Supply chains across enterprises are infested with supplier risks, savings leakage issues, and sourcing inefficiencies that often go undetected due to the lack of good visibility into spending data. By blending spend data with the right market intelligence, organizations stand to extract the best value from their sourcing initiatives. Learn how to optimize your sourcing efforts when you attend this session.

1. Analyzing Spend: You Can’t Fight What
You Can’t See
© 2013 Ariba, Inc. All rights reserved.
Speakers:
Irene Ong – Marina Bay Sands Corp.
Moderator:
Sundar Kamakshisundaram – Ariba, an
SAP Company

2. #AribaLIVE
Agenda
• Introduction
• Spend Analytics Overview
• Customer Panel Presentation
Spend Analysis Implementation at Las Vegas
Sands
• Q & A
© 2013 Ariba, Inc. All rights reserved.2

3. #AribaLIVE
Analyzing Spend: You Can’t Fight
What You Can’t See
3
12 Trillion dollars is total spend
through global 2000 companies
last year
Enterprises are losing over USD 260
Billion per year due to the
inability to organize and analyze
spend data1
To date, only 40% of the companies
have good visibility on their
spending2
60% of the firms that analyze spend
still rely on paper and
spreadsheets3
You Can’t Fight What You Can’t See
1: Aberdeen Research: Best Practices in Spend Analysis : Cure for a Corporate Epidemic, 2004;
2: SAP / Procurement Leaders Survey 2011
3: Spend Analysis : Working too Hard for the Money , 2007

4. #AribaLIVE
Why Do Enterprises Care About
Spend Analysis?
© 2013 Ariba, Inc. All rights reserved.4
Sourcing Savings
Supplier Risks
Cost of Procurement
Compliance
Supply Chain Diversity and Sustainability
Working Capital Leverage
Discount Leakages
86% of the
enterprises see
high value in
Spend Analysis 1
1: SAP / Procurement Leaders Survey 2011

5. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.5
Contract Compliance
Rates*
Strategic Sourcing
Savings*
62%
6.7%
11.7%
46%
Before Spend Analysis After Spend Analysis
44% 59%
Spend Under
Management *
34% incremental
increase in contract
compliance rates
75% increase in strategic
sourcing savings
34% increase in spend
under management
*Aberdeen Group : Spend Analysis – Working Too Hard for the Money – 2007
For a Good Reason

6. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.6
Savings of USD 1 billion over a course of two years
Spend data consolidated from 270+ source systems
Supplier count reduction by 20%
USD 300,000 in cash savings within six months by managing
payment terms
Specific category procurement costs reduced by 66%
Spend Analysis Benefits for a
Leading Ariba Customer…..

7. #AribaLIVE
© 2013 Ariba, Inc. All rights reserved.7
Disparate Data Sources
Inconsistent Data Quality
Limited Access to Market and Supplier Information
Manual Effort Intensive Processes
Lack of Adequate Skills and Tools
And the Challenges too

8. #AribaLIVE
Spending Clarity Starts with Asking
the Right Questions
• How can I get more detailed
information on suppliers?
• How much am I spending with
suppliers at a corporate family level?
• How diverse is my supply base?
And how can I locate more
diverse suppliers?
• Where are the greatest risks in my
supply chain?
© 2013 Ariba, Inc. All rights reserved.8

9. #AribaLIVE
Stay Ahead of the Curve
Know How Your Suppliers May Behave Tomorrow
© 2013 Ariba, Inc. All rights reserved.9
The Advantage
• Get a sense of potential supply
interruption before it can impact the:
• Bottom line: through stock outs
• Top line: through idling the
manufacturing line
• Brand: through damage to quality and
product availability
The Results
• Source from financially stable suppliers
• Get advance notice to reduce risk and
protect supply chain continuity
• Deliver consistent, objective treatment
of suppliers

10. Analyzing Spend: You Can’t Fight What
You Can’t See
© 2013 Ariba, Inc. All rights reserved.
Irene Ong – Marina Bay Sands Corp.
Manager, Business Strategy & Process

11. #AribaLIVE
Las Vegas Sands Corporation
Las Vegas Sands Corporation (NYSE: LVS)
• Leading global developer and operator of destination integrated resorts (IRs)
• Properties include Las Vegas, Macao, Singapore and Bethlehem, Pennsylvania
Gross Floor Area of IRs is 60,000,000 sq. ft.
Total Hotel Rooms is 19,800 rooms
Total Retail Mall Space is 4,500,000 sq. ft.
Total MICE (Meeting, incentives, conferences and exhibitions)
Space is 5,200,000 sq. ft.
Total Gaming Space is 1,660,000 sq. ft.
• Net Revenue for the past 5 years from LVSC’s 2012 10-K
© 2013 Ariba, Inc. All rights reserved.11
Who We Are
Year 2008 2009 2010 2011 2012
Net Revenue $4.38B $4.56B $6.85B $9.41B $11.13B

