Providing Business Opportunities for Local Community-based & Diversity Suppliers Presented by: Vira Homick Director, eBusiness Purchasing Services October 6, 2011 Presented by: Vira Homick Director, eBusiness Purchasing Services October 6, 2011

Presentation Agenda About Penn & Purchasing Services Supplier Diversity Overview Supplier Opportunities eProcurement at Penn Open Discussion

About Penn Private Ivy league institution in West Philadelphia –20K+ fulltime undergraduate and graduate students Largest private employer in the city of Philadelphia –16K+ University Of Penn faculty and staff –15K+ University of Penn Health System staff

About Purchasing Services Manages the University's supplier diversity initiatives Responsible for Penn’s procure-to-pay process, eBusiness systems, sourcing initiatives & supplier diversity program Partnership with the PA MBEC to develop diversity supplier capabilities and capacity to meet Penn's purchasing requirements

About Purchasing Services Partnership with the Philadelphia Area Collegiate Cooperative (PACC) to include diversity supplier inclusion in group purchasing opportunities – FY11 total diversity supplier spend was $115M –Approximately 16% of total purchase order spend Actively recruiting diversity suppliers for participation in the Penn Marketplace, Penn's private online shopping website –56 of 200 participating suppliers are diversity owned –

Supplier Diversity Overview The Opportunities: –Local engagement is one Penn Compact’s institutional priorities –Formal annual diversity supplier contracting and spend goals –Commitment to diversity supplier development with PA MBEC Our Strategy: –Define significant opportunities for qualified suppliers –Recruit majority owned contract suppliers for diversity partnership opportunities –Leverage Penn supplier opportunities with other local institutions The Challenges: –Large & decentralized buying community –Competing business objectives

The Opportunities Penn contracts for a wide range of products and services, construction, equipment & supplies –$718M in FY11 Formal supplier diversity program with annual contracting and spend goals –FY2012 Goal – 100M Direct contracting opportunities as well as partnership with existing contract suppliers

Our Strategy Identify qualified suppliers for major opportunities –Match supplier capabilities and capacity to the right commodity opportunity Promote the development of eBusiness capabilities Leverage supplier relationships via the University Purchasing Initiative (UPI) with MBDA-PA –Participate in quarterly Purchasing Day events at the Enterprise Center –MBDA-PA helps your company find available contracts but can also consult you in the application process.

The Challenges Penn’s eBusiness technology requirements create a challenge for some suppliers Resources required to service and support a large, decentralized campus Emphasis on cost containment in response to the current economy

Supplier Opportunities Current Penn suppliers –Have a clear understanding of your company’s core commodity & business capabilities and capacity –Work collaboratively with the Strategic Sourcing Manager responsible for specific commodity –Look for assistance to develop your eBusiness capabilities and online presence –Partner with MBDA -PA for supplier assessment services

Supplier Opportunities New diversity suppliers: –Visit the “Doing Business with Penn” web site –Contact MBDA Business Center for an appointment Jacqueline Hill at (215) –Complete the supplier assessment process Participate in SciQuest’s Supplier Network - build your content to be available to their customer base –Visit – Become a supplierwww.sciquest.com

eBusiness technologies: –Fully automated procure-to-pay system (Oracle Financials) –Electronic catalog content –Penn Marketplace(SciQuest) –Electronic document transmission for purchase orders and invoices (Global Exchanges Services) –Online RFPs, bidding & reverse auctions (Iasta) –Electronic settlement/payment (Bank of America ePayables)

eProcurement at Penn –Penn Marketplace – private online exchange hosted by SciQuest Inc. –SciQuest assists in the enablement process of targeted diversity and local community suppliers with the use of their content management tools –All suppliers are on the same level playing field –Easy to use online ordering system –Allows end users to compare product offerings –Identifies suppliers with diversity classifications

Penn Marketplace

Recent Penn Success Stories Penn Print & Interactive Communications Program: –3 West Philadelphia (PEARL PRESSMAN, UNIVERSITY COPY SVC,Wharton Repro) –12 diversity/woman-owned suppliers ( AME DESIGN, COMPAS/SINGULARITY, CRW GRAPHICS, GECKO GROUP, GHI GRAPHIC ARTS,IMOGEN DESIGN, KALNIN GRAPHICS, OLD YORK ROAD, PATRICIA MOLLO, SEVEN ATE NINE, SINGULARITY,TEN ELEVEN DESIGN) SHI International Corp. –In collaboration with the Office of Software licensing – SHI is a software reseller providing a service through the Penn Marketplace to our user community TIG computer equipment, peripherals and services –Completed eBusiness ramp-up quickly and efficiently Elemental Inc. –eWaste recycling and disposal

Continued Penn Success Stories Telrose Corp, tier-one partner for Office Depot –Awarded HP Ink/Toner bid as well as providing consolidated ink/toner recycling program Neta Scientific, sole source supplier for Corning research products at Penn –Product offering expanded to include Strategene products and Agilent product and services

Open Discussion Questions? Comments? Suggestions? Concerns?