Coupa roadshow master deck chicago

AgendaTime Item Presenter8:30 – 9:00 Coffee All9:00 – 9: 30 Welcome – Coupa Roadmap Tony Wessels, V.P. Marketing Coupa9:30 – 10:30 Amplifying Procurement’s Role Ravi Thakur, V.P. Customer Success, Coupa10:30 – 10:45 Break All10:45 – 11:30 Spend Smart Kerry Clare-Piantek , e-Procurement Manager, McDonalds11:30 – 12:15 Strategic Supply Chain Management Eric Lynch, IBM / Emptoris12:15 - 12:30 Break12:30 – 1:15 Ask The Analyst Jason Busch, SpendMatters1:15 – 1:30 Closing Remarks Tony Wessels1:30 Coupa Demo Ravi Thakur

Purchasing

Procurement Purchasing

Procurement Spend PurchasingManagement

Procurement Spend PurchasingManagement Spend Optimization

Coupa Overview Tony WesselsVice President, Marketing

Coupa’s Mission Delivering software innovation that breeds responsible spending while impacting the company bottom line.

Innovation

Responsible Spending

Bottom Line

Spend Optimization

Coupa’s Explosive Growth180% Bookings +95% 150% Renewal Rate Platform Usage YOY YOY YOY

One World, One Platform10 Languages40 Countries100,000 Users

Customers Highlights Retail Finance Mfg. Health Care High Tech

Amplifying Procurement’s Role Ravi Thakur Vice President, Customer Success & Services

CFO Financial BooksSales & Mktg Customer Records HR Personnel Files

Procurement Needs To Own Spend Transactions

Own The Optimize SpendTransactionSpend Optimization Platform & Processes

Procurement Must Orchestrate VS.

How Do You Do It? Proactively participate in growth strategy Manage change effectively Measure & demonstrate success

Participate In Growth Strategy

Understand Growth Strategies Geographic Expansion

Understand Growth Strategies Geographic Expansion New Lines Of Business

Understand Growth Strategies Geographic Expansion New Lines Of Business Acquisitions

Provide Truly Strategic Value Ensure executive team supports your Spend Optimization strategy Work with R & D / Product Development Be aligned with M & A and global expansion

Develop Agile Spend Processes Bring distributed locations under management Involve all stakeholders e.g. facilities, marketing Proactively integrate acquisitions

Managing Change

Change Management Requirements Leveraging Frictionless change agents transition

Leveraging Change Agents Functional Users IT Procurement Payables Suppliers

Functional Users Needs Solution  A solution that they  Familiar user can use interface  Not stand in their  Support for function way specific spend

Procurement Needs Solution  Ensure policy  Enables transaction compliance ownership  Attain savings goals  Measurable results

Payables Needs Solution  Reduce manual &  Automation for error prone steps invoice processing  Simplify tasks  Eliminates tedium

IT Needs Solution Reduce burden on IT  SaaS/Cloud based resources platform Focus on value-add  User configurable tasks solution

Suppliers Needs Solution No additional cost of  No network fees or doing business processes to support Ease of adoption  Innovation e.g. Universal Search

Frictionless Transition Familiar & convenient user interface Weave into daily life

Demonstrate Success

Measure Success • Establish benchmarks and determine Set Targets targets • Use data to analyze: Achieve Targets • Tradeoffs and interdependencies • Root cause • Measurement excellence = capability Be Excellent to improve and stay ahead

Benchmark Success Effectiveness Productivity Spend under management  Transaction cycle time User adoption = customer  PO & invoices processed satisfaction per FTE (#) % saving / spend  Support costs – not just IT

Communicate Success

CFO Financial BooksSales & Mktg Customer Records HR Personnel FilesProcurement Spend Transactions

Spend Smart Kerry Clare-Piantek e-Procurement ManagerMcDonalds Restaurant Operations Inc. 44

Coupa User Group Meeting May 3, 2012 45

About Me E-Procurement Manager Joined McD in 2008 Charged with building/rolling out a Marketplace Focus is on indirect spend 46

McDonalds at a Glance McDonalds brand mission is to be our customers favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers experience. Some fun facts – – We have more than 33,000 restaurants world wide – 1.7 million employees – Restaurants in 119 countries – 80% of restaurants are franchised 47

Business Opportunity Identified some trends indicating we had some opportunities – G&A growth as a % was growing – McOpCo Margin was decreasing (company owned restaurants) – ROI was strong but growing at a slower rate Put together a business case for an indirect procurement process/team – First category sourced was safety shoes – Savings of over 25% achieved – Proved to the company that there was substantial opportunity Tried to implement a solution at least 3 times previously unsuccessfully 48

