From bright-eyed optimism and long sleepless nights, to analytics, mobility and procurement content, our 2013 Global Chief Procurement Officer (CPO) Survey dug deep to learn what’s top of mind with procurement executives the world over, and get their take on the ‘digital age of procurement’. In this session, we’ll share their concerns and unpack their insights including the investments CPO’s are planning to make in this digital age. With broad-based supply chain collaboration and risk management across trading partners fast becoming the norm, we’ll demonstrate how Ariba’s enabling technologies and network can bring your procurement business to new, high-performing places.

1. How CPOs Around the World Think - and Worry -- Like You Do
Procurement’s relevance as the economy returns to growth
Ariba LIVE – Las Vegas
March 2014
#AribaLIVE
© 2014 Ariba – an SAP company. All rights reserved.

2. The 3rd Annual Deloitte (Global)
Focus:
CPO Survey
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CPOs and Senior Procurement Executives globally
Annually repeated to provide a true finger on the pulse
Focused on key business indicators such as:
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AND...Understanding the alignment between the CPO and the business
across key business performance themes
Demographics:
180+ survey respondents
19 countries
All major industry segments
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Deloitte / Odgers Berndtson CPO Survey 2013
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© 2014 Ariba – an SAP company. All rights reserved.
Supply market security and risk
Financial prospects
Plans and expectations
Business partnering
Talent
Digital age

3. CPOs Are Facing an Inflection Point
“…procurement’s influence within the business
continues to rise while also delivering increasing
amounts of value and hitting savings targets.”
- Procurement Leaders, 24 May 2013
Source: Deloitte CPO Survey: 2013
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© 2014 Ariba – an SAP company. All rights reserved.

4. Drivers of Change and CPO Sentiment
Green shoots of recovery supporting growth again
Risk growth is prevalent across the board
Lack of influence over the business
Broader skills are required
Source: Deloitte CPO Survey: 2013
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© 2014 Ariba – an SAP company. All rights reserved.

5. View from the Market
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© 2014 Ariba – an SAP company. All rights reserved.

6. Key Takeaways…
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4
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Risk and Accountability
Technology and Analytics
Tomorrow’s Talent
© 2014 Ariba – an SAP company. All rights reserved.
Reviewing business partnering models to improve
influence/engagement
Leveraging network platforms to create many-to-many collaborations
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CPOs believe procurement risk has increased
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Investing in new analytics solutions to drive insights
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Partnerships not Processes
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Facilitating self service and broad-based collaboration across
entire lifecycle
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Repositioning procurement as a “career destination”
Improving margins for both parties; “two-way” margin management
Engaging team in the risk management agenda
Partnering more comprehensively with Finance and Legal
Facilitating price and risk compliance with better integrated
trading networks and technologies
Outsourcing services that are not core competencies
Developing centers of excellence with skills and tools to facilitate
hand-offs and collaboration across multiple parties (internal / external)

7. Partnerships Not Process
Effort
Perception of Procurement’s focus…
45
40
Customer Need
35
30
25
20
15
10
Procurement Effort
5
0
Business alignmentCategory management & sourcingbuying, contracts & compliance
planning and performance
Supplier Operational & innovation Requisition to pay
performance
…can we close the expectation gaps
What does this mean for the future role of Procurement?
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Insight not process will reduce cycle times and make procurement easier to work with
Self-service tomorrow for aspects that are core Procurement delivery focus today
Performance measured in terms of supplier delivery and customer satisfaction over savings
© 2014 Ariba – an SAP company. All rights reserved.

8. Partnerships Not Process – Key Findings
Themes
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Making measures
relevant
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Creating the right
agenda
Making the time
to partner
© 2014 Ariba – an SAP company. All rights reserved.

9. Partnerships Not Process – Next Steps
What can Procurement Leaders do to get closer to the strategic edge of their organization and
become a more effective business partner?
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Tailored measures and
accountability
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Come prepared
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Why does the business
need you?
See partnering as a
distinct skill
© 2014 Ariba – an SAP company. All rights reserved.

