1. Procurement Intelligence ­ the
fuel that accelerates ROI and
savings

2. Defining Procurement Intelligence
“The skills, tools and
and practices used to
help a business acquire an enhanced
understanding of its commercial context
to support better buying and sourcing
better buying and sourcing
decision­making.”
2

3. Agenda
§ Defining “Procurement Intelligence”
§ Why is procurement intelligence so
important
§ Using it to your advantage
Using it to your advantage
§ Building procurement intelligence
framework & adding intelligent plug­ins
framework & adding intelligent plug
3

4. Neil Deverill
Chairman of the Procurement Leaders Advisory Board
Chairman of the Procurement Leaders Advisory Board

5. The Headlines
5

6. Introduction
§ Without correct data & information procurement is no
more than a lottery
§ Missed sourcing opportunities & miscalculated
sourcing risks lead to:
§ Excessive operating & overhead costs
§ Exchange rate penalties & unseen derivative exposure
§ Technology lag
§ Loss of critical supply chain capacity
§ Procurement intelligence is too important to overlook
Procurement intelligence is too important to overlook
6

7. Spend Analysis: Who, how much & with
whom for what?
§ Spend analysis is fundamental and a starting point if
you’re spending too much
§ Improve leverage for price & other benefit advantages
§ Control off­contract spend
contract spend – uninformed and maverick
§ Remove duplicate specifications – save cost & inventory
Remove duplicate specifications
§ Optimise payment terms – synchronise to cash flow needs
§ Consolidate spend to increase your customer ranking
§ Use improved transparency to build internal relations
Use improved transparency to build internal relations
7

8. Supplier Intelligence
§ Is your supplier financially sound?
§ Ensure clarity of your future requirements to assist supplier
planning
§ Are your suppliers and their supply chains structurally stable?
§ Ask suppliers about their marketing strategies & where you fit into
them
§ Are your suppliers’ business strategies compatible with yours?
§ Senior management can flush out important facts during supplier
Senior management can flush out important facts during supplier
visits
8

9. Supplier Market Intelligence
§ Are your suppliers’ operations/sourcing strategies cost
competitive?
§ How will economic changes impact demand for your key
commodities?
§ Have your competitors recently recruited commodity traders?
§ How will regional political developments impact your business?
§ What is your foreign exchange exposure?
§ Can regional development plans assist your suppliers/ create new
Can regional development plans assist your suppliers/ create new
suppliers?
9

10. Using Intelligence to Your Advantage
§ Ensure that you create intelligent business processes
§ Create nodes for information collation & systematic dissemination
§ Use good supplier relations for ‘me too’ solutions
Use good supplier relations for ‘me too’ solutions – avoid
recreation
§ Use intelligence cross­functionally
functionally
§ Ensure collective actions arise from intelligence
§ Plan how to use intelligence to motivate your suppliers
Plan how to use intelligence to motivate your suppliers
10

11. Executive Summary
§ Timely use of Procurement Intelligence turns amateurs into
serious players
§ Economic and geopolitical events continually create new
opportunities that can provide competitive advantage
§ It is probable that some competitors know more than you do
§ Internal intelligence will provide control and lower costs
§ Market intelligence identifies financial risk, exposure, but also
opportunities
§ Supplier intelligence ensures your supply chains work optimally
Supplier intelligence ensures your supply chains work optimally
11

12. Building procurement intelligence framework &
adding intelligent plug‐ins
Presented by
© 2009 Zycus Inc. All rights reserved

13. AGENDA
Presented by
ü Zycus Overview
ü Building Procurement Intelligence Framework
ü Adding Intelligent Plug‐ins
ins
ü Implementation Approach
ü Intelligent investment decisions
13
© 2009 Zycus Inc. All rights reserved

14. Zycus – Continued Success Story
§ Recognized as one of the Top 3 Global Market Leaders in
Recognized as one of the
A worldwide leader in Spend Management Domain by leading analysts and Industry
observers
Spend Management .
§ More than
More than 150 customers in 15 countries across industry
Software solutions verticals
.
§ One of the most
One of the most rapidly growing customer base with a growth
rate of 50%
rate of 50% ‐ 70% year on year
.
§ Receives
Receives Red Herring 100 Asia & Global 200 2008 Award ‐
Cited as one of the most promising private tech firms with
Asian origin
.
§ Profitable, Global organization with multiple offices in US,
Profitable, Global organization with
Europe and Asia
Europe and Asia
“
“ Zycus, the Spend Management provider has quietly branched
out from a leadership position in the data cleansing and
classification market to offer a wide array of sourcing, contract
management and analytics capabilities, all of which are quite
novel in their approach to the market.”
novel in their approach to the market
Jason Busch, Spend Matters
14 © 2009 Zycus Inc. All rights reserved

15. Why Zycus?
Easy to use SaaS based software solutions that accelerate ROI
ü Flexible deployment options based on immediate priorities and goals
ü Creative pricing models linked to ROI
Faster user adoption
ü Web 2.0 software that requires minimal training
ü Entire suite built on a single frame work that facilitates integration
ü Efficient International support: UI and support in multiple languages
“Zycus is a strong alternative to pricier ERP products. In
Zycus is a strong alternative to pricier ERP products. In
this economy, best of breed continues to advance, which
begs the question, what will the ERP vendors do to counter
and stop the movement to best.”
Mickey North Rizza‐
Mickey North Rizza
Research Director, AMR Research.
Research Director, AMR Research
15 © 2009 Zycus Inc. All rights reserved

