The document discusses effective collaboration in the new normal and includes panels from BBVA Compass, Sonoco Products, and Reed Elsevier. Each panelist discusses their company overview and supply chain challenges, and how they implemented Ariba supplier performance management solutions to address issues like a lack of standardized supplier information, performance management programs, and critical supplier identification. The panels also provide key takeaways on defining goals, processes, roles and accountability to effectively manage supplier performance.

1. Effective Collaboration in
the New Normal
Panel Members:
BBVA Compass – Amanda Frith
Sonoco Products – Jennifer Roberts
Reed Elsevier – Scott Meiser
© 2010. Ariba, Inc. All rights reserved.

2. Agenda
• Opening Comments
• BBVA Compass – Amanda Frith
• Sonoco Products – Jennifer Roberts
• Reed-Elsevier – Scott Meiser
• Panel Discussion
• Wrap up
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3. Managing Supplier
Information and
Performance
Amanda Frith – VP of Supply Chain Management
BBVA Compass
© 2010. Ariba, Inc. All rights reserved.

4. Company Overview
• BBVA Compass • BBVA
♦ Founded 1964 as Central Bank ♦ Madrid, Spain
by Harry Brock ♦ Francisco González (Executive
♦ Jose Maria Garcia Meyer, chairman), José Ignacio
Chairman & US Country Goirigolzarri (President
Manager and COO)
♦ Manolo Sanchez, President ♦ $785 Billion in Assets
♦ HQ Birmingham, AL ♦ 7,600 Branches
♦ 14,000 Employees ♦ 30 Countries
♦ 741 Branches ♦ 105,000 Employees
♦ 15 Largest U.S. Bank ♦ www.bbva.com
th
♦ www.bbvacompass.com
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5. Challenges
• Procurement Consolidation and • No Enterprise-Wide Supplier
Centralization Performance Management Program
♦ Technology ♦ Manual Process
♦ Business ♦ Only Technology Suppliers
• No Standardization of Required ♦ Limited Supplier Risk Management
Supplier Information
• Lack of a Complete Critical Supplier List
♦ Data only gathered at time of bid.
♦ Define “Critical”
♦ No central repository for existing or
♦ Large number of suppliers
potential supplier data
• Transformation and Reporting fragmented among business units
♦ Identify Critical Suppliers and
Requirements
♦ BBVA Global Supplier Certification monitor performance
Standards • Audit Findings
♦ Access to supplier data for ♦ April 30, 2010 Deadline
Corporate Purchasing
5
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6. Solution
• Ariba Supplier Performance Management
♦ Electronic Registration and Certification Process
♦ Electronic Supplier Performance Management Process
• Implementation
♦ Three Months
♦ Two Employees
♦ Identified and Completed Scorecards on top 35 suppliers
in two weeks
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7. Results
• Supplier Certification
♦ Centralized repository of supplier information
♦ Formal approval process for suppliers
♦ Better supplier risk management
♦ Compliance with BBVA Group Certification Policy
• Supplier Performance Management
♦ Automated and scalable process
♦ Electronic surveys
♦ Centralized repository
♦ Identification of “at risk” suppliers
♦ Standardized key performance indicators
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8. Key Takeaways
• Identify Your Organization's Goals
♦ Risk management
♦ Communication of strategic objectives
♦ Better decision making
♦ Supplier alignment
• Define Process
♦ Create Consistent Metrics (KPIs) and Measurements
♦ Define roles and responsibilities
♦ Create and communicate a review schedule
♦ Hold business liaisons and suppliers accountable
8 © 2010. Ariba, Inc. All rights reserved.

9. Managing Supplier
Relationships
Jennifer Roberts – Director, Supplier Systems
Sonoco Products
© 2010. Ariba, Inc. All rights reserved.

10. Sonoco Overview
• Founded 1899 in
Hartsville, S.C.
• Diversified provider of
consumer and industrial
packaging and services
• $4.1 billion in sales
• 300 plants in 35 countries,
17,500 employees
• Products sold in 85 countries
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11. Sonoco Overview
Consumer Packaging Packaging Services
Rigid Paper Flexible Packaging Point-of-Purchase Service Centers
Industrial Products
Rigid Plastic Ends and Closures Global Tubes and Cores Protective Packaging
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12. Challenges in Managing Suppliers
• How many suppliers should you manage?
• What percentage of spend should you manage?
• Does it make sense to scorecard all suppliers?
• Managing and Measuring Service Suppliers
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13. Results in Managing Suppliers
• Developed process for determining if a supplier
should be managed
• Determined if supplier was a scorecard or business
review supplier
• Determined if supplier was global or needed to be
managed regionally
• Developed process for rolling out globally and determining
supplier involvement
13 © 2010. Ariba, Inc. All rights reserved.

