Kevin Dioquino, Procurement Manager, Lowe’s Rajesh Rajagopalan, Lead Consultant, Infosys September 25,2013 Advanced Procurement Solutions at Lowe’s A Success Story

Table of Contents 2 Introduction Lowe’s Overview Program Scope & Challenges Advanced Procurement Benefits Advanced Procurement Needs Implementation Approach Hidden Gems Advanced Procurement Solutions Business benefits realized Key Take Away Conclusion & Discussions

Introduction 3 Speakers introduction

4 Lowe’s - Overview Heritage Founded in North Wilkesboro, NC Helping customers improve the places they call home since Headquarters in Mooresville, NC Retailing 16th Largest retailer in the World Over 245,000 employees Serves more than 15 million customers a week Operates 1,750+ stores in the United States, Canada, Mexico

5 Lowe’s – Overview Financial Revenue $50.5 Billion 2012 Net Earnings of $2.0 Billion Ranked #20 on 2012 Global Powers of Retail List Awards 4 th Consecutive Energy Star Partner of the Year – Sustained Excellence Award Lowe’s Corporate Leadership Award from NABEF #1 in J.D. Power Appliance Retail Customer Satisfaction

6 Program Scope Standardize business process by embracing industry best practices Instigate control and compliance across business processes to reduce duty violation and risk Align business process and rollout new process for Canada operations Re-Implement PeopleSoft 9.1 to instigate automation and utilize new features across P2P business process

7 Program Challenges Opportunities to reduce Procure to Pay life cycle time Non Standard business process “Maverick” spend and exception handling Increased business opportunities for supplier enablement Opaque procure to pay process forcing business critical resource’s time Disparate procurement systems

8 Lowe’s Procure to Pay Identify Needs Source Vendors Negotiate Contracts Upload Catalogs Create Req Create PO Create Req Create PO Receive POA Receive ASN Receive Electronic Invoicing Make Payments Indirect P2P Sourcing Supplier Contracts Catalog Management eProcurement Purchasing eSupplier eSettlements Payables Workflow Supplier Relationship Management (SRM) Indirect Goods and Services

9 Advanced Procurement Benefits Supplier Enablement Supplier Competition Contracts to Control Spending Self Service and Workbench Audit Trail 360 Degree view of P2P Managing Rebates Spend Analytics and Dashboards Collaboration with supplier Source more from spend Drive contract compliance Ensure traceability Track full life cycle Proactive control Free cash flow Focus on strategic activities Analyze Evaluate Benefits

10 Advanced Procurement Needs Non standard processes Unapproved spend Prolonged P2P lead times Manual communication and status updates Enhanced spend control, reduce cost More automation, improved productivity, efficiency Improved compliance and simplified auditing structure Improved transparency and reduced lead time

11 Re-Implementation Approach Non Standard business process Benchmarking assessment, best practice usage “Persona” based business requirements Prolonged P2P lead time, automate business process Value based governance framework “Maverick” Spend and Exception control Preventive vs. Reactive Control Dashboard analytics, Auto provisioning Opaque P2P Process Employee empowered, transparency built in processes Disparate Systems Re-Implement P2P business process

12 Hidden Gems at Lowe’s Enhance Collaboration & Automation Extend & Enhance Sourcing Drive Contract Compliance End to End Life Cycle Visibility Improve Compliance & Reduce Risk Better Cash Flow Management Analyze Identify GEM’s Improve Best Practices

13 Advanced Procurement Solutions – Powered by Technology Enhance Collaboration & Automation Implementation of Advance Shipment Notifications Purchase Order Acknowledgements driven change orders Electronic Data Interchange solution for driving business growth Right order from the right vendor

14 Advanced Procurement Solutions – Powered by Technology Extend & Enhance Sourcing Identified opportunities for sourcing across the different Lines of Business (LOB) Empowered LOB to use and utilize sourcing Driving optimal results by re-using best practices Sourcing templates Bidder groups Sourcing workflow Bid factors Notifications

Source of truth for all transactional contracts Automatic enforcement of contract compliance on Requisitions and Purchase Orders Contract expiry date and spend threshold notifications Agreement notification to automate work trigger Automation of recurring payment vouchers 15 Advanced Procurement Solutions – Powered by Technology Drive Contract Compliance

16 Advanced Procurement Solutions – Powered by Technology End to End Life Cycle Visibility Leverage delivered dashboard to develop pagelets 360 degree view of the transaction enabling timely decisions Mass requisitions by end users with advanced notifications reducing lead time Streamline transfer of requestor information across P2P process

17 Advanced Procurement Solutions – Powered by Technology Improve Control & Reduce Risk Preventive Control AWE workflow for spend control & exception Pre-check commitments Proactive vendor based matching control Auto provisioning Detective Control Spend analytics Performance evaluation Commitments tracking Legal entity accounting

18 Advanced Procurement Solutions – Powered by Technology Better Cash Flow Management No Po, No Payment Improved automation to reduce payment lifecycle Dynamic discounting framework Automatic spend threshold control

19 Business Values Derived Enhanced Collaboration & Automation 15 % of EDI transactions increased 200 vendors moved to EDI enabled P2P Lead time reduced by 48 hrs Extend & Enhance Sourcing # of Sourcing events created in PS tripled Drive Contract Compliance 32 % increase in Supplier Contracts Volume Proactive notifications for all Voucher Contracts End to End Visibility 60 % of time savings for Buyer 25% P2P lead time saved Improved Control & Reduced Risk 30 % reduction in Reconciliation Effort 70% of time savings for Buyer & AP Clerk Better Cash Flow Management 30 % savings on P2P lead time Customization Governance: 52% customizations reduced

20 Key Take Aways Business Requirements Infosys “Persona” based requirements Workshop & CRP CRP0 – Product exploration CRP1 - Lowes business process CRP2 - Day in Life View – Train the Trainer Customization Decision Infosys Value based Governance Framework Stakeholder engagement Proactive communication to end users User Communities – Lowe’s Connections Deployment Fool Proof Go-Live rehearsals

21 Conclusion & Discussions

© 2013 Infosys Limited, Bangalore, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the prior permission of Infosys Limited and/ or any named intellectual property rights holders under this document. Thank You Kevin Dioquino - Rajesh Rajagopalan - Sudharsan Srinivasaraghavan -