Most Procurement organizations are adept at driving cost savings and discounts from their suppliers. But are they really getting value in focusing only on this? Join this buyer-seller panel discussion to learn how to become "customer of choice" even in the tightest of supply markets by building multi-faceted supplier management initiatives that provide transparency, foster collaboration, and share risks and incentives with key suppliers.

1. #AribaLIVE
@ariba
Beyond Cost Savings and Discounts:
How to Get Real Value from Your Suppliers
Karen Sherrill, Ohio State University Wexner Medical Center
Myles Noel - Comtex
Jessica Rosman - Caesars Entertainment
Quentin L. McCorvey Sr. - M&R Distribution Services
April 8, 2015
© 2015 Ariba – an SAP company. All rights reserved.

2. #AribaLIVE @ariba
OHIO STATE UNIVERSITY WEXNER
MEDICAL CENTER & COMTEX
Karen Sherrill, Senior Commodity Manager, Indirect Product and Services
Myles Noel, Chief Operating Officer of COMTEX (Central Ohio Medical Textiles)
© 2015 Ariba – an SAP company. All rights reserved.2

3. #AribaLIVE @ariba
OHIO STATE UNIVERSITY
WEXNER MEDICAL CENTER
Karen Sherrill, Senior Commodity Manager, Indirect Product and Services
© 2015 Ariba – an SAP company. All rights reserved.3

4. #AribaLIVE @ariba
OSU Wexner Medical Center
© 2015 Ariba – an SAP company. All rights reserved.4
Located in Columbus, OH, The Ohio State University Wexner Medical Center is one
of the largest and most diverse academic medical centers in the country and the only
academic medical center in central Ohio.

5. #AribaLIVE @ariba
Who We Are
• Our mission is to improve lives through
 Innovation in Research
 Education
 Patient Care
• The James Cancer Hospital and Solove Research Institute
 The World’s Most Advanced Cancer Hospital
 1.1 million square feet and over 21 floors
• 2015 College Football National Champs – Go Bucks!
© 2015 Ariba – an SAP company. All rights reserved.5

6. #AribaLIVE @ariba
Sourcing Strategy
© 2015 Ariba – an SAP company. All rights reserved.6
Business
Obstacle and
Challenges
A means to identify suppliers beyond
our own backyard to reduce total costs by
Pay Less
Use Less
Waste Less
Eliminating
inefficiencies
Reducing
costs
Improving
productivity

7. #AribaLIVE @ariba
OSUWMC Discovery of COMTEX
© 2015 Ariba – an SAP company. All rights reserved.7
First RFP in 2010
Initially not selected
Demonstrated
significant
future potential

8. #AribaLIVE @ariba
Four-Year Gradual Transition
© 2015 Ariba – an SAP company. All rights reserved.8
COMTEX gradually learned the OSUWMC way by:
Servicing a large number
of small sites
Successfully managed
our “DIVA” sites
Learning invoicing and
payment processes
Obtaining necessary
infrastructure and capacity
Modifying ATS Carts

9. #AribaLIVE @ariba
Pay Less
Use Less
Waste Less
Successful Outcomes
© 2015 Ariba – an SAP company. All rights reserved.9
2014 COMTEX awarded contract for Main and East Hospitals
28% rate reduction on multi-million dollar spend
Rental expenses trending below budget
Utilization ratios are within national averages

10. #AribaLIVE @ariba
Lessons Learned
© 2015 Ariba – an SAP company. All rights reserved.10
• Protection of
“sacred cows”
• Don’t assume
internal support by all
• Ensure all impacted are
acknowledged and heard
• Inclusive transition plan
• Communicate
Communicate
Communicate
Recommendations

11. #AribaLIVE @ariba
Next Steps
© 2015 Ariba – an SAP company. All rights reserved.11
Make necessary
adjustments to
keep and maintain
controlled processes
Fine tune processes
to achieve best-in-
class utilization and
soiled-to-clean ratios
Continue education
and awareness for
new and existing staff

