15. driving organizational value through procurement … · 2018-09-24 · business requirements...

13

15. Driving Organizational Value

through Procurement Transformation

Global Procurement The Transformational Journey

Chris Misiorski

Nagendra Bhanu

Version: February 27, 2014

Iron Mountain at a Glance Your Largest Information Management Services Partner

Records and Information Management Solutions

Data Management Solutions

Document Management Solutions

Information Destruction

- Records Management

- Vital Records Protection

- Specialized Vertical Solutions

- Consulting

- Server and Application Data Protection

- Technology Escrow

- Disaster Recovery

- Offsite Tape Vaulting

- Data Centers

- Onsite and Offsite Secure Shredding

- Compliant Information

- Secure Media Destruction

- Document Imaging

- Hosted Imaging Archive

- Specialized services for:

- Human Resources

- Accounts Payable

- Mortgage

- Insurance

- Discovery Services

156,000 clients

35 countries

5 continents

17,000 employees

1026 facilities

64 million square feet

3,600 vehicles

16 million trips/year

$3 billion revenue

$5.9 billion market cap

712 Fortune 1000 rank

Company Statistics

3

The Evolution of Procurement

Category Planning

Organization and Team

Vendor Management

Strategic Sourcing

Not all Procurement Organizations are Created Equal

Value Extraction

& Creation Value Focus

Performance Improvement &

Supplier Involvement Product Focus

Consolidation &

Compliance Spend Focus

Negotiation Transactional Focus

Eliminating

Deficiencies

Business Involvement

Process Focus

Pro

cure

ment

Ma

turi

ty M

odel

With revenue and margin

pressure across all industry

sectors, companies are investing

in Procurement organizations to

ensure that both financial and

business risk is mitigated.

That being said, not all

Procurement organizations are

created equal

Procure to Pay encompasses

more than pricing negotiations

The degree of Procurement

influence usually directly

correlates with when they are

involved in the process.

Increase Spend Visibility

Increasing visibility into your category/subcategory spend

increases the buyer’s effectiveness to manage suppliers /

categories either to identify opportunities for review, cross-

functional requirements, and identify non-compliance, etc.

Broaden Supply Options

Understanding a market to potentially expand geographic range

of the review, broaden to include additional products or services,

or bring other considerations / options to the business.

Essentially change the question.

Maximize Category Leverage and

Consolidate Supply Base

Approaching opportunities from a category view enables the

aggregation of purchases of individual items that are spread in

similar categories across your firm for improved leverage with

suppliers

Influence Demand Management

Shifting focus from “filling” business needs to understanding the

source of those business needs allows Category Managers to

eliminate false demand, modify and standardize specifications,

and look for other opportunities to meet those demands in

different ways.

Reduce Overall Risk

Proper management of categories by experts enables you to

preemptively spot any trends or developments that might create

a business, financial, or legal risk.

Ho

w P

rocu

rem

en

t O

rga

niz

ati

on

s lo

ok t

o a

dd

Valu

e

Better Understand Supplier

Capabilities

Understanding your core supplier capabilities, can help you manage

your customer requirements better and distinguish your “best of

breed” suppliers

Increase Supplier Collaboration Collaboration with your suppliers increases opportunities such as

cost savings, product substitutions, cost sharing programs, etc.

Quality Suppliers and products and services that meet our SLAs and

business requirements and are easy to do business with.

Supplier Development Maintaining a strong business relationship with key suppliers leads

to customized unique solutions for your organization giving you a

competitive edge in the market

Sustained Benefits and Compliance

Working on a continuous cycle of review and realignment, Category

Management goes beyond the benefits gained from ad-hoc

Strategic Sourcing and making sure we are taking advantage of the

deals that are in place

Evaluate opportunities from a Total

Cost of Ownership

Looking for opportunities to improve costs beyond rate.

