This document summarizes a presentation on successful Procure-to-Pay programs. It discusses Dollar Tree's implementation of a P2P program through Ariba, focusing on change management, implementation teams, training, spend analysis, feedback, supplier enablement, and early payments. It also discusses Corinthian Colleges' business case for a P2P program, how it would help problems like rogue spending, and its plan to implement the program in waves based on category suitability.

1. B
Seven Habits of
Highly Successful
Procure-to-Pay
Programs
Dollar Tree, Inc.
Corinthian Colleges, Inc.
Synovus
© 2012 Ariba, Inc. All rights reserved.

2. Session Abstract
With economic uncertainty lingering, Procure-to-Pay (P2P)
performance has risen up the corporate agenda. Yet, many P2P
programs stall due to an incomplete vision, poor adoption, and
lackluster supplier enablement. Successful leaders have come
to understand P2P is more than just a shopping cart. The most
successful P2P programs maximize spend under management,
drive company-wide compliance, and are embraced by supplier
partners. This session explores how some of the industry's most
successful P2P programs have driven widespread adoption,
compliance, and superior results.
2 © 2012 Ariba, Inc. All rights reserved.

3. Speakers - Dollar Tree, Inc.
• Natasha Pendell
Natasha Pendell is a graduate of Michigan State University
with a degree in Supply Chain Management and has over
ten years of experience in procurement and sourcing
management. She gained priceless experience by working
at Whirlpool, Medtronic, Compass Minerals and now Dollar
Tree. In her current role as Strategic Sourcing Manager,
Natasha’s P2P duties include supplier enablement and
catalog management.
• Howard Tant
Howard Tant has a background in corporate Financial
Planning & Analysis with several industries including
retail, education and telecommunications. His current role
is Procurement Operations Manager & P2P Administrator
for Dollar Tree where he oversees all aspects of system
performance including adoption, procurement
process, training and reporting.
3 © 2012 Ariba, Inc. All rights reserved.

4. Speaker – Corinthian
David Beaver
• 25 Years of Experience – in various supply chain disciplines –
Procurement and Sourcing, Logistics Management, Industrial
Engineering, Production Management, Management Consulting and
IT Systems Implementation and Integration
• Vice President, Procurement, Sourcing and Travel – Corinthian Colleges
Responsible for the procurement and sourcing activities across a spend base of
approximately $500M. Key commodities include Textbooks and Student Supplies, Bookstore
Operations, Furniture and Fixtures, Promotional Items and Print, IT Hardware, Software and
Consumables, Office Equipment and Supplies, Air, Hotel and Car.
• Vice President, Procurement, Sourcing and Travel – Live Nation
Responsible for the procurement, sourcing and travel activities at the largest live
entertainment company in the world. Key commodities managed include utilities, food and
beverage, staging and lighting, freight and shipping, merchandise, ATMs, event cleaning,
security and staffing.
• Executive Director, Procurement, Sony Pictures Entertainment
Responsible for managing a wide range of commodities including facilities, architectural
services, real estate, furniture, carpet, warehousing, utilities and janitorial services.
• Management Consultant, Price Waterhouse Coopers
Responsible for managing and implementing numerous procurement transformation
projects across multiple industries including large entertainment, utility and consumer
product companies.
4 © 2012 Ariba, Inc. All rights reserved.

5. Speaker - Synovus
• Kevin P. Gowen serves as Chief Procurement Officer and Group Executive,
Procurement and Corporate Real Estate for Synovus Financial Corp. After 17 years
with IBM, Gowen joined Synovus in 1996 and has served in various operational
and leadership roles in technology and procurement. In 2008, he was named to the
position of Senior Director of Procurement. He is responsible for Procurement and
Facilities Management of all property owned and occupied by Synovus. Gowen
holds both Master of Science and Bachelor of Science degrees in Mechanical
Engineering from Georgia Institute of Technology.
5 © 2012 Ariba, Inc. All rights reserved.

6. Seven Habits of
B
Highly Successful
Procure-to-Pay
Programs
Natasha Pendell
Strategic Sourcing Manager
Dollar Tree, Inc.
Howard Tant
Procurement Operations Manager
Dollar Tree, Inc.
© 2012 Ariba, Inc. All rights reserved.

7. Company Info
Dollar Tree, Inc. (NASDAQ: DLTR)
• Leading operator of discount variety stores selling everything
for $1 or less
• Headquartered in Chesapeake, Virginia
• Sales $6.6 billion (FY11)
• 4,351 stores (FY11)
• No price increases to our customers in 25 years for
Dollar Tree stores!
7 © 2012 Ariba, Inc. All rights reserved.

