1. iSave Synergy Savings Management Training
17 January, 2017

2. Agenda Background Synergy Savings Process iSave Live-Demo Q&A
iSave Team
Subject Matter Experts (SMEs)
Synergy Savings Process
Savings Categories
Key Definitions
Parent/Child Process
Approval Process
Approval Thresholds
iSave Live-Demo
Q&A

3. Background

4. iSave Team Paul Duff Sheena Anthony JaJa Stoudemire
Global Indirect Sourcing Governance & Analytics Leader
Sheena Anthony
Savings Program Manager
Support Team
JaJa Stoudemire
iSave Analyst
Elizabeth Meisberger
iSave Analyst
Ankush Lodha
Savings Finance Leader
Ankith Asthana
Savings Reporting Leader
David Bushong
iSave Intern
Subject Matter Experts (SMEs)
26 SMEs
Genpact Team
Srikanth Gollapadi
Gopi Anandan
Nizam Cs
Presentation Title

5. Subject Matter Experts (SMEs)
Business, Commodity or Region
Team
First Name
Last Name
Location
SSO
Business Leader
Verfied
Business
Aviation
Jessica
Hataway
Cincinnati, Ohio
Aaron Burkhart Y
Transportation
Sven
Verbroekken
Fort Worth, TX
Sven Verbroekken
Healthcare
Kimberly
Thompson
Nevada
Bret Estes
Power
Tara
Wight
Schenectady NY
Randy Rowe
Renewable Energy
Corporate
Shawanna
Brown
Atlanta, GA
Energy Connections
Hugo
Rocha
Garcia, NLE, MX
Jaime Robles
Oil & Gas
Esther
Akindele
Houston, TX
Milosz Bieda
Appliances & Lighting
David
Csaba
Budapest, HU
Henry Nieman
Global Research Center
Anthony
Sinopoli
Niskayuna, NY
Gary Blond
Commodities IT
Habeeb
Alaidroos
Alpharetta, Georgia
Sam Guertin
MRO Ed
Landry
Mike Bennett
Facilities Mgmt
Ron
Reed
Utilities
Bruce
Foust
Georgia
Richard Tutela
Logistics
Charles
DeCalonne
Mark Chadwick
T&L/Fleet
Jamie
Blough
Betty Sweetman
Prof Services
Srivani
Nagavelli
Hyderabad, Telangana, IN
Florence Imadali
Labor Services
Region
ASEAN
Hooi Keng
Teoh
Kuala Lumpur, Malaysia
Sanjeev Gupta
India
Kamaljit
Singh
Bangalore, India
Tushar Cherekar
China
Melody Ma
Shanghai, China
Jason Wang
MENAT
Mohsin Abdul
Ghani
Dubai, AE
Hisham Zorgan
SSA
Catherine
Idun
Accra, GH
Anne Jason
Adilson
Paulo
Luanda, AO
LATAM
Andre
Araujo
Rio de Janeiro, BR
Carlos Milczwski
Europe
Fabrice
Izzi
Filip Mandic
Russia
Canada
Mississauga, Canada
Vivian Xiao
ANZ
Min-jung
Lee
Seoul Korea
Hee Ju Yoon
Korea & Japan
Hiroyuki
Kohyama
Hino Japan
Thanks to all the SMEs who have helped build the tool & design the spec!

6. Vision of the Savings Management Project
From To
Various tools with no global visibility of savings across P&L’s, Regions or GCL’s
One tool with Global Visibility of savings across P&L’s, Regions or GCL’s
Tool
Inconsistent savings standard calculation across P&L’s, Regions & GCL’s
Standard
Consistent, standardized savings standard calculation across P&L’s, Regions & GCL’s
Approval
No formal individualized project approval process for within sourcing or finance teams
Formal approval process with thresholds by business

7. Savings Categories 1 2 Category Components Financial treatment
Deflation
Price deflation/inflation
Reconcile to ledger
Usage
-a)
Usage reduction
Reconcile to ledger
New purchase
Cost Avoidance
Cost avoidance
Inflation mitigation
Cost Avoidance
Rebates
Track absolute cash amount
Separate cash target for Rebates 1 2
Reconcile to ledger
Cost Avoidance
Year over year cost reduction driven by Sourcing. Savings align to income statement.
P&L impact: Yes
Reduction of spend that would have not occurred without Sourcing’s involvement.
P&L impact: No
(a- Savings recorded must have been driven by Sourcing