Ho

w P

rocu

rem

en

t O

rgan

izati

on

s lo

ok t

o a

dd

Valu

e

7


Category Planning


Vendor Management

Strategic Sourcing

Strategic Sourcing

Finance

Reporting & Analytics

Risk/ Compliance

Contract Administration

Legal Services

Business and Functional Areas

Supplier Performance Management

Market Intelligence

Accounts Payable

Communications

Technology and Program Management

The Power of Team

RFX/ Auctioning

Procurement Operations

Manage

Analyze

Strategize

Source

Execute

9

Business 1 Business 2 Business 3 Business 4 Business 5

IT

Hardware

Software

Telecom

Storage

Services

Legal

Consulting

Contract Labor

Finance, Accounting

Audit

Operations

Transportation/ Parcel Fuel, Maintenance

Real Estate

Equipment and Supplies

Operational Services

HR/ Benefits

Payroll Services

Recruitment

Marketing

Advertising

Promotional

Print

Event Management

Travel Management

Hotel

Air

Car

Train

Organize Your Sourcing Organization

by Category to Optimize and Leverage

Spend Across Businesses and

Geographies

Strategic Sourcing

Contract Management

Compliance

Vendor Management

10

1. Strategic Sourcing Expertise

2. Industry & Technical

Expertise

3. Team & Project Management

Skills

4. Change Management Skills

5. Client Relationship Skills

6. Communication Skills

7. Problem Solving & Analytical

Skills

Movement from Procurement to Sourcing Competency is enabled

through definition, gap analysis, training and development

BUSINESS COMPETENCIES

Ensure

Credibility

Drive Change

Exert Influence

Ensure Impact

8. Motivation / Commitment

9. Integrity / Reliability / Ethics

10. Judgment / Maturity /

Adaptability

11. Leadership / Initiative

12. Creativity

PERSONAL COMPETENCIES

Governance & Roles – BU &

Category Leadership

• Responsible for identifying, leading, and

executing strategies that maximizes

market and supplier opportunities and

leverages IRM’s cross-organizational

need.

• Develops category and supplier

strategies

• Facilitates cross-organizational

communication and opportunity

optimization

• Manages RFI, RFPs, Auctions and

proposal reviews

• Provides analytical support to evaluate

responses from a qualitative and

quantitative perspective.

• Manages contracting process including:

amendments, extensions, terminations,

renewals and new agreements, inventory

and reporting.

• Acts as single point of coordination for

cross-organizational evaluations,

negotiation strategy development and

execution

• Monitors ongoing market dynamics and

program delivery

• Completes peer reviews and

benchmarking.

• Manages the score-carding process

• Partners to identify opportunities,

coordinate project planning and

recommended sourcing strategies and

execution

• Works to define a clear scope of service

and SLAs

• Participates in formal supplier

evaluations of supplier conformance to

SLAs and ongoing supplier optimization

• Evaluates and recommends process

enhancements

• Assists in facilitating technology

integration and optimization

• Develops technology standards and

compliance

• Evaluates alternatives and presents a

range of alternatives with corresponding

cost-value impact statements to enable

informed decisions.

• Monitors service delivery

• Manages technology standards and

controls

• Manages category budget

• Maintains day to day supplier

relationship

• Manages implementation of project

recommendations

• Manages compliance and service

inventory management

• Manages product strategy and

deployment technology integration and

optimization

• Manages technological capability

evaluation

• Manages Inventory, compliance and

entitlement

• Provides necessary Business Unit

information for data collection and

reporting and needs assessment to

Category Leadership.

• Makes the final decisions on supplier

selection based on the collaborative

evaluations and information presented.

