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ENPORION CONFIDENTIAL

Contract Life-Cycle Management

Platts 6th Annual Strategic Supply Chain Management for Utilities Conference

January 29, 2008Catherine E. Gouze, Esq.

Enporion, Inc.

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ENPORION CONFIDENTIAL

#10

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ENPORION CONFIDENTIAL

#10 SAVE MONEY

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ENPORION CONFIDENTIAL

“MONEY DOESN’T TALK, IT SWEARS.” - Bob Dylan

• Pressure to drive cost out of the supply chain

• Contract Leakageo Unredeemed rebateso Discounts not appliedo Overchargingo Maverick Spend

• Identified in “Real Time”

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

#9 CREATE YOUR OWN MONSTER

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ENPORION CONFIDENTIAL

#8

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ENPORION CONFIDENTIAL

#8 COMPLY WITH CONTRACT TERMS AND REGULATIONS

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ENPORION CONFIDENTIAL

• Operational Complianceo internal policies and procedureso business objectives

• Supplier Complianceo pricing, service levels, deadlines

• Regulatory Complianceo FERC, HAZMAT, OSHA, EPA, DOT, IRS….

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

#7 DEVOTE MORE RESOURCES TO THE OFFICE OF

COMPLIANCE

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ENPORION CONFIDENTIAL

#6

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ENPORION CONFIDENTIAL

#6 FIX THE BROKEN STEPS IN THE CONTRACT LIFE-CYCLE

PROCESS

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ENPORION CONFIDENTIAL

BPM – Business Process Management

“It’s about the fusion of business operations and information technology to the point of unity. That transformation is well under way on a scale that can only be called the greatest 21st century business reformation.”

-Peter Fingar 

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ENPORION CONFIDENTIAL

• Pre-approved templates and clauses• Automated process with configurable roles,

permissions, security, and alerts• Audit to ensure all following same process• Violators identified in Real Time, so

corrective measures in Real Time• Ongoing process: adjustments easier with

automated process• Learning curve for new employees shortened

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ENPORION CONFIDENTIAL

QUERY:

Whether process definition will occur without the discipline of software implementation… and even if so, are the benefits sustainable without the controls and data capture the software provides?

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ENPORION CONFIDENTIAL

#5

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

#5 WORK MORE WITH YOUR LEGAL DEPARTMENT

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ENPORION CONFIDENTIAL

#4

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ENPORION CONFIDENTIAL

#4 PROVIDE ANALYSIS AND REPORTING

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ENPORION CONFIDENTIAL

• Significant value and data in contracts• Need tools to extract the data• Spend visibility in Real Time• Corrections/adjustments in Real Time• New savings opportunities identified, and

deals may be renegotiated• Set up reports that are valuable to you• Analyze the data at a more detailed level

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ENPORION CONFIDENTIAL

#3

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

#3 WORK MORE WITH YOUR FINANCE DEPARTMENT

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ENPORION CONFIDENTIAL

#2

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ENPORION CONFIDENTIAL

#2 COMPLY WITH SARBANES OXLEY ACT OF 2002 (“SOX”)

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ENPORION CONFIDENTIAL

• Public Company Accounting, Reform, and Investor Protection Act of 2002

• CEO/CFO personally responsible for establishment and maintenance of controls and procedures

• Periodically test and evaluate effectiveness• SOX reporting, material changes of events

that may have an impact on a company’s perceived market value….reported to SEC in 48 hours

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ENPORION CONFIDENTIAL

#1

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ENPORION CONFIDENTIAL

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ENPORION CONFIDENTIAL

#1 KEEP YOUR CEO OUT OF PRISON