University of Pennsylvania Next Generation of the Penn Marketplace Supplier Forum August 26, 2003

Supplier Forum Agenda Welcome and Introductions Welcome and Introductions Penn Marketplace Enhancement Project Penn Marketplace Enhancement Project About the Penn MarketplaceAbout the Penn Marketplace Enhancement Project ObjectivesEnhancement Project Objectives Overview of Penn’s eProcurement SolutionOverview of Penn’s eProcurement Solution Advantages & Disadvantages to SuppliersAdvantages & Disadvantages to Suppliers Supplier Enablement Strategy Supplier Enablement Strategy Penn Marketplace Supplier Testimonial Penn Marketplace Supplier Testimonial SciQuest’s SpendDirector Demonstration SciQuest’s SpendDirector Demonstration Supplier Enablement Requirements Supplier Enablement Requirements Data SubmissionData Submission Rich DataRich Data Catalog ContentCatalog Content Next Steps and Q & A Next Steps and Q & A

About the Penn Marketplace Penn’s private supplier exchange implemented in January 2002 Penn’s private supplier exchange implemented in January 2002 Recognized as leading eProcurement solution in higher education Recognized as leading eProcurement solution in higher education Hosted content business model for most commonly ordered items Hosted content business model for most commonly ordered items Buying method used by all faculty and staff with purchasing authorization Buying method used by all faculty and staff with purchasing authorization Participating suppliers are currently receiving 54% of all purchase transactions Participating suppliers are currently receiving 54% of all purchase transactions Commitment to and greater utilization of eProcurement at Penn is a top senior management business objective Commitment to and greater utilization of eProcurement at Penn is a top senior management business objective

Enhancement Project Objectives Streamline buying experience for faculty and staff by reducing time & effort related to creating purchase transactions Streamline buying experience for faculty and staff by reducing time & effort related to creating purchase transactions Reduce errors associated with non-marketplace supplier requisitions through greater use of marketplace suppliers Reduce errors associated with non-marketplace supplier requisitions through greater use of marketplace suppliers Increase variety and volume of “preferred supplier” catalog content and Penn specific pricing Increase variety and volume of “preferred supplier” catalog content and Penn specific pricing Ensure contract compliance, eliminate maverick buying, and shift purchase activity to Penn Marketplace suppliers Ensure contract compliance, eliminate maverick buying, and shift purchase activity to Penn Marketplace suppliers Issue 70+% of purchase transactions to Penn Marketplace suppliers Issue 70+% of purchase transactions to Penn Marketplace suppliers

Penn’s eProcurement Solution SciQuest SpendDirector Search electronic catalog View rich product data & details Link to suppliers’ websites for additional detail Create requisitions for any Penn Marketplace supplier item Supplier 1Supplier 2 Oracle iProcurement Researcher, Faculty and Staff Workstation Approver Reviews Requisition Fax or EDI Supplier Receives PO

Advantages & Disadvantages No cost to the supplier No cost to the supplier Direct channel to reach University faculty and staff Direct channel to reach University faculty and staff Opportunity for preferred positioning in search results Opportunity for preferred positioning in search results Opportunity to significantly increase sales and market share Opportunity to significantly increase sales and market share Non-participation will be a competitive disadvantage Non-participation will be a competitive disadvantage No product visibility to faculty and staff in the Penn Marketplace No product visibility to faculty and staff in the Penn Marketplace Non-catalog orders require significantly more time and effort to create Non-catalog orders require significantly more time and effort to create

Supplier Enablement Strategy Purchasing Services identified key suppliers Purchasing Services identified key suppliers Target supplier list derived from a recently completed university-wide spend analysisTarget supplier list derived from a recently completed university-wide spend analysis Analysis driven by University’s faculty and staff buying habits, pricing and overall importance to the University’s missionAnalysis driven by University’s faculty and staff buying habits, pricing and overall importance to the University’s mission Supplier participation requires establishment of new or renegotiated “preferred supplier” pricing agreement Supplier participation requires establishment of new or renegotiated “preferred supplier” pricing agreement Penn specific catalog content development based on mutually agreed upon product offering and previous Penn purchase history Penn specific catalog content development based on mutually agreed upon product offering and previous Penn purchase history Suppliers required to provide content to SciQuest, Penn’s eProcurement business partner Suppliers required to provide content to SciQuest, Penn’s eProcurement business partner

Marketplace Supplier Testimonial TKR Biotech Products Theresa Ruch - President

SpendDirector Demo Bobby Feigler SciQuest Founder Account Executive Phone:

Supplier Enablement Requirements Data Submission Data Submission SciQuest Catalog Management Tool (CMT) formatSciQuest Catalog Management Tool (CMT) format Excel spreadsheet template Excel spreadsheet template UPenn contract pricing and list pricingUPenn contract pricing and list pricing Pricing is confidential. Only UPenn authorized users will see your pricing Pricing is confidential. Only UPenn authorized users will see your pricing Provide Rich Data Provide Rich Data Robust product descriptionRobust product description ImagesImages Web site linksWeb site links KeywordsKeywords Product attributesProduct attributes

Link to detailed product information on supplier’s own web site Detailed description of image Image Detailed product description (Note: suppliers are encouraged to embed links throughout product description information) Electronic Catalog Data

Supplier Content Maintenance Regular product and/or price updates (usually on a quarterly basis) Regular product and/or price updates (usually on a quarterly basis) All price file updates will be approved by Purchasing Services prior to loading into production environment All price file updates will be approved by Purchasing Services prior to loading into production environment Price file updates should include Stock-Keeping Unit (SKU), Unit of Measure (UOM), Price Price file updates should include Stock-Keeping Unit (SKU), Unit of Measure (UOM), Price Catalog Management Tool (CMT) to be used for product additions/deletions Catalog Management Tool (CMT) to be used for product additions/deletions

Next Steps for Supplier If catalog currently exists at SciQuest: If catalog currently exists at SciQuest: Send Penn contract price file to SciQuest at by September 19, 2003Send Penn contract price file to SciQuest at by September 19, 2003 Send catalog updates to ensure freshness of content and completeness of catalog by September 19, 2003Send catalog updates to ensure freshness of content and completeness of catalog by September 19, 2003 If new supplier catalog: If new supplier catalog: If you have not received the CMT via , request the CMT from you have not received the CMT via , request the CMT from Send catalog and Penn contract price file to by September 19, 2003Send catalog and Penn contract price file to by September 19, 2003 Send DUNS number and supplier contact informationSend DUNS number and supplier contact information

Contact Information Vira Homick – eProcurement Manager Vira Homick – eProcurement Manager Phone Ralph Maier – Associate Director of Purchasing Phone Chris Bordeaux – Supplier Enablement Mgr. SciQuest Phone