Deciding the Best Course of Action McD was rolling out Oracle in the US so options were limited Previous attempt to roll out Oracle iProcurement was unsuccessful - change management largely ignored - different processes existed for purchasing capital items vs.expense items - authorization limits and approval process complicated - required purchase order number for payment to supplier Field wrote a compelling letter to management about what needed to be fixed if folks were going to use the system 49

Managing Change We engaged the hearty few that were still using the system to help us drive the system changes to make it “user friendly” Engaged influential folks internally to participate in a pilot Designed system initially knowing that eventually we would want to extend system to the franchisees Held several conference room pilots including job impact analysis Included operators to participate in the RFP to pick the system for the operators Piloted system with a handful of operators 50

Managing Change Several hurdles had to be overcome – Operators not always supportive of Home Office Programs – Information for operators is considered confidential so home office access had to be extremely limited – McDonalds doesn’t mandate programs Took feedback from pilot and incorporated changes into the system – Needed to accommodate “combo operators” – Single sign on mandatory – Needed to build champions – Focus on large operators first 51

With Coupa Today Over 1,100 operators are now using Coupa representing 5,200 user and over 6, 100 restaurants Mainly using it for expense items, slowly moving to capital (uniforms, office suppliers, small kitchen wares) Metrics we use include: – Weekly spend/number of purchase orders – Embedded users – Average spend per restaurant Feedback indicated biggest benefits are time savings and control/visibility Operators think what we are doing is “a no brainer” 52

With Coupa Tomorrow Next steps based on our user feedback – Leveraging the reporting capabilities – Instituting a budget component to the system – Being able to control what suppliers their employees can purchase from – Added services to the system – Potentially doing orders on behalf of our operators 53

Best Practice Recommendations Recommendations – Change management is key – Don’t try to onboard everyone – be realistic – Build champions – Make sure you include the users in the decision making process Opportunities – Looked for broader groups to engage to help spread your message – Staff appropriately – Simplify the on-boarding process (set up is complex due to structure) 54

Strategic Supply Management Overview Eric Lynch Director, Global Alliances and Channels IBM - Emptoris 55Confidential and proprietary

Emptoris Strategic SupplyManagement Overview Powering Procurement Transformation Eric Lynch – Director, Emptoris Global Alliances and Channels

Eric Lynch • Emptoris/IBM – Director, Global Alliances and Channels • Location: Chicago • Alliance & Channels Business Development & Sales experience consulting clients around Strategic Supply Management best practices, processes and use of SSM Solutions. • Started Supply Management career with A.T. Kearney Procurement Analytic Solutions in 2000 at the onset of eSourcing. • Experience selling eSourcing, Spend Analytics, Enterprise Contract Management, Supplier Lifecycle Management solutions and consulting. © 2012 IBM Corporation

Our Mission… Delivering strategic supply and contract management solutions that enable Global 2000 companies to maximize financial performance and optimize commercial risk around the world Manage 100% Gain Visibility Optimize Ensure Flexibility of Spend And Control Decision Making58 © 2012 IBM Corporation

Today’s Operating Environment Tepid economic environment Complex economic environment Western cool, growth in emerging Continued Globalization Globalization accelerates New global opportunities Increased reliance Increased outsourcing On suppliers Globalization of supply base Increasing Risk and volatility From commodities to currencies Globalization fuels increased risks59 © 2012 IBM Corporation

Why the supplier is so important “On average, 50% of the Brand value (and costs!) of your Reliance Missed Revenue Increased Protection products and services Supply Chain Opportunities on are in the hands of CAPS Research Cross-Industry Report of Standard Benchmarks your suppliers” Commodity Price Regulatory Customer Demands Good Volatility Pressures Corporate Citizenship61 © 2012 IBM Corporation

Enabling CPOs to Drive Business Success Manage Complex Data and Categories Believe The Plan Connect Source to Settle And Automate Process Data, Visibility, Opportunity Achieve Compliance & Savings Price Manage changes, The Risk Contract Terms, Supplier Evaluation Commodities, Currencies, Country Regulations, Natural63 © 2012 IBM Corporation Disasters

The solution for Strategic Supply Management : Emptoris Suite V9  Procurement Intelligence Global, enterprise-wide visibility into spending and suppliers to drive operational and supplier performance improvement  Source to Contract Advanced sourcing and enterprise contract management capabilities maximize and lock in savings  Category Spend Management and Compliance Manage complex spend categories and ensure compliance of service providers and outsourced workers  Program Management Powerful, cross-suite program management capabilities to drive savings, risk and compliance programs  Virtual Supplier Master A global master repository for supplier and category information and flexible supplier discovery capabilities64 © 2012 IBM Corporation

