1. Urgent Purchasing
How One Procurement Professional Took Ma=ers Into His
Own Hands to Get Spend Under Control
Wednesday, December 16, 2009
Dave Howard Jason Hekl
Director, Central Purchasing Vice President, Marke<ng
Reebok‐CCM Hockey Coupa So?ware

2. Poll 1:
How have you personally helped your company save?

3. Introducing David Howard
David Howard, Director, Central Purchasing
Reebok-CCM Hockey
With more than 20 years of supply chain and project management
experience, David is responsible for the management of resources,
processes and key financial and service objectives of purchasing of raw
materials for domestic factories, and for non-product supplies and services
for the Reebok-CCM Hockey Global Head Office, including 2 large
distribution centers. Among his many achievements, David has been able
to deliver 10-15% cost reduction in many areas of non-product spend
through SKU and supplier consolidation.
Prior to joining Reebok-CCM Hockey, David was a subcontracts and project
manager at Lockheed Martin Canada, Cost Manager at ASTEC APS, a
division of Emerson Electric, and Purchasing Supervisor at Bombardier
Aerospace. He holds a Bachelor of Business Administration from St.
Francis Xavier University, NS.

4. Reebok-CCM Hockey
A history of challenging conventions to create
products that tap into athletes unlimited potential
and empower new, innovative ways to solve
problems and address issues.
• Headquartered in Montreal, Canada
• Provider of hockey gear and apparel
• Among others, Official sponsor of

5. Reebok-CCM Hockey
Non-Product Purchasing
Raw Materials Sourcing Non-product Purchasing
• 4 manufacturing facilities in • Reebok-CCM Hockey Global
Canada Headquarters
• $35M in annual spend • $15M in annual spend

6. In Need of a Process
• The extent of the process
– No formal written processes, other than Finance Spend Approval Matrix
by department
– All departments managed their spend independently and differently,
some using manual POs, but most making verbal or e-mail
commitments
Facility OperaNons Office
DistribuNon MIS OperaNons
& Maintenance AdministraNon

7. No Visibility = No Control
• Monthly reports from Finance
• Includes supplier payments only
• Little visibility on commitments or
accruals
• Spend history only payment by
account

8. Problems Beyond Purchasing
• Money being spent without proper approval
– No delays in getting business done
– But spend under-managed and local to functions
• “Monthly” invoice approval exercise
– AP chasing approvals for payment
– Missing most discounts
– Late payments resulting in late fees
– Duplicate payments / no proof of receipt / fraud potential
• Inefficient, multiple ordering and payment systems
– Finished Goods, factory Raw Materials and all non-product
invoices, all purchased in separate systems
– Invoice payments are made using a 4th system

9. An Even Greater Challenge
Senior management wasn’t bought
into the need for purchasing
automation.
Believed tighter manual controls would be
sufficient to control and manage spend.

10. Leading the Charge
• Becoming “The Champion”
for change
– Would not take NO for an
answer
– Did the homework, created a
full business case for the
requirement
– Publically committed to
savings in non-product
purchasing

11. Gaining Momentum
• Internal Audit
– Mandated purchasing processes to manage non-
product spend
– Ensure segregation of duties
• Economic Pressures
– Down-sized company resources
– New ways of doing more with less

12. A Plan to Get Management to Say
“YES”
• Conduct a vendor evaluation
– Find a low risk solution
Oui Sí
Áno
• Perform an ROI analysis
– Determine its potential
impact
YES
Ndiyo Ja
• Phased roll out Hai
– Identify points of failures, Na'am
repeat successes

13. Conducting the Vendor Evaluation
Evaluation Options
Add-on
Factory MRP Modules to Parent- Purchase 3rd
Tools Existing A/P Company Tools Party Tools
Tool

14. Conducting the Vendor Evaluation
Evaluation Checklist
 Ease of Entry
 Annual Operating Cost
 Functionality / Best Practice Alignment
 Ease-of-use / Process Automation w/ Workflow
 Segregation of Duties / Audit Trail
 Scalability
 IT Independence
 Real-time Dashboard Reporting
 Create Self-Enforcing Process / Controls

15. Conducting the Vendor Evaluation
Why Coupa?
✔
 Ease of Entry No CAPEX to push through
corporate approvals
✔
 Annual Operating Cost Annual cost vs. anticipated “easy”
savings
✔
 Functionality / Best Practice Alignment Automation, speed of spend
✔
 Ease-of-use / Process Automation w/ Simple Google, Amazon type
experience
Workflow
✔
 Segregation of Duties / Audit Trail Segregated duties with password
approvals for audit
✔
 Scalability Easily add users, business groups
✔
 IT Independence No hardware or software to support
✔
 Real-time Dashboard Reporting Alerts, immediate action
✔
 Create Self-Enforcing Process / Controls Dynamic, flexible controls

