The document outlines a detailed agenda for a procurement conference, featuring key presentations on procurement strategies, spend optimization, and software innovations by Coupa and its stakeholders, including notable speakers from various companies. Key topics include enhancing procurement's role, managing change, and technology selection for procurement processes, particularly emphasizing the need for effective contracts and supplier management. Additionally, it provides insights into Rent-A-Center's procurement challenges and solutions, highlighting the company's objectives and technology implementation plans.

2. Agenda
Time Item Presenter
8:30 – 9:00 Coffee All
9:00 – 9: 30 Welcome – Coupa Roadmap Tony Wessels, V.P. Marketing
Coupa
9:30 – 10:30 Amplifying Procurement’s Role Ravi Thakur, V.P. Customer
Success, Coupa
10:30 – 10:45 Break All
10:45 – 11:30 Project : Get Smart Mike Wilding, CPO,
Rent A Center
11:30 – 12:15 Extended Business Relationship Bruce McQuillen,
Management (EBRM) Deloitte Consulting
12:15 - 12:30 Closing Remarks
12:30 – 1:30 Coupa Demo Ravi Thakur, V.P. Customer
Success, Coupa

4. Purchasing

5. Procurement
Purchasing

6. Procurement
Spend Purchasing
Management

7. Procurement
Spend Purchasing
Management
Spend Optimization

8. Coupa Overview
Tony Wessels
Vice President, Marketing

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

10. Innovation

11. Responsible Spending

12. Bottom Line

13. Spend Optimization

14. Coupa’s Explosive Growth
180%
Bookings
+95% 150%
Renewal Rate Platform Usage
YOY YOY YOY

15. One World, One Platform
10 Languages
40 Countries
100,000 Users

16. Customers Highlights
Retail Finance Mfg. Health Care High Tech

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

18. CFO Financial Books
Sales & Mktg Customer Records
HR Personnel Files

19. Procurement Needs To Own Spend Transactions

20. Own The Optimize Spend
Transaction
Spend Optimization Platform & Processes

21. Procurement Must Orchestrate
VS.

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

23. Participate In Growth Strategy

24. Understand Growth Strategies
Geographic Expansion

25. Understand Growth Strategies
Geographic Expansion
New Lines Of Business

26. Understand Growth Strategies
Geographic Expansion
New Lines Of Business
Acquisitions

27. 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

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

29. Managing Change

30. Change Management Requirements
Leveraging Frictionless
change agents transition

31. Leveraging Change Agents
Functional Users
IT
Procurement
Payables
Suppliers

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

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

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

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

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

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

38. Demonstrate Success

39. 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

40. 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

41. Communicate Success

42. CFO Financial Books
Sales & Mktg Customer Records
HR Personnel Files
Procurement Spend Transactions

43. Break

44. Project: Get Smart
Mike Wilding
Chief Procurement Officer
Rent A Center
44

45. Crank the Savings World Tour
May 1, 2012
- 45 -

46. Executive Summary
About Rent-A-Center
• The largest operator in the United States rent-to-own industry
• Over 4,000 locations (2,983 Core U.S.; 763 RAC Acceptance; 87 International, 218
ColorTyme franchisees)
• Stores offer high quality, brand name durable products such as major consumer
electronics, appliances, computers, and furniture and accessories under flexible rental
purchase agreements
• Allows customers to obtain ownership of the merchandise at the conclusion of an
agreed-upon rental period
• Approximately 20,000 employees
• Annual revenues projected to exceed $3.0 billion in 2012
• NASDAQ: RCII
• Headquarters: Plano, Texas (opened a Field Support Center in Monterrey, Mexico
dedication is May 15th)
- 46 -

47. A peek into the past
• Two procurement tools in past 18 months prior to June 30, 2010
• Lack of visibility into invoice submitted by vendor at store location
• Punch out catalogues and catalogues in general not consistently utilized
• Existing platform extremely clunky and lacked ability to find product quickly (minimum
of five clicks before you were able to place an order)
• User adoption was slow and intermediate; complaints were fast and frequent
• On boarding of suppliers was not an easy, friendly process
• Invoices were entered into ERP by hand
• Procurement of approximately $600 million of indirect spend was very decentralized
• No consistent esourcing tools utilized
• Invoicing off of a contract was foreign
• No central repository for contracts
• Spend analyzing was performed by tearing apart general ledger accounts
- 47 -

48. Need for Change
Process Path Migration Supporting Modules How They Help
 Procurement  Catalog creation and
 EIPP (for non-EDI enabled management
1 suppliers)  PO creation, routing, and tracking
 Reporting  Visibility to purchasing accruals
Catalog with
Purchase  Three way matching and issue
Order identification
2  Procurement  Purchase request/PO creation,
Non-Catalog  EIPP routing, and tracking
with  Reporting  Three way matching and issue
Purchase identification
Order  Visibility to purchasing accruals
3  Electronic
Invoice Presentment  Invoice creation, routing, and
Invoice and Payment (EIPP) tracking
Directly  Reporting  Ability to invoice against a
Against contract (or against open P.O.)
Contract  Two way matching
4  NA  Futurespend expected to be
exception/emergency only
Invoice Only
- 48 -