Program Management Program Management Enterprise Category Supplier Spend Supplier Supplier Risk Spend Sourcing Contract Spend Performance & Analysis On-Boarding Classification Management Analysis Management Management Development  Improve Management Control and  Ensure Compliance Accountability – Guides users to follow pre-defined processes – Provides a framework through which all and data collection guidelines compliant with procurement programs can be managed, corporate rules including budget and savings programs  Improve Productivity and Increase Organization Capacity – Improves global coordination of procurement activities and the allocation of resources – Provides a central, configurable workspace that simplifies communication, with tools that automate standard tasks and provide alerts for exceptions65 © 2012 IBM Corporation

Rent-A-Center Case Study The largest operator in the United States rent- to-own industry with ~35% market share based on store count  Number of stores: more than 3,000  Number of employees: over 18,990  Annual revenues (2009): $2.752 BN © 2012 IBM Corporation

What does best of breed combination really mean? Sourcing Engine Transaction Engine Identify & Contract With Channel Spend Through Preferred Suppliers Preferred SuppliersNegotiate Savings & Favorable Ensure Compliance To Realize Terms Negotiated Savings © 2012 IBM Corporation

To Learn More…Visit www.emptoris.comResources available:http://www.emptoris.com/resource-library Customer Video Testimonials Meet The Experts Videos Thought Leadership White Papers On-Demand Webinars PodcastsContact us at: info@emptoris.com © 2012 IBM Corporation

Ask The AnalystJason Busch and Thomas Kase SpendMatters

Ask the Analyst (but first … what’s on our mind these days) Jason Busch and Thomas Kase April 2012Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com

Who we are The team Former: Strategy and sourcing consultants Metals traders Heads of procurement The sites www.spendmatters.com www.agmetalminer.com First blog in sector, now much more 4 years old, largest metals pub in NA www.spendmatters.co.uk www.hcmatters.com Launched in 2010 Launched in 2011Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com

Our supply markets still won’t rest! • Total cost/labor cost on the rise – Country-specific labor – Trade/export policy – Shipping (fuel surcharges, bunker charges) • Currency volatility • Production capacity constraints • Lean extremes • Raw material availability (e.g., rare earth metals) • New regulations • Black Swan eventsCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com

Think big for a moment … stepping into global procurement and finance shoes today Globalization challenges  Trade imbalances, total cost hiccups (and missteps) and policy uncertainties  Different definitions of acceptable behaviors Currency & commodity volatility  Currency madness (Dollar, Euro, RMB, Pound, etc.)  Coming soon or already here: currency inflation (or deflation)/commodity inflation Economic uncertainty  Quantitative Easing (continued)  Weak demand  Liquidity concerns, supplier access to capitalCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 74

When it comes to our procurement and finance groups,these trends and issues have often upset the apple cart  Working capital concerns As much as $5 million in direct costs for each supplier bankruptcy; which direction will suppliers turn if Europe and China tank the rest of the world economy  Trade worries Currency manipulation, inflationary commodity pressure, supply shortages  Corporate cost cutting Fewer resources to accomplish more aggressive margin improvement goals (not to mention lower SG&A expenses); CEOs looking at supply chain organizations as profit, not cost centers  Sustainability & CSR  CEOs looking for financial impact from sustainability (and no surprises) when it comes to CSR programsCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 75

What were the top procurement and supply chain priorities we observed last year (inclusive of finance)? • Incremental cost reduction (including cost reduction based on total cost analysis) • Dealing with capacity challenges (in certain markets) • Managing the workforce: – Contingent/services procurement – Getting more from the procurement group • Compliance and risk: supplier performance, supplier visibility, operational/financial stability, etc. • Balancing demand/supply volatility (e.g., part/component shortages for the holiday season) • Evaluating alternative models vs. business as usual – shared services, BPO, contingent staffing (for both procurement and A/P)Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 76

What will the top procurement and supply chain priorities we’re expecting for the rest of 2012 and into 2013? • Continued focus on cost savings either to protect fortress balance sheets that companies have amassed or just to survive • Anticipating/forecasting (cash, revenue, demand, etc.) and mapping to procurement and working capital strategies in a questionable recovery or possible recession • Continuing to find new ways of becoming more efficient on the periphery (e.g., A/P, indirect spend) to focus on core operations • Commodity, cost volatility and reducing exposure/risk • Optimizing for total supply chain/supply management costs for procurement and payables (inventory, working capital, unit cost, logistics, tax implications, etc.) • Risk management, albeit from an expanded perspective/definitionCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 77

