1. Real solutions for real needs Suzana Drakulic November 29th 2011 Setting high ambitions for your Strategic Procurement investment

4. Organization maturity and savings achievement … .directly correlates with achieved savings Maturitylevel in a procurement orgnization... Source: Excellence in Purchasing and Supply Management (joint survey ECB/SMI with McKinsey ” Best-in-class” procurement teams generate up to 270% higher yearly savings compared to those in lower maturity grade within same industry . 1.8% 272% Best-in-class 4.9% High 3.9% Mid 3.2% Low 2.2% Laggards Best-in-class 90 High 83 Mid 72 Low 65 Laggards 58

5. Key activities Procurement Transformation Spend Optimization Gather, refine and analyze spend data to understand savings potential and realize targets. Clean Data, categorize supplier base and set approach based on strategic importance Organizational Maturity Analysis of the companies KPI´s, tools, processes, spend portfolio and the organization maturity level. Create program based on vision and objectives. Category Optimization Implement best in class category approach on relevant categories to optimize relationships and organization Demand Management Optimize requirement process ensuring we get what we really need in time at appropriate service level. Sourcing & Assessment Set processes, strategies and system support for securing a appropriate contribution and evaluation of the supply market. Contract and Risk management Streamline the contract management process with a common process, templates and Repositories. Get early alerts on expiring contracts. Spread supplier risk based on indicators such as financial data and quality integrated to the procurement process. Commercial and legal negotiations Understand current sourcing process and define a best practice with increased efficiency and increased results. Process optimization / automation Optimize the procurement related processes, such as procure-to-pay, supplier on boarding or sourcing with best practice business solutions, templates and KPI:s. Compliance Raise the internal awareness of the procurement function to increase spend under management and improve compliance to existing “procure to pay” agreements.

13. Real solutions for real needs. THANK YOU! Contact details; [email_address] +46720013500 www.stretch.se