OAUG Northeastern Oracle Applications & Technology Symposium (OATS) Leveraging Technology for ROI Joint Presentation with Yale University & Rutgers University June 9, 2003

2 Presentation Agenda Purchasing Objectives New Challenges Measuring Progress Key Accomplishments Performance Metrics Conclusion

3 Purchasing Objectives Make purchasing easy - increase compliance and utilization by reducing time & effort related to purchasing activities Focus on core competencies - enable purchasing staff to focus on contracting, supplier relationship management, sourcing, and cost saving opportunities Leverage technology - implement technology to reduce cycle time, eliminate manual effort, reduce cost and promote change management

4 New Challenges Shift focus of purchasing staff to value added core competencies Develop and enhance relationships with internal customers, external suppliers and senior management Engage customers in development of purchasing strategies and initiatives Identify and implement emerging purchasing technologies & business strategies

5 Measuring Progress Campus wide adopting of iProcurement as primary purchasing tool Purchasing staff has embraced new vision and technologies Dramatic decrease in order creation effort and cycle time Customer & senior management satisfaction is at an all-time high Strategic suppliers are realizing significant increase in business

6 Key Accomplishments 92% of all purchase orders created, approved, and electronically transmitted to suppliers in less than one hour 54% of purchase orders issued to the 31 Penn marketplace suppliers (25,000+ in supplier database) 45% of invoices received via EDI $65.5 Million in documented hard dollar product & service cost savings 68% reduction in maverick buying Purchase activity for 224 deactivated supplier shifted to Marketplace suppliers

7 Performance Metrics Spend Management - measure utilization of approved buying tools, contract suppliers & reduction in maverick buying Process Efficiencies - calculate impact of change to business processes & elimination of paper/manual processing Cost Savings - leverage Penn’s buying power to reduce cost Compliance - measure compliance with approved policies and procedures

8 Conclusion At Penn, ROI has been realized by the…. campus wide adoption of eProcurement tools increased customer satisfaction with redesigned business processes reallocation of central resources to value added activities results of strategic purchasing and cost savings initiatives