For the last 15 years, eProcurement software has done the same things but promised different results. Companies are spending their resources trying (and failing) to enforce top down processes and bring more spend under management. The tools used today are about limitations. We think it’s time to change that and solve the unfulfilled promise of eProcurement. We believe eProcurement should enable: - Accurate products and services from ALL your suppliers - A collaborative and easy buying experience - The freedom to buy anywhere - Connected end-to-end processes - A comprehensive solution for ALL your spend

1. Fixing The Broken Promise of
eProcurement

2. Agenda
● The current state of eProcurement
● What has not worked
● Why it’s time for a change
● What the future of eProcurement looks like
● About Tradeshift Buy

3. Amy Fong
Senior Procurement Advisor & P2P Program Leader
The Hackett Group
Christian Lanng
CEO & Co-Founder
Tradeshift

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The Hackett Group Difference
Intellectual capital and implementation expertise
Profile
▪ The Hackett Group is an IP-based consultancy focusing on enabling world class
performance improvement by leveraging of our intellectual capital, based on over
8,000 benchmarks and performance studies
▪ More than 20,000 performance metrics
▪ More than 1,900 best practices
▪ Best practice process flows, capability maturity models, and
configuration guides
▪ Enterprise and Functional Service Delivery Model Frameworks
Approach
▪ We help clients measure performance compared to World Class performance
▪ We identify opportunities and an actionable roadmap
▪ We implement our recommendations which result in accelerated benefit realization
Results
▪ Sustainable performance improvement leading to an agile enterprise with lower
costs and improved service levels
WORLD-CLASS
WORLD-
CLASS
EFFICIENCY
WORLD-CLASS
EFFECTIVENESS
Accelerating the
time to sustainable
benefit realization
The Hackett Group
Value Grid
Hackett defines, designs, and delivers sustainable World-Class performance

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Enabling World-Class: Hackett’s Solution Portfolio
Benchmarking, Advisory, Business Transformation
▪ Unlimited inquiry access for members to Hackett experts for transformation steering
▪ Library of 2,500+ Best Practice Research Perspectives, Books of Numbers, and Hackett Certified
Best Practices through the Best Practice Intelligence Center
▪ Peer-to-Leader 1-2-1 Best Practices sharing, and Best Practices networking events
▪ Enterprise, functional and process-based performance studies & value accelerators
▪ “Gold Standard” Benchmark – over 8,500 conducted, the empirical backbone for your
transformation at the SG&A Enterprise, Functional, and Process level.
▪ World-Class, Peer, and Custom Peer comparative metrics and best practices
▪ Ability to provide multiyear World-Class Program view of performance over time
▪ Hackett Performance Exchange (automatic accumulation of performance data from Oracle or SAP
▪ Finance
▪ Human Resources
▪ Information Technology
▪ Procurement
▪ Supply Chain and Operations
Membership
Advisory &
Research
(Provides insights into World
Class Performance)
Benchmarking
(Defines World Class
Performance)
Business
Transformation
(Transforms Performance
into World Class)
▪ Enterprise Performance Management
▪ Shared Services, Global Business Services & Outsourcing
▪ Merger Integration
▪ Working Capital Management
▪ Oracle EPM (Platinum Partner)
▪ SAP ERP (Gold Partner)
▪ Hyperion
▪ Kronos
▪ Workforce Management
▪ Application Managed Services
▪ Source to Pay Solutions
▪ Assessment
▪ Selection
▪ Implementation
▪ Change Management
Best Practice
Technology
Enablement
(Implements Technology to
enable World Class)

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Procurement’s main objective is to support the strategic plan of the business
Procurement’s strategic objectives in 2015
Source: Key Issues Study, The Hackett Group,
2015

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P2P is evolving to support enterprise objectives
Enterprise
Theme
P2P Top Performer
Characteristics
Best Practice Tactics
Customer centricity Internal Stakeholder
Centricity
• Guiding and supporting requisitioners
• Enabling self service
• Streamlining policies
Business Agility Process Automation • Enhancing process efficiency
• Optimizing processes
• Defining payment strategy
Big Data for
Performance
Management
Digitalization of Information • Driving visibility with analytics
• Predicting spending patterns
• Anticipating requisitioner needs
• Creating dynamic scorecards
• Rationalizing supplier data
Protecting the
Business from Risk
Balancing Risk and Control
with Efficiency
• Establishing S2P channel strategies
• Monitoring supplier contract compliance
• Customizing supplier onboarding
• Streamlining information gathering
• Identifying fraud
• Addressing internal policy non-compliance

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What exactly is eProcurement?
E-procurement is defined as:
Solutions that provide a self-service utility for buying goods and services, creating requisitions,
viewing catalog content with pre-negotiated prices, finding preferred suppliers, obtaining
approval for purchases, managing spend against a budget and communicating POs to suppliers.
Increasingly, the scope of these solutions also includes a means to accept supplier invoices and
match to POs for approval.

