1. Procurement Nation
How procurement has become the backbone of
our savings conscious culture

2. Today’s Session
• The Evolution of Procurement
• Procurement is the Backbone
• Let’s Take a Walk: Smarter Spending Success Stories
• The Future of Procurement – 2011 and Beyond
• Q&A

3. The Evolution of Spend Management
Paper-based On-Premise On-Demand The Cloud
(aka ASP, SaaS)

4. The Evolution of Procurement

5. The Backbone of Our World

6. Procurement’s Impact is Everywhere
• Look around you – everything has been touched in
some way by procurement
• In a typical day you might encounter procurement’s
impact a dozen times or more
Let’s take a walk

7. MAP
Breakfast on the
way to the office

10. PROCUREMENT IMPACT
SAVINGS $40 / PO processed
enough for
10
happy meals per PO for hungry children in the community

11. “We can actually see all the orders in
process when they are in someone’s cart
as well as when they submit. We can also
see if the order was successfully
transmitted immediately.”
– SpendSmart Procurement Team

12. MAP
Drive by Moscone
Center on the way
to the office

16. PROCUREMENT IMPACT
SAVINGS $18 million
more than enough to
Cover Bill Clinton’s speaking fee, security detail and travel
& entertainment expenses

17. “We scoured the industry looking at
vendors in the e-Procurement space.
Quickly we eliminated any of the on-
premise or what you would call
private cloud and that type of
opportunity because the value of a
Greg Tennyson multitenant environment, the cost to
Chief Procurement Officer implement, the maintenance of the
salesforce.com product is much better. [Moving to
the cloud] was a no brainer.”

18. Stop by to check out
MAP new lobby furniture

22. PROCUREMENT IMPACT
SAVINGS $500,000 in 2 months
enough to
make investments that will lead to greater market share
and growth

23. “We had some adoption problems
with prior tools, so we were incredibly
pleased by the speed with which we
were able to implement an integrated
solution that is both easy to use, and
incredibly robust. We were able to
deploy a complete solution to over
3,000 locations in less than four
months. Additionally, we have been
Mike Wilding able to quickly address new features
Chief Procurement Officer like the ability to invoice against
Rent-A-Center
contract, and define receipt
tolerances and invoice approval
workflows, which we will roll out in
the near future.”

24. MAP
Arrive at office, pull
HR reports for
staffing meeting

28. PROCUREMENT IMPACT
SAVINGS $5 – 7M
enough for
382,618 Jobs / Quarter
Filled by giving access to 70 more users to help source jobs

29. “The budget is tied to the
expenses going through the
system. Budget managers have
the ability to understand what
they were spending, when they
Katy Murray
were spending. And the time
Chief Financial Officer spent on the phone, the time
Taleo
spent talking to their finance
partner was diminished.”

30. MAP
Lunchtime errands,
stop by bank to
withdraw cash

34. PROCUREMENT IMPACT
SAVINGS $1 million
enough for
303
families to keep their homes

35. “Our procurement processes were
highly manual.[ Cloud Spend
Management] provides greater
visibility into, and control over, our
spending. Now we have full
automation from requisition to
invoicing, with tight integration into
our back-end financial systems that
Dee Harnish provides audit trails which track our
Purchasing Manager approvals to ensure that we comply
Berkshire Bank with regulatory requirements.
Additionally, we can identify savings
opportunities by using the tool to
effectively analyze our spend.”

36. MAP
Lunchtime errands,
stop to pick up
closet shelves

40. PROCUREMENT IMPACT
SAVINGS 36 hours per week
enough for
2
part-time employees to spend more time servicing
customers on the store floor

41. “[The cloud]’s traction in our
industry does not surprise me at
all. The dynamics of the retail
business model demand efficient
and cost-effective operations.
Scott Jones [Cloud-based e-procurement]
Purchasing Agent fits that need perfectly. We’ve
The Container Store.
been very successful with the
software.”