8. Business Background
• Problems Faced (Indirect purchasing)
Lack of up-front standardized approvals
Paper invoices
Line item spend difficult to obtain
Manual contract compliance (no catalogs)
• Business Case
Evaluated several companies
Ariba sourcing customer since 2004
Dynamic Discounting ROI
8 © 2012 Ariba, Inc. All rights reserved.

9. Business Background
• People Involved
Executive sponsorship – COO
Cross-functional implementation team
– 40 total
– 15 core
Department Power users – 25 assisting with:
– Change management and adoption
– Training, troubleshooting
9 © 2012 Ariba, Inc. All rights reserved.

10. The Story
• Project Kickoff – Jan. 2010
• Development – Spring/Summer 2010
• Supplier Enablement/Catalogs – Summer 2010
• Testing – Fall 2010
• First Transaction – Dec. 15, 2010
• Pilot – Dec. 2010/Jan. 2011
• Go-Live Feb. 2011, phased rollout
10 © 2012 Ariba, Inc. All rights reserved.

11. Seven Habits of Highly Successful
P2P Programs
1. Change Management (Adoption)
2. Implementation and Support Team
3. Training and Communication Plan
4. Spend Analysis
5. Department Feedback
6. Supplier Enablement
7. Early Payments/Dynamic Discounting
11 © 2012 Ariba, Inc. All rights reserved.

12. Results
• Statistics
Suppliers – 1st 12 months – 500 active relationships
(150 new suppliers through PO quick enablement)
Internal Users – 250 throughout nine divisions
POs – 1st 12 months – 25,000
Invoices – 1st 12 months – 35,000
Discounting – Standing and dynamic plans/Discount Pro
12 © 2012 Ariba, Inc. All rights reserved.

13. Conclusions
• Lessons learned
Process change
Over-customizing
Scope creep
13 © 2012 Ariba, Inc. All rights reserved.

14. B
Seven Habits of
Highly Successful
Procure-to-Pay
Programs
David Beaver
Vice President, Procurement
Corinthian Colleges, Inc.
© 2012 Ariba, Inc. All rights reserved.

15. • Corinthian Colleges (CCi) is one of the largest career college, post-
secondary education companies in the United States and Canada, with
more than 102,000 students.
• The company operates 105 schools in 25 states and 17 schools in Canada.
• CCi serves the large and growing segment of the population seeking to
acquire career-oriented education.
• Our company was founded in 1995 and we completed an initial public
offering in 1999. As of Feb 2012, we had approximately 15,000 employees
in North America, including 6,600 full-time and part-time faculty members.
• Our mission is to help students prepare for careers that are in demand or
advance in their chosen field.
15 © 2012 Ariba, Inc. All rights reserved.

16. Practical Approach for “Internally
Selling” an E-Procurement Project
• Explaining e-procurement to non-procurement professionals – What is
e-procurement?
• What is the Business Problem we are trying to solve?
• What is the financial benefit for taking on such a project?
• How much of our spend can we target for improvement? (suitability)
• How long will this take?
• How long will this project take and when will we realize the benefits?
16 © 2012 Ariba, Inc. All rights reserved.

17. E-Procurement Will Help Us More
Efficiently and Effectively Order
Goods and Services
• E-procurement is a tool to help staff order goods and services
– Incorporates catalogs of products or lists of approved suppliers
– Automates approvals
– Sends orders to suppliers electronically
– Facilitates paying suppliers electronically
– Provides transaction data for A/P
– Provides spend data for Strategic Sourcing
– Provides supplier and usage Data for Control
Our project is focused on
Submit improving this part of the
Obtain Pay Invoice P2P process
Business Supplier
Needs
Receive
Strategic Catalog or Approved Fulfill
Supplier List Monitor and Order
Sourcing Control
RFP & Order
Negotiate Product
Negotiate
Select online (if
Suppliers needed) Get
Approvals
17 © 2012 Ariba, Inc. All rights reserved.

18. What Is the Business Problem We Are
Trying to Solve?
• More Organized Buying
Single point of entry for all buying activity
Aggregates all of our catalogs and vendors into one process
• Easy to Use (amazon.com experience)
• Reduced Time Spent Negotiating with Vendors
Pre-negotiated content
New and non-catalog purchases are routed to Procurement for assistance
• Automates CER Process (ready in May)
• Budget Checks (Phase 2)
• Automates Approvals (approve via email, i-phone, blackberry)
• Improved visibility into purchases due to approval being required before the
order is placed
• Allow campus employees to focus on students and not vendors
18 © 2012 Ariba, Inc. All rights reserved.