Shared Responsibilities Category Leadership Functional Business Owners

12

Category Planning



Vendor Management

Strategic Sourcing

Spend Analytics

Market Research

Business Requirements

Past Accomplishments

Expiring Contracts

Contractual Gaps

Risks

Scope of Opportunities

Identified

Goals and Objectives

Timeline for Execution

Balance of Trade

Category Planning Enables

Pro-active opportunity assessments

Transparency to compliance and opportunities for consideration

Opportunity assessments beyond rate and supply into total cost of ownership

‒ Supply Optimization and Rate ‒ Compliance ‒ Demand/Specification ‒ Procurement Process Redesign

Prioritization “focusing on the right things in the right way”

Moves Procurement from React and Positions Strategic Sourcing in leadership position. “Bring the opportunities to the business”

Efficient execution and resource planning

Movement from relationship to category view/ leverage

New category and Geographic penetration

Cross-organizational / functional engagement. Vertical and horizontal communication through governance

Components of

Category Plans

14

► What areas of the spend have not been influenced? (Collect spend data

inclusive of historic and projected volume and unit cost trends)?

► How fragmented is the supplier base within each category?

► What are the primary business drivers / Needs in the coming year(s)?

► What are the business dependencies on this product/service? (change

concerns)

► What contracts are expiring within the next twelve months or require

coverage?

► Are there shared project opportunities (New or Existing)?

► When was the category/commodity last competitively evaluated?

► What significant market changes are occurring for the various categories?

► What is the level of compliance with previous recommendations? Why?

Questions to Consider…

15

Supplier

Optimization

Consolidating and introducing new

suppliers

Renegotiating prices

Managing payment timing

Demand

Management

Eliminating unnecessary purchases

Redefining specifications

Redefine policies

Rethinking "make" vs. "buy" decisions

Compliance

Management

Establishing approved suppliers and

eliminating leakage

Defining and ensuring adherence to new

specifications, programs, and policies

Purchasing

Process

Redesign

Aligning implementation through Vendor

Management accountabilities

Leveraging e-tools to drive process and

market efficiencies

Developing category-specific processes

KEY LEVERS

Total

Cost of

Ownership

16

HUMAN RESOURCES

PROMOTION

IT SERVICES

IT SOFTWARE & SUPPORT

IT HARDWARE

PACKAGING SUPPLIES

FACILITIES AND MAINTENANCE

OFFICE EQUIPMENT, SUPPLIES & SERVICES

MEDIA & ADVERTISING

PRINT AND FULFILLMENT

POINT OF SALE DISPLAYS

MARKET RESEARCH

FINANCIAL SERVICES

HUMAN RESOURCES

MRO SUPPLIES

LEGAL SERVICES

CONSULTING MRO SERVICES

CAPITAL SERVICES

CAPITAL EQUIPMENT

ENERGY

BUSINESS TRAVEL

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

2.00 2.50 3.00 3.50 4.00 4.50 5.00

Es

tim

ate

d S

avin

gs

MM

)

Ease of Sourcing

ILLUSTRATIVE

Wave 1

Wave 2

17

Sourcing

waves

Capability-

building

Governance

& execution

Travel

Print/ Postage

Parcel Service

Benefits

Legal

IT Professional Services

Real Estate

Office Supplies

Market Data

Media, Creative, Events

Talent Acquisition

IT Transformation

Training

Prof Services, IT Consulting

Relocation

Audit (Bus. Advisory)

General Consulting

Management Consulting

Financial Services

Library

Food services

Records Management

Wave 3 ~4-6 months

Spend: $ XXX

Incremental savings Est. =$XXX

Wave 4 ~4-6 months

Spend: $ XXX

Incremental savings $XXX

Wave 5 ~4-6 months

Spend: $ XXX

Incremental savings $XXX

Wave 6 ~4-6 months

Spend: $ XXX

Incremental savings $ XXX;

1

Standardize roles and

responsibilities, and increase the

centralization of sourcing 2

Build a world-class organization and capabilities by creating a central-led structure, clearly defining roles and

responsibilities, and investing in Resources and Increase centralization of sourcing of 80% to 90% of its spend 3

Form a small governing body to make critical decisions related to supply management strategies