8. Reconcile to Ledger 1
Savings that deliver year over year cost reductions achieved through lower price or usage attributed to the activities of the Sourcing function.
Deflation = (CY average price - Prior TY avg price) x CY annual volume
Usage = (PY volume – CY volume) x PY average price
These are the predominant formulas, please refer to Savings Standard document for more information.
Guiding principles
Reported savings must be led by the Sourcing function.
Both inflationary and deflationary results of Sourcing activities must be recorded.
Savings must be a year over year impact to the P&L.
A baseline of 12-months spend must exist for deflation to be calculated.
Savings can only be recorded for a maximum 12 month period.
Sourcing savings from a business acquisition cannot be recorded until Year 2 until a clear GE baseline is established, the first year Savings will be cost avoidance.
CY = Current Year
TY = Total Year
PY = Prior Year

9. Cost Avoidance 2
Savings that would not normally have occurred without the Sourcing team’s activities. Generally on a new to GE purchase where no baseline exists.
Savings = (Actual Price – Average price of all initial bids) x CY annual volume
These are the predominant formulas, please refer to Savings Standard document for more information.
Guiding principles
Reported savings must be led by the Sourcing function & be generated from activity such as:
The completion of a competitive bid process for a new purchase
The reduction of costs increases in an inflationary market
CY = Current Year

10. Overview

11. 2016 Process & New Process 2016 Process New Process Synergy Savings
ISAR
iSave
Synergy Tracker
Synergy Savings
Synergy Savings

12. High-Level Goal & Process for Synergy Savings
As-is
To-be
ISAR Tracker (Excel)
iSave
Spotfire (Reporting)
Country Sourcing Teams to create projects in ISAR Tracker
Create synergy projects in iSave, Tier 2 BU Sourcing mangers to validate
Synergy Savings being reported in Spotfire
Offline weekly tollgate review with Country Leader
Drill down to lower tiers and track realized Savings as needed
ISAR will be decommissioned and offline review will remain and will be
scheduled with the Country Leaders

13. Key Process Definitions
What are the different negotiation types?
Business specific projects
Negotiations that relate to a specific business only fall within the scope of Business specific projects. These are created/ initiated by the business sourcing teams. ***WILL NOT BE USED BY SYNERGY TEAMS***
Across-GE projects
Negotiations that span multiple businesses and are being conducted to leverage the broadest company spend fall within the scope of Across-GE projects. Typically, these are initiated by the Global Commodity Leaders or the Regional Sourcing teams.
Parent: Projects created by teams negotiating contracts on behalf of multiple business units. Parent projects once created are shared linked with the individual impacted business units through child projects. ***WILL BE USED***
Child: Projects which are created by the business units completing the actual purchase. Child projects are created after the parent projects are shared with business units. ***WILL NOT BE USED BY SYNERGY TEAMS***
What are the Savings stages?
Idea
Project idea generation with estimated Projected Savings during the planning session (OP, SII), no sourcing and/or business resource as required has been allocated
2) Planned
Planned Savings amount is based on the latest projected value either from in progress supplier negotiations or usage activity in progress. Project is funded with resources from sourcing and the business as required and is executing
Executed
Projected Savings amount based on price negotiated in the contract and prior year annual volume or implemented usage reductions
4) Realized
Savings calculated based upon actual received volume, usage and price, 3 months of PO data available

14. BU Approval Thresholds
 Business
Sourcing Threshold
Finance Threshold
$ K Saving
Healthcare 50
100**
Aviation
250
Energy Connections
Transportation
100
Oil & Gas
Lighting 75
Power
200
500
Renewable Energy
Corporate *
* IT Project thresholds for sourcing and finance approval would be $ 500K
** Project owners to upload  supporting documentation for all projects irrespective of threshold
Implement standard threshold once process is stable and consistent across businesses

15. Savings FX - Example Example Jan Feb April August
Idea
Planned
Executed
Realized
Ideas during planning period
Allocate resources to project
Validation of savings with back up documentation
Deal Signed
Project Owner
Example
Sourcing approval
Finance approval
Jan
Feb
April
August
Zycus iSave
User to Input numbers in EUR (local currency)
100k EUR
97k EUR
98k EUR
98k EUR
Tool would automatically convert savings in USD and compare with the BU thresholds (already set in the tool). No manual conversion required..
Notes:.
One project can only be designated in one currency irrespective of multiple regions/ countries. Project owner to determine base currency for the project and all regions/ countries would report savings in the same currency.
Tool would use Op plan rates to convert Local currency into USD for comparison with USD thresholds.