19. What Is the Financial Benefit of
Solving This Problem?
Soft Savings/
Better Compliance
Efficiencies
• User compliance with Contracts
• Enforcement of other policies • User compliance with preferred suppliers
• Less spending because of visibility • Demand management
• Simplified product search
• Simplified invoice + PO matching More Discounts
• Automated PO transmission
• Continuous Improvement eProcurement • Captured rebates
Savings • Early Payment discounts
Intangible Savings ($5M - $8M) • Dynamic Discount capture
• Real-time visibility into spend Stricter Approvals
commitments
• Real-time management of GL • Fewer unnecessary purchases
accounts • Reduced buying of “luxury” products
• Enhanced detection of fraud and services
Better Sourcing Reduced Errors
• Strengthened negotiation position • Errors in transmission
due to demonstrable compliance • Errors in pricing
• Errors in invoicing/matching
19 © 2012 Ariba, Inc. All rights reserved.

20. Better Compliance in More Detail
• Sourcing savings are jeopardized by “Rogue Spending”, where staff buys goods/services
from unapproved suppliers
• Level of rogue spending varies greatly depending on culture, tools, and policies - up to
52 percent in some companies
Why Staff Engage in Rogue Spending How eProcurement Reduces Rogue Spending
More comfortable with other suppliers  Tool encourages use of preferred supplier but has
mechanism for using other suppliers with appropriate
approvals
Lack knowledge regarding preferred  Tool shows user who to use
suppliers
Too busy to find approved source/item  Easy-to-use product/service catalog; one-stop
shopping
Don’t think it matters  Tool outlines benefits of using preferred supplier
Unaware of policies  Tool clearly defines policies to user
No one challenges them  Tool has built-in approval workflow and reporting
No visibility  Tool has built-in reporting and approval workflow
20 © 2012 Ariba, Inc. All rights reserved.

21. Suitability of CCi Spend for
E-Procurement
Categories Most Suited for E-Procurement
• Many buyers
• Diverse buyers
• Goods/services simple to describe
• Frequent transactions
• Agreements in place with suppliers
• Many invoices
• Simple invoices
• Complex discount structures
• Suppliers already conducting e-procurement
with other customers
* Spend on individuals above and beyond spend on individuals in the Excluded Categories
21 © 2012 Ariba, Inc. All rights reserved.

22. Quantifying Suitability for
E-Procurement
Campus Operations = 3 Off Limits Category = 0 SKU = 4
Education materials = 3 >65% of Category Spend Utility = 2
Campus Infrastructure = 2 to individuals = 0 Contract = 2.5
Corporate = 1 All Others = 1 Custom = 1.5
Spot = 1
Suitability Score Used Off Limits Type of
= For X Filter X Orders X
Transaction Invoice Complexity Vendor Tech Relationship with
Frequency X X Sophistication X CCi
Very High = 3
High = 3 > 50% of spend with Ariba Network vendors = 3 Already Sourced = 3
High = 2.5
Medium = 2 10-50% of spend with Ariba Network vendors = 2 Not Sourced = 1
Medium = 2
Low = 1 <10% of spend with Ariba Network vendors = 1 Unknown = 1
Low = 1
22 © 2012 Ariba, Inc. All rights reserved.

23. Categories by Wave
% Spend with
ePro Ariba Network
Category Wave Suitability Savings* Suppliers
Annualized Computer Equipment &
Savings by Wave Accessories 1 159.8 $254,807 96%
$MM
Furniture 1 90.0 $253,124 43%
1 $0.91 66.4 $45,065 67%
Student consumables 1
2 $2.56 Medical Equipment &
Supplies 1 61.8 $205,481 61%
3 $1.68
Safety Equipment & Services 1 61.3 $17,479 13%
4 $0.36
Hardware 1 58.7 $18,155 91%
Σ $5.49 49.5 $21,931 84%
Hand tools 1
Machinery Services &
Supplies 1 45.6 $12,210 64%
AV Supplies 1 44.6 $77,896 99%
* Conservatively assumes at most 95% of calculated savings can be captured
23 © 2012 Ariba, Inc. All rights reserved.

