1. Secrets of Global Spend
Management Transformation
Leslie Campbell
Reed Elsevier, Chief Procurement Officer

2. SECRETS OF
SECRETS OF
GLOBAL SPEND
GLOBAL SPEND
Dedicated to
MANAGEMENT
MANAGEMENT
The Reed Elsevier Global
Procurement Team, TRANSFORMATION
TRANSFORMATION
in recognition of
their extraordinary contributions
which successfully transformed the - BOOK ONE -
procurement function

3. Prologue: 2008
SECRETS OF
 130 decentralized resources
GLOBAL SPEND
Dedicated to  28 procurement locations globally
 NoMANAGEMENT tools
global policies, processes or
The Reed Elsevier Global
Procurement Team,  TRANSFORMATION
Disparate Accounts Payable systems
and data sources
in recognition of  Multiple Charts of Accounts
their extraordinary contributions  No centralized contracts database
which successfully transformed the  - BOOK ONE -
< 20 projects annually
procurement function
 $12m unvalidated savings pipeline

4. Epilogue: 2012 Prologue: 2008
 ~$100m validated annual cash savings  130 decentralized resources covered
90% of total procurement spend
two years running by Spend Vis
 28 procurement locations globally
 $384m validated P&L savings in 4 yrs  Auctions in 2011 up +112% over 2009
 1300 completed projects (400+  No global policies, processes or tools
>12k contracts managed electronically
project/year)  Disparate Accounts Payable systems
DocuSign eSignatures launched (50% of
 110 staff (-15%) in 21 locations (-25%) and data sources
documents fully executed in 24 hours)
 Lower operating budget (-14%)  e-invoicing launched
Multiple Charts of Accounts
 Improved Employee Satisfaction scores  No centralized contracts database
Best Procurement
(Net Promoter Score doubled)
 < 20 projects annually
Team 2011
(Procurement
 $12m unvalidated savings pipeline
Leaders Network)

5. Epilogue: 2012
 ~$100m validated annual cash savings 
Chapter One covered
90% of total procurement spend
two years running by Spend Vis
 $384m validated P&L savings in 4 yrs  Auctions in 2011 up +112% over 2009
 1300 completed projects (400+  >12k contracts managed electronically
project/year)  DocuSign eSignatures of our (50% of
The Winter launched
 110 staff (-15%) in 21 locations (-25%) documents fully executed in 24 hours)
Discontent*
 Lower operating budget (-14%)  e-invoicing launched
 Improved Employee Satisfaction scores Best Procurement
(Net Promoter Score doubled)
(*…or, adjusting to climate change)
Team 2011
(Procurement
Leaders Network)

6. Chapter One
Key Learnings Chapter One
 Expect to be surprised  Familiarity does NOT breed
(It’s less surprising that way) contempt
The Winter of our
(It breeds familiarity)
Discontent*
 Knowledge is power
(But listening is more powerful
than talking) (*…or, adjusting to climate change)

7. Chapter One
Spend Mgmt. Maturity Curve Delivered Savings Value
Key Learnings
Dispersed Tactical Buying
Focus on Costs $m USD • Exceeded increased savings target
• Leveraged enhanced spend visibility
2013
 Expect to be surprised  Familiarity does NOT breed
• Achieved financial interlock
(It’s less surprising that way) contempt
Maturity
(It breeds familiarity)
• Formed Mgmt. Team
• Consolidated resources
 Knowledge is power • Set key initiatives
(But listening isImplemented first tools
• more powerful
than talking)
Target Actual Target Actual
2008 2009 2010 2011 2012 2008 2009 2010 2011
Forecast
Actual

8. Spend Mgmt. Maturity Curve Delivered Savings Value
Chapter Two
Dispersed Tactical Buying
Focus on Costs $m USD • Exceeded increased savings target
Smart Speed
• Leveraged enhanced spend visibility
2013
• Achieved financial interlock
and
Maturity
• Formed Mgmt. Team Other Lessons in
• Consolidated resources
• Set key initiatives Navigation*
• Implemented first tools
(* …or, changing course, and learning
Target Actual Target Actual
2008 2009 2010 2011 2012 the most from our greatest critics) 2011
2008 2009 2010
Forecast
Actual

9. Chapter Two
Key Learnings Chapter Two
Smart Speed
 They just might have  Smart Speed has
a point many gears and
(It would be a shame to miss it) (Learn not Lessons in
Other to grind them)
Navigation*
 Can I leave this with you?
(Sharing works better without (* …or, changing course, and learning
expectations) the most from our greatest critics)