16. Synergy Savings Process

17. Roles & Responsibilities
Who
Responsibilities
Synergy Project Owner
Project owners in Alstom legacy Indirect Sourcing teams
Create Synergy Parent projects in iSave and share with Tier 2 BU sourcing managers, make sure the Savings at Tier 2 level is aligned with BU.
Tier II BU
Sourcing Manager
BU Sourcing managers who have been involved in the Synergy tollgate review.
Review the Savings at Tier 2 level, offline discussion with Synergy project owner if there is any discrepancies
BU Sourcing Lead
BU Sourcing leads who own lower level details
Create Child projects to drill down to Tier 3 or Tier 4 levels, input realized Savings
BU Finance Manager
BU finance approvers
Review and approve realized Savings
Please contact for P&R: Tara Wight ( ) and /or
EC: Raymundo Magana ( ) or Hugo Rocha ( )
if you are not clear about the role you will play

18. Synergy Savings Process – New entries
Zycus
Idea & Planned
Executed
Realized 1 2 5 7
Create a parent project, input Executed Savings at BU Tier 2 level, attach the business case if above BU finance threshold
Share the parent project with the BU Tier 2 Sourcing mangers
Offline tollgate review with Tier 2 BUs
Update the Savings in the parent project-b)
Share the projects with sourcing leads
Synergy project owner 4
Offline discussion with Synergy project owner if there are any discrepancies
- a)
Does the Tier 2 BU accept the proposed Savings?
sourcing manager
Tier II BU 3 N 6
Inform the synergy project owner on the sourcing leads’ names Y 8 9 10
BU sourcing lead
Create child project, drill down to lower BU tiers, select finance approvers
Input the Realized Savings amount in the child project Y
Above the threshold? 11 N
Auto approved 12
BU finance manager
Finance approval
(a – If the Tier 2 BU sourcing lead does not agree with the numbers, please DO NOT edit the numbers under the shared strategic module, but discuss with the project owner offline.
(b – The update can be done either by Synergy project owner or the Tier II BU sourcing manager, the update will be reflected automatically in the other person’s screen

19. Synergy Savings Process- List of Managers
List of Sourcing Tier 2 Managers to share your projects with once at Executed stage:

20. Synergy Savings Process- ISAR migrated projects
For existing projects in a savings stage of Idea and Planned which were migrated from ISAR as Child projects:
You can move these projects to a savings stage of Executed and Realized without sharing with the business.
Instead, you would send directly to the business finance manager for approval, if above the threshold.
Below the list of Finance Managers by Business and Region to share your projects with once at Realized Stage

21. Synergy Savings Process- Summary
Project type
Below Finance Threshold
Above Finance Threshold
ISAR-migrated Realized
Child
Leave as is
ISAR-migrated Executed
If 3 months of PO data available, move to Realized stage, auto-approved, no need to share project
If 3 months of PO data available, Attach Business Case, move to Realized, send for approval to the Business Finance manager
ISAR-migrated Idea or Planned
If contract signed or PO available, move to Executed, no need to share project
If contract signed or PO available, Prepare Business Case, move to Executed, no need to share project at this stage, will be shared with finance at next stage
New Entries
Parent
Follow the Synergy Process presented in slide 18, create parent project and once Executed, share with Business to create the child project
Follow the Synergy Process presented during the trainings, create parent project and once Executed, share with Business to create the child project, attach Business case

22. iSave & Spotfire:
Access and Support

23. Accessing iSave ❶ Preferred Browser Settings ❷ Link to iSave:
Click on iSave icon
❸ Request a iSave Account
Complete the iSave user access form
Send to Sheena Anthony
Sheena will forward completed form to
IE Version#
10 & 11
Firefox Version#
22.0 plus
Chrome Version#
34.0 plus
Safari Version#
5.1.0 plus

24. Where can I find iSave materials?
iSave Portal!
Link:

25. Spotfire Access Link: http://sc.ge.com/*IndirectSourcingOps
Login using your SSO credential, default credentials as below:
Username: SSO ID
Password: SSO Password
Don’t have access to Spotfire? Send an to Nizam Cs with
your name and SSO.

26. iSave Live-Demo

27. Questions?