(demand tradeoffs, strategic vendor selection, policy) and enforces compliance across businesses 4 Adjust business unit and functional budgets to sustain gains and create shared targets and a tracking

system for savings identified in the sourcing waves with joint accountability 5

Wave 1 ~4-6 months

Spend: $ XXX

Incremental savings Est. $XXX

ILLUSTRATIVE

18

Strategic Sourcing



Vendor Management

Category Planning

SPEND ANALYSIS

• Collect, normalize, raw data

• Analyze for historical, current and

future trends ((supplier, business unit,

geographic, pricing, contracts, etc.)

• Interview stakeholders and finance to

forecast / understand future service

requirements and projected expense

and volumes

• Inventory any information, or costing

gaps

• Determine best method for filling data

gap, RFI, survey, etc.

• Develop total cost baseline

SUPPLIER/ CATEGORY/CONTRACT

• Collect current legal or business

concerns with existing / future

agreements

• Determine contractual coverage and

gaps

• Inventory current supplier

performance and category

compliance

MARKET RESEARCH

• Analyze market and supplier data

• Develop market and supplier profiles

• Conduct vulnerability and risk assessment

• Review findings with stakeholders

DEFINE STRATEGY

• Inventory sourcing

objectives

• Assess supplier

perspective

• Analyze buying power and

levers to drive a

competitive outcome

• Identify standardization

opportunities and

consolidate requirements

• Introduce creative

alternatives and scenarios

for review and

consideration

• Consider Insource –

Outsource opportunities

• Develop sourcing strategy

and tactics

• Document and validate the

strategy

• Gain stakeholder support

EXECUTE

CONTRACT MANAGEMENT

• Form negotiation team

• Develop negotiating strategy,

including legal, business and cost

areas

• Submit legal entity request to

corporate legal services.

• Negotiate terms and prepare

agreements

• Review with management

• Select suppliers

• Attain Supplier signature

• Complete contract summary

• Route for internal business, legal,

tax approval as necessary

IMPLEMENTATION

• Identify implementation team,

timeframe, and responsible parties

• Work with Procurement operations

to complete supplier, catalog set up,

and update Sourcing Feed

Database (SFD)

• Implement communication plan

• Notify suppliers and internal

customers

SOURCE

• Document business

requirements

• Develop supplier list

• Pre-screen and pre-qualify

sources of supply

• Develop and issue RFP

• Determine and rank buying

decision characteristics

• Evaluate responses

• Complete qualitative

evaluation – weighted

• Summarize pricing responses

• Further short-list suppliers for

negotiations

• Estimate suppliers strategy

and gap

• Develop process and tactics /

techniques to improve

suppliers bid

MANAGE • Establish method of

tracking savings, compliance, and benefits

• Execution of implementation – post deal on boarding

• Identify responsibilities for ongoing supplier management

• Establish performance management accountability

• Coordination of supplier and buying activity

• Compliance tracking and quality assurance

• Supports supplier performance management and development activities

Analyze Build understanding & align stakeholders

Strategize Formulate strategies & techniques

Source Create competition & select the best

Execute

Manage the transaction

Manage Measure constantly & seek improvement

Strategic Sourcing Methodology – 5 Phased Approach

Business Finance

Review / signoff

Required

Functional Business Owner

Assigned based on the project

Roles & Responsibilities

• Provides day-to-day input

into the sourcing initiative for

category on operational

requirements in support of

business needs

• Drives adherence to budget

• Provide category expertise

and knowledge of the

business requirements.

