Mike Schokman, Rio Tinto, AribaLIVE 2011 http://exchange.ariba.com/community/events/aribalive

1. Rio Tinto eProcurement Mike Schokman Procurement Systems Governance & Support Manager

5. The Global Locations of RTP Operations Alma Anglesey Austria Awaso Beijing Lannemezan Boron Bozeman Brisbane Brockman Buenos Aires Dampier Clermont Colowyo Darwin Decker Douala Dunkerque Emerald Gardanne Gillette Gladstone Guinea Hail Creek Havre Saint-Pierre Perth Hunter Valley Invercargill Johannesburg Kitimat Kununurra La Bathie Labrador City Launceston Lima Lochaber London Luzenac Northumberland Mackay Gove Madagascar Marandoo Montreal New Delhi Ningxia Notre Dame de Briançon Lynemouth Omaha Palabora Pannawonica Paraburdoo Reykjavik Richards Bay Ronchin Rotterdam Paris Sagueney Salt Lake City Sandton Sebree Sept-Iles Shanghai Singapore Singleton Sorel St Jean-de Maurienne Superior Swakopmund Teutschenthal Tom Price Vancouver Voreppe Weipa West Angelas Yandicoogina Yellowknife Zurich Rio de Janeiro Cape Lambert Bahrain Distribution of RTP staff by region Americas 36% EMEA 27% Asia Pacific 36% © 2011 Ariba, Inc. All rights reserved.

7. Purchase to Pay Systems Landscape © 2011 Ariba, Inc. All rights reserved. Purchase to Pay Systems Landscape USER USER User Procurement Portal Product/ Service Finder (Rules Based), Channel Finder & Policy Info, Exception Mgr ., Track and Trace RTBS Buy/Pay Channels, Master Data (Vendor, Service, Material – BOM Inventory Items) 4PL Trace and Trace Rules Based Ariba Source Bid RfX SPM – Controls Service Catalogue, Service Procure, Pre-Qual Trans. & W/H Mgr. GPS, Optimize HW/ Devices RFID, Bar Code Scanner Status Status Shared Material Catalogue Supplier ERP Supplier Procurement Portal Onboarding, Policy, etc. CO PO Pay PO Receipt ASN Invoice Field Glass Supplier Punch-outs Material Master CO PO Pay Quadrem PO Receipt ASN Invoice Status/ Exceptions CO PO Pay Selected MD Replication Item Information/ Attributes/ Vendor attribute change requests

8. Rio Tinto’s eProcurement Journey Supplier Portals Standard Integration # Vendors # POs More Integrations Mid-Tier Alcan Acquisition (2007-08) 2009/10 Identified Barriers to realizing full eProcurement Value PO/CO INV Auto-OR RA © 2011 Ariba, Inc. All rights reserved. 2011++ 2010 1200 638k Closing the Loop 1168 560k 2008 On-boarding Focus Hosted vs. Integrated 2006 2004 2002 127 18k 507 166k 721 318k Procurement Standardization 2000 <2000 8 267 Quadrem founded / Rio Tinto begins implementation

11. Automation: eProcurement New Functionality Rio Tinto uses narrow subset of offerings ─ expanding capability Minimal value in narrow use. Adopt broad process document use. Don’t stop at PO’s!! Exists today Approve Issue PO/CO Order Rec’v PO/CO from Buyer Confirm PO Response and Handling Invoice INV from Supplier Pay Remittance Adv, Payment visibility Receive GRN from Buyer Ship ASN from Supplier 2011 Rio Tinto capability †† Adopted from Quadrem collaboration diagram †† Request RFQ, Content

12. Mid-tier Suppliers – Integration in the “Cloud” (High Level Flow) © 2011 Ariba, Inc. All rights reserved. Network Customer Desktop HTTPS Secured Messaging Platform Cloud Solution Web Browser Interface Cloud Printer Local File System Fax Server

15. Last Thoughts: Experience Improvements #1: Procurement users’ experience; unified portal © 2011 Ariba, Inc. All rights reserved. ...

16. Last Thoughts: Experience Improvements #2: Users’ procurement content ERP Vendors Workflow and rules engine Field Field Field Material Owner Owner Owner Approval Approval Approval Vendor punch-out catalogue Shared punch-out catalogue Purchasing req, punch-out request Replicate those materials really needed (BOMs, inventory) Pass through if required No mtce of material data here – slave only Quadrem All transactions through Quadrem that flag as an error generate a trigger to workflow required fix © 2011 Ariba, Inc. All rights reserved.

17. Questions © 2011 Ariba, Inc. All rights reserved.

19. Rio Tinto eProcurement Mike Schokman Procurement Systems Governance & Support Manager