This document discusses the possibility of procurement collaboration between organizations using the Coupa Group Purchasing Program (GPP). It profiles three companies that use Coupa - Avalon Healthcare, Rent A Center, and BBA Aviation - and describes their procurement operations. The document outlines how the Coupa GPP allows companies to form category panels to jointly source from suppliers, formalize contracts, and achieve savings. It provides examples of categories and suppliers involved so far and calls other organizations to join the collaboration effort.

1. ©2014 Coupa Software, Inc.
Inspired Peer Collaboration
Is it possible in Procurement?
Hyrum Kirton
VP Procurement
Avalon Healthcare
David Lane
Sr. Director Strategic
Sourcing
Rent A Center
Michael Wagner
Sr. Manager Sourcing &
Procurement
BBA Aviation

2. Avalon Healthcare
Regional Long Term Care/Post Acute Care health care
provider covering 8 U.S states

3. Avalon Procurement
 Use a mix of self sourced and GPP categories
 Small procurement team focuses on mission critical spend
 Category management
 Two criteria for GPP spend
• Size of spend in the category
• Limitations with vendor require participation

4. 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 exceed $3.0 billion
 NASDAQ: RCII
 Headquarters: Plano, Texas
 Rent A Center Sourcing /
Procurement
• Centralized Sourcing Group
with over 12 members
• Manage more than 160
categories
• Reports into the CFO

5. BBA Aviation
 Global HQ in London, traded on
FTSE
 Focused on flight
support/aftermarket services for
commercial, business and general
aviation
 Currently have 12k employees in
over 220 locations
 US HQ in Orlando, FL
 Globally have 32% market share of
commercial movements
 In NA, 68% market share of
business and general aviation
 BBA Sourcing & Procurement:
• Located in Orlando
• Responsible for North and South
America procurement across all
categories
• Indirect purchases are
decentralized; all equipment
procurement is centralized
• Seat on Procurement Council with
other division procurement heads
• Two member team; responsible for
all sourcing activities
• Own Coupa relationship and the
administration part
• $268mn in spend through Coupa
in 2013

6. Why Collaborate?
Gaining leverage
So many categories, so little time
Sharing best practices

7. How To Collaborate?
Informal groups
GPOs
Coupa Group Purchasing Program (GPP)

8. Coupa GPP Structure
GPP
Steering
Committee
Compliance
Coupa Audit
Team
Customer
Members
Category
Panels
Coupa Panel
Lead
Customer
Category
Managers
Coupa
Sourcing
Team
• Customers In Control
• Industry Leaders
• Expert Panel
• Supplier Partner Interface
Category panel executes sourcing events & selects supplier partners

9. Formalizing Relationships
Members enter into contract with supplier
Coupa GPP establishes master contract with selected supplier(s)
Customers sign up for Coupa GPP membership

10. Active Category Management
 Market trends analysis
 Establish benchmarks
 Periodic sourcing events as needed for the
category
 Quarterly review of spend with members &
suppliers
 Compliance audits

11. Supplier Integration
Pre-enabled suppliers at no cost to
customers
cXML based punch-outs or catalogs or
web-forms

12. Categories, Savings, Suppliers
* Typical savings over and above the pricing negotiated by typical customers

13. Experience So Far
 Traditional GPOs are good at
• Spend aggregation, price catalog, basic contract
• We are targeting those categories
 What is different about Coupa GPP?
 Update on current sourcing projects

14. Next Steps

15. Target Categories

16. Coupa Investment
Sourcing expertise
Category management

17. Want To Join?
Contact Ashish Deshpande
Ashish.deshpande@coupa.com
650-931-3209

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