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Oracle Supplier Management Complete, Open, Flexible, Integrated

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Agenda • Introductions (9. 00 AM – 9. 10 AM) • Why Supplier Management? (9. 10 AM – 9. 30 AM) • Functional Overview (9. 30 AM – 10. 00 AM) • Supplier Lifecycle Management Demo (10. 00 AM – 10. 30 AM) • Break (10. 30 AM – 10. 45 AM) • Supplier Lifecycle Management Demo (10. 45 AM – 11. 30 AM) • SLM Exercises (11. 30 AM – 12. 30 PM) • Lunch (12. 30 PM – 1. 30 PM) • Supplier Hub Demo (1. 30 PM – 3. 00 PM) • Break (3. 00 PM – 3. 15 PM) • SH Exercises (3. 15 PM – 4. 15 PM) • SLM and SH Technical Overview (4. 15 PM – 4. 45 PM) • Wrap up (4. 45 PM – 5. 00 PM)

Why Supplier Management ?

Responding to Fluctuating Market Immediate priorities for CPO Risk and Compliance 1 Supplier Risk 2 Renegotiate Contracts 3 Spend Management Effectiveness Conserve Cash 1 Cut Spending 2 Hiring Freeze 3 Reconsider Cap Ex CPOs being asked to do more with less

Compliance & Governance FDIC Regulation - Managing 3 rd Party Relationships in Financial Institutions • Track Potential Risks Arising from 3 rd Party Relationships – – – – Strategic Risk Reputation Risk Operational Risk Transaction Risk Credit Risk Compliance Risk Other Risks • 3 rd Party Relationship Oversight – Periodic Performance Monitoring

Compliance & Governance Risk Mitigation • Corporate business practices extended up supply chain – – – – Legal / Regulatory OFAC / SDN Watch List Environmental / Carbon Footprint Accreditation Ethical / Marketing Manufacturing Quality Standards IRS EIN Verification • Managing Corporate Social Responsibility – – – – United Nations Declaration of Human Rights U. N. Convention on the Rights of the Child International Labor Organization (ILO) conventions Electronic Industry code of conduct International Organization for Standardization Occupational Health and Safety Assessment Health and Safety Executive –… Environmental Policies Child Labor Laws ISO 9000 / ISO 14000 OFAC - SDN List

Company Scorecard Auditing Supplier Performance for Company KPIs • Quantitative assessment: How well is a Supplier meeting my KPIs? – “To register all organic growers in countries as part of our target to ensure all organic growers are registered to Nature's Choice” – “To audit all organic suppliers as part of our target to ensure that 100% of organic suppliers comply with Nature's Choice” • Qualitative feedback: What do my folks tell me about supplier performance? – What do my Buyers think about this supplier? – Do my requisitioners find the supplier easy to deal with and flexible when needed?

Identifying Opportunities Vendor Classification Status • Diversity a growing global trend – Procurement spend allocated to different supplier classifications – “Good corporate citizen” – Key requirement for U. S. Federal & State governments • Growing global trend – London 2012 Olympics – “…open to a diverse range of suppliers including Small and Medium-sized Enterprises (SMEs), social enterprises, and businesses owned by BAME people, women and disabled people. ”

How much does unstructured data cost you? In 1 hour… • • • 240 businesses will change addresses 150 business telephone numbers will change or be disconnected 112 directorship (CEO, CFO, etc. ) changes will occur 20 corporations will fail 12 new businesses will open their doors 4 companies will change their name* *Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A. T Kearney, GMA Invoice Accuracy Study

Supplier Management Business Challenges Supplier Management Cost Poor Visibility • Mitigate risk and on-board suppliers • Track supplier performance evaluations, quickly • Provide self-service administration to suppliers • Streamline communication with suppliers qualifications and deliverables • Know which suppliers are dependable and cost effective • Be assured that spend analytics is complete and accurate Supplier Management Fragmented Data • Unify duplicated, incomplete, inaccurate data held within multiple, disparate systems • Consolidate & federate shared information across instances Compliance & Governance • Assure that suppliers are meeting the code of conduct • Ensure that suppliers are adhering to all laws, regulations & standards • Provides visibility to viability of suppliers

