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Sean Roach
Founder
sean@prchus.com
Procurement in the Cloud
All contents of this presentation are the confidential property of Prchus Inc
Page 2September 25, 2013
Prchus applications leverage data and high-
performance analytics to deliver maximum
value through the strategic management of
indirect spend.
Proprietary & Confidential
Page 3September 25, 2013 Proprietary & Confidential
The sourcing of the goods & services that
are consumed within a business.
Indirect Procurement is
Page 4September 25, 2013
Optimizing this could result in
Increase in Company Profit Margins
Based IBM CPO Survey 2013 and Procurian 2012 white paper You’re Missing The Point!
1-3%
Page 5September 25, 2013
If approached strategically
“Non-payroll (indirect) spend management should be
handled with the same rigor as supply chain
management. Unfortunately, this is rarely the case.”
The Hacket Group 2012
Page 6September 25, 2013
Internal clients are asking for this
“The current perception of the indirect
procurement function is one of a tactical
support function rather than a strategic
business partner.”
Proxima/Nelson Hall 2012
Page 7September 25, 2013
But relevant knowledge is missing
“CPOs typically recognize a distinct lack of
sufficient resources both to have market insights
and up-to-date market intelligence across all
indirect categories.”
Proxima/Nelson Hall 2012
Page 8September 25, 2013
Prchus is changing that
Cloud based, mobile enabled
Daily data updates, one-click refresh
Reduced production burden and errors
Prchus Market Intelligence
Page 9September 25, 2013
While providing a 5x ROI
Hours/month a Category Manager
spends collecting Market Intelligence16:
Average annual fully burdened cost
of a US based Category Manager$102,000:
Annual cost of time spent on manual
collection of Market Intelligence$9,792:
Annual Per Seat cost of
Prchus Market Intelligence
$1,800:
Page 10September 25, 2013
Insights
Actions
Outcomes
Proprietary & Confidential
We are planning much more
Market Intelligence
Cost/Spend Data
Supplier Impacts
News and Events
Social Data
Predictive Analytics
Process Automation
Suggested Actions
Should Cost Modeling
Scenario Planning
Savings Realization
Metrics Attainment
Quality Improvements
Cost Center Analysis
Page 11September 25, 2013
Team & Roles
Sean Roach, Founder
• Client Services Executive at
Procurian
• IT Services Category Manager at
Dell
• Director, Business Development
at Calliduscloud
• Vanderbilt University, Economics
• John Hooks, Cloud2Ground Technologies: Data Science, Corporate
Development
• Art Sarno, Consultant: Marketing and Technology Partnerships
• Matt Lyons, Andrews Kurth: Legal
• Doug Mangum, Wells Fargo: Banking
Consultants & Advisors
Partners
Page 12September 25, 2013
• Companies spend 20-30% of revenue on indirect
goods and services.
• Only 15% of companies are considered “high-
performing” in their management of this spend.
• Procurement lacks the knowledge required to be a
strategic partner to business units
• Optimized indirect procurement can increase
corporate profits by 1-3 percentage points
• Prchus leverages data and high-performance
analytics to enable procurement to deliver this value.
Proprietary & Confidential
Key Takeaways
THANK YOU
Sean Roach
Founder
512.970.2628 sean@prchus.com

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Procurement in the Cloud: Optimizing Indirect Spend

  • 1. Sean Roach Founder sean@prchus.com Procurement in the Cloud All contents of this presentation are the confidential property of Prchus Inc
  • 2. Page 2September 25, 2013 Prchus applications leverage data and high- performance analytics to deliver maximum value through the strategic management of indirect spend. Proprietary & Confidential
  • 3. Page 3September 25, 2013 Proprietary & Confidential The sourcing of the goods & services that are consumed within a business. Indirect Procurement is
  • 4. Page 4September 25, 2013 Optimizing this could result in Increase in Company Profit Margins Based IBM CPO Survey 2013 and Procurian 2012 white paper You’re Missing The Point! 1-3%
  • 5. Page 5September 25, 2013 If approached strategically “Non-payroll (indirect) spend management should be handled with the same rigor as supply chain management. Unfortunately, this is rarely the case.” The Hacket Group 2012
  • 6. Page 6September 25, 2013 Internal clients are asking for this “The current perception of the indirect procurement function is one of a tactical support function rather than a strategic business partner.” Proxima/Nelson Hall 2012
  • 7. Page 7September 25, 2013 But relevant knowledge is missing “CPOs typically recognize a distinct lack of sufficient resources both to have market insights and up-to-date market intelligence across all indirect categories.” Proxima/Nelson Hall 2012
  • 8. Page 8September 25, 2013 Prchus is changing that Cloud based, mobile enabled Daily data updates, one-click refresh Reduced production burden and errors Prchus Market Intelligence
  • 9. Page 9September 25, 2013 While providing a 5x ROI Hours/month a Category Manager spends collecting Market Intelligence16: Average annual fully burdened cost of a US based Category Manager$102,000: Annual cost of time spent on manual collection of Market Intelligence$9,792: Annual Per Seat cost of Prchus Market Intelligence $1,800:
  • 10. Page 10September 25, 2013 Insights Actions Outcomes Proprietary & Confidential We are planning much more Market Intelligence Cost/Spend Data Supplier Impacts News and Events Social Data Predictive Analytics Process Automation Suggested Actions Should Cost Modeling Scenario Planning Savings Realization Metrics Attainment Quality Improvements Cost Center Analysis
  • 11. Page 11September 25, 2013 Team & Roles Sean Roach, Founder • Client Services Executive at Procurian • IT Services Category Manager at Dell • Director, Business Development at Calliduscloud • Vanderbilt University, Economics • John Hooks, Cloud2Ground Technologies: Data Science, Corporate Development • Art Sarno, Consultant: Marketing and Technology Partnerships • Matt Lyons, Andrews Kurth: Legal • Doug Mangum, Wells Fargo: Banking Consultants & Advisors Partners
  • 12. Page 12September 25, 2013 • Companies spend 20-30% of revenue on indirect goods and services. • Only 15% of companies are considered “high- performing” in their management of this spend. • Procurement lacks the knowledge required to be a strategic partner to business units • Optimized indirect procurement can increase corporate profits by 1-3 percentage points • Prchus leverages data and high-performance analytics to enable procurement to deliver this value. Proprietary & Confidential Key Takeaways