend
Qualitative Threshold
BU is very familiar with the SC&F process
BU has worked many times before w/SC&F
Product / Service specifications are very
precise
Category is not complex
There are no significant spend aggregation
opportunities or exposure to price
escalation
“Collaborative”
Inputs:
• Annual Operating Plan
• CapEx Request
• New Corporate Initiative
• Renewal Events (Product or Services)

38. Three Sourcing Methods
© 2013 Ariba, Inc. All rights reserved.38
RFx method used based on qualitative and quantitative assessment
of event and resource availability
BU Sourcing
Verify Spend Approval
Project Kickoff Meeting
Verify decision matrix
Verify bids
Verify T&Cs
Verify contract sign-off
Hybrid Sourcing
Verify Spend Approval
Project Kickoff Meeting
Verify NDAs obtained
Verify RFP package
•Requirements
•Questionnaire
•Bid Sheet
Verify decision matrix
Verify bid analysis
Verify T&Cs
Verify contract sign-off
Strategic Sourcing
Verify Spend Approval
Project Kickoff Meeting
Full RFP Process
Contract Negotiations
Verify contract sign-off
BU Sourcing is a BU enabled
project with process
facilitation from Sourcing
COE
Hybrid Sourcing is a BU
enabled project with pre-
defined milestones facilitation
from Sourcing COE
Strategic Sourcing is a
Strategic Sourcing led project
with cross-functional team
collaboration

39. Deciding on Sourcing Method
© 2013 Ariba, Inc. All rights reserved.39
Optimal sourcing
method based on
opportunity and
complexity
Qualitative and
Quantitative
criteria
Drives…

40. Full Sourcing Project Phases
© 2013 Ariba, Inc. All rights reserved.40
Sourcing method dynamically drives functionality through conditions
- tasks, owners, required/optional, approvers, etc…

41. Program Roadmap
© 2013 Ariba, Inc. All rights reserved.41
Adoption Efficiency Cost Savings
Compliance with
program….
Getting stuff
done…
Cost
discipline…
Metrics Focus:
• Program Roll-Out
• Training
• Pilot Projects
• Increase Spend Under
Management
• Flight Plan
• Channel Strategies
• Corporate Audit Rating
Metrics Focus:
Adoption Metrics Plus,
• Reduced Cycle Times
• Business Case
• Sourcing
• Contracting
• Purchase Order
• Payment
• Lower Cost per PO/Invoice
• Increase PO/Invoice Match
Automation
Metrics Focus:
Adoption and Efficiency
Metrics Plus,
• Increased Cost Savings
• Utilization of Early-
Payment Discounts
2013 Goals 2013 Baseline Period - 2014 Goals
A B C

42. Advanced Sourcing Techniques
• Packaging for onboard snack items
• Flight Hour Agreements
• Turn based rates for airport services
© 2013 Ariba, Inc. All rights reserved.42

43. © 2013 Ariba, Inc. All rights reserved.
Align Results Align Results to Objectives
Obtain Executive Sponsorship from senior leadership
(e.g., CFO, Business Unit GM and or Functional Leaders)
Work on building collaborative relationships with partner
functional groups (particularly Finance) and Suppliers
Executive
Sponsorships
Collaborative
Relationships
Be Flexible Be willing to make difficult choices and do more with less
Take on aggressive goals beyond sourcing
More spend under management, more process
coverage, more strategic impact
Add more value…
Summary and Key Take-aways

44. Please Complete Session Survey
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© 2013 Ariba, Inc. All rights reserved.44
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Thank you for joining us

45. Q&A
Contact info:
Sundar Kamakshisundaram: sundar@ariba.com
© 2013 Ariba, Inc. All rights reserved.45