Oracle Supplier Management Solution

Enabling More Effective Supplier Management What’s New in Procurement & MDM Results: ü Consolidate & Cleanse Supplier Information for Effective Spend Analytics Procurement • Foundation stone to improve accuracy Supply Chain Applications Technology • Streamlines qualification process Human Capital Master Data Management ü Manage Suppliers through Entire Supplier Lifecycle E-Business Suite Financials of analytics results • Improves Sourcing effectiveness • Enables controlled assessment ü Reduce Cost of Supplier Management • Maintain single supplier definition • Eliminate redundant compliance checks

Oracle Supplier Management Solution Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (e. RFx/Survey ) Supplier Master TE LE SO B O Supplier Inactivation Contract & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (e. RFx/Survey)

Oracle Supplier MDM Supplier Lifecycle Management & Supplier Hub Legacy Supplier Lifecycle Management • Registration and Onboarding • Supplier Profile Management • Qualification and Notification Management • Compliance and Profile Audit • Supplier Assessment and Performance Management Supplier Hub Consolidate - Data Import Mgmt, Source System Mgmt, Cross Reference Cleanse - Matching, D&B Data Enrichment Master - Supplier Classifications & Relationships Share - Data Publication and Synchronization, Web services, Security Govern - Hierarchy Mgmt, Task Mgmt, Classification Mgmt

Oracle Supplier Management Solution Deployment Options (a) Supplier Management with Stand-alone MDM instance (b) Supplier Management with Existing EBS Instance

Oracle Enterprise Master Data Management The most complete MDM offering on the market today Data Governance Manager Operational Analytical Systems Analytical MDM Operational MDM Apps Systems Analytical Financial SAP Site DW Product EBS Supplier Dashboards Customer Siebel People. Soft JDE Custom Apps Planning Oracle Customer Hub Oracle Supplier Hub Oracle Product Hub Oracle Site Hub Oracle / Hyperion Data Relationship Management Application Integration Architecture External Apps BI &Datamarts Financial Consolidation Budgeting Oracle Fusion Middleware 17

Oracle Supplier Management Solution Summary ü Improve Supplier Performance Management ü Reduce Supplier Management Costs ü Simplify Supplier Selection and Reduce Risk ü Enhance Supplier Compliance Management ü Increase Accuracy of Spend Analysis ü Streamline Procurement Processes “…companies are spending…between $585 and…$1, 000 per supplier annually…however, when information, enabled by technology, becomes visible across the organization, costs per supplier quickly dwindle to below $150 per supplier. ” AMR Research, June 2009

Functional Overview

Supplier Directory Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (e. RFx/Survey ) Supplier Master TE LE SO B O Supplier Inactivation Contract & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (e. RFx/Survey)

Supplier Profile Fixed Attributes + Extensible Attributes Unstructured Data Fixed Attributes Organization • • • Unstructured Data • Word, Excel, PDF, etc. D-U-N-S Number, Legal Structure Incorporation Year, Chief Executive Name Total Employees, Annual Revenue Business Classifications Products and Services … Company Level Insurance Information Worker Compensation, Liability, Auto, EMR Compliance Information Banking Details Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant • Account Number, IBAN, Currency, Type • Bank Name, Branch Name • … Purchasing Terms and Controls Address Level Quality Systems • Ship-To Location Bill-To Location Ship Via • Pay On, Freight Terms • … ISO 9001, ISO 14001, ASA 100, FAR 145 Invoicing Terms and Controls • • • Production Capacity Invoice Currency, Amount Limit Match Options, Tolerance Hold Options (All, Unmatched, Unvalidated) Payment Terms, Terms & Pay Date Basis … Payment Controls • Method, Delivery Channel • Payment Format, Settlement Priority • … Machinery, Average Capacity, Max. Capacity Supplier Profile Tax Details • … Site/OU Relationship Level Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Receiving Controls • Receipt Routing, Match Approval Level • Quantity Tolerance, Days Early/Late Receipt • … Extensible Attributes Freight Forward Detail Questionnaires Item/Supplier Relationship Level (PIM) Questionnaires • RFI/Questionnaires (Supplier & Internal) • Deliverables Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, Ro. HS Compliant, WEEE Compliant

