Progressive approach to building a Procurement Organization

1. Procurement Transformation

4. Procurement Transformation Strategy Enablement: How will we make it happen and sustain it? Innovation: What do we need to do to raise our level of performance? Direction: How do we want to procure materials and services? Category Strategy P2P New Business Models Best Practices eSolutions Organizational Effectiveness Desired Practices and Behaviors to Achieve Results and High Performance P2P Category Strategy

6. FINANCIAL: (CASH AND GROWTH) Maximizing value through category strategy, supplier management, source to pay process optimization and functional consolidation Develop and Launch Category Strategy and Supplier Management to Deliver $ in Direct and Indirect Benefits CUSTOMER: (PRODUCTIVITY) Delivering benchmark performance in quality, speed and cost to our internal customers and external suppliers INTERNAL: (PRODUCTIVITY) Leveraging integrated procurement technologies across the business to streamline and standardize processes and to build strong analytics and knowledge LEARNING AND GROWTH: (PEOPLE) Developing a high performance collaborative culture and team recognized for innovation and integrity Develop and Execute on P2P and eSolutions to Deliver $ benefits and Achieve 0.6% Cost to Spend Procurement Excellence Develop and Launch Category Strategy, Supplier Management and P2P to Deliver Benchmark Performance (Quality, Speed, Cost) to Our Customers and Suppliers Design and Implement P2P Across Global organization and Functions to Optimize, Standardize Processes and Build Strong Analytics Align Center led Procurement Organization, Measurements and Rewards Develop and Implement Communications, Learning and Development and Knowledge Continuously Analyze New Business Models Procurement Transformation Goals and Objectives

7. Strategy Execution and Benefit Capture Waves 3-4 Strategy Execution and Benefit Capture Waves 1-2 Strategy Development Waves 3-4 Strategy Development Waves 1-2 Develop and Finalize Long Term Plans 3-6 Months 3 Months 6 Months Forward Execute and Continuously Revise Plan Develop and Finalize Budget and Plan Develop and Finalize Budget and Plan Develop and Finalize Budget Procurement Transformation Roadmap Detailed Design Deployment Detailed Design Deployment Business Case Development Configuration Detailed Design Communications and Knowledge Design and Execution Learning and Development Design and Execution Organization Alignment Measurements and Rewards Design and Execution Category Strategy P2P New Business Models/Technologies Organizational Effectiveness 3 Months

10. Purchase to Pay Scope Category Strategy Purchase to Pay Supplier Management Source (when necessary) Contract (when necessary) Requisition Order Receive Pay Report Policies and Procedures Business Case Development and Benefit Tracking Change Management eSourcing eContracts eProcurement (EBP) eInventory Data Warehouse: Category Mapping, Coding and Data Quality Direct Materials Indirect Materials and Services Project P2P Scope Core Processes eSolutions Organizational Impacts Covered in Category Strategy Scope

12. Productivity $ Cashflow $ Functionalization $ Total $ 5-Year Cumulative Benefits $MM Benefit Categories Typical Benefits Assumption: Category Strategy benefits enabled by P2P processes and technologies; estimated as a % of total spend Assumption: Cashflow estimates based ability to Pay at approved intervals which can allow for applied discounts Assumption: Functionalization estimates would be based on census impacts IT Maintenance $ Assumption: IT maintenance costs of legacy systems