Denise Foley, Vice President of Procurement at AutoNation, discussed her stakeholder management philosophy. She emphasized the importance of obtaining senior executive buy-in for all sourcing initiatives. This includes establishing partnerships with business sponsors early and ensuring financial stakeholders understand how savings will be measured and reported. She also stressed including both internal and external subject matter experts to support sourcing decisions. Her overarching message was that any sourcing project that cannot demonstrate clear measurement of savings should be re-evaluated before moving forward.

1. B Procurement Is from
Pluto; Stakeholders
Are from Saturn:
Insights for Creating
Strategic, Value-Driven
Stakeholder Relationships
© 2012 Ariba, Inc. All rights reserved.

2. Agenda
Introduction
Panel Discussion
Denise Foley – VP of
Procurement, AutoNation
Mike McLellan - Vice President Strategic
Sourcing, Caesars
Jean Jacques Beaussart – Former CPO,
Key Bank
Q&A
2 © 2012 Ariba, Inc. All rights reserved.

4. Innovative
Collaborative Fast and
Efficient
3 year growth rate: 194%
4

5. A Tool-Agnostic, Highly Efficient Shared-Service Solution - Focused
on Procurement Execution
Over $20 billion in spend sourced Supporting 18 languages
4 Global delivery centers; 3 partner centers Average Savings: 16%
Service Offerings Selected Customers
Program Management
Spend Analysis
On-Demand Category Expertise
RFx and Auction Management
Contract Execution and Administration
Supplier Performance Administration
Procure-to-Pay (P2P)
5

6. 6

7. 7

8. Is there a secret sauce?
Get Close to Your Stakeholders!
8

9. 9

10. 10

11. 11

12. 12

13. 13

14. Agenda
Introduction
Panel Discussion
Denise Foley – VP of Procurement,
AutoNation
Mike McLellan - Vice President Strategic
Sourcing, Caesars
Jean Jacques Beaussart – Former CPO,
Key Bank
Q&A
14 © 2012 Ariba, Inc. All rights reserved.

15. Connecting With Your Stakeholders
Denise Foley
Vice President of Purchasing, CPO and
Vice President Payroll Shared Service Center
Fort Lauderdale, FL

16. AutoNation is the largest automotive retailer in
the United States
AutoNation, Inc. owns and operates 258 new vehicle franchises located in
15 states. AutoNation stores sell 32 different brands of new vehicles.
AutoNation offers a range of automotive products and services, including
new vehicles, used vehicles, parts and automotive services, and
automotive finance and insurance products. AutoNation operates in three
segments: Domestic, Import, and Premium Luxury.
During the year ended December 31, 2011, new vehicle sales accounted
for 54% of the company's total revenue, used vehicle sales accounted for
25%, parts and automotive services accounted for 18%, and finance and
insurance products accounted for 3%.

17. I have been at AutoNation for over 15 years
• In 1996, managed consolidated accounting, training, and support to financial
staff of 32 mega used vehicle stores
• In 1998, decentralized accounting moved transactional processing to stores
• In 1999, IT and HR implemented payroll software solution
• In late 1999, AutoNation closed/sold property or converted used vehicle mega
stores to new vehicle franchise stores – promoted to Director of Payroll
• In 2001, consolidation of payroll to ten District Payroll Centers
– Collected compensation plans and built automated compensation tools
– Manage store variable compensation plans that include standardization, terms &
conditions, reporting on production, modeling
• In 2005, moved District Payroll Centers to a single Shared Service Center (SSC),
an 18-month process
• In January 2008, AutoNation Purchasing department was added to my
responsibilities
• Currently Vice President of Purchasing, CPO and Vice President of Payroll

18. I have faced some unique challenges
since 2008
• January 2008 – Right-sizing efforts our #1 focus, to reduce costs
• Consolidating back offices to single Shared Service Center (SSC)
• Purchasing Department – new leadership
• People - Purchasing staff limited and decentralized
• Processes - Different by store, by department, and corporate
• Technology – lacking, and difficult to leverage where available
• Data integrity and availability is particularly challenging

19. My stakeholder management philosophy
All sourcing deliverables MUST have
Senior Executive buy-in to be successful
• Both Corporate and Regional sponsorship is critical at AutoNation; set
expectations in advance of contract signing
• Establish partnerships with business sponsors early in sourcing process
• CFO and financial teams must understand how to measure and identify
the savings on the financials; make sure vendor is able to deliver
reporting to support internal financials
• Include both internal and external subject matter experts to support
sourcing decisions
• If you cannot measure – stop and identify how to overcome the
measurement issues before moving forward

20. Of utmost importance…

22. Q&A
Contact info:
Sundar Kamakshisundaram: sundar@ariba.com
22 © 2012 Ariba, Inc. All rights reserved.

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