• Responsible for providing

input into and shaping the

sourcing strategy or plan

• Validates spend/size/scope of

opportunity

• Provides input into the

integrated project plan

• Responsible for

implementation and

management of ongoing day-

to-day vendor management

activities

Core Team Members

Any stakeholder group that

may be impacted by the

outcome of the project


•Provides support to category

management and completes

day-to-day activities

necessary for project

success

•Provides additional business

unit and functional

perspectives and

requirements that allow the

team to maximize cross-

organizational opportunities

and benefits

•Completes assigned analysis

and input on a timely basis

•Acquires data and other

input from business units as

required

•Ensures recommendations

appropriately reflect the

requirements of the

business unit

•Implements the agreed

sourcing solution within their

business unit


• Collects internal and external

data in support of spend

baselines, benchmarks,

costs, savings projections

• Supports market research

and supply market

assessment

• Supports and develops

project documentation

• Develops and populates

analytical models to review

qualitative and quantitative

evaluations and costing

scenarios

• Assists in analyzing and

mapping of current

processes

• Documents output from

relevant team and supplier

discussions

• Assists in the

recommendation of

compliance reporting needs

Category Leadership or Finance

Sourcing Research Analyst


• Manages all components - drive

adherence to scope, schedule,

and results

• Investigates and validates

spend and size/scope of

opportunity

• Recommends and manages the

utilization of sourcing tools.

• Leads sourcing project

meetings and motivate team

members to build consensus

• Provide category expertise and

knowledge

• Manage/escalate project

constraints, issues and risks

• Coordinates analysis and

facilitates development of

options and recommendations

• Leads the development and

execution of negotiation and

sourcing strategies

• Assists in the development of

implementation plans

Category Leadership Sourcing

Leader

Sourcing Commodity

Manager

21

Business Unit Senior Leadership

Supply Management Governance Council

Core Team

Representatives from each Business Unit and Functional Areas

Who are the ultimate

decision makers?

Who

provides

oversight

and

direction?

How Cross-Organizational Governance is Organized to facilitate

vertical and horizontal communication

Who is

the Day-

to-Day

Working

Team?

Strategic Sourcing

Strategic Sourcing Leadership

Key Business Executive with Primary

Functional Business Owner

Initiative Champion

22

Vendor Management

Category Planning



Strategic Sourcing

23

Not all Categories are Created Equal

Critical categories (9%)

Market Data –

Research,

Financial

Services

Strategic categories (70%)

HR Benefits, Real

Estate, IT

Low value

categories (<1%)

Small, local purchases

Leverage

categories (20%)

Travel, HR - relocation,

Office Supplies

De-centralized (10%) Centralized (90%)

• Users and Procurement define needs and specs with equal ownership

• Procurement leads strategy and sourcing

• Procurement leads, takes input from user to understand needs

Lo

w

Hig

h

No Yes

Value from consolidated purchase

Item

co

mp

lexit

y/

cri

ticality

to

op

era

tio

ns

“Natural Owners” Framework

User led; supported by Procurement

Led by Procurement

Analyze Strategiz

e

Preferred providers

considered and/or

vendors evaluated

and selected

Contracts

negotiated and

executed if needed”

* legal engaged as

necessary

Invoices Created Goods /

Services delivered and

received

Need for goods /

services identified;

Procurement

engaged, if needed

Purchase requisition entered

and approved in iPro if

necessary ** see approved

methods of purchase Ongoing vendor

management by BU

and Procurement

(on need basis)

G

G G

Invoices Created

Goods / Services delivered

G

G

The Procurement Process is a set of common expectations for how Iron Mountain Global

Procurement plans, executes and manages its acquisition of third party goods and services.

Procurement Guidelines have been developed for key activities to provide structure to the

process for consistency and efficiency for Business Units.

Purchase Orders Issued

G

Indicates that one or more Procurement Guidelines exist for the associated process step.

