procurement nation-v procurecon

Procurement NationHow procurement has become the backbone of

our savings conscious culture

Today’s Session

• The Evolution of Procurement• Procurement is the Backbone• Let’s Take a Walk: Smarter Spending Success Stories• The Future of Procurement – 2011 and Beyond• Q&A

The Evolution of Spend Management

Paper-based On-Premise On-Demand (aka ASP, SaaS)

The Cloud

The Evolution of Procurement

The Backbone of Our World

Procurement’s Impact is Everywhere

• Look around you – everything has been touched in some way by procurement

• In a typical day you might encounter procurement’s impact a dozen times or more

Let’s take a walk

MAP

Breakfast on the way to the office

$500Mural

Supplier: Local Artist

Purchased by: Store Manager

$3,500Restaurant LeaseSupplier: Leasing Company

Purchased by: Franchise Owner

$7,500Menus

Supplier: Corporate

Purchased by: Corporate$2,500Television

Supplier: Best Buy

Purchased by: Store Manager

PROCUREMENT IMPACT

SAVINGS $40 / PO processedenough for

happy meals per PO for hungry children in the community

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“We can actually see all the orders in process when they are in someone’s cart as well as when they submit. We can also

see if the order was successfully transmitted immediately.”

– SpendSmart Procurement Team

MAP

Drive by Moscone Center on the way to the office

$15,000Moscone Center Mural Supplier: Printer

Purchased by: Events Manager

$10,000Banners

Supplier: Printer

Purchased by: Events Manager

$60,000HD MonitorSupplier: Custom TV

Purchased by: Moscone Center

$25,000Labor

Supplier: Local Union

Purchased by: Events Manager

$750T&E

$750T&E

$750T&E

$750T&E

PROCUREMENT IMPACT

SAVINGS $18 millionmore than enough to

Cover Bill Clinton’s speaking fee, security detail and travel & entertainment expenses

“We scoured the industry looking at vendors in the e-Procurement space. Quickly we eliminated any of the on-

premise or what you would call private cloud and that type of

opportunity because the value of a multitenant environment, the cost to implement, the maintenance of the product is much better. [Moving to

the cloud] was a no brainer.”

Greg TennysonChief Procurement Officersalesforce.com

MAPStop by to check out new lobby furniture

$45,000

Rent-A-Center Sign

Supplier: Corporate

Purchased by: Corporate

$375Window Washing

Supplier: Local Cleaner

Purchased by: Store Manager

$350Banners

Supplier: Kinkos

Purchased by: Store Manager

$925FurnitureSupplier: ManufacturerPurchased by: Corporate

$125Company T-ShirtsSupplier: Branders

Purchased by: Store Manager

$145,000Employee SalarySupplier: Employees

Purchased by: Store Manager

PROCUREMENT IMPACT

SAVINGS $500,000 in 2 months

enough to

make investments that will lead to greater market share and growth

Mike WildingChief Procurement OfficerRent-A-Center

“We had some adoption problems with prior tools, so we were incredibly pleased by the speed with which we

were able to implement an integrated solution that is both easy to use, and

incredibly robust. We were able to deploy a complete solution to over

3,000 locations in less than four months. Additionally, we have been able to quickly address new features

like the ability to invoice against contract, and define receipt

tolerances and invoice approval workflows, which we will roll out in

the near future.”

MAPArrive at office, pull HR reports for staffing meeting

$30,000Access to the System

Supplier: Taleo

Purchased by: Corporate

$925Monitor RentalSupplier: AV SupplierPurchased by: Marketing

$13,72510’ x 20’ Booth

Supplier: Skyway Exhibits

Purchased by: Marketing

$3,000Team Photos

Supplier: Local Photographer

Purchased by: Office Manager

$8,250Office LeaseSupplier: Leasing Company

Purchased by: Corporate

PROCUREMENT IMPACT

SAVINGS $5 – 7M

enough for

Filled by giving access to 70 more users to help source jobs

382,618 Jobs / Quarter

“The budget is tied to the expenses going through the

system. Budget managers have the ability to understand what

they were spending, when they were spending. And the time spent on the phone, the time spent talking to their finance

partner was diminished.”