49. RAC Technology Scope
Source-to-Contract Procure-to-Pay Reporting & Supplier Travel &
Process
(Upstream) (Downstream) Management Expense
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting T&E
Management
 Increased savings through  Increased electronic PO use for  Ability
to monitor SMO  Online booking with RAC
competitive pressure and pricing spend management, compliance, and performance and identify future policies
visibility 2, 3, and 4 way matching savings opportunities  Automated
expense
 Automated project workflow for  User-friendly
interface to support field  Supplier portal to enable vendor management
RAC sourcing methodology and adoption and compliance initiated electronic invoicing and
Benefits contract authoring  Ability
to invoice against a contract payment
 Contract repository to support (or against an open P.O.) to increase  Vendor score carding to monitor
invoicing against contracts (PP 3) pricing compliance pricing and service compliance
 Automatedinvoicing will lower AP
department costs
 Concurimplementation
complete on 6/14/2010
- 49 -

50. The RAC Technology Assessment Approach
The RAC team assessed our spend needs and capabilities, developed the future state vision for the SMO, and created the options
that the Technology Steering Committee assessed to make the final recommendation
Project: Get SMarT Accomplishments Potential Next Phase
As – Is Assessment Strategy Development Technology Selection Implementation
Major Activities
 Maturity survey  Implementation scenario  Formation of steering  RAC solution design
 SMO vision development development committee  Solution implementation
 Needs assessment  Scenario ROI analysis  RFP development and  User training
prioritization  Implementation prioritization distribution
 Process and technology  Response analysis
assessment  Technology selection
Outcome
Business and technology Technology Business Case Solution and vendor Technology implemented
needs identified created recommendation developed
Example Documents
Tech Selection RFP Scoring Results
RAC stakeholders have completed the scoring process and identified SAP, Oracle, and Ariba as the best full suite providers,
and Emptoris as a leading single process provider.
Full Suite Upstream Only Downstream Only
Oracle SAP Ariba Ketera Emptoris BravoSolution Basware Lawson
3.9 3.9 3.7 3.6 3.8 3.9 3.4 3.7
General
Company
Information 3 2 1
4.4 4.7 4.6 3.0 4.8 3.3 N/A N/A
Source to
Contract 2 3 1
4.6 4.3 4.3 3.3 N/A N/A 3.8 2.9
Procure to
Pay 1 2 3
4.2 4.2 4.3 3.5 4.2 3.8 2.9 3.4
Spend
Analysis &
Reporting
2 1 3
4.5 4.4 4.4 3.2 2.7 1.9 3.1 3.2
Supplier
Management 1 2 3
4.0 3.4 3.8 2.9 3.5 3.4 3.4 3.6
Technical
1 2 3
Considering the strong performance of the full-suite providers and the relatively weak performance
of the niche providers, the team has not included Aravo and JPMC in this assessment.
Note: RAC stakeholders include M. Wilding, T. Fuller, P. Hall, J. Whitehead, B. Corley, N. Stevens, J.Chanani, M. Douglas, J. Arnette and R. Salvans
-3-
Maturity model assessment Technology cost / benefit Technology demo Technology Example
and gap analysis assessment scripts RFP evaluation implementation roadmap
- 50 -

51. The Business Case - Executive Summary
Scope of Business Case
Reporting & Supplier Travel &
Process Source-to-Contract Procure- to- Pay
Management Expense
Supplier
Module eSourcing Contracts eProcurement Invoicing Reporting T&E
Management
RAC had some spend management technology in place, however further investments were required to reach the desired to-be
state
 RAC had limited Sourcing and Contracting technology in place
 The eProcurement technology was at a low level of maturity and required an upgrade to support new process paths if not replaced
 RAC had very limited spend management Reporting capabilities, and no Supplier Management technology
 Beyond basic electronic forms, the Travel and Expense (T&E) analysis, audits, and reporting were at a low level of maturity
5 Year financial analysis shows net savings of $ – $ MM for RAC
- 51 -

52. The Technology Selection Process
The RAC technology selection team conducted a 4 step process to identify the right technology solution to meet our needs
Vendors included in Vendors included in Vendors that provided
Vendors receiving RFP
initial assessment capability assessment demonstrations
1. Market Research 2. Detailed Analysis 3. RFP 4. Demo Analysis
 Conducted high level market  Conducted capability  Developed and distributed  Developed seven page script
analysis 44 vendors assessment and detailed detailed RFP consisting of: and executed detailed vendor
 Perform functionality review financial analysis ‒ 6 sections demos
and financial assessment  Down selected from 19 to 11 ‒ 275 questions  Identified best-fit solution and
 Down select to 19 vendors vendors that would receive implementation scenario for
 Evaluated responses and
that could potentially meet RFP RAC
identified 4 vendors that best met
RAC needs RAC’s needs and provided
competitive pricing estimates
Where’s Coupa?
- 52 -

53. RAC Technology Scope
Source-to-Contract Procure-to-Pay Reporting & Supplier Travel &
Process
(Upstream) (Downstream) Management Expense
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting T&E
Management
 Increased savings through  Increased electronic PO use for  Ability
to monitor SMO  Online booking with RAC
competitive pressure and pricing spend management, compliance, and performance and identify future policies
visibility 2, 3, and 4 way matching savings opportunities  Automated
expense
 Automated project workflow for  User-friendly
interface to support field  Supplier portal to enable vendor management
RAC sourcing methodology and adoption and compliance initiated electronic invoicing and
Benefits contract authoring  Ability
to invoice against a contract payment
 Contract repository to support (or against an open P.O.) to increase  Vendor score carding to monitor
invoicing against contracts (PP 3) pricing compliance pricing and service compliance
 Automatedinvoicing will lower AP
department costs
eSourcing eProcurement Reporting  Concurimplementation
Emptoris Coupa Spend Analysis / Business complete on 6/14/2010
What was Objects
eContracting eInvoicing
selected?
Emptoris Coupa Supplier Management
Emptoris / Coupa
- 53 -

