1. LINK 10 SRM5 November 16 – 18, 2010 1 ePro Supplier Enablement at State Farm By Louie Kater State Farm Insurance Companies 3 State Farm Plaza Corporate South R-1 Bloomington, Illinois 61791 – 0001 309-766-0387

2. 2 The Good, The Bad, and The Ugly of Supplier Adoption LINK 10 SRM5 November 16 – 18, 2010

3. 3 LINK 10 SRM5 November 16 – 18, 2010 Introduction About me About our environments at eCenter About our team

4. LINK 10 November 16 – 18, 2010 4 Our Vitals Live October 15 th, 2001 (in 85 days) 3 stock warehouses with business units Canada and US Internal Consumables Agency Items Replacement Service Claims Replacement Items Purchasing Vendor Counts Replacement Service Vendor Count Numbers thru October

5. LINK 10 November 16 – 18, 2010 5 Our Business Partners Canadian and US Purchasing Agency Business Automation Services Business Information Services External Hosting Firm External Agency Ordering Connection Warehouse Application Support 3 warehouses

6. 6 LINK 10 SRM5 November 16 – 18, 2010 Supplier Adoption The Good Office Supplies Business Book Supplier Electrical Supplies Clothing Supplier

7. 7 LINK 10 SRM5 November 16 – 18, 2010 Supplier Adoption The Gonna’ Be Good Golf Equipment Clothing Supplier

8. 8 LINK 10 SRM5 November 16 – 18, 2010 Supplier Adoption The Bad ‘Big Box’ Electronics and Home Appliance Retailer Same as above with Clothing, Furniture, and Lawn and Garden

9. 9 LINK 10 SRM5 November 16 – 18, 2010 Supplier Adoption The Ugly Cellular Accessories Fasteners and Power Tools

10. 10 LINK 10 SRM5 November 16 – 18, 2010 Summary A few events-Good, Bad, and Ugly Desired goal is to build a successful relationship Mutual commitment of resources

11. 11 LINK 10 SRM5 November 16 – 18, 2010 Lessons Learned From the Good From the Bad and the Ugly

12. 12 LINK 10 SRM5 November 16 – 18, 2010 Moving Forward Strategies Exploring adoption options Document of Understanding Require vendor management involvement Vendor Requirements Guide High level non-technical specifications and requirements eProcurement in Pictures Provides a good picture about the many possible points of failure

13. 13 LINK 10 SRM5 November 16 – 18, 2010

14. 14 LINK 10 SRM5 November 16 – 18, 2010 Summary The adoption process is a WIP Experiences between vendors build a knowledge base from which to draw upon Adopted technologies Our on-going quasi-enterprise EDI effort is going to impact the way we hook up to vendors and our role as business analysts at State Farm Anticipate more Good, Bad, and Ugly

15. 15 LINK 10 SRM5 November 16 – 18, 2010 Questions? Comments?

16. 16 LINK 10 SRM5 November 16 – 18, 2010 Fini.