Your Business Objectives and Initiatives Continuous disciplined approach

Your Business Objectives and Initiatives § Continuous & disciplined approach to cost management Cost Reduction § Grow without huge increase in headcount § Actionable visibility over company wide spend Risk Management § Adequate process documentation / audit trail § Manage supplier and AP risk Speed of Business § Drive out cost quickly from newly acquired operations § Ramp up new stores / operations quickly This is a template…customize for your situation….

Establish Measurable Success Metrics Value Driver Current Baseline Target KPI Improve Spend under Management $200 M addressable spend 40% under management 10% average savings 80% to 85% spend under management Reduce Budget overspending $200 M addressable spend 1% “overspend” 50 to 75% reduction Increase Savings from early payment discounts $200 M addressable spend 2% early payment discount 5% spend eligible for early payment discounts 10% to 15% spend eligible for discounts Reduce overpayment to Suppliers $200 M addressable spend 0% of spend recovered from suppliers due to erroneous payments 0. 1% to 0. 2% of spend recovered from suppliers Lower PO processing cost 20, 000 PO processed / year $30 processing cost / PO 40 to 50% reduction (Aberdeen benchmark: 50% reduction) Lower Invoice processing cost 60, 000 Invoices per year $20 processing cost / Invoice (Aberdeen benchmark of $15. 61 for “middle 50%”) $5 -$6 per Invoice (Aberdeen benchmark of $3. 09 for best-in -class) This is a template…customize for your situation….

Critical Metrics for Source to Pay Source Procure • % of suppliers with 80% spend • % of spend under management (i. e. buying at negotiated prices and terms) • Tail spend as % of overall spend • Contracted spend as a % of overall spend • % of spend through preferred suppliers • % of spend through auctions and events • # of active catalogs • # of active contracts • # of active suppliers • Lost savings because of contract noncompliance (%) • % over / under budget • Cost of processing PO • PO processing cycle time • % of PO sent electronically Pay • Early payment discount capture (%) • Cost of processing an invoice • Invoice processing cycle time • % of Invoices received electronically • % of incoming invoices with inaccuracies This is a template…customize for your situation….