54. Technology Implementation Timeline
June July August September October December Q1, 2011
6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26 8/2 8/9 8/16 8/23 8/30 9/6 9/13 9/20 9/27 10/4 10/11
PMO Program Leadership (PMO)
Source to
Contract Go-
Plan Design Build Validate
• eSourcing Live
• eContracting
Installation Configuration
completed completed
Go-
Spend Analysis Plan Design Build Validate
Live
Installation Configuration Integration
completed completed completed
Build Validate Go-Live
Procure to Pay Coupa Release 21
Plan Design Build Validate Go-Live
• eProcurement (Invoice to Contract, PP3)
• eInvoicing
Installation Configuration Integration Coupa Release 1
completed completed completed (Blanket PO) Build Validate Go-Live
Coupa Release 31
(Tiered Pricing)
Supplier Go-
Plan Design Build Validate
Management Live
Installation Configuration Integration
completed completed completed
Master Data Master Data
CTC Change, Training, Communications
- 54 -

55. eSourcing Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
eSourcing Benefits to RAC
 Increased competitive pressure and visibility into market pricing
 Streamlined RAC supplier evaluation for rapid “apples to apples” analysis
 Automated workflow to ensure enforcement of RAC’s 6 step sourcing methodology
What’s at Stake for RAC
eSourcing advanced functionality will be used by the SMO to achieve incremental soft dollar savings for RAC.
Sourcing Impact
 All current and future events can use traditional and advanced sourcing functionality
 SMO can use auction functionality for rapid “spot sourcing” events
 Like other retailers, RAC can use the eSourcing tool for merchandise
- 55 -

56. eContracting Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
eContracting Benefits to RAC
 Contract authoring automates contract development, enforces internal approval flows, and provides visibility to progress
 Contract repository enables uploading of new and existing contracts for automated procurement and invoicing (PP3)
 Automated tracking enables pricing, commitment, vendor compliance, and lifecycle management
What’s at Stake for RAC
eContracts automated authoring, storage, and procurement integration will drive efficiencies, compliance, and savings identification.
- 56 -

57. eProcurement Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
What Coupa brings to RAC
 Electronic PO acknowledgements and approval flows lower cost to serve and increase visibility and compliance
 Reduction of headcount in our AP group
 Advanced search functionality and user friendly interface drives compliance and use of catalogs and punch-outs in the field
 Extremely high adoption rate of tool
 Ability to order supplies from the desktop keeping our employees in the store renting and selling merchandise
 Labor hours under control; sales going up
 Business partner to discuss other needs and solutions (sales tax)
 Increased performance against established KPIs
Transparent
Controlled
1
Catalog
with
Purchase
2 Order (PO)
Non-
Catalog
Invoiced spend will
with PO
3 be moved to PO
Invoice
based process path
Directly
Against (PP 1 & PP 2)
4 Contract
Invoice
Only
- 57 -

58. eInvoicing Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
What Coupa brings to RAC
 Ability to invoice against a contract (or against an open P.O.); pricing compliance to negotiated agreements
 Automated invoicing lowered our AP department costs and shorten the time required to process payments
 Electronic approvals and tracking has increased our visibility and compliance for our users and vendors
- 58 -

59. Reporting & Supplier Management Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
Reporting Benefits to RAC
 Spend analysis has provided visibility into our costs and helped us prioritize the activities of SMO
 Supplier Portal has facilitated automated registration and management of supplier information
 Supplier Management gives us data and scorecards to identify pricing compliance issues and new sourcing opportunities
- 59 -

60. Lessons learned
• View a live environment, see how other companies use the product and see what
hardware they are using
• Engage internal IT group earlier and more frequently in the process (what will be
required on ongoing basis after implementation)
• Engage Internal Audit and IT Security earlier in the process
• First significant Software as Service model for RAC (IT, Legal, IA)
- 60 -

61. Contact information
Mike Wilding
SVP- Accounting/Global Controller & CPO
Mike.wilding@rentacenter.com
972 801 1404
- 61 -

62. Extended Business Relationship
Management (EBRM)
Bruce McQuillen
Deloitte Consulting LLP
62
Confidential and proprietary

63. Extended Business Relationship Management (EBRM)
A Deloitte Perspective
May 2012
Deloitte Consulting LLP

64. Companies across industries are feeling the impact of ineffective management of
their business relationships
Examples
The closure of the German company responsible for supplying a convertible model’s folding roof left the otherwise
finished car in purgatory while the automaker searched for a new supplier.
A toy maker was forced to recall nearly 2 million toys and pay $2.3 million in fines due to identification of lead paint in
toys made by one of its Chinese contract manufacturers.
Due to a concern over the role of third party risk in bank failures, the Office of the Comptroller of the Currency has
required that national banks establish a “comprehensive program for managing the relationship” with third parties.
The launch of a technology company’s long-anticipated white smartphone was delayed for 10 months because of the
quality and longevity of the white paints manufactured in China.
Coupa is one of several components that can help address the impact of ineffective business relationships
Note: Sources listed on slide 17 - 64 -

65. A peek into the past at Rent-A-Center and where Coupa addressed key EBRM
concerns
• Two procurement tools in past 18 months prior to June 30, 2010
• Lack of visibility into invoice submitted by vendor at store location
• Punch out catalogues and catalogues in general not consistently utilized
• Existing platform extremely clunky and lacked ability to find product quickly (minimum of five clicks before you were
able to place an order)
• User adoption was slow and intermediate; complaints were fast and frequent
• On boarding of suppliers was not an easy, friendly process
• Invoices were entered into ERP by hand
• Procurement of approximately $600 million of indirect spend was very decentralized
• No consistent esourcing tools utilized
• Invoicing off of a contract was foreign
• No central repository for contracts
• Spend analyzing was performed by tearing apart general ledger accounts
Coupa enabled Rent-A-Center to capture consistent data on transactions and suppliers in order to
accurately understand and manage its key business relationships
- 65 -