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P2P Top Performers use more Catalog buying to guide requisitioners to
preferred suppliers and pricing - most companies still have opportunity
Percent of Indirect
Transactions through E-
catalog
Percent of Indirect Spend
through E-catalog
Peer Top
Performer
Percent of indirect requisition
volume supported by catalog
content vs free text
Source: 2015 Hackett P2P Performance Study

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Why are organizations revisiting their e-Procurement strategy?
▪ Reduce the total IT cost of ownership by eliminating redundant systems
▪ Explore alternatives to heavily customized legacy systems
▪ Support procurement’s expanding global footprint
▪ Extend workflow to support mobile
▪ Be a catalyst for process change and compliance
▪ Take advantage of usability advancements in web 2.0, social collaboration, and analytics

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E-Procurement adoption brings efficiency benefits, if done right
P2P Process Efficiency
–Overall order processing efficiency gains of 38%
Benefits for master data management
–15% lower item master data maintenance costs
–14% reduction/rationalization of item master
–14% reduction/rationalization of supplier master
Reductions in invoice processing delays and errors
–Greater level of automated matching as invoice information can be matched to line item PO
information from the catalog
–Higher first-pass match rates between invoices and POs as pricing mismatches are reduced
Source: Hackett Group e-Procurement Quick
Poll

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Requisitioner satisfaction is a lofty goal
Guided buying from approved supplier catalogs at pre-negotiated prices creates higher levels of compliance
and spend visibility
Percent of Savings Lost due to Non Compliance
Source: 2015 Hackett Procurement Benchmark
E-Procurement users reported a 20% increase in indirect spend compliance and 9% annual savings increase attributed to
increased indirect compliance – there’s still room for improvement

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Challenges with the current state of e-Procurement
Catalog Challenges
▪Items in catalogs are difficult to find
▪Information in catalogs is out of date
▪Minimal description or pictures of items
▪Confusion around UOM and pricing
Process Challenges
▪ Timeliness of approval process
▪ Lack of understanding for when to use e-Procurement
solution
▪ Required receiving in the system is cumbersome
▪ Lack of system and process support
▪ Complexity of ordering for multiple departments
▪ Difficulty in updating information
System Challenges
▪ Multiple sign-on requirements and environments
▪ System times out resulting in loss of information
▪ Lack of order status visibility
▪ Little system configuration by user or history

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Take a process-centric approach to selection
Focus On The Differentiators
List the primary and exceptions use cases that can be reviewed and ranked based on the likelihood you will actually use the
feature, then focus on ways each provider is different and which have the most value for your organization
▪ Search capabilities
– “Google” keyword search of supplier catalogs. Quick results filtering. Ability to search across multiple catalogs.
– Saved lists and shopping carts
▪ Category specific expertise
▪ Graphical event management workflow
▪ Non-IT rules configuration
– Purchasing stage clearly displayed throughout the process (e.g. TurboTax)
▪ Analytics
– Operational dashboards and reporting with drill down capabilities
▪ Geographic considerations
– Particularly true in Europe where strong local vendors have a competitive advantage due to local knowledge of
the supplier base and culture
▪ The implementation team
– In the end, it may come down to the culture of a vendor and the actual implementation team they can offer up.

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Closing Thoughts: Plan For A Journey
▪ Simplify, simplify, simplify.
▪ There is no one size fits all business case.
▪ Don’t underestimate on-boarding efforts.
▪ Embrace an agile, iterative implementation.

16. Fixing The Broken Promise of
eProcurement
Christian Lanng, CEO of Tradeshift

17. It’s time to rethink
eProcurement

18. Buying should be a simple, intuitive
act

19. What happens today?
Frustration, lost value, inefficiency and
complexity, poor spend visibility
● Lack of content
● Poor search
● Inaccurate information
● No collaboration
● Maverick/rogue spend

20. WHAT CAN WE DO ABOUT THIS?
Step 1. Kill the catalog as you know it

21. ● It’s not working
● Millennials
● Trust not command & control
● It’s about value vs. savings
Why?

22. Step 2. Let employees buy from anywhere

23. ● Maverick spend is here to stay - embrace it.
● Your catalog will never be Amazon
● Not everything can be sourced and put into
a contract
Why?

24. Step 3. Change behavior through technology

25. Why?
● Our first customer had been using an eProcurement
solution for >10 years
○ Never achieved their goal
● You don’t need different systems to manage direct,
indirect and services spend
● You do need a collaborative process
Why?

26. The Disruption of How We Buy
PAST
• Static and costly sourcing processes
that rarely deliver value in time
• Anyone who broke the process was a
maverick buyer
• Full spend coverage was never
achieved because of lacking supplier
and employee participation
FUTURE
• Sourcing can be done on the fly from a
network of trusted suppliers that are pre-
approved
• Software allow employees to be agile and
create value while capturing spend from all
channels supported by a professional
buying organization
• Full spend coverage is the default due to
increased supplier and employee
participation

27. Become a strategic leader.
Innovate with your suppliers
Stop squeezing your sources – collaborate to save.
Be a trusted advisor, not the spend police
Help your requisitioners get what they need, instead of feeling like the bad guy.
Help your users, help yourself
Make things easy for employees and suppliers.

28. Tradeshift Buy
®

29. Tradeshift
All your suppliers. All in one place

30. Tradeshift Buy
It’s time to rethink eProcurement.
You don’t eProcure things, you buy them.

31. Tradeshift Buy
Tradeshift Product Engine
World’s first central, searchable, product database
Tradeshift Shop
Virtual store across all your suppliers and product and services categories
Tradeshift Buy Anywhere
Empowers requisitioners to buy from the whole Internet and stay within policy
Tradeshift Collaborate
Collaborate together within Tradeshift during the entire buying process
Apps
Connect all your data and processes on the Tradeshift platform

32. Thank you
tradeshift.com/buy