16. Why Zycus?
ü Dedicated customer success manager
§ Regularly track and measure customer ROI and user adoption
§ Share and help implement best practices that enhance user adoption
ü Agile product management methodology
§ 4­5 product upgrades delivered seamlessly in a year eliminating wait time of 6
5 product upgrades delivered seamlessly in a year eliminating wait time of 6­12 months to get a critical
feature in the product
§ Strong process to include customer voice in the Product road map
ü Dedicated and responsive delivery and customer support team
§ Rated 9 or 10 on the scale of 10 in customer satisfaction surveys every quarter
§ Support through phone, email and unique tools like chat, follow me browsing etc
Support through phone, email and unique tools like chat, follow­
“We consider Zycus to be an excellent provider of Spend Management technology. They are very responsive; it's an effective product
“We consider Zycus to be an excellent provider of Spend Management technology. They are very responsive; it's an effective pr
and technology solution.” ‐ Miguel Miciano, Director of procurement, Amgen.
Director of procurement, Amgen.
16 © 2009 Zycus Inc. All rights reserved

17. Zycus Spend Management Solutions
Analyze Spend & identify Source and Implement Manage Savings &
savings opportunities savings contract compliance
Spend Analysis Strategic Sourcing Contract Management
Products
> Auctoclass > iSource > iContract
> iAnalyze
> Opportunity Identification > Category Sourcing services > Contract Audit Services
Services
services > Event Management services > Contract Digitization &
> End to End services Migration
> AI based classification > Powerful and easy event > Contract compliance
Differentiators
engine modeling > Contract to market
> Opportunity tracker > Exhaustive & easy analysis indices linkages
> Powerful and easy > Guided & free text search
collaboration
17 © 2009 Zycus Inc. All rights reserved
© 2009 Zycus Inc. All rights reserved

18. Building Procurement Intelligence Framework
Framework
Recommendation Benefits
SPEND ANALYSIS § Spend by supplier/commodity/
§ Consolidate spend data BU & other dimensions
§ Classify & analyze the data leveraging § Eliminate maverick spend
software § Identify leakages, e.g. PPV
§ Refresh periodically § Manage opportunity pipeline
18
© 2009 Zycus Inc. All rights reserved

19. Adding intelligent plug‐ins
Recommendation Benefits Benefits+
SPEND ANALYSIS § Spend by supplier/commodity/ § More spend under
§ Consolidate spend data BU & other dimensions management
§ Classify & analyze the data leveraging § Eliminate maverick spend § Increased sourcing
software § Identify leakages, e.g. PPV efficiency
§ Refresh periodically § Manage opportunity pipeline
Opportunity
Identification
& Assessment
19
© 2009 Zycus Inc. All rights reserved

20. Building Procurement Intelligence Framework
Framework
Recommendation Benefits Benefits+
SPEND ANALYSIS § Spend by supplier/commodity/ § More spend under
§ Consolidate spend data BU & other dimensions management
§ Classify & analyze the data leveraging § Eliminate maverick spend § Increased sourcing
software § Identify leakages, e.g. PPV efficiency
§ Refresh periodically § Manage opportunity pipeline
Opportunity
Identification
& Assessment
SOURCING § Competitive negotiations
§ Create a web‐based platform § Easily 5%
5%‐25% more savings
§ Automate sourcing process § Reduction in sourcing cycle time
§ Plan adoption by over 25%
20
© 2009 Zycus Inc. All rights reserved

21. Adding intelligent plug‐ins
Recommendation Benefits Benefits+
SPEND ANALYSIS § Spend by supplier/commodity/ § More spend under
§ Consolidate spend data BU & other dimensions management
§ Classify & analyze the data leveraging § Eliminate maverick spend § Increased sourcing
software § Identify leakages, e.g. PPV efficiency
§ Refresh periodically § Manage opportunity pipeline
Opportunity
Identification
& Assessment
SOURCING § Competitive negotiations § 10%‐35% increased
§ Create a web‐based platform § Easily 5%
5%‐25% more savings savings
§ Automate sourcing process § Reduction in sourcing cycle time § Right price,
§ Plan adoption by over 25% suppliers to source
Sourcing
Strategy
21
© 2009 Zycus Inc. All rights reserved

22. Building Procurement Intelligence Framework
Framework
Recommendation Benefits Benefits+
SPEND ANALYSIS § Spend by supplier/commodity/ § More spend under
§ Consolidate spend data BU & other dimensions management
§ Classify & analyze the data leveraging § Eliminate maverick spend § Increased sourcing
software § Identify leakages, e.g. PPV efficiency
§ Refresh periodically § Manage opportunity pipeline
Opportunity
Identification
& Assessment
SOURCING § Competitive negotiations § 10%‐35% increased
§ Create a web‐based platform § Easily 5%
5%‐25% more savings savings
§ Automate sourcing process § Reduction in sourcing cycle time § Right price,
§ Plan adoption by over 25% suppliers to source
Sourcing
Strategy
CONTRACT MANAGEMENT § Enhanced contract Visibility
§ Create dynamic contract repository § Auto alerts & reminders
§ Consolidating contracts across BU’s § Reduction in maverick spend
§ Upload contracts
22
© 2009 Zycus Inc. All rights reserved