16. Determining Potential Impact
ROI Analysis
• Analysis on short-list vendors
– 2 license purchases w/ on-site
implementation & support
requirements
– 2 SaaS (software-as-a-service)
systems, including Coupa
• Demo each system
• Priority based “qualitative”
scoring

17. Determining Potential Impact
ROI Checklist
 Improve Control & Accuracy Over Non-Payroll Expenditures
 Improve Use of Contract Pricing
 Improve Purchase Leverage through Spend Data
 Reduce Waste, Duplication, Fraud & Overpayments
 Reduce Overhead on Source-to-Settle Process
 Expand Purchasing Spend Under Management
 Improve Usage of Automated PO Creation and Transmission
 Improve Ability to Manage Early Payment Discounts
 All with the goal of supporting company re-alignment of
cost-structure to invest in value-creating activities

18. Phased Roll Out
• Slow and calculated, targeting one department at
a time
– Purchasing resources as a constraint
– High-volume departments with biggest need and fastest
“payback”
– Users who could easily adapt their processes
– Users who wanted the independence of using the
system to order with only the approvals of their own
organization
– Grass roots; creating a “I want it next” situation

19. Implementation To Date
• Implemented in 6 of 10
departments
– represents roughly 70% of Hockey Distribution Center Footwear & Apparel
our non-product spend
Distribution Center
Facility Operations & Office
volume. Maintenance Administration
MIS Applications MIS Operations
• 100% planned by
Marketing & Advertising R&D
mid-2010 Product & Design Sales Management

20. Setting The Example with
Coupa e-Procurement
• The right solution for all users
– Easy-to-use and efficient
– Automated and Controlled
– Quick and cost-effective
• Requestors and approvers actually use the system!
– Users love being independent
– Managers love being knowledgeable
– Improved budget forecasting from detailed historical data
• The entire organization benefits
– Significant reduction in errors
– Defaults ensure accurate information
– Improved supplier invoicing, better cash flow and finance visibility

21. Real Process, Real Results
Supplier Fulfillment
Invoice Payment
Footwear & Review / Manage Contracts
Apparel
Distribution
Center
Issue PO
MIS
Operations
Purchasing
Facility MIS
Operations &
Maintenance
Applications Management
Office Disposition
Administration Request
(approve /
Hockey
reject)
Distribution
Center
Coupa e-Procurement

22. Identifying New Opportunities
• Real-time Insight • 10-15% cost reduction through SKU &
supplier consolidation
– KPI tracking
• 20% reduction in suppliers through
– Performance tracking consolidation
– Market benchmarks • 30% reduction in invoice payment
transactions
• High compliance to use of contract
• Identify areas to pricing
• Process savings estimated at $50/PO,
– Improve efficiencies primarily from invoice approval process
– Streamline suppliers • Payment discounts now available in
– Negotiate better prices 100% of invoice opportunities
• Accruals changed from guessing to
– Educate buyers firm numbers

23. A Plan for Success
• Implement e-Procurement to remaining departments, where spend
is high, volumes are low and have unique requirements
• Product & Design / R&D
• Marketing & Advertising
• Sales Management
• Finance / HR / Traffic
• Extend online workflows to receipt and invoicing
• Integrate processes with accounting
• Further automate paper-based processes
• Continue to set the example
• Showcase the power and benefits of a SaaS solution
• Educate users and reinforce industry best practices
• Paint a vision for the future that includes a completely integrated end-to-end
procure-to-pay solution
• Influence outside the boundaries of our division

24. Poll #2
What factors are preven<ng you from achieving your e‐procurement
and spend management goals (check all that apply)?

25. Introducing Jason Hekl
Jason Hekl
Vice President of Marketing
Coupa Software
Jason Hekl is responsible for all of Coupa’s marketing initiatives, including
demand generation, messaging, and marketing communications. Prior to
joining Coupa, Jason was with InQuira, where helped grow revenues nearly
ten-fold over a four year period. Jason earned a Master of Business
Administration degree from the Ross School of Business at the University of
Michigan, and a Bachelor of Arts degree in International Relations and
Economics from the University of Delaware.

26. Part of the Problem is Inertia

27. The Best Intentions
“In theory, our ERP system could do what we wanted it to
do, but in practicality it would never happen, because the
cost of doing that would have been astronomical.”

28. The Best Intentions
"Like tectonic plates adrift on a sea of magma, ERP
instances and the businesses they serve are bound to
drift apart over time or dramatically collide with
earthquake-like consequences.”

