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Strategic Supplier Summit
   June 10, 2009
Apollo Group Confidential – Not for Distribution
Working together toward a mutually beneficial relationship

        PATRICK BLISS
        DIRECTOR, STRATEGIC SOURCING &
 ...
Agenda
 g

    • Introduction to Strategic Partnerships
    • Apollo Procurement Transformation
    • Expectations of our ...
The three pillars of a strategic relationship
          p
    Proc ment                g              p




              ...
Apollo Strategic
    Partnerships - Defined
                                           •       Unencumbered two-way commun...
The Pyramids of Strategic Partnership
     y                g             p




Apollo Group Confidential – Not for Distri...
The Pyramids of Strategic Partnership
     y                g             p




Apollo Group Confidential – Not for Distri...
The Pyramids of Strategic Partnership
     y                g             p




Apollo Group Confidential – Not for Distri...
The Pyramids of Strategic Partnership
     y                g             p




Apollo Group Confidential – Not for Distri...
The Pyramids of Strategic Partnership
     y                g             p




Apollo Group Confidential – Not for Distri...
Apollo Purchasing – pre 2009
 p              g p
    •    Transactional in nature
    •    Fewer RFP’s / Less Defined
    ...
Present Day Sourcing & Procurement
          y        g
  • Purchase Order Automation • Spend Analysis/Visibility
        ...
The Future – 2010 and Beyond
                        y
  • Contract Lifecycle                             • Invoice Settle...
Apollo Strategic Sourcing & Procurement
 p           g          g
    • Definition
           – …….identifying value oppor...
Apollo Strategic Sourcing & Procurement
 p           g          g




Apollo Group Confidential – Not for Distribution   15
World-Class Sourcing/Procurement
                   g
    •    Measurable and sustainable cost savings/cost avoidance
    ...
Current Apollo Initiatives
         p
                                                   •   Ariba Implementation
        ...
Apollo Expectations of Strategic
Suppliers
    •    Customer of Choice
           – Market Competitive/Best-in-Class
     ...
Apollo Expectations of Strategic Suppliers
 p       p                   g     pp
• Communication
      – Industry Trends
 ...
Apollo Expectations of Strategic Suppliers
 p       p                   g     pp

    • Legal resource commitment
        ...
Benefits to Strategic Suppliers
                  g     pp




        Source: Hackett Group 2008




Apollo Group Confide...
Benefits to Strategic Suppliers
                  g     pp
    •    Growth Opportunities                      •   Quicker
...
Questions & Answers
Apollo Group Confidential – Not for Distribution
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2009 Apollo Group Strategic Supplier Summit

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Apollo Group Strategic Sourcing & Procurement presentation from the 2009 Apollo Group Strategic Supplier Summit, June 10, 2009 in Tempe, AZ

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2009 Apollo Group Strategic Supplier Summit