Restructuring the market – translating priorities to ten broader organizational tactics 1. Building the right teams and talent to meet changing requirements 2. Investing in systems to support functional business users capable of shaping strategy and driving results (not just on maintaining systems of record and building better transactional environments) 3. Finding ways to do more with fewer (or flat) resource levels 4. Developing strategies, teaming approaches and supporting tools that bridge functional groups such as procurement, A/P, treasury, internal audit, etc. 5. Getting more from information that should already exist internally (but often doesn’t) 6. Bringing external information and insight into the organization (e.g., risk, supply markets, commodities, etc.) 7. Taking a portfolio/finance and risk management view of suppliers and spending 8. Migrating to systems that support emerging business needs and objectives (keeping an open mind) 9. Deciding what must be done internally (or not) 10. Learning to think globally (not just act globally – a major difference!!)Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 78

2020: Five procurement scenarios to consider 1. Extreme localization and decentralization require new approaches 2. Beyond process: politics, regulation, philosophy and economics define procurement’s focus 3. Technology proves more then transformative: emerging enterprise applications, mobile computing, social “intelligence” and technology democratization change the possibilities (and priorities) of procurement 4. Global supply chain intelligence dictates winners and losers 5. Core procurement is absorbed (e.g., by shared services such as corporate Six Sigma, finance, operations, HR, etc.)Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 79

1) Extreme localization and decentralization require new approaches Themes • Speed to support constituents/customers in the business (e.g., local work, labor and employment rules) • “First wave” savings initiatives (and beyond) from sourcing have long been exhausted • Supporting sourcing in local geographic markets • Government-directed spend • Green/CSR • Shipping costs continue to rise • Localization of products/services requires localization of part, material and services inputs • Continued supply risk incidents force the need to limit the potential damage that centralization/concentration of procurement efforts can create when risk strikesCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 80

2) Beyond process: procurement on the global chessboard Themes  Economic uncertainty and market volatility − Continued “jobless” recoveries, EU/debt hangover that won’t quit? − Austerity programs European disunity − Flexible workforce • Supply chain regulations / traceability − REACH, ROHS, beyond − Industry regulations (e.g., pharma) − Labor practices  A superpower smack down − Behind-the-scenes battle for raw materials (metals, oil/energy, other base materials) − Punitive measures in response to protectionism  Blood, sweat and tears − Traditional military conflicts (e.g., Iran) − Non-traditional dangers (e.g., terrorism)Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 81

3) New technology models prove “insanely great” and change the game for good Themes • Emerging enterprise applications, mobile computing, analytics / “intelligence” and technology democratization change the possibilities (and priorities) of procurement • Social applications models, social connectivity • Interfaces – iPad/iPhone (i.e., touch) – Video (phones, PDAs, Flip cameras) – Voice • Enabling technologies – In memory DB – Virtualization (i.e., cloud) – MDM/CDI (encompassing structured and unstructured data sets) • Networks – Supplier monitoring, collaboration and development – On-boarding / enablement – BenchmarkingCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 82

4) Global supply chain intelligence dictates winners and losers Themes  Supply chain risk  Financial  Labor  Product/material compliance  CSR  Natural disaster/weather  Etc.  Commodity insight  Forecasting  Budgeting, planning  Sense and response time – lead-time to respond to issuesCopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 83

5) Core procurement is absorbed Themes • Procurement absorption (e.g. shared services such as corporate Six Sigma, operations, IT/CIO, etc. take on certain aspects of the function) • Supply chain and finance/internal audit absorb risk • Direct materials continues to stay with the business • Complex services never make the transition • Finance, finance, finance – clear reasons to take ownership – Savings implementation vs. identification – Challenge of forecasting earnings and mid-term cash flow – Credit lines are still very tight – suppliers and buyers often alike – P2P strikes back: working capital strategies working their way into procurement strategies – and services procurement tactics and technologies as well – Speaking the language! margins, gross profit, EBITDA, OIBDACopyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 84

Contact details Jason Busch Managing Director, Spend Matters and Azul Partners, Inc. Founder and Executive Editor, www.spendmatters.com Email: jbusch@azulpartners.com Phone: 773-525-7406 Thomas Kase Lead Analyst, Spend Matters Email: tkase@azulpartners.com Phone: 404-791-3854Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 85

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