1. Seven Habits of
B
Highly Successful
Procure-to-Pay
Programs
David Morrison
P2P Program Manager
Rentokil Initial
Alex Saric
Marketing Director - Ariba
© 2012 Ariba, Inc. All rights reserved.

2. Agenda
• Summary Case Studies:
Dollar Tree
Corinthian Colleges
Synovus
• The 7 Habits from Ariba LIVE US
• Rentokil Initial
2 © 2012 Ariba, Inc. All rights reserved.

3. Dollar Tree, Inc. (NASDAQ: DLTR)
• Leading operator of discount variety stores selling everything
for $1 or less
• Headquartered in Chesapeake, Virginia
• Sales $6.6 billion (FY11)
• 4,351 stores (FY11)
• No price increases to our customers in 25 years for
Dollar Tree stores!
3 © 2012 Ariba, Inc. All rights reserved.

4. Business Background
• Problems Faced (Indirect purchasing)
Lack of up-front standardized approvals
Paper invoices
Line item spend difficult to obtain
Manual contract compliance (no catalogs)
• Business Case
Evaluated several companies
Ariba sourcing customer since 2004
Dynamic Discounting ROI
• Executive Sponsorship: COO
4 © 2012 Ariba, Inc. All rights reserved.

5. The Story
• Project Kickoff – Jan. 2010
Development – Spring/Summer 2010
Supplier Enablement/Catalogs – Summer 2010
Testing – Fall 2010
• First Transaction – Dec. 15, 2010
Pilot – Dec. 2010/Jan. 2011
• Go-Live Feb. 2011, phased rollout
• Lessons learned:
Process change
Over-customizing
Scope creep
5 © 2012 Ariba, Inc. All rights reserved.

6. Results
• Statistics
Suppliers – 1st 12 months – 500 active relationships
(150 new suppliers through PO quick enablement)
Internal Users – 250 throughout nine divisions
POs – 1st 12 months – 25,000
Invoices – 1st 12 months – 35,000
Discounting – Standing and dynamic plans/Discount Pro
6 © 2012 Ariba, Inc. All rights reserved.

7. • Corinthian Colleges (CCi) is one of the largest career college, post-
secondary education companies in the United States and Canada, with
more than 102,000 students.
• The company operates 105 schools in 25 states and 17 schools in Canada.
• CCi serves the large and growing segment of the population seeking to
acquire career-oriented education.
• Our company was founded in 1995 and we completed an initial public
offering in 1999. As of Feb 2012, we had approximately 15,000 employees
in North America, including 6,600 full-time and part-time faculty members.
• Our mission is to help students prepare for careers that are in demand or
advance in their chosen field.
7 © 2012 Ariba, Inc. All rights reserved.

8. What Is the Business Problem We Are
Trying to Solve?
• More Organized Buying
Single point of entry for all buying activity
Aggregates all of our catalogs and vendors into one process
• Easy to Use (amazon.com experience)
• Reduced Time Spent Negotiating with Vendors
Pre-negotiated content
New and non-catalog purchases are routed to Procurement for assistance
• Automates CER Process (ready in May)
• Budget Checks (Phase 2)
• Automates Approvals (approve via email, i-phone, blackberry)
• Improved visibility into purchases due to approval being required before the
order is placed
• Allow campus employees to focus on students and not vendors
8 © 2012 Ariba, Inc. All rights reserved.

9. E-Procurement Will Help Us More
Efficiently and Effectively Order
Goods and Services
Our project is focused on
Submit improving this part of the
Obtain Pay Invoice P2P process
Business Supplier
Needs
Receive
Strategic Catalog or Approved Fulfill
Supplier List Monitor and Order
Sourcing Control
RFP & Order
Negotiate Product
Negotiate
Select online (if
Suppliers needed) Get
Approvals
9 © 2012 Ariba, Inc. All rights reserved.

