Global Strategic Sourcing Business Review with Joe Sutton June 26, 2000

Business Review Agenda 1. Mission 2. Organization 3. Savings Objective Update 4. Diversity Sourcing 5. Origination 6. iBuyIt.com

Mission Continually and tangibly lower Enron’s overall total cost of ownership while enhancing service quality. Facilitate new opportunities for Enron’s business units. Rationalize Enron’s supplier base including development and utilization of minority/women business enterprises. Provide process improvements and technology solutions that cost effectively enable and enhance the entire Supply Chain. Foster knowledge transfer across the enterprise on all facets of Global Strategic Sourcing.

Planning through Payment Standards Planning Sourcing Enron Performance Process and Platforms Diversity Vendor Performance Negotiation Execution

Organization

2000 Savings Breakdown

Diversity Sourcing 2000 MWBE spend goal = 15%

Origination

To build an integrated, Internet powered procurement platform that : The iBuyIt.com Vision To build an integrated, Internet powered procurement platform that : Serves all required applications and information in a single environment. Integrates Enron and its suppliers in a single,seamless digital environment. Enables efficient procurement processes through paperless automation and workflow. Reduces costs through single point integration and catalog content outsourcing. Adapts to the changing needs of user communities.

The iBuyIt.com Platform

iBuyIt.com Value Opportunity Reduced procurement transaction costs Reduced interface support costs Reduced catalog content costs Increased order accuracy Improved user satisfaction Increase demand aggregation Future commercial P2P options

Project Timeline 1 2 3 4 Months 15 days 15 days 2 d 17 days 15 days Project Funded Initial Site Selected Hire GSS Team 15 days Select Implementation Partner 15 days SCMC Strategy Session 2 d Finalize Contracts 17 days Gather Requirements 15 days Develop Prototype 45 days Create Training Materials 45 days System Testing 15 days Refine Design 30 days Deliver Training 15 days Development Freeze Production Build 15 days Content Development 105 days Supplier Integration 105 days Go Live 1 2 3 4 Months