Procurement Services Michael Victor Apale TransProcure Corporation January 17, 2005 Manila,Philippines

STRATEGIC PROCUREMENT E-PROCUREMENT SOLUTIONS VALUE ADDED SERVICES PROCUREMENT OUTSOURCING TransProcure Services

 Strategic Procurement  Procurement Consulting  Spend Profiling  Strategic Sourcing  Supplier Accreditation & Certification TransProcure Services

First and most important step in our consulting process is understanding our client’s business nature, their business concerns, organizational structure, and procurement processes  Conduct and analyze current spend profile  Identify areas of opportunity for cost savings  Paves the way to enhance procurement proficiency and profitability “knowing what you buy, where you buy & strategize how to buy “ “knowing what you buy, where you buy & strategize how to buy “ Strategic Procurement Procurement Consulting

 Strategic Procurement  Procurement Consulting  Spend Profiling  Strategic Sourcing  Supplier Accreditation & Certification TransProcure Services

Strategic Procurement Spend Profiling  Presents major spend areas  Leverages purchase volumes  Formulates Sourcing Wave Plan  Exhibits supplier fragmentation

 Strategic Procurement  Procurement Consulting  Spend Profiling  Strategic Sourcing  Supplier Accreditation & Certification TransProcure Services

Strategic Procurement Strategic Sourcing  Evaluating current supply situation, building strategic relationships with suppliers, and carefully planning a total cost model for a short & long term procurement initiatives.  Sourcing Strategies : Product Specification Improvement A4 paper Subs shts/rim A4 paper Subs shts/rim A4 paper Subs shts/rim A4 paper Subs shts/rim

BottleneckItems Non-Critical Items StrategicItems Leverage Items Potential Value High Low High Low Strong Position Relative To SG’s Market Weak Position Relative To SG’s Market Exploit Buying Power Create An Advantage Strategic Procurement Technical Complexity SourcingAnalysis

Strategic Procurement Strategic Sourcing  Evaluating current supply situation, building strategic relationships with suppliers, and carefully planning a total cost model for a short & long term procurement initiatives.  Sourcing Strategies : Product Specification Improvement A4 paper Subs shts/rim A4 paper Subs shts/rim A4 paper Subs shts/rim A4 paper Subs shts/rim Joint Process Enhancement Relationship Restructuring

Strategic Procurement Strategic Sourcing  Evaluating current supply situation, building strategic relationships with suppliers, and carefully planning a total cost model for a short & long term procurement initiatives.  Sourcing Strategies : Volume Concentration Redistribute volume among suppliers Pool volume across units Consolidate no. of suppliers Best Price Evaluation Global & Regional Sourcing

 Strategic Procurement  Procurement Consulting  Spend Profiling  Strategic Sourcing  Supplier Accreditation & Certification TransProcure Services

Strategic Procurement Supplier Accreditation  Benefit from our category expertise and knowledge of particular industries  Develop and standardize the supplier accreditation process, database content and compilation of required business documents PASSED

 Strategic Procurement  Procurement Consulting  Spend Profiling  Strategic Sourcing  Supplier Accreditation & Certification TransProcure Services

TransProcure Services STRATEGIC PROCUREMENT E-PROCUREMENT SOLUTIONS VALUE ADDED SERVICES PROCUREMENT OUTSOURCING

COMPLETE PROCUREMENT OUTSOURCING Procurement Outsourcing Transactional  P.O. Processing  Expediting  Procure to Pay  Logistics supports services OUTSOURCED OUTSOURCED OUTSOURCED OUTSOURCED OUTSOURCEDOUTSOURCED P.O. ProcessingExpeditingProcure-2-PayLogistics Outsourced procurement allows enterprises to focus on their core competence while their spend is managed efficiently by world class procurement professionals.