42. Back at the office for
MAP afternoon webinar

46. PROCUREMENT IMPACT
SAVINGS $1 – 2 million
enough to eliminate
210 metric tons
By investing in solutions that remove the need for travel
and all of the environmental damage air travel causes

47. “The implementation of
our [cloud spend
management solution]
was actually the first time
ever an implementation
EoinO’Connor went as planned. We
Chief Financial Officer
ON24 expected it would take
two weeks. It took less
than that.”

48. MAP
Take junior to get
new hockey skates
after practice

52. PROCUREMENT IMPACT
SAVINGS $800,000
enough for
3,200
Sets of hockey gear for inner city sports programs

53. “I like the ease-of-use. The
screen looks like a web page
and you only see what’s in
your cue, which adds focus.
And because the cloud is
Dave Howard
Director of Central Purchasing subscription based, it doesn’t
Reebok CCM Hockey take a lot of internal
resources [to implement or
maintain].”

54. MAP
Arrive home, crank
up some music and
start dinner

57. PROCUREMENT IMPACT
SAVED $600,000
enough for
465,116
songs on iTunes to review and add to the Pandora
Genome Project

58. “As we remain laser-focused on growing our
business it is important to have the right
financial tools in place for to ensure effective
management of spend within established
budgets. We’re pleased to use cloud spend
management as one of the primary tools to
assist us in our ongoing commitment to that
financial goal.”
- Steve Cakebread, CFO at Pandora

59. MAP
Dinner is served!

63. PROCUREMENT IMPACT
SAVINGS $500,000 per month
enough for
50,000
Healthy, nutritious meals for hungry children

64. MAP
Curl up with a down
comforter and call it
a day

68. PROCUREMENT IMPACT
SAVINGS $60 – 69 million
enough for
30
new retail outlets to remain more competitive with TJX in
key geographic areas

69. We All Make It Happen

70. We All Make It Happen

71. And It’s All Happening in the Cloud

72. What is the “cloud”?
• Lots of definitions, lots of “false clouds”
• The cloud should not be confused with
– ASP
– SaaS
– On Demand
• A true cloud solution
– Is built on a single line of code
– Can be up and running in a matter of days
– Does not require extensive set-up, maintenance and
upgrade fees

73. Road to Success Leads to the Clouds

74. The Cloud is the Most Cost Effective
•IT Support
•Maintenance
•Upgrade
•Professional
Services
•Software Fees
•IT Support •IT Support
•Maintenance •Maintenance
•Professional •Professional
Services Services
•Software Fees •Software Fees
•Implementation •Implementation •Implementation •
•Hardware •Hardware •Hardware
•Database / •Database / •Database /
Middleware Middleware • Middleware •
•Software Fees •Software Fee •Software Fee
• • •
Year 1 Year 2 Year 3

75. Innovation in the Cloud
Traditional Dev Model Cloud Dev Model
1.Lengthy Independent Upgrades 1.Quick and Simple Upgrades
2.Difficult Independent Implementations 2.Rapid Implementation
3.Multiple Code Bases 3.One Optimized Code Base
VS
Cloud Platform
1.Non-viable long-term business model 1.Sustainable Business Model

76. Cloud Spend Management
• One platform to control 100% of indirect spend
– e-Procurement
– Expense Management
– Dashboards & Reporting
– Benchmarks
• Easily integrate and extend the value of existing
investments
– Open APIs
– Out of the box connectors

77. 5.5% to 16% HARD Savings
Driver Benefit
Competitive Bidding 2-5% Hard Cost Savings
Preferred Supplier Enforcement 1.5-5% Hard Cost Savings
Process Efficiency 1-2% Savings, 55%+ cycle time reductions
Visibility & Control Risk Mitigation
Accurate Invoicing 1-2% Hard Cost Savings
Early Pay Discount 1-4% Hard Cost Savings
77

78. Summary
• Procurement has evolved – so must your
organization
• Smarter spending is all around us – we all have
opportunities to take advantage
• Those who have made the move to smarter spending
have reaped tangible results
• Don’t be confused by marketing buzzwords – there is
only ONE cloud

79. Thank You!
Q
&A
Rob Bernshteyn
CEO
Coupa Software
rob@coupa.com
650.931.32
www.coupa.com