The document summarizes a panel discussion on strategic sourcing. Nadia Malek of Cirque du Soleil and Marc Calhoun of Abercrombie & Fitch discussed their companies' strategic sourcing challenges and successes. Calhoun outlined Abercrombie & Fitch's lack of strategic direction, controls, and supplier management. He explained how implementing Ariba's sourcing modules incrementally helped create a holistic sourcing approach. The panel emphasized that strategic sourcing is critical for businesses and must be a comprehensive, ongoing process rather than a one-time initiative.

1. #AribaLIVE
@ariba
When Sourcing Gets Tough, the Tough Get
Sourcing: Driving Sustainable Sourcing
Benefits Beyond the Quick Hit Opportunities
© 2015 Ariba – an SAP company. All rights reserved.
Speakers
Nadia Malek, Cirque du Soleil
Marc Calhoun, Abercrombie & Fitch
Moderator
Michael Koch – Ariba, an SAP Company

2. #AribaLIVE @ariba
Agenda
• Overview and Introductions
• Panel Presentations
 Nadia Malek, Senior Director, Cirque du Soleil
 Marc Calhoun, Senior Procurement Specialist, Abercrombie &
Fitch
• Q&A
© 2015 Ariba – an SAP company. All rights reserved.2

3. #AribaLIVE @ariba
CPOs Need Help to Navigate a Changing Environment
Competing Pressures on Procurement Organizations
© 2015 Ariba – an SAP company. All rights reserved.3

4. #AribaLIVE @ariba
Strategic Sourcing – A Critical
Procurement Goal Year over Year
78% Best- in -Class organizations
consider Strategic sourcing a critical
or prominent role
7% increase in Strategic Sourcing
technology investment
17% increased focus on Strategic
Spend Categories
16% increase in improving Supplier
relationships
48% of organizations expecting
modest growth in Economic outlook
Source: Aberdeen Group

5. #AribaLIVE @ariba
Panelists
© 2015 Ariba – an SAP company. All rights reserved.5
Nadia Malek
Senior Director- Supply Chain
Cirque du Soleil
Marc Calhoun
Senior Procurement Specialist
Abercrombie & Fitch

6. #AribaLIVE @ariba
Agenda
• Overview and Introductions
• Panel Presentations
 Nadia Malek, Senior Director, Cirque du Soleil
 Marc Calhoun, Senior Procurement Specialist, Abercrombie &
Fitch
• Q&A
© 2015 Ariba – an SAP company. All rights reserved.6

7. #AribaLIVE @ariba
Agenda
• Overview and Introductions
• Panel Presentations
 Nadia Malek, Senior Director, Cirque du Soleil
 Marc Calhoun, Senior Procurement Specialist, Abercrombie
& Fitch
• Q&A
© 2015 Ariba – an SAP company. All rights reserved.7

8. #AribaLIVE
@ariba
When Sourcing Gets Tough, The Tough Get
Sourcing. Driving Sustainable Sourcing Benefits
Beyond the Quick Hit Opportunities
Marc Calhoun, Sr. Procurement Specialist, Abercrombie & Fitch, Inc.
04/08/2015
© 2015 Ariba – an SAP company. All rights reserved.

9. #AribaLIVE @ariba
Who We Are…
© 2015 Ariba – an SAP company. All rights reserved.9
Abercrombie & Fitch Co., operates as a global retailer of casual apparel for men, women, and kids.
Its stores sell casual apparel, such as knit shirts, graphic t-shirts, jeans, and woven shirts; and
personal care and other accessories under the Abercrombie & Fitch, abercrombie and Hollister.
A&F operates a total of 1,022 stores. They include:
• Domestic
278 Abercrombie & Fitch stores
154 abercrombie kids stores
486 Hollister Co.
• International
17 Abercrombie & Fitch
6 abercrombie kids stores
101 Hollister Co.
Our e-commerce websites can be found at www.abercrombie.com, www.abercrombiekids.com and
www.hollisterco.com.

10. #AribaLIVE @ariba
Abercrombie & Fitch Challenges
• Lack of strategic category direction
• Minimal procurement controls with limited
supporting technology
• No aggregate view of spend data
• No contract management repository
• No formal supplier management process
© 2015 Ariba – an SAP company. All rights reserved.10

11. #AribaLIVE @ariba
Tactical vs. Strategic Sourcing
11
• Process (def): A series of [tactical]
actions or steps taken in order to
achieve a particular end.
- How do I source a particular commodity?
- What steps are involved in creating an RFP?
• Technology (def): A collection of
techniques, methods, or processes used
in the production of goods or services or in
the accomplishment of objectives.
- Are tools available to assist with the issuance of an
RFP?
- What analytics can provide insight into key program
data?
Process
Technology
Holistic (Strategic) Sourcing