10. Drivers of Compliance and Savings
• Sourcing savings are jeopardized by “Rogue Spending”, where staff buys goods/services
from unapproved suppliers
• Level of rogue spending varies greatly depending on culture, tools, and policies - up to
52 percent in some companies
Why Staff Engage in Rogue Spending How eProcurement Reduces Rogue Spending
More comfortable with other suppliers  Tool encourages use of preferred supplier but has
mechanism for using other suppliers with appropriate
approvals
Lack knowledge regarding preferred  Tool shows user who to use
suppliers
Too busy to find approved source/item  Easy-to-use product/service catalog; one-stop
shopping
Don‟t think it matters  Tool outlines benefits of using preferred supplier
Unaware of policies  Tool clearly defines policies to user
No one challenges them  Tool has built-in approval workflow and reporting
No visibility  Tool has built-in reporting and approval workflow
10 © 2012 Ariba, Inc. All rights reserved.

11. What Is the Financial Benefit of
Solving This Problem?
Soft Savings/
Better Compliance
Efficiencies
• User compliance with Contracts
• Enforcement of other policies • User compliance with preferred suppliers
• Less spending because of visibility • Demand management
• Simplified product search
• Simplified invoice + PO matching More Discounts
• Automated PO transmission
• Continuous Improvement eProcurement • Captured rebates
Savings • Early Payment discounts
Intangible Savings ($5M - $8M) • Dynamic Discount capture
• Real-time visibility into spend Stricter Approvals
commitments
• Real-time management of GL • Fewer unnecessary purchases
accounts • Reduced buying of “luxury” products
• Enhanced detection of fraud and services
Better Sourcing Reduced Errors
• Strengthened negotiation position • Errors in transmission
due to demonstrable compliance • Errors in pricing
• Errors in invoicing/matching
11 © 2012 Ariba, Inc. All rights reserved.

12. Prioritizing Spend Categories
Categories Most Suited for E-Procurement
• Many buyers
• Diverse buyers
• Goods/services simple to describe
• Frequent transactions
• Agreements in place with suppliers
• Many invoices
• Simple invoices
• Complex discount structures
• Suppliers already conducting e-procurement
with other customers
* Spend on individuals above and beyond spend on individuals in the Excluded Categories
12 © 2012 Ariba, Inc. All rights reserved.

13. Categories by Wave
% Spend with
ePro Ariba Network
Category Wave Suitability Savings* Suppliers
Annualized Computer Equipment &
Savings by Wave Accessories 1 159.8 $254,807 96%
$MM
Furniture 1 90.0 $253,124 43%
1 $0.91 66.4 $45,065 67%
Student consumables 1
2 $2.56 Medical Equipment &
Supplies 1 61.8 $205,481 61%
3 $1.68
Safety Equipment & Services 1 61.3 $17,479 13%
4 $0.36
Hardware 1 58.7 $18,155 91%
Σ $5.49 49.5 $21,931 84%
Hand tools 1
Machinery Services &
Supplies 1 45.6 $12,210 64%
AV Supplies 1 44.6 $77,896 99%
* Conservatively assumes at most 95% of calculated savings can be captured
13 © 2012 Ariba, Inc. All rights reserved.

14. Implementation Timing
Integrate w. PeopleSoft
E-Procurement Implementation Activities
Months After Project Start
System Testing
Initial User Training
Begin Wave 1 Savings (Full savings 6 mo later)
Enable Wave 1 Suppliers
Begin Wave 2 Savings Ramp-up
Enable Wave 2 Suppliers
Begin Wave 3 Savings Ramp-up
Enable Wave 3 Suppliers Begin Wave 4
Enable Wave 4 Suppliers Savings Ramp-up
3 6 9 12 15 18 21 24 26
14 © 2012 Ariba, Inc. All rights reserved.

15. Results
Cumulative Savings
$ MM
Q1 $0.00
Q2 $0.00
Q3 $0.08
Q4 $0.37
Q5 $1.31
Q6 $1.91
Q7 $3.00
Q8 $4.32
Q9 $7.07
15 © 2012 Ariba, Inc. All rights reserved.

16. • Synovus Financial Corp.
Commercial and Retail Banking, Investment, Mortgage
HQ in Columbus, GA; founded in 1888
$27 Billion in Assets; 40th largest US Bank Holding Co.
Five-state footprint in Southeast w/ over 300 locations
Community-oriented customer relationship model
Decentralized business model with centralized
support functions
16 © 2012 Ariba, Inc. All rights reserved.

