Ensure Our Future

WAR Stories Financial Transactions System Assumptions instead of Detail in SOW Include Purchasing = Value KPMG audited process and procedures Looking for Opportunities in IT – no new ideas Shows value of purchasing Vendor management Excellent SOW adds value Management of Contract is real value Increase Our Value 2

Have you ever experienced something like this? Increase Our Value 3

Questions about value? If your job no longer existed, what value would be lost for your company? In an ideal world, what value would your job provide for your company? What would have to change inside your company in order to enable your “ideal job”? What things are you/could you do to help enable this change inside your company? How do people feel when they interact with you to accomplish a goal? Increase Our Value 4

IT Sourcing Must Tight connectivity to organization and supply market Spend visibility across all platforms Implement formal category management Have clearly defined processes and established procurement roles Activities translated into Cost Avoidance or Cost Savings = VALUE. Increase Our Value 5

Define Sourcing in Your Company Strategic Differentiator; or Drives Value; or Strategic with non-value added activities Increase Our Value 6

Strategic Differentiator Viewed as a strategic differentiator and Company willingly invests to become and remain world-class Companies will invest and supplement Sourcing Activities with Tools & outside Consulting Increase Our Value 7

Drives Value Can drive significant value but does not receive internal investment and focus; or Companies will move towards Outsourcing Procurement activities Increase Our Value 8

Strategic with Non-Value Added Activities Viewed as strategic; with non-value added activities that will be shifted to a Third Party Companies will move towards a Hybrid Sourcing Organization Increase Our Value 9

Outsourced Processes Strategic Sourcing and Category Management Transactional Buying Support Transaction Automation and Processing Increase Our Value 10

Reasons for Outsourcing Improve overall procurement performance Achieve greater cost savings Access best in class tools and resources without internal investment Gain freedom and flexibility Focus on core competencies Apply limited resources to mission-critical business functions Increase Our Value 11

Reasons for Outsourcing Attain greater control and reporting Improve compliance of vendor contracts Improve SLA’s Improve pricing Enhance compliance of internal procurement policies and procedures Increase Our Value 12

What if it always went like this? Increase Our Value 13

Thank You! Questions? Increase Our Value 14