12. #AribaLIVE @ariba
COMTEX
Myles Noel, Chief Operating Officer of COMTEX (Central Ohio Medical Textiles)
© 2015 Ariba – an SAP company. All rights reserved.12

13. #AribaLIVE @ariba
Who We Are
© 2015 Ariba – an SAP company. All rights reserved.13
Our Mission:
To provide the highest quality and cost-effective laundry and linen
service to healthcare facilities in Ohio

14. #AribaLIVE @ariba
Marketing
• Preferred customers within a
75-mile radius
• Serving 25 hospitals and over
125 ancillary sites
© 2015 Ariba – an SAP company. All rights reserved.14

15. #AribaLIVE @ariba
© 2015 Ariba – an SAP company. All rights reserved.
Challenges in Locating
New Customers
• Requests for
Proposals or
e-RFXs
• The use of Ariba
takes care of
these issues
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16. #AribaLIVE @ariba
COMTEX and The OSUWMC Bid
• Notification
through Ariba
of proposal
• Ability to export
(save) data
© 2015 Ariba – an SAP company. All rights reserved.16

17. #AribaLIVE @ariba
Lessons Learned
© 2015 Ariba – an SAP company. All rights reserved.17
• Ariba focuses efforts on
key elements of the bid
• Ariba standardizes
information between
bidders leveling the
“playing field”
• Preparation, team
involvement, and draft reviews
are all necessary for success
Recommendations

18. #AribaLIVE @ariba
Next Steps
© 2015 Ariba – an SAP company. All rights reserved.18
Nurture collaborative
relationship
Use learnings to tune
future proposals
Build trusted
partnership to
create new market
opportunities

19. #AribaLIVE @ariba
CAESARS ENTERTAINMENT AND
M&R DISTRIBUTION SERVICES
Jessica Rosman, Director of Supplier Diversity and Sustainability
Quentin L. McCorvey Sr., President and COO
© 2015 Ariba – an SAP company. All rights reserved.19

20. #AribaLIVE @ariba
CAESARS ENTERTAINMENT
CORPORATION
Jessica Rosman, Director of Supplier Diversity and Sustainability
© 2015 Ariba – an SAP company. All rights reserved.20

21. #AribaLIVE @ariba
Agenda
• Caesars Company
• Code of Commitment
• M&R Distribution
• Strategic Sourcing (E-Integrated Approach)
• New Development Process/Training
• M&R Relationship
• Ongoing Sourcing
© 2015 Ariba – an SAP company. All rights reserved.21

22. #AribaLIVE @ariba
About Caesars Entertainment
• Caesars Entertainment is
one of the world’s largest
gaming companies
• 50+ casinos globally
in 7 countries, industry-
leading loyalty program
© 2015 Ariba – an SAP company. All rights reserved.22

23. #AribaLIVE @ariba
Caesars Has the Most Geographically
Diverse Distribution Network
© 2015 Ariba – an SAP company. All rights reserved.23
• Global reach with a leading
position in most markets
• Robust in-place
domestic pipeline
• Pursuing and capturing
newly opening markets
Las Vegas
Gulf Coast
Tunica
Kansas City
Council Bluffs
Shreveport/
Bossier City
S. Illinois/Indiana
Chicagoland
Laughlin
Reno/Lake Tahoe
SOUTH
AMERICA
EUROPE &
AFRICA
USA &
CANADA
Caesars-managed
property
States implementing or
considering gaming expansion

24. #AribaLIVE @ariba
Doing Right by Our Customers
• First casino company to recognize problem
gaming – model for the industry
• Funded creation of first national helpline
• Received first award from National Council
on Problem Gaming
• First to offer nationwide self-exclusion,
self-restriction
© 2015 Ariba – an SAP company. All rights reserved.24
24

25. #AribaLIVE @ariba
Steadfast Commitment to Integrity
© 2015 Ariba – an SAP company. All rights reserved.25
• To our guests, to promote responsible gaming
• To our employees, to treat them with
respect and provide opportunities to build
satisfying careers
• To our communities, to make them
vibrant places to live and work, and to
market responsibly
• To the environment, to invest in
sustainable practices
25