Procurement Process Overview

Source Execute Manage

G

24

On

go

ing

S

ou

rcin

g

Supplier Management Roles

Category Manager BU Supplier Manager Contact

Ob

jec

tive

s

▪ Connect with managerial or executive levels of suppliers

organization during negotiations or in resolving issues

▪ Act as ambassador for Iron Mountain needs when managing

the relationship or negotiating

▪ Closely interact with BU and Procurement contacts to

understand business needs and issues

▪ Analyze bid results and provide insights into opportunities for

greater cost-efficiency and quality

▪ Act as single point of contact for internal stakeholders and

external suppliers (for chosen suppliers)

▪ Provide continuous visibility into Business Unit needs (i.e. new

services needed, termination of suppliers, new internal users)

▪ Provide structure and insights, and actively participate in,

negotiations, workshops, and contracting

▪ Share role and responsibility for supplier workshops,

negotiations, and reviews with Procurement counterpart

▪ Conduct Sourcing/RFP event

▪ Draft RFP questions in consultation with BU Supplier

Management and BU stakeholders

▪ Be informed of the business needs and statements of work

▪ Align on negotiation strategy in advance (i.e. desired

outcomes, walk-away positions, etc)

▪ Actively participate in supplier negotiations

▪ Participate in supplier workshops when available or when

business importance is significant

▪ Gather information on scope of work and business needs from BU

Department users

▪ Summarize scope and needs, provide updates and discuss with

Procurement counterpart

▪ Draft statements-of-work (SOW) for upcoming business needs

▪ Socialize and refine SOW with BU stakeholders

▪ Align on negotiation strategy in advance (i.e. desired outcomes,

walk-away positions, etc), and actively participate in supplier

workshops and negotiations

▪ Draft, socialize and refine service level agreements (SLA)

▪ Be informed of on-going quality of relationship (issues, praises,

etc)

▪ Act as escalation point-of-contact for unresolved issues, breaches

of SLA/contract

▪ Ensure that supplier understands the importance that Iron

Mountain places on continuous communication and improvement

efforts

▪ Periodically (3, 6, or 12 months) survey stakeholders for qualitative

information about supplier relationships, new or terminating needs,

supplier changes (i.e. bankruptcy, acquisitions, etc)

▪ Share qualitative feedback and issues with Procurement counterpart

▪ Analyze Accounts Payable information for periodic reviews

▪ Schedule and conduct quarterly business check-ins with BU

counterparts to collect qualitative feedback and market trends

▪ Termination and transition management

25

3. Supplier Termination

2. Supplier Management (ongoing) 1. Supplier Selection

Supplier

Selection

Onboard

Supplier

Supplier

Profile

Supplier

Risk Assessment

Supplier

PO Process

Non Disclosure Agreements

Financial Analysis

Physical Access Review*

HIPAA

Business Continuity

Insurance Certificates

*Applicable if Supplier personnel

work onsite

Ongoing Risk

Monitoring

Supplier

Performance Reviews

Supplier

Relationship

Invoice

Reconciliation /Approval

Yearly Contract

Renewals

Non Disclosure Agreements

Financial Analysis

Physical Access Review*

HIPAA

Business Continuity

Insurance Certificates

Develop and track KPIs

Supplier Scorecard/Surveys

Conduct post project evaluations

Perform and review SLAs

Provide Supplier Feedback

Invoice Management, annual

reconciliation with Finance

SLA credits, discounts

Support strategic dialog with

suppliers

Document & Notify

Termination

Document

Transition Process

Collect

Confidential Data

Remove Access

Close Out

PO/Invoice

Collaborate with Procurement, Finance

and Legal to document the termination

event

Document transition plan

Collect physical and/or electronic data

in supplier possessions (laptop etc.)

Collect data destruction certificate from

Supplier

Notify Security and remove access

Process final invoice.