66. How do you rate your organization’s relationship management capabilities?
PARTIALLY YES
Survey Questions NO YES
1. Do you have risk assessment and mitigation strategies in
place to manage your business relationship risks effectively? 0 1 2
Do you monitor them on a periodic basis?
2. Do you monitor globally and on a continuous basis the
performance of your extended value chain in terms of service 0 1 2
levels, responsiveness and quality?
3. Do you gather intelligence from third party and other sources
on your business partners to identify potential financial and
0 1 2
compliance issues?
4. Do you have an effective technology solution that provides
“one stop” enterprise wide visibility into the extended value
chain of your company i.e., the network of suppliers,
0 1 2
customers, outsourcers etc.?
A net score between 0 – 5 indicates the lack of an effective business relationship management strategy
within your organization
- 66 -

67. Lack of effective business relationship management can expose your company to
risk in four broad areas
Loss of Revenue
− Supply disruptions caused by environmental, financial or political issues
− Lack of adherence to sell side contract terms
Increased Costs
− Inefficient process of measuring business relationship performance on a periodic basis
− Lack of adherence to buy side contract terms
A Score of
0 – 5 means Legal Issues
− Lack of effective contract management practices
− Lack of contract compliance, standardized contracts, etc.
Brand Reputation
− Lack of adherence to CSR by its suppliers or customers
− Improper monitoring of the carbon footprint of trading partners
- 67 -

68. Business relationships have evolved significantly over the last decade with increased
focus on effectively integrating and managing those relationships
Integrated
Relationships
 Information centralization
An evolving strategy to  Centralized or center-led
enable companies management of relationships
manage business  Effective risk prediction and
relationships effectively mitigation strategies
 Advanced analytics to assess
relationships
Business Relationship Management
Risk prone
Relationships
Capability
 Information dispersed across the
organization
Collaborative
Relationships  Limited organizational capability to
manage relationships
 Significant increase in number of  Lack of visibility into data across
business partners systems
 Centralized internal support functions  Lack of risk mitigation strategies
Legacy  Limited information visibility across
the enterprise
transactional
Transactional  Transactional systems and point
Relationships
systems solutions
 Decentralized functions No significant change in
 Limited internal and external existing business
collaboration
 Basic data analysis capabilities
relationship
 Limited integration across systems management practices
Past Present Future
Time
- 68 -

69. Extended Business Relationship Management (EBRM) is a strategy to monitor and
manage key business relationships across the company
Corporate Functions Buy Side Partners
Sales Direct Materials Suppliers
Finance Indirect Suppliers
Extended Business Relationship
Management (EBRM)
Logistics Contract Manufacturers
 Provide central visibility to business
relationships
Outsourced Service
Operations
Providers
 Measure, monitor and manage relationships
risk, performance, compliance and
HR information Sell Side Partners
 Manage relationships proactively vs.
Customers
IT reactively
 Deepen and improve key relationships
Trade Partners
Marketing
 Improve top ad bottom line performance
Other Partners
Procurement
Alliance Partners
- 69 -

70. Successful EBRM strategy requires building capabilities at a people, process and technology level
Illustrative Capabilities
 Ability to assess and correct existing  Responsibility and ownership to take
business processes that monitor risk necessary actions for risk mitigation
and performance metrics
 Alignment of organizational structure
 Continuous benchmarking with and governance with EBRM strategy
industry best practices to measure the
effectiveness of the relationship  Shift in mindset towards the nature of
business relationships – from
 Standardized data capture, transactional to a long term strategic
management and reporting processes perspective
EBRM
Strategy
Technology
Capability
 Superior database management and data analytics capabilities
 Integration of different information systems within the enterprise
 Improved visibility into the systems across different functions
- 70 -

71. Our EBRM Lifecycle Framework provides the capability to assess and manage
relationship across multiple elements of EBRM
EBRM Lifecycle Framework
Prioritize Relationships Evaluate Relationships Manage Relationships
Segment / Define Set Target Monitor Implement
Identify
Prioritize Criteria Levels Performance improvements
• Identify key • Segment • Define • Assess • Monitor • Identify and
existing relationships evaluation criteria performance of performance of execute
relationship types within each type (quantitative and companies based companies within performance
(suppliers, based on various qualitative) for on pre-defined a relationship improvement
customers, criteria (e.g., each relationship criteria type on a opportunities
channel partners, importance, type and • Set performance periodic basis based on gaps
contract business impact, segment targets for each against the set observed against
manufacturers, financial • Identify data relationship type targets the key criteria
outsourced obligations, etc.) required to and segment
service providers, measure defined
etc.) criteria
Risk Management
Elements of
Performance Management
EBRM
Compliance Management (regulatory, financial, sustainability, etc.)
Information Management
- 71 -