Procurement Outsourcing International Purchasing Office  Buying Office  Best-Cost Country Sourcing  Global & Regional Sourcing Sourcing

TransProcure Services STRATEGIC PROCUREMENT E-PROCUREMENT SOLUTIONS VALUE ADDED SERVICES PROCUREMENT OUTSOURCING

Procurement Services  E-Procurement Solutions  Software implementation & hosting  On-demand e-Procurement Service  HelpDesk/Technical Support  Global Deployment

Software implementation E-Procurement Solutions eProcurement System eBidding System  Improve controls and efficiencies efficiencies  Generate economies of scale  Ensure procurement compliance compliance  Reduction in PR-PO approval cycle time cycle time  Develop optimal sourcing  Determine best market price  Transparency in bidding process process  Reduction in bidding cycle time time

Software implementation E-Procurement Solutions E-Sourcing: Process for Deciding Who to Buy from at What Price E-Procurement: Process for Buying Direct and Indirect Goods & Services 1.Analyze purchases to identify opportunities to get better price and/or services 2.Identify new and existing potential suppliers 3.Solicit RFQs and evaluate,potentially using reverse auction 4.Choose best supplier on multivariable basis 5.Manage contract with selected supplier 1.Create employee-facing catalog with selected vendors’ offerings at negotiated prices 2.Electronic workflow for requisition/ purchase order with approvals 3.Submit purchase orders to supplier and receive goods 4.Pay supplier for purchased goods or services 5.Collect data on employee spending patterns

Solutions Hosting Hosted by TransProcure Servers E-Procurement Solutions eBidding System eProcurement System

HelpDesk Support E-Procurement Solutions eProcurement SystemeBidding System  TransProcure has a multi-lingual Helpdesk service operating for several leading global companies

TransProcure Services STRATEGIC PROCUREMENT E-PROCUREMENT SOLUTIONS VALUE ADDED SERVICES PROCUREMENT OUTSOURCING

Procurement Services  Value Added Services  Training & Development  Executive Search & Staffing  Procurement Audit & Reviews  Materials Coding & Standardization  Consortium buying

Training & Development  Training services that strengthens your procurement foundation, proficiency & effectiveness:  Procurement Best Practices  Customized Training Programs  World-class Certification Programs Value Added Services Public Public Procurement Procurement Training System Training System Modular Modular Learning Learning System System Certified Certified Purchasing Purchasing Manager Manager

Executive Search & Staffing  TransProcure can augment your recruitment needs particularly in building a roster of competent procurement & sourcing professionals and executives who are at the top of their field, to add more value and infuse their expertise into your procurement organization. Value Added Services

Executive Search & Staffing  TransProcure can augment your recruitment needs particularly in building a roster of competent procurement & sourcing professionals and executives who are at the top of their field, to add more value and infuse their expertise into your procurement organization Value Added Services

Executive Search & Staffing  TransProcure can augment your recruitment needs particularly in building a roster of competent procurement & sourcing professionals and executives who are at the top of their field, to add more value and infuse their expertise into your procurement organization Value Added Services

Procurement Audit & Review We have the procurement expertise and experience in conducting spend management initiatives such as procurement audit. Value Added Services Good Governance Record Management Process Control Policy Compliance

Materials Coding & Standardization  Better planning and control of the products and services  Key to driving accurate organization and correlation of spend data  Reduction of duplicate inventories  Best-in-class organizations have adopted a common internal taxonomy or industry standard classification schema, such as the “ United Nations Standard Products & Services Code ” or UNSPSC. Value Added Services The UNSPSC system is an open, global electronic comm erce standard that provides a logical framework for classifying goods and services. The UNSPSC is designed to serve three primary functions: Resource Discovery - the identification of relevant suppliers of a specific product or service Expenditure Analysis - reporting on the use of funds Product Aw areness - the integration of one’s products or services into the common nomenclature that Prospe ctive customers use to search for products and services Methodology The UNSPSC began as a merger between the United Nation’s C ommon Coding System (UNCCS), itself based on the United Nations Common Procurement C ode (CPC), and Dun & Bradstreet’s Standard Product and Service Codes (SPSC). To merge the two ations Development Programme (UNDP) established a Code Transition Team. First, the team merged the UNCCS and the SPSC code structures. Next, they removed duplicat e clablic documents (such as company catalogs, industry publications, and Hierarchy Category Number and Name Segment 44 Office Equipment, Accessories and Supplies 10 Office Machines and their supplies and accessories 11 Office and desk accessories Family 12 Office supplies 15 Mailing supplies 16 Office supplies 17 Writing instruments 18 Correction media Class 19 Ink and lead refills 01 India ink 02 Lead refills Commodity 03 Pen refills

Consortium Buying  Ability to network, benchmark best practices and enhance supply market expertise  Leverage aggregated purchasing power  Optimize cost reduction and value added contractual terms & conditions Value Added Services

TransProcure Services STRATEGIC PROCUREMENT E-PROCUREMENT SOLUTIONS VALUE ADDED SERVICES PROCUREMENT OUTSOURCING