26

Supplier Management Activities

Appendix D- Supplier Score Card Questions

Vendor Business Processes

Products/services are easy to order

Is proactive in preventing or minimizing slippages in project implementations

Accurately invoices IRM

Meets delivery commitments

Products/services are competitively priced worldwide

Demonstrates continuous improvement

Coordinates effectively with other vendors

Vendor Services/Support

Service and support capabilities meet or exceed IRM’s requirements

Technical support staff are considered experts in their field

Is flexible in their support model and can respond quickly to IRM’s changing priorities

Consistently provides reports of the information needed by IRM (i.e., proactive technical updates)

Support staff is responsive, professional, and service oriented

Proactively reevaluates IRM’s service needs and costs

Consistently meets stated service level agreements and commitments

Provides suitable schedule and status reports during installations

Support for Production Systems

Timeliness of issue response

Quality of information received

Diligence of support personnel working in partnership

Adherence to stated support hours

Vendor Relationship Management

Management of subcontractors meets or exceeds IRM’s requirements

Escalation procedures are well defined and actionable

Clearly and efficiently communicates within its organization worldwide

Is team oriented in providing solutions to open issues

Information exchanged at nondisclosure and tech teams meetings with the supplier are valuable

Understands and works well with IRM’s culture

Recommends innovative solutions that meet IRM’s business needs

Total Score 0 0

Net Promotor Score Question

On a scale of 1 to 10, how do you rate the overall relationship with the vendor? (1= unsatisfactory; 10= exceeds expectation)

Do you recommend vendor? (Y/N)

Pricing and Competition

Is vendor fee competitive in the market? (Y/N)

Do you anticipate price increases in the market? (Y/N)

Are there alternate providers available in the market? (no, limited, plenty)

Do you recommend renewing contract with the vendor? (Y/N)

Appendix D- Supplier Score Card Questions

29

Corresponding Results

Increased Savings

Improved Cash Management

Improved Supplier Quality

Procurement Efficiency

Improved Business Relationship

Global Procurement Results

30

Procurement

Operating

Budget

$14.1 IME Total $14.1

The results can more than double the areas under sourcing

management in two years with reductions in overall budget

$8.6

$8.6

$ - $0

$20

$40

$60

$80

$100

2011 2012 2013 2014 TOTAL

Cumulative Savings Goal -

US - 2011/12 Projects US - 2013 Projects US - 2014 Projects

IME 2012/13 IME New 2014 3-Yr US Target

US Total

IME Total

Key Metrics and Trends

Data 2004 2005 2006 2007 2008

Projects 1,123 1,632 1,943 2,516 3,042

Actively Engaged (%) 38% 67% 75% 80% 80%

Spend 2.6 3.0 3.6 4.6 4.0

Contracts 1963 1998 2,171 2,266 2,050

HCount 40 49 50 49 54

Savings 60 75 89 81 107

eTool Usage 79 158 601 591 1,573

Scorecards 20 50 96 136 214

Projects - Devonshire 5 50 53 74 60

Governance Committees 1 17 17 17 17

Preferred Provider % 5% 53% 67% 80% 82%

% Change (04-08) 2004 2005 2006 2007 2008

Projects 0% 45% 73% 124% 171%

Actively Engaged (%) 0% 76% 97% 111% 111%

Spend 0% 14% 39% 74% 53%

Contracts 0% 2% 11% 15% 4%

HCount 0% 23% 25% 23% 35%

Savings 0% 25% 48% 35% 77%

eTool Usage 0% 100% 661% 648% 1892%

Scorecards 0% 150% 380% 580% 970%

Projects - Devonshire 0% 900% 960% 1388% 1100%

Governance Committees 0% 1600% 1600% 1600% 1600%

Preferred Provider % 0% 960% 1240% 1500% 1540%

New Activities - % Growth

0%

eTool Usage,

1892%

Scorecards,

980%

Projects -

Devonshire,

1100%

Governance

1600%

Preferred

Vendors, 1540%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

2000%

2004 2005 2006 2007 2008

Existing Activities - Percentage Growth

Projects, 298%

Actively Engaged

(%), 111%

Spend, 48%

Contracts, 6%

HCount, 23%

Savings, 74%

0%

50%

100%

150%

200%

2004 2005 2006 2007 2008