Katy MurrayChief Financial OfficerTaleo

MAP

Lunchtime errands, stop by bank to withdraw cash

$23,725

Building Lease

Supplier: Leasing Company

Purchased by: Corporate

$10,250Building SignageSupplier: Leasing Company

Purchased by: Office Manager

$5,730ComputersSupplier: CDWPurchased by: IT

$2,250SignageSupplier: Local Printer

Purchased by: Facilities

$12,000Pamphlets

Supplier: Corporate

Purchased by: Marketing

$2,000Awards

Supplier: Branders

Purchased by: Office Manager

$275,325Employee Salaries

Supplier: Employees

Purchased by: Branch Manager

PROCUREMENT IMPACT

SAVINGS $1 million

enough for

families to keep their homes

303

“Our procurement processes were highly manual.[ Cloud Spend

Management] provides greater visibility into, and control over, our

spending. Now we have full automation from requisition to

invoicing, with tight integration into our back-end financial systems that provides audit trails which track our approvals to ensure that we comply

with regulatory requirements. Additionally, we can identify savings

opportunities by using the tool to effectively analyze our spend.”

Dee HarnishPurchasing Manager Berkshire Bank

MAP

Lunchtime errands, stop to pick up closet shelves

$1,050

Window Signs

Supplier: Marketing

Purchased by: Store Manager

$12,075Store Front Awning

Supplier: Specialty Print

Purchased by: Corporate

$525,000Store Merchandise

Supplier: ManufacturerPurchased by: Corp. Buyer

$1,050 Signs

Supplier: Local Photographer

Purchased by: Office Manager

$750

Employee Aprons

Supplier: Corporate

Purchased by: Store Manager

$3,550Bags

Supplier: CorporatePurchased by: Store Manager

PROCUREMENT IMPACT

SAVINGS 36 hours per week

enough for

part-time employees to spend more time servicing customers on the store floor

2

“[The cloud]’s traction in our industry does not surprise me at

all. The dynamics of the retail business model demand efficient

and cost-effective operations. [Cloud-based e-procurement] fits that need perfectly. We’ve been very successful with the

software.”

Scott JonesPurchasing Agent The Container Store.

MAPBack at the office for afternoon webinar

$4,125

Webinar Hosting

Supplier: ON24

Purchased by: Event Maanager

$7,250

Event Sponsorship

Supplier: ON24

Purchased by: Partners

$250,000Virtual Tradeshow

DevelopmentSupplier: Employees

Purchased by: Corporate

$500,000

Server / Hosting Platform

Supplier: Network

Purchased by: IT

$45,000IT Services

Supplier: EmployeesPurchased by: Corporate

PROCUREMENT IMPACT

SAVINGS $1 – 2 million

enough to eliminate

By investing in solutions that remove the need for travel and all of the environmental damage air travel causes

210 metric tons

“The implementation of our [cloud spend

management solution] was actually the first time ever an implementation

went as planned. We expected it would take two weeks. It took less

than that.”

Eoin O’ConnorChief Financial OfficerON24

MAP

Take junior to get new hockey skates after practice

$30,250Building LeaseSupplier: Leasing Company

Purchased by: Corporate

$125Ladder

Supplier: Home Depot

Purchased by: Maintenance

$375,250MerchandiseSupplier: Manufacturer

Purchased by: Corporate

$6,750

Merchandise Displays

Supplier: Corporate

Purchased by: Store Manager

$5,250SignageSupplier: Manufacturer

Purchased by: Corporate

PROCUREMENT IMPACT

SAVINGS $800,000enough for

Sets of hockey gear for inner city sports programs

3,200

“I like the ease-of-use. The screen looks like a web page and you only see what’s in

your cue, which adds focus. And because the cloud is

subscription based, it doesn’t take a lot of internal

resources [to implement or maintain].”