10. Chapter Two
Spend Mgmt. Maturity Curve Delivered Savings Value
Key Learnings
Coordinated Buying & Sourcing • Savings growth in all
Focus on Cost & Value $m USD categories and in all divisions
 They just might have  Smart Speed has
a point many gears
Maturity
(It would be •aImplemented add’l tools
shame to miss it) (Learn not to grind them)
• Deepened relationships
with Finance/Operations
• Completed major
 Can I leave this with you?procurement reorganization
(Sharing works better without Target Actual Target Actual Target Actual
expectations)
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011
Forecast
Actual

11. Spend Mgmt. Maturity Curve Delivered Savings Value
Chapter Three
Coordinated Buying & Sourcing • Savings growth in all
Focus on Cost & Value $m USD categories and in all divisions
Unusual Suspects,
Plain Brown Wrappers,
Maturity
• Implemented add’l tools
• Deepened relationships
with Finance/Operations and a Good Melon *
• Completed major
procurement reorganization
(*…or, findingActual Target Actual where
Target Actual Target magnificence
2009 2010 2011 2012 2013
you least expect it)
2009 2010 2011
2008 2008
Forecast
Actual

12. Chapter Three
Key Learnings Chapter Three
Unusual Suspects,
 Diversity works  Trust your gut
(But it can be HARD work) Plain Brown Wrappers,
(You know a good melon)
and a Good Melon *
 Look beyond the surface
(Do you care most about what is,
(*…or, finding magnificence where
or what CAN be?)
you least expect it)

13. Chapter Three
Spend Mgmt. Maturity Curve Delivered Savings Value
Key Learnings • Increased productivity
Strategic Sourcing
• Deepened trust and
Focus on Value $m USD partnership with the business
 Diversity works  Trust your gut
(But it can be HARD work) (You know a good melon)
Maturity
• Leveraging Tools,
Processes and
 Look beyond the surface Relationships
• Broadening reach
(Do you care most about what is,
or what CAN be?) Target Actual Target Actual Target Actual Target Actual
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011
Forecast
Actual

14. Spend Mgmt. Maturity Curve Delivering BusinessValue
Delivered Savings Value
Strategic Spend Management  Compliance & Demand Management
• Increased productivity
Strategic Sourcing
Focus on Strategic Business Value • Deepened trust and
 M&A/Divestment Support
Focus on Value $m USD partnership with the business
 Product Development with the business
 Working Capital Mgmt. with Treasury
 Independent Contractor Risk Mitigation
Maturity
• Expanding with Legal
• Leveraging Tools,
Procurement’s
Processes and  Revenue Generation via Balance of Trade
Traditional Role
Relationships  Software Asset Management with
• Broadening reach Technology Services
 Target Actual TargetOffshoring and Outsourcing
Expansion of Actual Target Actual Target Actual
Centre of Excellence
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011
 Supplier Relationship & Risk Mgmt.
Forecast
Actual

15. Spend Mgmt. Maturity Curve Book Two
Delivering Business Value
Strategic Spend Management 
Coming Soon
Compliance & Demand Management
Focus on Strategic Business Value  M&A/Divestment Support
 Product Development with the business
 Working Capital Mgmt. with Treasury
END OF 
Maturity
(Due out…
Independent Contractor Risk Mitigation
with Legal
BOOK ONE
• Expanding
Procurement’s  Revenueany day via Balance of Trade
Generation now)
Traditional Role
 Software Asset Management with
Technology Services
 Expansion of Offshoring and Outsourcing
Centre of Excellence
2008 2009 2010 2011 2012 2013
 Supplier Relationship & Risk Mgmt.
Forecast
Actual

16. Book Two Book Two
Preview Coming Soon
 Our centralization is  We step back a little
more philosophical, – Unwind some
END OF – Information accessed
less structural (Due out…
by many, not few
BOOK ONE any day now)
 We continue to evolve  We step forward a lot
– From data to insight
– From structure to innovation
– From supporter to partner

17. Book Two
Preview
About the Author
Reed Elsevier is a world-leading
 Our centralization is provider of professional information
We step back a little
 Leslie Campbell – Unwind Science, Medical,
solutions in thesome
more philosophical,
– Chief Procurement Officer – Information accessed
Risk, Legal and Business sectors
less structural
– Leslie.campbell@reedelsevier.com by many, not few
 We continue to evolve  We step forward a lot
– From data to insight
- Legal & Professional
– From structure to innovation
– From supporter Solutions
- Risk to partner