72. The EBRM framework applies across industries, however, the prioritization of
EBRM elements differs
Financial Services Health Care & Life Consumer & Industrial Technology, Media &
Element
Industry Sciences Products Telecom
• High debt levels • Brand damage • Supply chain disruption • Supply chain disruption
Risk • Default/Credit risk • Success rate of drugs • Over-reliance on few • IP security
• Fraud vendors
• Data security • Brand equity • Expensive delays • Co-manufacturing
Performance • System reliability • Co-manufacturing • Higher cost management
management • Quality issues • Project costs and delays
• SEC guidelines • Federal/State/Local • Safety, Health, Environment • IT laws and security
Compliance • Regulatory approvals and regulations policy • Global e-Sustainability
licenses • International and country • Carbon footprint Initiative (GeSI)
regulations • Labor laws • Labor laws
• Customer database • Electronic Health Records • Customer Relationship • Customer Relationship
Information • Portfolio management (EHR) Management Management
Management • Audit • Seamless mobilization of • Vendor and item master • Vendor and item master
health information exchange
(HIE)
Applicability High Low
- 72 -

73. The key to effective EBRM is capturing and managing three inter-connected layers of
data: Strategic, Tactical and Transactional
Data Management Example: Performance Management
Data Category Description Example Data
Data that directly drives shareholder value
Increased
Strategic such as revenues, costs of goods sold, and
Supply Cost
Lost Revenue
cost of capital
Data that is used to help make day-to-day
management decisions
Tactical data is derived by consolidating Purchase Price % of On-Time
Tactical transactional data elements such as Variance Deliveries
contractual price and invoice price to calculate
purchase price variance
Data that describes a business transaction
Transactional such as orders, invoices, payments, and Invoice Price Delivery Date
delivery details
- 73 -

74. EBRM Technology can be classified into 3 broad categories – Transactional, Tactical,
Strategic, in conjunction with the type of data it handles
EBRM Solutions by Data Type
Transactional Tactical Strategic
Hiperos
Aravo
Xcitec
SAP
Oracle
Coupa
Emptoris
CVM solutions
 Tools like ERP and CRM capture  Solutions like spend analysis, e-  Consolidate information from
transactional data useful primarily sourcing, contract management several solutions like ERP, CRM,
at an operational level provide expertise in respective and CLM
domains
 Typically fail to capture tactical or  Provide seamless data integration
strategic data  Can access tactical and even and analysis for “one-stop”
transactional data but fail to enterprise-wide snapshot of
 Some ERP providers also provide assess strategic aspects (e.g., relationships
“upstream” tactical solutions risk)
 Enable comprehensive
 Lack an enterprise-wide view of assessment and management of
business relationships key business relationships
- 74 -

75. EBRM is not just implementation of a technology solution
An effective EBRM strategy requires
 Understanding and prioritizing the key drivers of a business relationship - performance, risk, compliance,
sustainability
 Understanding industry trends and supplier/customer behavior
 Understanding the right data elements to track and maintain in order to monitor the effectiveness of the business
relationship
 Assessing the readiness of an organization to implement EBRM strategy from a people, process and technology
standpoint
 Identifying the right technology based on the business needs
 Understanding the change management practices of the firm
 Developing a roadmap to implement an EBRM technology solution
Deloitte Approach
1 2 3 4
Understand “As-Is” Business Identify Risk Areas and Gaps Develop Improvement
Build EBRM Solution Roadmap
Relationship Landscape based on Benchmarks Opportunities
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76. Deloitte helps companies begin the EBRM process by assessing existing relationship
management processes and developing improvement plans
1 2 3 4
Understand “As-Is” Business Identify Risk Areas and Gaps Develop Improvement
Build EBRM Solution Roadmap
Relationship Landscape based on Benchmarks Opportunities
• Understand current business • Compare “As-Is” state with • Develop list of improvement • Develop a roadmap to realize
relationship landscape, industry best practices. Use a initiatives based on gap target state across people,
processes, organization, and defined scoring method that ranks assessment and identified risk process, technology and
technology for each stage in the each EBRM element from I - areas governance
EBRM lifecycle Basic to IV – Superior
• Identify key metrics and develop • Identify cost/benefits for each
• Validate baseline with key • Quantify relationship management target state leveraging framework initiative on the roadmap
stakeholders risk exposure and prioritize areas
• Determine resources and • Develop business case
Description
that need to be addressed
• Develop the “As-Is” business technology required for each
relationship landscape profile initiative
• Current State Analysis • Maturity Assessment • Improvement Initiatives • Solution Roadmap
• Business Relationship Profile • Gap Analysis/Prioritization • Key Initiative Charters • Business Case
Key Deliverables
Difficulty of
Project Roadmap Process People Tech. Timeframe Status
Implementation
Identify the Sales contracts that will be part of
the central repository across functional groups   Medium Difficulty 3- 6 Months -
and regions
Implementation Roadmap
OCR existing contracts and store in a central
repository to allow for key-word searches and
associate “meta-data” (header data) with each Element: Organization 
Roadmap  
Development & TrainingMedium Difficulty 3- 6Apple Executive Sponsor: Eric Dante
Months - Assessment Detailed Design Build & Test Implement
contract to improve reporting and searching
Initiative Name: Organization development Apple Lead: XXX
functionality Oct Nov Dec Jan Feb Mar April May June July Aug.
Use an integrated process and platform to create Assessment Design !st Draft Detailed
Design
Challenge
Workshops Designs
and store contracts to enable Apple to search Sesions
 