17. Business Background
• 2009 expense/efficiency initiative identified opportunities
in centralizing Procurement
• Over $300 million in addressable spend
• Minimal structure and oversight
• Buy points scattered across 30+ operating divisions
• Gaps in vendor and contract management identified
as risk points
17 © 2012 Ariba, Inc. All rights reserved.

18. Business Background
• Goals/Objectives
Integrate existing purchasing and vendor activity to
obtain efficiencies and economies of scale
Address local market concerns re: “balance of trade”
(vendors who are also bank customers)
Reduce addressable spend by 2% YTY
Increase spend under management to 50%+
60%+ compliance with use of preferred suppliers
Establish vendor management program to mitigate risk
and address regulatory requirements
18 © 2012 Ariba, Inc. All rights reserved.

19. Results
• Addressable spend down 24% vs. 2008 baseline
• Spend down 3.6% most recent YTY
• Spend Under Management at 54% (and rising)
• Compliance at 50% (continued challenges)
• Procurement function expense = 0.28% of spend
• Vendor Management Program established
• Over 2,000 suppliers enabled within system
19 © 2012 Ariba, Inc. All rights reserved.

20. In a Networked Business, Suppliers also Win…
• $10M in annual transactions
• Support to 25 Customers
• 10-15% of our new account revenues are directly a
• 25% Annual Growth result of Ariba Network membership
• 25% of total order volume is transacted via the
Ariba Network
eInvoicing eliminated rekeying,
resulting in 83% lower error rate
which reduced DSO by 75%
99% customer retention rates – (10 to 15%
better than industry average, per Forrester)
and 30% growth in accounts
Reduced manual intervention and
errors, lowering processing costs
from $8 to $2 per purchase
20 © 2012 Ariba, Inc. All rights reserved.

21. The 7 Habits:
1. Develop and Sell a Clear and Simple Vision
Include the stakeholders early
2. Establish Executive Support
3. Define the Metrics & Report Regularly
4. Establish Waves based on Best Practices
Deliver Quick Wins
Create Ongoing Value
5. Visibly Manage Change – Internal and External
Market to Users
Training
Support
6. Leverage the Supplier Network
Create Win / Win
7. Think Strategically
21 © 2012 Ariba, Inc. All rights reserved.

22. Seven Habits of
B
Highly Successful
Procure-to-Pay
Programs
David Morrison
P2P Program Manager
Rentokil Initial
© 2012 Ariba, Inc. All rights reserved.

23. Who we are and what we do:
• One of the largest
business services
companies in the
world.
• experts delivering
essential services in
areas such as:
• Hygiene
• Textiles
• Pest Control
• Plants
• Food
• Facilities
• Parcels Delivery
• Sales £2.54 billion
(FY 2011)
• Over 66,000 employees
operating in over 58 countries.
23 © 2012 Ariba, Inc. All rights reserved.

24. Business Background
• Problems Faced
Weak levels of control
Manual Processes with High cost of processing transactions
around the procure to pay processes
Lack of consistent approval and limited receipting process
Low visibility over financial commitments
Absence of processes to confirm actual pricing is as per contract
Multiple supplier master files (AP ledgers) and inconsistent use
of data fields (categorisation, etc.)
24 © 2012 Ariba, Inc. All rights reserved.

25. Business Background
• Objectives of P2P:
Drive improvements and standardisation in the purchasing through to
accounts payables processes
Drive compliance to preferred suppliers; thus acting as an enabler to the
achievement of the strategy and savings plans of Group Purchasing
Provide a single, rationalised supplier master file
Drive the business towards a paperless environment
Act as an incentive to introduce a harmonised approval authority matrix across
the business.
Reduce and control the risk of error, abuse and fraud
Provide a clear understanding of commitments and liabilities
Design and deliver supporting organisational structures
25 © 2012 Ariba, Inc. All rights reserved.