12. #AribaLIVE @ariba
ANALYZE
CATEGORY
SPEND
DEVELOP
BUSINESS
NEEDS
ASSESS
SUPPLY
MARKETS
DEVELOP
CATEGORY
STRATEGY
EXECUTE
STRATEGY
IMPLEMENT
NEW
AGREEMENTS
SUSTAIN
RESULTS
KEYACTIVITIESDELIVERABLES
FINANCIAL BASELINE SOURCING STRATEGY EXECUTE CONTRACT
GATES
1 2 3 4 5 6 7
•ID stakeholders,
sourcing team
•Roles and
responsibilities
•Work plan
•Collect internal
baseline
•Understand
requirements
•Sign-off on
baseline
•Document
current sourcing
approach
•Develop market
insight
•ID opportunities
•Develop sourcing
strategy
•Align on potential
opportunity
•Finalize
objectives
•Develop supplier
selection criteria
•Develop supplier
list
•Profile supplier
capabilities
•Filter using pre-
screening criteria
•Review final list
•ID Strategic
Sourcing position
•Align
stakeholders with
strategy and
workplan
•Develop go-to-
market approach
•Develop/publish
RFPs
•Analyze bids
•Develop
negotiation plan
•Develop award
scenarios,
anticipated
benefits
•Create
negotiation team,
hold negotiations
•Finalize awards
•Notify suppliers
•Create transition
team
•Develop
implementation
plan
•Finalize contracts
•Implement new
agreements
•Track
performance
•Participate in
savings audits
•Periodically re-
evaluate
purchases and
supplier
performance
•Team member/
stakeholder list
•Workplan
•Draft cost model
•SWOT analysis
•Current
procurement
process map
•Incumbent
supplier list
•Supplier
assessment
matrix
•Sourcing
Strategy
•Negotiation plan
•Draft transition
plan
•Stakeholder
approval
checklist
•Signed contracts
•Finalized
transition plan
•Key Learning
report
•Supplier
management
plan
•Savings tracking
plan
12 © 2015 Ariba – an SAP company. All rights reserved.

13. #AribaLIVE @ariba
Ariba Sourcing Overview
© 2015 Ariba – an SAP company. All rights reserved.13
Spend Analytics eSourcing* Contracts
Discovery
Supplier Mgmt
2014 – Load, validation, and
enrichment of Peoplesoft spend
information.
2010 – RFx issuance, proposal
review, supplier selection.
2011 – Iasta (1st generation)
2014 – Request for
contracts.
In progress: Load of 6K-8K
contracts.
TBD – No technology
solution
Legacy A&F Environment
* Primary module; singularly utilized until 2014. Limited impact without the additional supporting modules.

14. #AribaLIVE @ariba
Holistic Supplier Management
• Definition: characterized by comprehension of the parts of something as intimately
interconnected and explicable only by reference to the whole.
 Single repository where all supplier data
is connected
 Toolset with comprehensive supplier view
– Supplier spend, Contracts awarded, Scorecards
© 2015 Ariba – an SAP company. All rights reserved.14
?Supplier
Management
Spend
Analytics
ContractseSourcing

15. #AribaLIVE @ariba
Incremental Steps to Big Success
© 2015 Ariba – an SAP company. All rights reserved.15
• Internal Partnership
• Gain buy-in by creating value for areas outside of Procurement
(i.e. Legal, Finance)
• External Partnership
• Work with a partner that can bring technical expertise/support to strategic procurement goals
• Crawl, Walk, Run…(1 module at a time)
• Understand your data
• System information is only as good as what’s input / effort used to normalize data
• Outcomes: Better conversations with stakeholders
regarding strategic supplier relationships
• Viewed as extension of the business team
• Upstream involvement in budget discussions

16. #AribaLIVE @ariba
Agenda
• Overview and Introductions
• Panel Presentations
 Nadia Malek, Senior Director, Cirque du Soleil
 Marc Calhoun, Senior Procurement Specialist, Abercrombie &
Fitch
• Q&A
© 2015 Ariba – an SAP company. All rights reserved.16

17. #AribaLIVE @ariba
Strategic Sourcing is no longer something an organization plans
on implementing. Strategic sourcing is today, as the future quickly
becomes the present
Source: Aberdeen Group, Strategic Sourcing-The future is Now, July 2013
© 2015 Ariba – an SAP company. All rights reserved.17

18. #AribaLIVE @ariba
Please Complete Session Survey
Locate Session
18
Click
Surveys
Button
Select
Breakout
Survey
Rate Session
Thank you for joining us
© 2015 Ariba – an SAP company. All rights reserved.

19. #AribaLIVE @ariba
© 2015 Ariba – an SAP company. All rights reserved.19 © 2015 Ariba – an SAP company. All rights reserved.19
Contact Us
Contact Information: (Panelists)
Nadia Malek
Nadia.Malek@cirquedusoleil.com
Marc Calhoun
Marc_Calhoun@abercrombie.com
Contact Information: (Moderator)
Michael Koch
michael.koch04@sap.com