  1. 1. Strategic Supplier Summit June 10, 2009 Apollo Group Confidential – Not for Distribution
  2. 2. Working together toward a mutually beneficial relationship PATRICK BLISS DIRECTOR, STRATEGIC SOURCING & PROCUREMENT Apollo Group Confidential – Not for Distribution 2
  3. 3. Agenda g • Introduction to Strategic Partnerships • Apollo Procurement Transformation • Expectations of our strategic suppliers • Benefits to our strategic suppliers • Closing remarks g Apollo Group Confidential – Not for Distribution 3
  4. 4. The three pillars of a strategic relationship p Proc ment g p mics ommunity cadem curem Ac Apollo Group Confidential – Not for Distribution Co 4
  5. 5. Apollo Strategic Partnerships - Defined • Unencumbered two-way communication, including pro-active communication of pro active opportunities • Information sharing, planning, continuous improvement p • Best in class pricing, efficiency-reduced transactions costs for both parties • Risk sharing g • Customer of Choice • Supplier industry development (technology, service level, cost) , ) • Social responsibility/sustainability Apollo Group Confidential – Not for Distribution 5
  6. 6. The Pyramids of Strategic Partnership y g p Apollo Group Confidential – Not for Distribution 6
  7. 7. The Pyramids of Strategic Partnership y g p Apollo Group Confidential – Not for Distribution 7
  8. 8. The Pyramids of Strategic Partnership y g p Apollo Group Confidential – Not for Distribution 8
  9. 9. The Pyramids of Strategic Partnership y g p Apollo Group Confidential – Not for Distribution 9
  10. 10. The Pyramids of Strategic Partnership y g p Apollo Group Confidential – Not for Distribution 10
  11. 11. Apollo Purchasing – pre 2009 p g p • Transactional in nature • Fewer RFP’s / Less Defined RFP s • NOT Strategic • Few partnerships – Supplier changes at random • Inability to consolidate supply base – Less maximizing of spend volume to key g p y suppliers • Manual Processes (PO, Contract, Settlement) ) – Costly to Apollo/Suppliers – Delays on invoice payment Apollo Group Confidential – Not for Distribution 11
  12. 12. Present Day Sourcing & Procurement y g • Purchase Order Automation • Spend Analysis/Visibility – Catalog Items – Accurate classification of – Immediate PO creation, spend data approval and transmission to • Less Maverick Spend strategic supplier (upon • I Increased volume f d l for Requisition approval) strategic suppliers – July 2009 go-live – Visibility into existing volume/consolidation – Supplier record enrichment • Parent/child relationships • Duplicate records Apollo Group Confidential – Not for Distribution 12
  13. 13. The Future – 2010 and Beyond y • Contract Lifecycle • Invoice Settlement Management – e Invoicing solution e-Invoicing – Robust, automated • Ariba contract authoring, – Upgrade to invoice monitoring and approval workflow l kfl management tool and application repository – Enhancement of – Will enhance contract Purchasing Card (P-Card) procedures and process functionality timelines – R Renewals and expirations l d i ti more diligently controlled Apollo Group Confidential – Not for Distribution 13
  14. 14. Apollo Strategic Sourcing & Procurement p g g • Definition – …….identifying value opportunities within the Supply environment identifying environment……. • The Goal – More value for Apollo’s spend • The Means – Aggressive, market competitive cost structures/discounts – Developing and maturing key business partnerships to provide maximum opportunity – Integrating transparency in supply process to streamline sourcing activities and acquisitions – Finding added value services that enhance Apollo operational and financial processes Apollo Group Confidential – Not for Distribution 14
  15. 15. Apollo Strategic Sourcing & Procurement p g g Apollo Group Confidential – Not for Distribution 15
  16. 16. World-Class Sourcing/Procurement g • Measurable and sustainable cost savings/cost avoidance • Alignment of strategic plans to organizational objectives and business strategy • Adoption f Ad ti of appropriate technology/automation to maximize P2P process effectiveness i t t h l / t ti t i i ff ti • Development and retention of highly qualified, highly motivated staff • Standardization of key procurement processes and policies that are clearly defined and maintain maximum compliance and support within the entire organization • “Green” or socially responsible purchasing considerations • Well-developed strategic supplier partnerships which incorporate detailed supplier scorecards and measurements • Contract compliance p • Minimal “maverick” spending • Integration into the budgeting/planning process to ensure accurate budgetary expectations • Multi-year strategic procurement plans • Center-led P C t l d Procurement functionality tf ti lit • Low-Cost Country Sourcing • Utilization of spend analytics to focus sourcing efforts Apollo Group Confidential – Not for Distribution 16
  17. 17. Current Apollo Initiatives p • Ariba Implementation – Spend Visibility, Sourcing Pro, Procurement Content, Invoice Pro • Contract Lifecycle Management (CLM) tool • Purchase Order Automation • Improved forecasting with strategic suppliers • Supplier Scorecards • Organization changes – Separation of tactical and strategic duties • Sustainable alternatives Apollo Group Confidential – Not for Distribution 17
  18. 18. Apollo Expectations of Strategic Suppliers • Customer of Choice – Market Competitive/Best-in-Class pricing – First fill of orders – Advance notice of supply restrictions • Alternative product recommendations – Transparency • Down to 2nd/3rd level of supply chain • Supplier financial stability • Business technology adoption – e-Invoicing (B2B) • Standard/Consistent information on invoices (PO/CC# Qty Price, (PO/CC#, Qty, Price Description) Apollo Group Confidential – Not for Distribution 18
  19. 19. Apollo Expectations of Strategic Suppliers p p g pp • Communication – Industry Trends – Upcoming Supplier Developments – Competitive Insights – Open Feedback • Apollo processes, incompatibility – Focused Communication • Sourcing – central communication point for SRM (non-technical discussions) Apollo Group Confidential – Not for Distribution 19
  20. 20. Apollo Expectations of Strategic Suppliers p p g pp • Legal resource commitment – M t service agreements Master i t – Timely turnaround • Early Payment Discounts • Global Procurement support • S i l responsibility/sustainability Social ibilit / t i bilit Apollo Group Confidential – Not for Distribution 20
  21. 21. Benefits to Strategic Suppliers g pp Source: Hackett Group 2008 Apollo Group Confidential – Not for Distribution 21
  22. 22. Benefits to Strategic Suppliers g pp • Growth Opportunities • Quicker – Supplier consolidation pp turnaround/settlement of payments • Earlier forecasting of Apollo needs • Longer term contracts – Annual volume commitments • Expansion of client base • Clear understanding of – Students/Faculty/Employees/ Apollo’s “grade” of supplier’s Alumni services/delivery • Academic Alliance • Apollo open communication on • Apollo recognition organizational – PR/Testimonial opportunities strategy/direction Apollo Group Confidential – Not for Distribution 22
  23. 23. Questions & Answers Apollo Group Confidential – Not for Distribution

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