26. #AribaLIVE @ariba
• Policies written into Strategic Sourcing Operating Principles.
• Systemic category integration vs. regionalized regulatory focus.
• WBENC ( Women’s Business Enterprise Counsel) & NMSDC (National Minority
Supplier Development Counsel) tools
• Education on Ariba to bolster process and performance.
• Ariba Supplier Management Tool for Tracking.
• Additional tools to maintain data integrity.
• Work with Best in Class moving forward Companies
• Active involvement with MBE/WBE Support Organizations
• Project Renewal Workstreams facilitate Supplier Diversity in all buying opportunities
• Engaged support from all internal groups
Clear Policies, Established
Roles & Responsibilities
Tools & Resources
Measuring Success
External Engagement
Executive Leadership &
Organizational Commitment
Supplier Diversity Best Practices
© 2015 Ariba – an SAP company. All rights reserved.26

27. #AribaLIVE @ariba
Supplier Diversity Increased Number
of Awarded Contracts
© 2015 Ariba – an SAP company. All rights reserved.27
• Search Tools
• Formalized Sourcing Policies, Process
and Procedures
Awarded
Contracts to
M/W/DBEs
• Targeted Supplier Diversity Events in
Communities where we operate
• Integrated System in Ariba
• Worked with local partners and national
affiliates (NMSDC & WBENC)
• Organizational Commitment &
Alignment with Internal Advocates
Increase
Number
of M/W/DBE
participating in
RFPs,
e-Auctions
Result: Awarded Contracts in Local
Community & Community Development

28. #AribaLIVE @ariba
Strategic Sourcing Responsible for
all Procurement
© 2015 Ariba – an SAP company. All rights reserved.28
Corporate and Regional Category Alignment
Established procurement systems managed in-house
– i.e., Ariba
National & Local Board Members
Experience in both urban & rural markets
In-House Team
System Driven
Actively Involved in Local &
National Organizations
Experienced

29. #AribaLIVE @ariba
Upcoming
contracting
needs & training
for key areas
Align
Category
Outreach
Inform Source
New Casino
Development Approach
© 2015 Ariba – an SAP company. All rights reserved.29
Identify partners
for MBE, WBE
and local
influencers
Local community
about projects
Ongoing activity
(RFI, RFP, Auction)
as contracts are
renewed
Met M&R in
Cleveland at an
Ariba Training
Event

30. #AribaLIVE @ariba
M&R Thanked Caesars for
Introducing Ariba
© 2015 Ariba – an SAP company. All rights reserved.30
Bridget,
“I wanted to thank you again for your continued assistance in guiding M&R Distribution
Services through the process of becoming a potential vendor of Caesars. I did want to
share with you an added benefit of being accepted as a vendor within your system.
When invited to participate in the National Air Filter Contract for Caesars, we were
granted access to the ARIBA System. Unbeknownst to us, it was through this process
we have been exposed to numerous other opportunities by virtue of being accepted
into the ARIBA network.
We have taken advantage of this opportunity and to date
have received 2 wins through ARIBA.”

31. #AribaLIVE @ariba* We utilize Stratton Warren software for Food & Beverage orders
Ongoing Procurement Process
© 2015 Ariba – an SAP company. All rights reserved.31
• Strategic Sourcing
Department identifies
business need
• Sourcing determines
Bid Spend Parameters
• Specifications/SOW
fulfill needs
• RFP is created
electronically
• Identify Suppliers/
Vendors with interest in
submitting bids
• Tender to identified
suppliers
• Suppliers return bid –
evaluated on quality, service
and price
• Upon evaluation of bid,
if all else is equal some
preference is given to local
vendors
• Contracted submitted
E-signatures
• Vendor added to Ariba
P2P system
Identify Needs EvaluationRFP Contract
M&R just added in a
sourcing process for MRO

