Achieving Best-in-Class Spend Management The intersection of Finance, e-Procurement and Supplier Relationship Management

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Achieving Best-in-Class Spend Management The
intersection of Finance, e-Procurement and
Supplier Relationship Management

• Suzanne MiglucciVice President Business
  Development, SciQuestTony ImDirector Global
  Professional Services, SciQuest

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Agenda

• State of the procurement market
• Best-in-class procurement results
• Leveraging supplier relationships
• Real Results
• About SciQuest

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Procurement Challenges

• Cost Savings and Compliance
• Identify cost savings opportunities across
  decentralized complex organizations
• Monitor vendor contract compliance
• Optimize operating budgets
• Directing Spend
• Diversity and sustainability
• Contracted and group purchasing/consortium
  suppliers
• Spend Visibility
• Visibility into how organization dollars are
  being spent
• Control wasteful spending
• Risk mitigation
• Customer Service
• Easy-to-use solutions

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Procurement Evolution
Paper processes, some made electronic,but not
integrated.
Endless cycle of low user-adoption driven by a
limited number of suppliers, which prevents
visibility into spending critical to achieving
deeper cost savings.
Supplier integration to achieve a comprehensive,
leveraged supplier strategy.
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Best-in-Class Strategic Procurement

• Performance Improvement from e-Procurement

Sources (1) Aberdeen e-Procurement Benchmark
Report
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Best-in-Class Strategic Procurement
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User-Friendly Shopping Environment
Elements of a Private Marketplace

• User-friendly, familiar interface
• Preferred product positioning
• Access to any supplier with a variety of methods
• View on-hand inventory
• Your products and pricing

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TraditionalSupplier Management

• Pain Points
• Costly, resource-intensive
• Non-standardized data
• Low supplier adoption
• Limited product choices
• Limited supplier selection

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Leveraged Supplier Management

• Managed Services
• Supplier connectivity
• Extensive product classification
• Centralized e-catalog
• Price/content management
• Transaction integrity
• Transaction tracking
• Customer support

• E-Transaction Data
• Purchase order
• Advanced ship notification
• Invoicing
• Receipt notification
• Contract data
• Payment data

SupplierHub
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Supplier Enablement

• Content Meaningful product and service
  information
• Drives end-user adoption
• Helps end users make informed purchasing
  decisions
• Helps Purchasing reduce errors and streamline
  order processing
• Connections Integrations with supplier systems
  and processes
• Catalog data
• Punchouts
• Order distribution, acknowledgements and
  revisions
• Receipts and invoices
• Seamless integration with financial and ERP
  systems
• Continuity Ongoing managed services
• Updates to pricing and product data
• Monitoring and management of orders
• Normalized, classified data for spend analysis

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SciQuest Integration with Kuali

• Co-developed with the Kuali team to
• provide out of the box functionality that can
  be customized to the organizations requirements
  if required
• deliver seamless integration
• accelerate the implementation of the solution
• Recommended solution designed to maximize the
  functionality in both systems

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Process Overview
Receive Invoice
Record Receipt
Transmit PO
Create PO
Complete Cart
Approve Req.
Login
Shop
Hosted And Punchout Catalogs
Receive Validate cXML EDI Portal
Send Via cXML Email Fax
Click Return Cart
HigherMarkets
Non Catalog Items and Forms
Post PO
Complete Validate Requisition
Click on HM Link
Financial Approval Workflows
Desktop or Central Receipt
Create PO Manual / Auto
Matching Payment
Log In
Kuali
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Available Integrations for KFS 3.0
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• Solution Overview

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SciQuest Demonstration Scenarios

• End user needs supplies for the lab
• Department admin is asked to purchase a computer
  for a new employee
• End user would like to know the status of the
  purchase order to the supplier

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Kuali Home Page
Click here to access SciQuest Catalogs, View
SciQuest Order History or View SciQuest Invoice
History
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SciQuest Home Page
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SciQuest Hosted Catalog Search Results
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SciQuest Punchout to a Supplier
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SciQuest Shopping Cart
Return items back to Kuali
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Kuali Requisition
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Real Results with Strategic Procurement