Extensible Supplier Profile Company, Address, Site, Item Level Extensions Supplier Organization Level Insurance Information Computer Supplies, Inc. Worker Compensation, Liability, Auto, EMR Supplier Company Compliance Information Environmental Policies Compliant, Child Labor Laws Compliant, Health and Safety Compliant, Business Practices Compliant Supplier Address Level Quality Systems ISO 9001, ISO 14001, ASA 100, FAR 145 Production Capacity CSI, Shanghai, China CSI, New York, US Machinery, Average Capacity, Max. Capacity Supplier Site/OU Level Logistics Information Standard Delivery Time Guarantee Transport Insurance Type Freight Forward Detail Vision, Atlanta, US Vision, San Francisco, US Vision, Dallas, US Operating Unit, Inventory Organization Vision Computer Corporation Buyer Company Operating Unit Item/Supplier Level Supplier Item Number, Order to Ship Lead Time, Supplier Capacity, Ro. HS Compliant, WEEE Compliant Vision, San Jose, US Vision, Stratford, US Inventory Organization 22 Vision, Fremont, US Inventory Organization

Access to Supplier Profile Controlling who can view/edit what Supplier Information Computer Supplies, Inc. Supplier Attributes: Values: ile rof d P es ar nd ibut Sta Attr Supplier User 23 A 1 A 2 A 3 A 4 A 5 A 6 A 7 Standard Buyer A 8 A 9 ile of. A 18 Pr d de tes ten ibu Ex Attr A 10 A 17 A 19 A 27 Strategic Buyer A 28 A 29 A 30 A 35 A 36 A 37 Administrator

New Supplier Registration and Qualification Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (e. RFx/Survey ) Supplier Master TE LE SO & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (e. RFx/Survey) 24 Contract B O Supplier Inactivation New Supplier Registration and Qualification

New Supplier Registration and Qualification Process Flow Duplicate checks Computer Supplies, Inc. New Supplier Prospect Supplier Request Prospect Self. Registration Vision Computer Corporation Computer Supplies, Inc. Prospect Supplier Request Admin Review request, Attach Questionnaire New Supplier Respond to Questionnaire Prospect Supplier Request Vision Computer Corporation Evaluation Team Supplier Evaluation, Scoring, Shortlist and Approval 25 Supplier Master Profile Supplier and Evaluator Response mastered as profile System Notification to New Supplier

Supplier Profile Management Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (e. RFx/Survey ) Supplier Master TE LE SO B O Supplier Inactivation Contract & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (e. RFx/Survey) Supplier Profile Management

Supplier Profile Management Flow#1 – Supplier self-service Profile Management + Address Bank details Contacts Computer Supplies, Inc. Supplier Updates using selfservice Portal Business Classification Products & Services Other Extensible Attributes Attachments Vision Computer Corporation Admin Reviews and Approves Changes Supplier Master Profile Changes Mastered 27

Supplier Profile Management Flow#2 – Buyer Initiated Profile Maintenance Vision Computer Corporation Computer Supplies, Inc. Questionnaire Supplier Admin Responds to Questionnaire Creates Questionnaire Supplier Profile Attributes Questionnaire Supplier Master Vision Computer Corporation 28 Evaluation Team Review, Evaluate, Score Supplier Master Profile On Completion, Master the Supplier and Evaluator Responses Item-Supplier Profile Attributes Item Master

Supplier Performance Management Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (e. RFx/Survey ) Supplier Master TE LE SO B O Supplier Inactivation Contract & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Supplier Performance Management Ongoing Assessments (e. RFx/Survey)

Supplier Performance Management Process Flow Vision Computer Corporation Admin Create Evaluation Questionnaire 30 Supplier Internal Evaluation Team Supplier Performance Evaluation, Score Supplier Master Profile On Completion, Evaluator Response mastered as profile

Supplier Performance Management Internal Assessment Evaluated Suppliers Internal RFI / Questionnaire Invited Evaluators Buyer Joe Buyer Ed 31 Computer Supplies, Inc. Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? Overall Supplier Satisfaction Electronic Supply No Yes

Supplier Master Data Management Invitation Supplier Self-Service Registration Supplier Search Supplier Profile, Qualification, Credit/Risk Assessments (e. RFx/Survey ) Supplier Master TE LE SO B O Supplier Inactivation Contract & Supplier Profile, Classification, Bank Detail, Relationship Maintenance Supplier Performance Analysis and Management Ongoing Assessments (e. RFx/Survey)