Initiative Type (Place ‘X’ Next to Correct Type)  High Difficulty
Analysis & Planning Long-Term
X Implementation - By location gap analysis/ Design Modifications
Designs
Complete
Process
through all contracts using advanced filters and Kick-off
Initiative Summary Process Document.
restrict access as needed User Go-
Initiative Description Assess current org structure and align reporting lines and define internal KPI reports for effective performance of the contract team Cont. Controls Accept Live
Review Compliance -ance
Automate customize alerts/notifications based on Objective
Initiative Improve the performance of the contracts team Review Complete Testing
Bus. Prioritize/
key contract attributes (e.g., expiration date,
Dependencies  None   High Difficulty Long-Term - Straw
-man
Specs Approve
Specs
Activity to
Role, Role to
Training Mat.
Post Go-Live support &
monitoring
Develop.
customer certification status) Initiative Driver(s) Org.
Model
Job Mapping
Change Develop
Driver Place ‘X’ if it Applies Driver Description readiness
Develop the ability to audit executed to contracts assessment
Org.
People
Model T3
Revenue Enhancement X Minimize revenue leakage by including proper checks and balances FSS
for the following: Leader Leadership Post
Identified Action Plan Job
• Contracts with sections and clauses that Stakeholder (Request)
differ
Engagement
Desc
from the “model form” (template) Interview
& Hire
• Cycle time for contract creation and other key Efficiency 
Cost & 
X 
Improved performance of Difficulty team leading to better efficiencies in the contracting process
High the contracts Long-Term - HR, Change Leadership, Communications
FSS Mgrs.
Train
FSS Staff
performance metrics Hired Begins
Risk Management & Config./Document
X Improvements in risk and compliance owing to improved performance of the contracts team Various Technology (Software licensing, Hardware
• How often alternate clauses are used by Compliance selection, other prep)
User
(subset)
Accept-
Develop Test ance
Tech.
negotiator Scenarios & Scripts Testing
Tech
Timeline Spec Integrated
Testing
FY 2011 FY 2012 FY 2013
Development/ Mods, Unit Testing
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Facility
Location Selection Develop Governance & Service Level
FSS &
Lease Negotiations Agreements, performance measures
Initiative Business Case Estimates (Optional)
Tax implications &
Technology Cost Technology Cost benefits Facility Buildout (Including technical infrastructure)
Resource Cost Total Cost
(Hardware) (Software) Design Available for
Occupancy
Business Case
Benefit Rationale Benefits Achieved to Date Update
Investment Rationale
(Risk Mitigation/Cost Savings/Revenue Opportunity) (if Existing Initiative)
Steering Committee Updates, Change Leadership, Communications
Revenue enhancement/Efficiency/Risk Management/Compliance
Investments Needed (Resources,
Software, Hardware)
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77. Thank You

78. Closing Remarks

79. Coupa Demo

80. Back-up Slides

81. EBRM Technology Landscape
Solutions Providers of EBRM
EBRM solutions available are centered primarily around following four key indicators Following companies provide packaged solutions with five
 Risk modules aligned with key indicators mentioned.
– EBRM provides a comprehensive risk assessment framework which captures all kinds of risks
specific to the business, partner, relationship
 Hiperos
 Performance
– provides an on-demand platform with the all the required functions
– EBRM provides a complete solution to build key performance indicators for both internal as well
as for external stakeholders
to track five key indicators of all the partners
 Compliance  Aravo Solutions, Inc.
– EBRM tracks compliance related information and requirements different aspects of corporate
responsibility like safety, health, environment, diversity etc. – provides a complete solution which includes configuration and
implementation of the system, both on-site and remote training
 Information Management
and a global technical support.
– EBRM provides a ‘one-stop’ solution with consolidated information collected over a period of
time giving an enterprise-wide visibility
Users of EBRM
- 81 -

82. Clients of EBRM Solutions
Client As-is business state Benefits of EBRM Implementation
 Diversified global infrastructure with operations in more  Highly configurable SaaS platform automates and
than hundred countries manages global supplier information processes to improve
supplier data quality, reduce costs, and enhance ability to
Multinational  One of the world’s most complex supply chains with over negotiate better terms with suppliers
500,000 suppliers across thousands of entities
Conglomerate  With Aravo SIM, GE now has over 500,000 suppliers under
 Needed to more accurately track compliance, management in six different languages
certifications, white papers and contracts and other
procurement related information
 A Fortune 100 financial services company with over  All supplier information is maintained using Hiperos with
60,000 vendors appropriate data pushed to update multiple ERP systems.
Financial
 Needed an effective vendor management system that  Vendor lifecycle management platform of Hiperos
Services suits the complex requirements of the company and is assesses the risk, monitors compliance, and measures
flexible enough to address changing demands of internal performance of over 60,000 vendors, thus providing a
Company stakeholders and external regulators comprehensive solution
 A software provider company of size $4 billion  Phase I involves managing a global outsourcing provider
delivering services in over 40 countries.
Software  Needed to monitor and mitigate risk in the supply chain
 Phase II includes building a supplier risk assessment
Provider process and over 30 supporting compliance programs to
effectively manage the entire supply base.
Client Base of EBRM Strategy
- 82 -

83. Recent trends in the life sciences industry have increased the need to proactively
and effectively manage extended business relationships
Recent Trends in the Life Sciences Industry
Trend Description Impact
 Complexity of local and international regulatory regime: Need to
comply with a multitude of US and international regulatory and  Difficulty tracking increasingly complex
standards (e.g., FDA, NIH, CDC, HHS, WHO, ICH) regulatory compliance across supply base
Increased
Regulatory  Increasing number of laws and regulations: Increasing number of  Need for increased visibility into supply chain
regulations covering all aspects of the Life Sciences industry. E.g., the
Complexity  Significant cost of non-compliance – potential
Drug Safety and Accountability act of 2010 gives the FDA broad
authority to mandate recalls and requires improved raw material recalls and criminal penalties
tracking
 29% of Life Sciences manufacturing output in 2010 is produced by 3rd
parties vs. 21% in 20071  Increased risk of supply shortages, quality
Growth of Co-
issues, and recalls if co-manufacturers are not
Manufacturing  The average CM Manager manages 10 CMOs (contract manufacturing effectively managed
organizations) which increases the risk of missed warning signs
Relevant Elements of EBRM
Integrate risk management tools with internal and third party supplier data to monitor supplier financial and
Risk Management
other risk elements
Performance
Management
Measure and track supplier performance criteria, including quality, cost and service
Compliance
Management
Drive compliance to contract terms, including regulatory requirements
Information Proactively manage supplier and item data to enable more effective risk, performance and compliance
Management management
1 – Contract Manufacturing in Life Sciences, AMD Research, 2007 - 83 -