• Reduce costs and improve margin
• Increase spend under management
• 5-20 savings on new contract opportunities
• Increase efficiency and better utilize resources
• A complete automated solution
• Substantial time saved through efficient
  processes(reduced req-to-order cycle times from
  8 days to less than 1)
• Rapidly enable and seamlessly manage hundreds of
  supplier catalogs and integrations
• 80 utilization of existing contracts

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Real Results with Strategic Procurement

• Drive unparalleled user adoption
• Easy-to-use solutions that drive smart purchasing
  decisions
• Elevate decision-making
• Enhanced visibility into spend patterns and
  history
• Enhance existing Kuali functionality with
• A comprehensive shopping environment
• Order management and delivery capabilities
• Contract management
• Supplies management

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Real ResultsCalifornia Institute of Technology
Notable Fact CalTech is using the SciQuest
solution as a means to ensure discounts from
suppliers they do not include any suppliers in
their catalog that do not offer discounted
pricing!

• About Caltech
• Dedicated to benefiting society through research
  integrated with education
• 3800 employees and faculty 2,000 enrolled
• Awarded 32 Nobel prizes
• Goals
• Improve the quality of procurement services
• Manage negotiated contract pricing
• Enable online catalog ordering
• Improve operating efficiency
• Achieve cost savings through campus-wide spending
• Results
• Streamlined procurement process
• Improved quality and ease of purchasing
• Purchasing department transformed to strategic
• 98 user adoption
• 40 preferred suppliers enabled
• Cost savings gained through institute-wide
  procurement volume

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Real ResultsUTHSC
SciQuest's solutions have allowed our
institution to build strong relationships with
our key suppliers, increasing our spend
visibility and positively impacting our bottom
line. Jerry Fuller, Assistant VP for
Procurement, UTHSC

• About University of Texas Health Science Center
• Oldest school of public health in TX
• National reputation as a leader in education and
  research
• 5,000 faculty and staff 3500 enrolled
• Goals
• Ensure consistent and accurate pricing
• Consolidate spending across the university
• Obtain high user adoption
• Achieve better pricing, discounts, and turnaround
  through aggregated suppliers and automated
  payment
• Results
• Increased on-contract spending and spend
  visibility
• User adoption increased by 10
• 15 suppliers enabled in 45 days
• Reduced internal catalog and punch-out costs

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About SciQuest

• SciQuest helps organizations advance their
  critical missions by improving their procurement
  processes. Our specialized knowledge, on-demand
  software, and ongoing services empower
  organizations to lower costs, increase
  productivity, and realize the potential of
  strategic procurement.
• We focus on the higher education industry, and
  are committed to Kuali initiative.
• What we do
• Augment existing systems
• or
• Deliver complete Source-to-Settle procurement
  solutions
• How we do it
• E-procurement tools (software)
• On-going services (managing supplier content and
  prices)
• Software-as-a-Service model (low IT costs)
• Integration to core technology such as Kuali

Connect to your suppliers
Capture more transactions
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About SciQuest
Select SciQuest Customers

• Leading provider of on-demand procurement and
  supplier enablement solutions for goods and
  services
• Web-based, subscription solution
• More than 120 customers
• Solution ROI within 1 year
• 5-10X total ROI
• 97 customer satisfaction
• 98 renewal rate

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QA and Closing Remarks

• Receive a copy of todays presentation
• Provide your business card, and Ill send you a
  copy
• Call or e-mail Suzanne Miglucci Vice President
  Business Development SciQuest (919)
  522-5229 smiglucci_at_sciquest.com

• Learn more about upcoming events
• NextLevel 2009, February 8 11, Dallas, Texas
• http//www.sciquest.com/NextLevel09
• Visit our Events Web page
• http//www.sciquest.com/resource-center/webinars