Supplier Master Data Management Consolidate, Cleanse, Enrich Supplier Master Data Quality Management tools Spoke De-Dupe Supplier Master Record Enrichment Spoke Supplier Hub Thomson Experian Consolidate across multiple heterogeneous legacy systems containing inconsistent sets of supplier data 33

Supplier Master Data Management Source System Management – Registration & cross-reference for source (spoke) systems Data Hub Registry ID Source System A A 34 BB 253 Source System B Identifier A: BB 253 3177 8808 Supplier Hub Identifier B: 8808 B

Supplier Master Data Management Data Quality Management • Create a single Supplier master profile from multiple sources Source 1 Revenue # of Employees Business Classifications Product and Services Invoicing Terms 35 Source 2 (Purchasing) (Payables) US$ 1. 1 M Merged Record US$ 1. 1 M 20, 000 21, 000 Small Bus. Hub. Zone Small Bus. Hubzone Desktop Laptop Desktop, Laptop Net 45 Net 42

Supplier Master Data Management Data Enrichment and Validation Out-of-the-Box D&B Integration • Search D&B for Prospect Trading Party Information • Evaluate Prospect Supplier Credit & Risk using D&B Vendor Management Product • Enhance existing Supplier party records with pre-built integration • Import data in real-time or batch mode • Choose from different D&B data packets/products Out-of-the-Box Trillium Integration • Address Matching and Cleansing 36

Supplier Master Data Management Supplier Hierarchy Relationship Role Company Name Best Supply Corporation View and Manage Supplier Hierarchies Browse Relationships through multiple hierarchies • D&B Hierarchy • Partner Relationship Hierarchy • Custom Relationship Hierarchy… Parent Company Address: 29261 South Frost Road, Liingston, LA- (225) 686 -1967 DUNS #: 73 -292 -4932 Subsidiary Of Best Supply Americas Address: 1801 12 th Avenue, Seattle, WA- (206) 325 -0489 DUNS #: 37 -389 -0394 Child Business Entity Of Best Computer Supply Address: 2300 West Whitendale, Visalia, CA- (559) 732 -8892 DUNS #: 84 -948 -8736 Best Electronic Supply Address: 9260 Bay Plaza Boulevard, Tampa, FL- (813) 744 -5862 DUNS #: 47 -298 -8376 Subsidiary Of Best Supply Europe Address: C/ Gran De Gràcia, 15, 08012 Barcelona, Spain- 933 682 383 DUNS #: 46 -98 -7648

Supplier Master Data Management Supplier Relationship Classifications Classification Scheme Classification Code Classify Your Suppliers Platinum Supplier Preference Gold Category Best Computer Supply General Classifications: Classify. Bottle Neck suppliers based on the way they are referenced within your organization Supplier FDIC Risk Category Computer Parts Supplies • • • Strategic Risk Supplier Preference Category Risk Financial Supplier FDIC Risk Category Compliance Risk Supplier Watchlist Operational Risk OFAC – SDN List Electronic World Supplies Supplier Watchlist UN Consolidated List Unauthorized Banking List

Supplier Master Data Management Supplier Relationship Tasks Task Relationship Tasks and Notes Manage corrective actions using tasks and notes. Share them with suppliers. • • • Assign tasks to internal and supplier users Add attachments, due-date and status to tasks Control visibility of notes Invite Supplier to Sourcing Event for MDK 385 Submit Compliance Documents Assignee Buyer Supplier Attachments Due Date Ms. Catherine Baker, Sourcing Professional Product Specs Terms and Conditions Mr. Edmund Murphy, Supplier Contact Code of Conduct May. Document 312010 Note Visibility User Status Apr-15 Open -2010 Date Entered Completed Note Type Discussed delivery performance issues Public Mr. James Bradley Apr-152010 Feedback Schedule Q 3 Business Review Private Ms. Henna Jackson May-312010 Meeting

Supplier Master Data Management Publish Supplier Master Data to Spoke Systems Infrastructure to Publish ‘Supplier Master’ data from Hub: Business Events Synchronize Spoke Webservices / APIs Publish Profile Synchronize Spoke Supplier Hub Synchronize Spoke 40