84. Lack of EBRM strategies contribute to the recent increase in recalls that negatively
impact a company’s bottom line, market value, and brand image
Number of Food & Beverage Recalls by Year4
Number of recalls has increased by 3X
1000 since 2005 923
900
800
700
Number of
565
Recalls
600
500 393 396
384
400 338
279 266 293
255 240
300
200
100
0
1999 2001 2003 2005 2007 2009
Year
Impact of Product Recalls
Impact Area Impact Magnitude Real World Examples
Recall Product recalls cost, on average, more than  Toyota recall to exceed $2 Billion (2010)
Expense $8 Million per incident1  Peanut recall cost producers over $1 Billion (2009)
Share Price Stock price of affected company  P&G shares fell share 3% the day they expanded
underperforms sector index by an average of their pet food recall (8/3/2010)
2.3 percent2  Within 48 hours of the Renu recall, Bausch & Lomb's
stock price dropped from $57.67 to $45.61
Category Sales 57% of consumers stopped eating foods of a  After the Mattel recalls of 2007, other toy
certain category after a recall3 manufacturers suffered a 25% decrease in sales
from previous years5
Brand Equity Loss of sales of manufacturer’s other brands  From CNN.com: "Tylenol recalls: big opportunity for
can be as high as $2.4MM per recall4 private label rivals“6
Sources: See Appendix for source details
- 84 -

85. Attributes specific to the life sciences industry have increased the need to
proactively and effectively manage extended business relationships
Life Sciences Industry Considerations
Life Sciences
Description Impact
Consideration
 Complexity of regulatory regime: Need to comply with regulatory bodies
 Difficulty tracking increasingly complex
spanning country, regional, and international jurisdictions (e.g., FDA, CDC,
Increased regulatory compliance across supply base
HHS, WHO, ICH, EU Health Authorities)
Regulatory  Increased financial and operational burden on
Complexity  Expansion of regulations: Increasing number of regulations covering all
companies to comply with regulations (e.g.,
aspects of the supply chain (e.g., procurement, inventory management,
input organisms must be BSE-free)
manufacturing, transportation)
 Life or death impact: Non-compliance can have disastrous impacts to  Brand reputation
Greater Impact of
end-users (e.g., mis-calibrated radiation therapy machines overdosed  Increased testing required
Non-Compliance
hundreds of patients2)  Disaster planning required
 Contract manufacturing growth: Third parties produced 29% of Life
Sciences manufacturing output in 2010 vs. 21% in 20071
Growth of  Increased risk of supply disruptions, quality
 Increased scrutiny: FDA increasing their filings of consent decrees
Contract issues, and recalls if contract manufacturers
against Contract Manufacturer Organization (CMOs)
Manufacturing are not effectively managed
 Lack of CMO oversight: The average Contract Manager oversees 10
CMOs, increasing the risk of missed warning signs
Limited Supply of  Fewer qualified suppliers: Biotech companies face a significant number
Some Critical of single-source supply markets due to the difficulty to produce certain live  Increased risk of supply disruptions
Materials cultures and rarity of some raw materials
 Track and trace throughout the supply chain: Need to be able to trace
 Increased use of material tracking tools
defects back to the lot, requiring increased collaboration across the supply
Importance of Lot / required
chain
Batch Traceability  Increased need for information sharing with
 Not only a regulatory requirement but governs the impact of a quality
suppliers
issues (speed to recover, amount of goods impacted)
1 – Contract Manufacturing in Life Sciences, AMD Research, 2007
2 - http://www.antiguaobserver.com/?p=61313
- 85 -

86. Attributes specific to the financial services industry have increased the need to
proactively and effectively manage extended business relationships
Financial Services Industry Considerations
Financial
Services Description Impact
Consideration
 Increased regulatory pressure from the Office of the Comptroller of  Risk of non-compliance to tighter regulatory
the Currency (OCC): The OCC has increased their rate of enforcement and legal requirements in future
actions since the baking melt down of 2008 causing many banks and  Need to precociously identify any potential
financial services company to scramble to meet EBRM related compliance related issues of all the business
Increased requirements partners
Regulatory
 Banking-Related Regulations from Other Federal Agencies: As a  Need to update on a regular basis the existing
Pressure
response to financial crisis in 2008, Federal Reserve System increased performance metrics used to track the
reserve requirements for the banks performance of suppliers and other business
 Other Laws and Regulations: Secure and Fair Enforcement for partners for them to be consistent with most
Mortgage Licensing Act of 2008 (S.A.F.E. Act) Implementation recent regulations
 Banking sector is witnessing consolidation among small- to mid-size asset  Risk of failure to successfully integrate
management firms, FDIC assisted M&A deals. processes, information systems as well as
Increase in M&A internal stakeholders of two entities
Activity  Decreased revenue sources on account of low interest rates and slow
loan growth coupled with higher legal and compliance costs will continue  Need to have a unified risk management
to provide impetus for M&A activities in banking sector. 1 framework in place for the combined entity
 Bank failures in the US have increased significantly from meager 3 in
2007 to 146 in 2010. 2  Need to monitor and mitigate credit risk the
Increase in Bank
bank is exposed to on account of increased
Failures  FDIC fund which reimburses customers in case of a bank default instances of loan default
witnessed a deficit of $15.2 billion in June 2010.
 US banks have been increasingly outsourcing middle-level executive jobs
for key functions like accounts maintenance, risk management.  Need to have advanced data privacy and
Increase in
information security measures in place as the
Outsourcing  It is estimated that US banks will outsource back-office activities totaling back-end operations go truly global
$67.2 bn in 2015 with annual market growth of 7.6% from 2010 to 2015. 3
1 – http://www.sourcingline.com/resources/us-banks-outsourcing-middle-level-jobs-to-economize-operations
2 – http://www.reuters.com/article/2011/03/30/us-ubs-deals-idUSTRE72T2GN20110330
3 – http://www.marketwatch.com/story/bank-failures-surge-credit-crunch
- 86 -

