High level overview of Archstone Consulting\'s Sourcing and Procurement Practice. May 2011

1. Sourcing and Procurement Practice Overview Archstone Consulting Archstone Consulting, a Hackett Group company May 2011

2. The Hackett Group – Who are we? Our client list includes over 2,700 companies The global leader in enterprise G&A best practice insight and organizational effectiveness We understand how the best do it, where they do it and the benefit of doing it Implementation advice comes from over 4,000 benchmark studies We address both efficiency and effectiveness including strategic business enablement Our efforts have delivered over $90 billion in sustainable cost savings $25 billion of improved cash flow benefits Delivery of actionable solutions through Benchmarking Business Consulting Functional and Process Advisory programs Technology implementation services 88%of the Dow Jones Global Titans 45%of the FTSE 100 97%of the Dow Jones Industrials 35% of the CAC 40 73%of the DAX 30 73%of the Fortune 100

4. Serving a portfolio of the world’s leading companies

5. Procurement services focused on driving accelerated value:

6. Procurement transformation & organization design

7. Spend & opportunity analysis

8. Strategic sourcing & outsourcing advisory

9. Category management support

10. End-to-end Procure-to-Pay (P2P) Process improvement

11. Widely recognized for our Procurement expertise:

12. On the Board of the Sourcing Interests Group (SIG)

13. Selected to Brown-Wilson Group’s The Black Book of Outsourcing’s Top Ten “Boutique Outsourcing Advisory” list

14. One of the “World’s Best Outsourcing Advisors” as rated by IAOP™

15. Extensive experience in developing innovative solutions to the complex issues facing the CPO

18. Supplier master management

19. Item master/content management

20. Catalog management

21. Contract master management

22. Requisition and PO Processing

23. Requisition processing

24. Purchase order processing

25. Requisition and purchase order support

26. Supplier Scheduling

27. Supply requirements review

28. Supplier scheduling

29. Order release

30. Inbound tactical supply management

31. Delivery coordination

32. Receipt Processing

33. Materials and goods

34. Services

35. Compliance Management

36. Internal Compliance Management

37. External Compliance

38. Customer Management

39. External Customer Management

40. Internal Customer Management

41. Product Development and Design Support

42. Sourcing Execution

43. Requirements definition and supplier bidding

44. Negotiation and supplier contract creation

45. Supplier Management and Development

46. Supplier Management

47. Supplier Partnering

48. Function Strategy and Performance Management

49. Strategic and operational planning

50. Sourcing and Supply Base Strategy

51. Sourcing and Supply Base data gathering

53. Function oversight

54. Personnel management

56. A Multi-Faceted Procurement Process Design Model Procurement Strategy Strategy Alignment Governance Performance Mgmt Portfolio Analysis Strategic Category Management Demand & Compliance Management CategoryPerformance Management Category Strategy Category Stratification CategoryGovernance Supplier Relationship Management Supplier Stratification SRMGovernance SRM Performance Mgmt Supplier Development Systems  Data  Organization Risk Management Ongoing Risk Management and Mitigation Visibility / Monitoring Risk Model Definition Supply Chain Management Inventory Management Operations Management Design Planning Delivery Strategic Sourcing ProfileCategory DevelopSourcing Strategy IdentifySuppliers Evaluate Suppliers Monitor & Manage Negotiate Transition Procurement Operations Requisition Management PO Management Receiving Payment

58. Strategy and role in the business

59. Organization and capability development

60. Understanding of procurement technologies

61. Outsourcing leadership from strategy to execution

62. Deep category knowledge and expertise

63. Focus on delivering immediate and lasting value

65. Roles and Responsibilities Definition

66. Capability Assessment, Development, Training and Education

67. Department Operations (Office of the CPO)

68. Change Management

69. Performance Metric Design

70. Procurement and Supply Functional Strategy Definition/Alignment with Overall Business Strategy including defining the role of