23. Adding intelligent plug‐ins
Recommendation Benefits Benefits+
SPEND ANALYSIS § Spend by supplier/commodity/ § More spend under
§ Consolidate spend data BU & other dimensions management
§ Classify & analyze the data leveraging § Eliminate maverick spend § Increased sourcing
software § Identify leakages, e.g. PPV efficiency
§ Refresh periodically § Manage opportunity pipeline
Opportunity
Identification
& Assessment
SOURCING § Competitive negotiations § 10%‐35% increased
§ Create a web‐based platform § Easily 5%
5%‐25% more savings savings
§ Automate sourcing process § Reduction in sourcing cycle time § Right price,
§ Plan adoption by over 25% suppliers to source
Sourcing
Strategy
CONTRACT MANAGEMENT § Enhanced contract Visibility § Higher contract
§ Create dynamic contract repository § Auto alerts & reminders compliance
§ Consolidating contracts across BU’s § Reduction in maverick spend § Plug saving
§ Upload contracts leakages
Spend to
Contract match
23
© 2009 Zycus Inc. All rights reserved

24. Implementation Approach
§ Understand the primary pain area
} Spend Invisibility
} Cumbersome manual sourcing process
} Lack contract compliance
§ Start where it hurts you most
§ Complete the process in a phased manner
24
© 2009 Zycus Inc. All rights reserved

25. Intelligent investment decisions
§ When your primary driver is Spend Analysis
} Couple with eSourcing
} Follow it up with contract management
§ When your primary driver is eSourcing
} Couple with Contract management
} Follow it up with Spend analysis
§ When your primary driver is Contract Management
} Couple with Spend Analysis
} Follow it up with eSourcing
§ You can implement all three at one go
25
© 2009 Zycus Inc. All rights reserved

26. World Leader in Medical devices accelerates savings of over 6 Million US
dollars within 6­8 weeks with Zycus' iSource.
8 weeks with Zycus' iSource.
Profile
§ Large med‐tech company and a global leader in its field
§ Operates in 32 countries and generates annual sales of $3.4B
Business Challenges
“The intuitive UI and the
§ Critical analysis of suppliers to ensure they source the best medical equipment in a highly
controlled industry guided navigation of Zycus
§ Expensive process to be able to meet critical quality parameters due to manual iSource further facilitated the
sourcing process
ease of use and continues to
§ Tremendous time pressure from hospitals to meet their scheduled and urgent requirements
accelerate global adoption””
Solution – Zycus iSource
§ Manual processes were automated
§ Accelerate ROI – Enable global organization to easily and quickly use the solution with minimal training
§ Increased savings by enabling sourcing managers to implement lean analysis with ease
Results
§ Savings of over $6 million in a project that lasted 6‐8 weeks resulted in a cost reduction of 30
8 weeks resulted in a cost reduction of 30‐35%
§ Total volume of spend sourced during pilot approx $18M across 40+ unique items
§ Managed entire event (event authoring, event scheduling, event scoring and ranking, event analysis and awarding) on behalf
of the suppliers
26 © 2009 Zycus Inc. All rights reserved

27. Zycus’ Spend Management Solution enables Norwegian giant to save 100 Mn USD
Zycus’ Spend Management Solution enables Norwegian giant to save 100 Mn USD
Profile
§ A 350‐year‐old conglomerate & one of the largest listed company
on the Norwegian stock exchange
§ Turnover exceeding NOK 70 billion (10 billion USD)
§ Rapidly expanding into new business areas though mergers & acquisitions
“The Zycus solution enables us to
Business Challenges capture the inter‐company synergies in
§ With operations in countries as dispersed and linguistically diverse, the company purchasing, thus creating substantial
predicted severe challenges to the profitability of its businesses value and revolutionizing the
§ Upward strain on raw material prices
possibilities for collaboration.”
§ Pressure on the company’s bottom lines
Sr. Project Manager
Spend Success
§ Spend Visibility
§ Solution Efficiency
§ Sustainability and spend control
Results
§ The initiative provided spend transparency across 40+ ERP platforms and systems in less than six months
§ A customized taxonomy structure that reflects supplier market was developed to gain visibility and valuable supplier sight.
§ The solution was implemented under extreme time pressures to meet overall plan of reducing spend by approximately 850 M NOK
(approximately 100 M USD) by 2008
§ The company continues to realize savings with Zycus spend analysis solution, setting even higher ambitions going forward
27 © 2009 Zycus Inc. All rights reserved

28. THANK YOU !
Presented by
Anurag Dixit
Vice President, Marketing, Zycus Inc.
+1 888 451 0145
anurag@zycus.com
www. zycus.com
© 2009 Zycus Inc. All rights reserved 28