29. The Question for 2010
How do you save 10% more
with FEWER
resources in ½
as much time?

30. Lowest TCO with SaaS
IT Support
Maintenance
Upgrade Costs
Professional Services
Software Subscription
Year 3 Year 3
IT Support
Maintenance
Professional Services
Software Subscription
Year 2 Year 2
Implementation
Hardware
Database / Middleware
Software Licenses
Year 1 Software Subscription Year 1

31. Lowest TCO with SaaS
IT Support
Maintenance
Upgrade Costs
Professional Services
Software Subscription
Year 3 Year 3
IT Support
Maintenance
Professional Services
Software Subscription
Year 2 Year 2
Implementation
Hardware
Database / Middleware
Software Licenses
Year 1 Software Subscription Year 1

32. SaaS Eliminates Hidden Costs
IT Support
Over 3X
Maintenance
Upgrade Costs
Cost!
Professional Services
Software Subscription
Customer
takes on
IT Support
Maintenance
all Risk!
Professional Services
Software Subscription
Broken
Implementation
Model!
Hardware
Database / Middleware
Software Licenses
Software Subscription

33. Smarter Spending Across
the Enterprise
Unified & Simple
Cross Company RequisiNoning
Divisional Divisional Divisional
AccounNng AccounNng AccounNng

34. Immediate Impact with
Requisition to PO
PredicNve
Spend
Benchmarks
Crowd
Sourcing
RequisiNons
Purchase
Orders
Invoices
General
Ledger
Strategic & AdministraNve &
Front Office Back Office

35. You and the CFO are more tightly
aligned than you think
Performance
Compliance
Visibility

36. 5 Strategies to Cut Costs 2010
with Coupa
1. Spend Under Management
Attract more spend at the top of the
1 funnel
2. Compliance
With purchasing guidelines and
2 negotiated contracts
3. Better Deals
3 Crowd source savings on one-off
purchases
4. Control
4 Prevent wasteful spending before it
happens
5
5. Efficiency
Increase velocity through the funnel,
and save as a result

37. If only it were this easy…

38. It is.
Provide a requestor
experience that is
faster and easier,
than every
alternative,
and you will be
amazed by what
happens.

39. Addressing the adoption problem with a
compelling requestor experience
SUM 1. Know what’s allowed,
and what’s not.

40. Addressing the adoption problem with a
compelling requestor experience
SUM 1. Know what’s allowed,
and what’s not.
Compliance 2. Guide requestors to
preferred suppliers and
contract pricing, greatly
reducing “maverick” spend

41. Addressing the adoption problem with a
compelling requestor experience
SUM 1. Know what’s allowed,
and what’s not.
Compliance 2. Guide requestors to
preferred suppliers and
contract pricing, greatly
reducing “maverick” spend
Best Pricing 3. And for those ad-hoc
items not covered by
existing contracts, find
deals online

42. A flexible approval workflow engine that you
can change without help
Control

43. A flexible approval workflow process that
works for busy managers
Control

44. Proactive alerts and spend dashboards to
prevent mistakes before they occur
Control

45. Achieve greater efficiencies in the
req to PO process
Avoidance 5%
Self Approval 29%
Efficiency

46. Achieve greater efficiencies in the
req to PO process
Cycle Time 23 Hours
Savings 9.5% of
Spend
Avoidance 5%
Self Approval 29%
Efficiency

47. 5 Strategies to Cut Costs with
Coupa in 2010
1
1. Spend Under Management
Attract more spend at the top of the
funnel
2 2. Compliance
With purchasing guidelines and
negotiated contracts
3
3. Better Deals
Crowd source savings on one-off
purchases
4
4. Control
Prevent wasteful spending before it
happens
5
5. Efficiency
Increase velocity through the funnel,
and save as a result

48. They’re not making hay of pennies.
Spend
Under Mgmt
+ 20%
Savings
9.5%
of Spend

49. Our best spokespeople are our
customers…

50. Satisfying the Skeptical CFO
What If You Had Visibility Into ALL Non-Payroll Spend? 100%
What if you could use the same APPROVAL Spend Under
workflow across purchases and expenses? Management
What if you could BENCHMARK your expense Expenses?
management practices against the market?
What if you could effectively AUDIT the expense
process to reduce fraud and save even more? With Coupa
+ 20%
Spend Under
Management
Baseline
41%
Spend Under
Management

51. New Year’s Resolutions

53. THANK YOU
Dave Howard Jason Hekl
Director, Central Purchasing Vice President, Marke<ng
Reebok‐CCM Hockey Coupa So?ware
david.howard@reebokccm.com jason.hekl@coupa.com