14. Key Takeaways: Managing Suppliers
• Not all suppliers need to be ‘scorecarded’
• More important to manage supplier reviews than worry
about getting a supplier score
• Review suppliers in program annually
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15. Managing Supplier
Performance and Risk
Scott Meiser, Director of Sourcing and Performance
Management
Reed Elsevier
© 2010. Ariba, Inc. All rights reserved.

16. Who is Reed Elsevier?
• A world-leading publisher and information provider targeting the science and
medical, legal and risk management, and business to business sectors
♦ Parent company to:
– Lexis Nexis
– Elsevier
– Choicepoint
– Reed Business Publications
– Reed Exhibitions
♦ 2009 Revenues: £6,071m/€6,800m ($8.9B)
• Our Procurement Profile:
♦ $3.2 billion in spending across 100,000 suppliers
♦ Distinct business units with varying levels of Procurement acumen
• Procurement Objectives:
♦ Deliver Cost Savings while
– Creating a centralized and globalized procurement organization
– Implementing Fiduciary Controls & Risk Mitigation where none existed
– And enhancing the Employee Experience
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17. What is Supplier Management to
Reed Elsevier?
• What Supplier Management is not:
♦ “Stand alone” process
♦ Static/disjointed scorecards
♦ Supplier performance reviews
(unidirectional v. 360o)
• What Supplier Management is:
♦ Open dialog
♦ Embedded throughout
Procurement lifecycle
♦ 360o relationship review
♦ Creating incremental value through
win-win initiatives
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18. Risk Management
Framework
• Frequency of Occurrence
♦ During Sourcing
♦ During Supplier Management, and
♦ On an on-going basis
• Categories of Risk
♦ Legal
♦ Financial
♦ Data Security
♦ Business Continuity
♦ Social Responsibility/Risk
• Variety of Tools
♦ Standard Ariba Content
♦ News Feeds
♦ Scorecards/Surveys
♦ Audits
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19. Highlight: Standard Ariba
Content
• Problem: Absent standards, risk categories are evaluated inconsistently from project
to project
♦ Prioritization of criteria differs (criteria are either excluded or weighted differently)
♦ Evaluations differ (e.g. what is a “bad” revenue number?)
• Problem: Sourcing Experts are expected to be experts in “everything” (financial statement
evaluations, IT security risks, business continuity, etc.)
• Solution:
♦ Standard content in every eRFx for NDA, Code of Conduct, and Financial and Social Responsibility Risks
♦ Simply worded questions for Sourcing Expert results in standard, auto-scored and auto-weighted content
♦ Consistent content in eRFx and Supplier Management survey – always evaluating the same
♦ Direction to Expert to target grade if “failed”
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20. Highlight: Standard Ariba
Content “Failed” doesn’t sound “Collaborative”…
…But we tell
suppliers what we’re
looking at…
…we have no
intention of
sharing and
protect BOTH
parties…
…And we’re even clear that
it is NOT an elimination
criteria BUT NOT
PROVIDING IT CAN BE…
• Example: Travel industry segment
♦ Nearly every short-listed company “failed” the financial risk segment
♦ NOT indicative of poorly run companies but of poor market conditions
♦ Engaged in meaningful dialog
♦ Agreed to closely review financial data on an on-going basis
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21. Highlight: Standard Ariba
Content
We also have a more-collaborative view of Auctions…
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22. Highlight: News Feeds
“…If we could only schedule bankruptcy around Sourcing and Quarterly Reviews…”
• On-going monitoring of negative news for Preferred Suppliers
♦ Lexis Nexis Publisher feeds updated hourly
♦ Global news sources
♦ Not all news is actionable but provides a starting point for Supplier Relationship Manager
♦ Available via e-mail, SharePoint and RSS Feed into Ariba
♦ NOT restricted to Procurement users
• Example:
♦ Entity temporarily blocked from doing
business in EU country by regulators
♦ Supplier notified customers on Monday
♦ But Reed Elsevier knew on prior Friday due
to news feeds
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23. Highlight: Performance
Feedback FROM Suppliers
Are we a good customer?
• Standard section in every Supplier Performance Management survey
♦ May not always be positive
♦ However, identifies relationship improvement opportunities
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24. Where are we and
what’s next?
• Where are we?
♦ Standard content is live in the eRFx process
♦ News feeds are live and continue to be refined
♦ SPM pilot conducted in 2009
• What’s next?
♦ Institutionalize risk framework (on-going)
♦ Continued enhancement of risk framework (e.g., anti-corruption) (on-going)
♦ Steady state Supplier Performance Management (2010)
♦ Supplier Information Management
– Recognizing RFx and Survey responses as supplier knowledge and storing and
maintaining via Ariba SIM (TBD – pilot in 2010)
– With an eye on centralization on Supplier information (e.g., including AP data) and
standardized workflow sometime in the future (TBD)
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25. Discussion
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26. 26 © 2010. Ariba, Inc. All rights reserved.