10. Risk and Accountability – Key Findings
Themes
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© 2014 Ariba – an SAP company. All rights reserved.
So what is the role
for Procurement?
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More often, more
expensive
Capability to deliver

11. Risk and Accountability – Next Steps
An increased focus on the risk agenda from business leaders offers another excellent
opportunity for CPOs to demonstrate their worth
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Flexibility
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Collaboration
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Visibility
Skills
© 2014 Ariba – an SAP company. All rights reserved.

12. Technology and Analytics
Themes
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Hindsight, insight, for
esight
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Technology on
the agenda
Bringing B2B to B2C
© 2014 Ariba – an SAP company. All rights reserved.

13. How Ariba Enables CPO’s Value Levers
CPO Value Lever
Ariba Value Proposition
Consolidating Spend
Ariba Spend Vis & Analysis
Consolidates spend and across systems. Supports real-time visibility,
analysis, and insight; potential for forecasting and predictive analytics
Increasing competition
Ariba Network
Bolsters competition; access to new trading partners
Specification improvement
Ariba Sourcing and Contracts
Supports tighter control of specs and ability to buy off contracts
Increasing level of supplier collaboration
Ariba Network
Enables a flexible foundation for broad “many-to-many” collaboration
Reducing total lifecycle / ownership costs
Ariba Spend Mgmt.
Reduces TCO from sourcing negotiation through realization
Reducing consumption
Ariba Buyer
Supports control / transparency of consumption (electronic approvals)
Restructuring existing relationships
Ariba SIPM
Provides objectivity and data (customer service); informs discussions
Optimizing supply chain costs
Ariba Spend Mgmt.
Provides end-to-end flexible, collaborative platform to manage costs
Restructuring the supply base
Ariba Sourcing and Network
Organizes planning and execution of strategic sourcing; discovery
and evaluation of alternative supply sources
Outsource non core Sourcing/Procurement activity
Ariba services and platform
Addresses skills / talent gaps in non core competency services
Reducing transaction costs
Ariba Spend Mgmt.
Optimizes efficiencies across transactions; provides for self-service
Managing commodity price volatility
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Key Ariba Module
Ariba Contracts (Compliance)
Drives price compliance; integrated, off-contract purchasing
© 2014 Ariba – an SAP company. All rights reserved.

14. Technology and Analytics
How should CPOs be thinking about their investments in technology?
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Time to look through the windscreen
Face up to the true value of reporting
Self-service
Getting analytical
Play with talent
Look to the source
Start the clock
Manage expectations
Good hygiene
Stay on target
© 2014 Ariba – an SAP company. All rights reserved.

15. Tomorrow’s Talent – Key Findings
Themes
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Traditional skills
delivered through
non-traditional means
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Broader skills
required
Developing the next
generation
© 2014 Ariba – an SAP company. All rights reserved.

16. Tomorrow’s Talent – Next Steps
The survey results confirm that the war on talent continues to intensify
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CPOs believe it is becoming harder to attract talent, yet they want to grow their
functions, leading to more focus on retention.
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Skills do not align with the needs of the business so what can Procurement leaders do
to enhance capability and attract the top talent?
Themes
• Recognize distinct
skill sets
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Be targeted and
creative in your
recruitment
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Invest in your
internal teams
Leverage 3rd-party
collaboration
© 2014 Ariba – an SAP company. All rights reserved.

17. Regional Differences in Responses
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© 2014 Ariba – an SAP company. All rights reserved.

18. Looking Forward
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Partnerships not Processes
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Risk and Accountability
Building partnerships with the business is more
important than ever
CPOs must find a way to better engage in the
risk conversation and strategy
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4
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Tomorrow’s Talent
Focus on building teams with the right skills and
leadership to drive the agenda
Technology and Analytics
Technology investments are required to enable
the value levers most important to CPOs
© 2014 Ariba – an SAP company. All rights reserved.

19. Visit us to learn more
Jonathon Magick, Principal
jmagick@deloitte.com or +1 (602) 315-8387
Brian Lynch, Senior Manager
blynch@deloitte.com or +1 (713) 305-2283
General enquiries: SAP@Deloitte.com
Follow us on Twitter: @DeloitteSAP
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© 2014 Ariba – an SAP company. All rights reserved.