Dave HowardDirector of Central PurchasingReebok CCM Hockey

MAP

Arrive home, crank up some music and start dinner

$0Streaming RadioSupplier: Pandora

Purchased by: Listener

$10,000Site design / MaintenanceSupplier: Web Consultants

Purchased by: Marketing / IT

PROCUREMENT IMPACT

SAVED $600,000

enough for

songs on iTunes to review and add to the Pandora Genome Project

465,116

“As we remain laser-focused on growing our business it is important to have the right

financial tools in place for to ensure effective management of spend within established

budgets. We’re pleased to use cloud spend management as one of the primary tools to assist us in our ongoing commitment to that

financial goal.”

- Steve Cakebread, CFO at Pandora

MAP

Dinner is served!

$8,000Signage

Supplier: Manufacturer

Purchased by: Corporate

$30,850Mall LeaseSupplier: WestfieldPurchased by: Corporate

$876,200

Merchandise

Supplier: Manufacturer

Purchased by: Buyer

$500

Cooking Demo Supplies

Supplier: Grocery

Purchased by: Chef

$2,500Employee ApronsSupplier: Corporate

Purchased by: Store Manager

PROCUREMENT IMPACT

SAVINGS $500,000 per month

enough for

Healthy, nutritious meals for hungry children

50,000

MAP

Curl up with a down comforter and call it a day

$50Safety Cones

Supplier: Home Depot

Purchased by: Office Manager

$48,250Building SignageSupplier: Display Company

Purchased by: Corporate

$263,000

Merchandise

Supplier: Designer

Purchased by: Buyer

$3,250Electric BillSupplier: PG&EPurchased by: Store Manager

$15,000

Cash Register

Supplier: Manufacturer

Purchased by: IT

$35,000Seasonal EmployeeSupplier: Temp Agency

Purchased by: Store Manager

PROCUREMENT IMPACT

SAVINGS $60 – 69 millionenough for

new retail outlets to remain more competitive with TJX in key geographic areas

30

We All Make It Happen

We All Make It Happen

And It’s All Happening in the Cloud

What is the “cloud”?

• Lots of definitions, lots of “false clouds”• The cloud should not be confused with

– ASP– SaaS– On Demand

• A true cloud solution – Is built on a single line of code– Can be up and running in a matter of days– Does not require extensive set-up, maintenance and

upgrade fees

Road to Success Leads to the Clouds

The Cloud is the Most Cost Effective

Year 1 Year 2 Year 3

• Implementation• Hardware• Database /

Middleware• Software Fees

• Implementation• Hardware• Database /

Middleware• Software Fee

• Implementation• Hardware• Database /

Middleware• Software Fee

• IT Support• Maintenance• Professional

Services• Software Fees

• IT Support• Maintenance• Professional

Services• Software Fees

• IT Support• Maintenance

• Upgrade• Professional

Services• Software Fees

• Software fees • Software fees • Software fees

• Software fees • Software fees

• Software fees

Innovation in the Cloud

Traditional Dev Model

1.Lengthy Independent Upgrades

2.Difficult Independent Implementations

3.Multiple Code Bases

4.Non-viable long-term business model

Cloud Dev Model1.Quick and Simple Upgrades

2.Rapid Implementation

3.One Optimized Code Base

4.Sustainable Business Model

VSCloud Platform

Cloud Spend Management

• One platform to control 100% of indirect spend– e-Procurement– Expense Management– Dashboards & Reporting– Benchmarks

• Easily integrate and extend the value of existing investments– Open APIs– Out of the box connectors

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5.5% to 16% HARD Savings

Driver Benefit

Competitive Bidding 2-5% Hard Cost Savings

Preferred Supplier Enforcement 1.5-5% Hard Cost Savings

Process Efficiency 1-2% Savings, 55%+ cycle time reductions

Visibility & Control Risk Mitigation

Accurate Invoicing 1-2% Hard Cost Savings

Early Pay Discount 1-4% Hard Cost Savings

Summary

• Procurement has evolved – so must your organization

• Smarter spending is all around us – we all have opportunities to take advantage

• Those who have made the move to smarter spending have reaped tangible results

• Don’t be confused by marketing buzzwords – there is only ONE cloud

AQ &

Thank You!

Rob Bernshteyn CEO

Coupa Softwarerob@coupa.com

650.931.32www.coupa.com