24. Implementation Timing
Integrate w. PeopleSoft
E-Procurement Implementation Activities
Months After Project Start
System Testing
Initial User Training
Begin Wave 1 Savings (Full savings 6 mo later)
Enable Wave 1 Suppliers
Begin Wave 2 Savings Ramp-up
Enable Wave 2 Suppliers
Begin Wave 3 Savings Ramp-up
Enable Wave 3 Suppliers Begin Wave 4
Enable Wave 4 Suppliers Savings Ramp-up
3 6 9 12 15 18 21 24 26
Cumulative Savings
$ MM
Q1 $0.00
Q2 $0.00
Q3 $0.08
Q4 $0.37
Q5 $1.31
Q6 $1.91
Q7 $3.00
Q8 $4.32
Q9 $7.07
24 © 2012 Ariba, Inc. All rights reserved.

25. Conclusion
• Keep it Simple
• Keep it Focused
• Understand the Internal Problems You Want to Solve
25 © 2012 Ariba, Inc. All rights reserved.

26. B Seven Habits of
Highly Successful
Procure-to-Pay
Programs
Kevin Gowen
Chief Procurement Officer
Synovus
© 2012 Ariba, Inc. All rights reserved.

27. Company Info
• Synovus Financial Corp.
Commercial and Retail Banking, Investment, Mortgage
HQ in Columbus, GA; founded in 1888
$27 Billion in Assets; 40th largest US Bank Holding Co.
Five-state footprint in Southeast w/ over 300 locations
Community-oriented customer relationship model
Decentralized business model with centralized
support functions
27 © 2012 Ariba, Inc. All rights reserved.

28. Business Background
• 2009 expense/efficiency initiative identified opportunities
in centralizing Procurement
• Over $300 million in addressable spend
• Minimal structure and oversight
• Buy points scattered across 30+ operating divisions
• Gaps in vendor and contract management identified
as risk points
28 © 2012 Ariba, Inc. All rights reserved.

29. Business Background
• Goals/Objectives
Integrate existing purchasing and vendor activity to
obtain efficiencies and economies of scale
Address local market concerns re: “balance of trade”
(vendors who are also bank customers)
Reduce addressable spend by 2% YTY
Increase spend under management to 50%+
60%+ compliance with use of preferred suppliers
Establish vendor management program to mitigate risk
and address regulatory requirements
29 © 2012 Ariba, Inc. All rights reserved.

30. The Story
• Create (and sell) the vision
• Identify best practices and map to them
• Include your key stakeholders
• Deliver quick wins
• Develop and implement strategic systems plan
• Measure and report
• Become seen as consultants in the organization
30 © 2012 Ariba, Inc. All rights reserved.

31. The Story
• Create (and sell) the vision
Be clear and compelling about what and why
Articulate value in business terms ($, risk, P&L impact)
• Identify best practices and map to them
Leverage what others have done right (and wrong)
Relevant examples to your industry and situation
• Include your key stakeholders
Voice of your customer is critical
But don’t start with a blank sheet of paper…
31 © 2012 Ariba, Inc. All rights reserved.

32. The Story
• Deliver quick wins
Address pain points, deliver savings
Establish credibility and support continued investment
• Develop and implement strategic systems plan
Analyze, evaluate, improve process first
Tools enable processes but are not the process itself
32 © 2012 Ariba, Inc. All rights reserved.

33. The Story
• Measure and Report
Set, measure, and report against goals and progress
Create accountability to deliver results
“If you can’t measure it, you can’t manage it”
• Become seen as consultants in the organization
Becoming efficient at routine activity is table stakes
Value comes from consultative role
Creates ongoing linkage to business and opportunity
for team members
33 © 2012 Ariba, Inc. All rights reserved.

34. Results
• Addressable spend down 24% vs. 2008 baseline
• Spend down 3.6% most recent YTY
• Spend Under Management at 54% (and rising)
• Compliance at 50% (continued challenges)
• Procurement function expense = 0.28% of spend
• Vendor Management Program established
• Over 2,000 suppliers enabled within system
34 © 2012 Ariba, Inc. All rights reserved.

35. Conclusions
• Change Management is critical to success
• Establish and maintain executive support
• Focus on processes, not events
• Make your suppliers your partners – win/win
• Create accountability across organization
• Leverage great position that Procurement is in
Easy to keep score, clearly understood, critical to org.
35 © 2012 Ariba, Inc. All rights reserved.

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36 © 2012 Ariba, Inc. All rights reserved.

37. Q&A
Contact info:
Steve Carlson scarlson@ariba.com
37 © 2012 Ariba, Inc. All rights reserved.