32. #AribaLIVE @ariba
© 2015 Ariba – an SAP company. All rights reserved.32
Lessons Learned
• Training is key, especially
around technology, in the
communities we operate
• Assisting our potential
vendors can help them be
more competitive with us
• Train your internal team on the
importance of development for
potential diverse vendors
• Familiarize yourself with Ariba
Discovery and other e-tools
that connect buyers & sellers
Recommendations

33. #AribaLIVE @ariba
Next Steps
© 2015 Ariba – an SAP company. All rights reserved.33
Train externallyTrain internally Make diverse matches
on Ariba Discovery

34. #AribaLIVE @ariba
M&R DISTRIBUTION SERVICES
Quentin L. McCorvey Sr., President and COO
© 2015 Ariba – an SAP company. All rights reserved.34
small enough to care
big enough to serve

35. #AribaLIVE @ariba
Who We Are
© 2015 Ariba – an SAP company. All rights reserved.35
Our
Mission
M&R Distribution Services will be recognized as a market leader in
supply chain management that enables our customers to reach their
maximum desired outcomes. We will do this through superior
customer services and leveraging the strengths of our business
processes, employees, suppliers and market intelligence.
National Minority Supplier Development Council Inc.,
Ohio MBE and Edge CertificationCertifications

36. #AribaLIVE @ariba
Before Ariba
• State procurement Portals
• Business Relationships
• Federal Bid Portals
• MBE Procurement Portals
• Beating the Streets
• National Minority
Development Council
© 2015 Ariba – an SAP company. All rights reserved.36

37. #AribaLIVE @ariba
How We Discovered Ariba
• Through NMSDC networking event met Caesars’ buyers
• Eventually connected to bid on opportunity but needed to set up
profile on Ariba Discovery
• Received leads and bid notifications through Ariba Discovery
from other businesses
© 2015 Ariba – an SAP company. All rights reserved.37

38. #AribaLIVE @ariba
Caesars: From Contact to Contract
© 2015 Ariba – an SAP company. All rights reserved.38
July
2014 Q3
Trash liners,
disposable gloves
Invited to bid on some
contracts based on existing
contact with buyers
Nov/Dec
2013 Q4
March/April
2014 Q2
Began in Caesars
Mentoring program
NMSDC
networking
event
Bid on first contract
(Air Filters) but did
not win business
Other opportunities
from other companies

39. #AribaLIVE @ariba
What Is Working Well
© 2015 Ariba – an SAP company. All rights reserved.39
Notification of
“matched” leads
Priceless
Competitive Intelligence “Opportunity cost dollars”
Access to major companies and
their procurement professionals:
Ability to drill down on
specific items = laser
targeted leads
Ability to reach companies
in a targeted way that
would be difficult to do
on own

40. #AribaLIVE @ariba
Business Results
• Before Ariba, one casino customer
• Credibility gains for being on Ariba
• Allows my company to scale and scope
the “market” of opportunities
• 10% growth rate targeted
• Contact to Contract and Trusted
Business Partner
© 2015 Ariba – an SAP company. All rights reserved.40

41. #AribaLIVE @ariba
Lessons Learned
• Ariba Discovery opened the door. No more
handouts, now handshakes
• After the initial opportunity, learning how to
expand your conversations offline
• Didn’t realize how big the association with
Ariba would be for them
• Discovery gives them access to
Fortune 200 companies
© 2015 Ariba – an SAP company. All rights reserved.41

42. #AribaLIVE @ariba
Recommendations
• Mine the alerts and leads regularly to spot business trends and
identify opportunities
• Don’t ignore closed opportunities
• Learn your customers pain points so you get chances to work
together to solve their supply chain problems
• Learn to use the tools of choice for procurement professionals
so you can be discovered as a supplier source
© 2015 Ariba – an SAP company. All rights reserved.42

43. #AribaLIVE @ariba
Next Steps
© 2015 Ariba – an SAP company. All rights reserved.43
Explore using Ariba
Discovery for their own
purchasing needs
Using Ariba Discovery to
help scale the business
nationally and in select
international markets

44. #AribaLIVE @ariba
QUESTIONS
© 2015 Ariba – an SAP company. All rights reserved.44