71. Cost, Marketing and/or Innovation Focus

72. Central Procurement Department

73. Role of Functional Centers

75. Procurement, Contract Management, Sourcing and Transactional Process Design

76. Systems Selection and Implementation Support

77. Outsourcing Opportunity Assessments

78. Various functional and business areas

79. Outsourcing Contract Negotiations

80. SLA Development

81. Designing Processes and Supporting Systems to Manage Procurement and Sourcing Department Operations

82. Spend Analysis and Opportunity Diagnostic

83. Process Development and Training

84. Strategic Sourcing

85. Low Cost Country Sourcing (LCCS)

86. Category/Sourcing Group Definition

87. Sourcing Group Strategy Development

88. Category Action Plan Development

89. Supplier Relationship Management

91. Call Center Services

92. Facilities Repair & Maintenance

93. Hardware (e.g., bolts, screws, etc.)

94. IT Hardware

95. IT Software

96. Janitorial Services

97. Landscaping Services

98. Leased Fleet

99. Legal

100. Machined Parts

101. Management Consulting

102. MRO Supplies

103. Marketing

104. Office Equipment & Supplies

105. Print Services

106. Professional Services

107. Promotional Items

108. Raw Materials (Steel, Aluminum, etc.)

109. Recruitment

110. Security Services

111. Small Package Delivery

112. Telecommunications

113. Temporary Labor

114. Transportation & Logistics (3PL, TL/LTL, Air, Ocean)

115. Travel

116. Utilities

118. Freight

119. Ground (LTL, TL, Small Parcel)

120. Air

121. Ocean

122. MRO Supplies

123. MRO Services

124. CMO

125. Travel

126. Agency

127. Air

128. Rental cars

129. Hotels

130. Office supplies

131. Transportation

132. Fuel (bulk diesel, OTR retail, fleet fueling)

133. Telecom – voice

134. Telecom – data

135. Telecom – wireless

136. Telecom – equipment

137. Servers, PCs

138. Routers, Switches

139. Software and licenses

140. Contract programming

141. Outsourcing contracts

142. Media planning and buying

143. Advertising agency

144. Direct mail

145. Commercial printing

146. Free standing inserts

147. Trade Shows

148. Promotions

149. Office equipment

150. Office furniture

151. Private Fleet

152. Facilities and Equipment

154. Construction services

155. Transportation

156. Third-party Logistics

157. Audit and Payment

158. Utilities

159. Janitorial

160. Building maintenance and repairs

161. Landscaping

162. Security services and personnel

163. Temporary labor

164. Consulting services

165. Research services (CROs)

166. HR services

167. Fulfillment services

168. Testing services

169. Customer service

170. Packaging (paper, corrugate, plastic)

171. Plastic (resin, molding, etc)

172. Flavors, fragrances and other additives

173. Fuel

174. Glass

175. Injection and Blow Molded Components

176. Waste removal

177. Lighting, Ballasts, Re-lamping

178. Carpet

179. Chemicals (specialty and commodity)

180. Wood

181. Electronics

182. Steel

183. Fabricated metal components

184. Private label consumer products

186. Hackett’s Sourcing and Procurement Services – Representative Clients Organization Design ProcurementStrategy Strategic Sourcing Category &Supplier Mgmt Technology-enablement OutsourcingStrategy and Execution Department Operations

188. We bring significant intellectual capital(templates, benchmarks, best practices, methodologies, training materials, etc) to category sourcing and spend analysis

189. We have senior, experienced staffthat can enable results both through sourcing diagnostics, and category sourcing

190. We have deep category expertisein many categories – including industry-specific categories

191. We have considerable contracting experienceand can assist with the development of beneficial contract language for the categories which we source

192. We work closely with our clients; typically on-site; in a supportive, collaborative manner that is neither intrusive or disruptive but results focused

193. We have defined operating practiceswhich can be used to train staff, effectively manage project work load and more clearly communicate with internal customers as well as suppliers

194. We are truly independentof any software provider or tool setRight Capabilities Right Resources Right Approach