Achieving Best-in-Class Spend Management

The intersection of Finance, e-Procurement and Supplier Relationship Management

Suzanne MiglucciVice President Business Development, SciQuest

Tony ImDirector Global Professional Services, SciQuest

2

Agenda

State of the procurement market

Best-in-class procurement results

Leveraging supplier relationships

Real Results

About SciQuest

3

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

4

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

Sources: (1) Aberdeen e-Procurement Benchmark Report

Performance Improvement from e-Procurement

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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

Hosted Hosted Preferred Preferred SuppliersSuppliers

Supplier Supplier Punch-outPunch-out

Services & Services & Non-Non-

catalog catalog ItemsItems

InternalInternalSuppliersSuppliers

(stock-(stock-rooms)rooms)

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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

E-Transaction Data

• Purchase order• Advanced ship notification• Invoicing• Receipt notification• Contract data• Payment data

Managed Services

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

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 OverviewK

uali

Click

“Return

Cart”

Complete

&

Validate

Requisition

Create

PO

Manual / Auto

Post

PO

Login ShopComplete

CartApprove

Req.Create

POTransmit

PO

ReceiveInvoice

HostedAnd

PunchoutCatalogs

NonCatalog

Items andForms

Financial

Approval

Workflows

Matching

&

Payment

Send Via:

cXML

Email

Fax

Log In

Click

on

HM

Link

Hig

herM

arke

ts

RecordReceipt

Receive &

Validate

cXML

EDI

Portal

Desktop or

Central

Receipt

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Available Integrations for KFS 3.0

Kuali Financial Systems

3.0

Kuali Financial Systems

3.0

SciQuest HigherMarketsSciQuest HigherMarkets

Spend Director

Spend Director

cXMl Shopping Cart Return (via HTTPS) SciQuest

cXMLPunch OutSupplier

Spend DirectorHosted

Catalogs

Purchase Order to Supplier

Purchase Order to Supplier

cXML Purchase

Order(s) to Supplier

Purchase Order (SQXML)

Order Manager

Order Manager

Invoice (SQXML) Settlement

Manager

Settlement Manager Purchase

Order to Supplier

Purchase Order to Supplier

Invoice(s) from Supplier

Pu

rch

asin

gP

urc

has

ing

Acc

ou

nts

P

ayab

le

Acc

ou

nts

P

ayab

le Ku

ali A

dap

ter

Ku

ali A

dap

ter

cXML PunchOut(via HTTPS)

cXML Invoice (via FTP)

cXML or SQ XML(via HTTPS)

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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

20

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

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

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!

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Real ResultsUTHSC

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

“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

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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

Control your spend

About SciQuest

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About SciQuest

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

Select SciQuest Customers

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Q&A and Closing Remarks

Receive a copy of today’s presentation

Provide your business card, and I’ll send you a copy Call or e-mail:

Suzanne MiglucciVice President Business DevelopmentSciQuest(919) 522-5229smiglucci@sciquest.com

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