Goodyear is a global tire company with brands in both the replacement and original equipment tire markets. It has procurement operations around the world. Goodyear has advanced its procurement approach towards the fourth generation, focusing on areas like buying upgrades, contract solutions, and eSourcing institutionalization. eSourcing at Goodyear has evolved through different generations from early electronic auctions to more advanced tools that enable supplier collaboration and supply chain optimization. Goodyear's approach to eSourcing provides flexible tools and processes to drive best practices while allowing for customization to specific category needs. eSourcing is seen as a journey that requires continuous adaptation rather than an end point.

1. eSourcing Maturation – Adapting the Journey
Peter Retterer – Director NA Procurement May 7, 2014

2. Agenda
• Goodyear Overview
• Procurements Approach to Achieve Objectives
• eSourcing at Goodyear
• Questions
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3. Company Overview
Goodyear tires are sold
in two distinct tire markets...
(% of 2013 Units of 162 million)
...and stretch around the
world
(% of 2013 Revenue of ~$20 billion)
…available in a diverse
selection of products...
(% of 2013 Revenue of ~$20 billion)
OE ~20% of 2013 Revenue
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Goodyear Is a Global Tire Industry Leader with Powerful Brands and
Broad Product Reach
Replacement Market
69%
OE Market
31%
Consumer
21%
Retail
7%
Other
12%
Chemical
4%
Commercial
Includes:
OTR, Farm,
Race, &
Aviation
56%
North
America
44%
Europe, Middle
East & Africa
34%
Latin
America
11%
Asia Pacific
11%

4. Goodyear Procurement
Goodyear has advanced substantially toward 4th generation procurement
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5. Organizational Focus Areas
Ø Buying upgrades / modernization
Ø Contract Solutions
Ø eSourcing Institutionalization
Ø Transactional Buying Center
Ø Supplier Diversity
Efficiency
through
Process &
Technology
Deliver
Results
Ø Systems & Process Training
Ø Value Chain Sourcing Optimization
Ø Talent Development
Ø Hard Dollar Savings
Ø Working Capital Improvements
Ø SG&A Management
Build
Capability
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6. The Evolution of eSourcing
eSourcing 1.0
• eAuctions
• Price focus only
• Tool centric
• Heavy use of
consultants
eSourcing 2.0
• Process & project tool
• eRFx focused
• Supplier discovery
• Knowledge management
• Efficiency focused
• Fact based negotiations
eCollaboration
• Dynamic Requisitioning
• Online scenario analysis
• Supply chain optimization
• Supplier
collaboration/expressive
bidding
• Compliance & control
Where we’ve been
and where we’re going…
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7. How eSourcing Contributes to our Objectives
Ø Efficient, scalable tool for negotiations (strategic sourcing discipline/lower costs)
Ø Streamlines workflow and reduces time-to-market
Ø Drives transparency, accuracy & availability of information
Ø Elevates metrics capability
Ø Facilitates control & compliance
Ø Capture & maintain knowledge
Ø Enables personnel to focus on higher value activities
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At Goodyear, we must always be prepared to adapt to changing conditions.
One size does not fit all and we work with companies that can add value to our
organization as well as elevate our ability to build competitive advantage
while staying ahead of the winds of change

8. Our approach to our eSourcing is to provide tools and processes that
drive consistent application of best practices with the flexibility to
adapt to specific category needs
Ø Multiple solution approach
Ø Both general RFx and auction tool
Ø Niche tools for direct materials and logistics
Ø ERP based tool for quick quotes and/or spotbuys
Ø Global deployment, adjusted to regional needs
Ø eSourcing project management and support services customized by project
Goodyear’s Approach
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9. • Goodyear
Procurement Team &
Organization
• Technology/Service
Providers
• Strategic Sourcing
Training
Acquire
• Strategic Sourcing Discipline
• Evolve/Adapt Metrics
• Strategic Spend Focus
• eSourcing Tiered - Service
Levels
• Program Management
Adopt • Metrics Dashboard
• Standardized, repeatable
processes
• eSourcing Decision Matrix
• Train the Trainer
• Continuous Improvement
Institutionalize
eSourcing - A journey not an end point…
Continuously Adapt
A successful technology implementation that “sticks” over time is
generally the outgrowth of an effective change management process.
- Steve Whiteman, Supply & Demand Chain Executive
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10. QUESTIONS ?