87. Extended Business Relationship Management (EBRM) provides solutions that can
help Life Sciences companies effectively address these considerations
EBRM Solutions to Address Life Sciences Considerations
Limited Greater Importance
Increased
Growth of Supply of Impact of of Lot /
Regulatory Sample EBRM Solutions
CMOs Critical Non- Batch
Complexity
Materials Compliance Traceability
 Supplier background checks
(e.g., fraud, legal, financial)
 Supplier/CMO manufacturing
Risk
Management   -  - audits
 Secondary sources of supply
(e.g., contingency plans)
 On-going contract compliance
monitoring (e.g., to regulatory
 
requirements)
 - -
Compliance
Elements of EBRM
Management  Geographic specific requirements
gathering, implementation, and
monitoring
 Measure and track supplier/
CMO performance criteria via
 
automated scorecards (e.g.,
  -
Performance
Management deliver, quality, price, quantity,
payments, electronic data
transfers, etc.)
 Integrate information systems
across the supply chain and
 
partner base for improved
- - 
Information
Management product quality management,
supplier management, and
traceability
- 87 -

88. Recent trends in macroeconomic indicators and their implications on financial
services industry have increased the need to proactively and effectively manage
extended business relationships
Recent Trends Impact and future implications
 Public debt and federal deficit have increased at an Steep upward rise in debt and deficit since FY’ 07 are the
alarming rate over the last decade. signs of ominous future of financial services sector.
 Credit rating agency Standard and Poor's  With negative long term outlook, US debt faces a risk of
downgraded the US to AA+, its first downgrade further downgrade to AA within next two years.
since 1941.
 Chances of default will go up leading to increased credit
 US public debt currently at an unprecedented high risk.
level of $14.3 trillion is set to only increase further.
 Interest rates will go up to offset for increased investment
 Outstanding government debt in most other risk which will make debt financing even more difficult.
developed economies too has overshot widely
accepted prudent limit of a debt-gross domestic  There is a potential risk of major devaluation of USD and
product (GDP) ratio of 60%. slower domestic growth on account of higher interest rates.
 Financial services sector might see stricter laws and
Relevant Elementsregulations to comply with in future.
of EBRM
Establish and update consistently the risk management framework that successfully captures inherent risks
Risk Management
involved in a business relationship and caution about the possible loss in advance
Performance
Management
Measure and monitor key performance indicators of all the financial institution partners on a periodic basis
Compliance
Management
Track compliance of partners e.g. compliance requirements of SEC and/or other regulatory bodies
Information Gather and analyze data as well as qualitative piece of information of the business partners that enable more
Management effective risk, performance and compliance management
EBRM successfully captures various financial indicators that provide early warnings of risks and enable companies
to have proactive risk mitigation strategies in place rather than take only post crisis reactive measures.
- 88 -

89. Sources
1. http://www.reliableplant.com/Read/25897/Outsourcing-failure-tough-times
2. http://www.businessweek.com/autos/autobeat/archives/2009/09/toyota_recalls.html
3. http://www.joc.com/logistics-economy/sony-idles-japan-plants-may-shift-production
4. http://articles.boston.com/2011-06-07/bostonworks/29630335_1_child-labor-labor-cases-minors
5. http://hbr.org/product/ikea-s-global-sourcing-challenge-indian-rugs-and-c/an/906414-PDF-ENG
6. http://www.wikinvest.com/stock/Toyota_Motor_(TM)
7. http://www.businessinsider.com/oil-supply-disruptions-2011-4
8. http://www.theregister.co.uk/2001/12/05/dutch_officials_seize_cadmiumpacked_playstation/
9. http://www.siteselectiongroup.com/_blog/Site_Selection_Group/calendar/2011/3/
https://kx.deloitteresources.com/G1000/Lists/Qualification/DispForm.aspx?ID=3736
https://kx.deloitteresources.com/G1000/Lists/Qualification/DispForm.aspx?ID=30207
https://kx.deloitteresources.com/G1000/Lists/Qualification/DispForm.aspx?ID=25943
http://epaper.livemint.com/ArticleText.aspx?article=08_08_2011_001_011&mode=1#
http://www.usgovernmentdebt.us/us_deficit
Slide # 22:
http://www.marketwatch.com/story/bank-failures-surge-credit-crunch
http://www.sourcingline.com/resources/us-banks-outsourcing-middle-level-jobs-to-economize-
operations
http://www.reuters.com/article/2011/03/30/us-ubs-deals-idUSTRE72T2GN20110330
- 89 -