12. #AribaLIVE
Spend Strategy at LVSC
Three-step process to develop a sourcing strategy:
1. Identify Spends by Category / Sub – Categories
Determine which spends are Procurement Influenced vs. Non-
Procurement Influence
2. Align Sub-Categories into a Segmentation Quadrant
Important factors are the Y - Axis and X - Axis
3. Develop Sub-Categories Strategies to Source
Key elements that must be understood and will drive a sourcing strategy
© 2013 Ariba, Inc. All rights reserved.12

13. #AribaLIVE
Identifying Spends by Categories
at LVSC
Procurement Influenced (2012- 40%) Non-Procurement Influenced
(2012-60%)
Food & Beverage
Operating Supplies
Marketing / Advertising / Print
Facilities & Services
Outside Services
Gaming
Surveillance
Technology & IT
Development & Construction
FF&E
Ferry
Utilities
Employee Benefits
Retail
Total
8.5%
5%
4.5%
4%
7.2%
6%
.5%
8%
33.5%
4%
4.8%
8.8%
4.7%
.5%
100%
Entertainment
Legal
Leases
Insurance
Financial Services
Aviation
Commissions
Taxes
Third-Party Charges
© 2013 Ariba, Inc. All rights reserved.13
* Areas in blue did not have Procurement & Supply Chain involvement prior to 2009

14. #AribaLIVE
2012 LVSC Procurement-Influenced
Spend Analysis
Marketing, Advertising & Print
(MAP) 4.5% Beverage 4.5%
Facility & Facility Services
4%
FF&E 4%
Food 4%
Gaming 6%
Operating Supplies 5%
Outside Services 7.2%
Pre-Development & Design &
Construction 33.5%
Surveillance 0.5%
Employee Benefits 4.7%
Ferry 4.8%
Technology 8%
Utilities
8.8%
Marketing, Advertising & Print (MAP)
Beverage
Facility & Facility Services
FF&E
Food
Gaming
Operating Supplies
Outside Services
Retail
Pre-Development & Design &
Construction
Surveillance
Employee Benefits
Ferry
Technology
Retail 0.5%
© 2013 Ariba, Inc. All rights reserved.14
2012 Procurement Influenced Spend: 40% of total spend

15. #AribaLIVE
2012 LVSC Non-Procurement-
Influenced Spend Analysis
Taxes 78%
Entertainment 2.5%
Legal 2.0%
Intercompany Charges
9.0% Other 3.0%
Insurance 1.0%
Financing 2.0%
Aviation 1.0%
Commissions 0.5%
Other 1.0%
Taxes
Entertainment
Legal
Intercompany
Charges
Third-Party
Charges
Insurance
Financing
Aviation
Commissions
Other
© 2013 Ariba, Inc. All rights reserved.15
2012 Non-Procurement Influenced Spend: 60% of total spend

16. #AribaLIVE
Aligning Sub – Categories into
a Segmentation Quadrant
© 2013 Ariba, Inc. All rights reserved.16
CustomerImpact
High
Low
Low High
Category Segmentation
Switching Costs
Strategic
Tactical Critical
Alliance

17. #AribaLIVE
Develop a Category Sourcing Strategy
LVSC Category Strategy Template
© 2013 Ariba, Inc. All rights reserved.17
Category: Duration:Scope:
Competitor Benchmarking
Who / What / Supplier
Annual Spend -
Currency
Annualized Savings -
Currency
2012 A 2013 F Total
US
Asia
Total
2012 A 2013 F Total
US
Asia
Total
Category
Pictures
Segmentation
Strategic Alliance
Tactical Critical
Category Analysis
Cost Structure, Benchmarking, Supplier
Comparison, Index Data, Etc
Global Specification
Value Chain Information
Technology and Market
Changes
Key Cost Drivers
Category Description /
Scope
Supplier Scoring
(5 Highest , 1 Lowest)
Cost (xx%) Quality (xx%) Total
Supplier A
Supplier B
Supplier C
Others
Category Strategy /
Sourcing Recommendation
Current Situation:
Strategy:

18. #AribaLIVE
LVSC Category Strategy Template
Excel based – 11” by 17”
© 2013 Ariba, Inc. All rights reserved.18

19. #AribaLIVE
The Exciting World of Slippers
Category sourcing strategy – Part 1
© 2013 Ariba, Inc. All rights reserved.19

20. #AribaLIVE
The Exciting World of Slippers
Category sourcing strategy – Part 2
© 2013 Ariba, Inc. All rights reserved.20
Category Analysis

21. #AribaLIVE
The Exciting World of Slippers
Category sourcing strategy – Part 3
© 2013 Ariba, Inc. All rights reserved.21

22. #AribaLIVE
Contact info:
Sundar Kamakshisundaram: sundar@ariba.com
© 2013 Ariba, Inc. All rights reserved.22
Q&A

23. #AribaLIVE
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© 2013 Ariba, Inc. All rights reserved.23
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