26. The Story
• 2010
Mar – Apr : Requirements Gathering
Apr – May : Prepare & launch Request for Quotation
May – Jun : Supplier Selection
Jun – Jul : Business Case Preparation, Submission & Approval
End Jul : Award Contract
Sep : Mobilise Project Team
Sep – Dec : Design, Build, Configure Systems
• 2011
Jan – Mar : Design, Build, Configure Systems
Apr – Jun : Testing & Training
Jul : Prepare for Go Live (Pest Control UK)
Aug - Dec : Roll Out (Pest Control UK)
• 2012
Jan – Jul : Deploy across other UK Businesses
Aug - : Deploy across non UK Businesses
26 © 2012 Ariba, Inc. All rights reserved.

27. How We Made Our Decision:
• Requirements Gathering:
Stakeholder Engagement with Heads of Businesses to cover:
– Scope options for P2P, High level requirements, Open Questions, Next steps & Governance
– Reach agreement/Confirmation on: the scope, requirements list is complete, next steps
• Request for Information/Quotation:
Using information gained from Stakeholder engagement, create & issue RFQ covering:
– Company, Customers, Functionality, Technology, Services & Support, Commercials
• Short List & Evaluate:
Short list to 3 vendors & invite to present solution to Business Stakeholders at ½ day sessions
– Decide on Supplier to continue with in-depth negotiations
• Produce Business Case & Get Sign Off from Business Stakeholders
Walk business case round all business stakeholders to explain/clarify & solicit their inputs and
approval
• Award Contract
27 © 2012 Ariba, Inc. All rights reserved.

28. Results
• Statistics
Significant reduction in invoice cycle time*:
Average pre Ariba 61 days down to 16 days post Ariba
All UK Pest Control division spend through Ariba
400+ users
7,000 orders in less than 6 months
> 250 vendors
Branch Training lasts only ½ day and users are live!
* From date on Invoice to input into finance system
28 © 2012 Ariba, Inc. All rights reserved.

29. Lessons Learned
• What went well
• Acceptance of the system by the business
• Approval process (via email) has worked well
• Not so well
• Supplier Enablement – This takes longer than expected – Need to
find right contact at Supplier, may not be your account manager.
• Maintaining data to manage Ariba – manual process requiring
resource to manage
• Account Code Combinations – need to get this right so that
requesters do not encounter issues – But simple crib sheets work!
• Some evidence that this has pulled forward cost – timing
issue only
29 © 2012 Ariba, Inc. All rights reserved.

30. Feedback from Users
“Allows management to spend “I‟ve had no
more time in the field, not in problems….it‟s a
office filling in paper! Reduces brilliant system”
admin & overhead. Makes us
more competitive. More
accurate accounting” “„Easy to use,
better visibility”.
“The system has been great.
It remembers my previous
“Shortened month end processes, orders”.
high quality MI that identifies
process compliance issues. Helps
identify business opportunities. “Makes process non
Maximises buying power. conformance visible. Paperless
Improved forecasting” process enables detailed
Operations spend analysis. Empowers
managers; self responsibility
Finance for cost”
30 © 2012 Ariba, Inc. All rights reserved.

31. 7 Habits for a Successful P2P
1. Clarify how the system will de-risk whole P2P process.
2. Have business buy in from the start
3. Identify your metrics for success from the beginning
4. Think big picture: A strong system that is up to date and offers much. Will
work equally well all finance systems.
5. Implementation team needs to be strong and support operations, to
whom this will be new.
6. Be sure that Finance is on board: A big implementation for Finance team
with GCOA, but long term gain is significant
7. Plan for supplier set up efforts: Need to find right contacts in supplier
organisation and support them in „enabling‟ their business.
31 © 2012 Ariba, Inc. All rights reserved.

32. Share This Session…NOW…from
your mobile!
• All presentations are posted:
Guidebook mobile app
– Search Apple or Android app store
for Guidebook
– Enter code “collabor8”
Or at Slideshare.net/Ariba
• Share via email or social media
**Come back soon – we are syncing #AribaLIVE
audio and video interviews to
the presentations**
32 © 2012 Ariba, Inc. All rights reserved.

33. Q&A
Contact info:
Alex Saric asaric@ariba.com
33 © 2012 Ariba, Inc. All rights reserved.