Welcome! Alex Saric - Vice President, Business Networks Marketing SAP

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Hyper-Globalization Globalization is Here

Consumerization Mobility | Cloud | Big Data | Networks

Emerging Middle Class Game Changing

Future Work Millennials| Tech-Savvy| Flexible

Changing Business Dynamics

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www.futureofprocurement.com

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“It will become more of a standard to see supply

management being held accountable for delivering

value and not just lower costs.”

www.futureofprocurement.com

Larry Welch Former CPO, Hewlett-Packard

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Where can you add value?

Product

Innovation

Market

Expansion

Compliance

& Cash Flow

Marketing /

Branding

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The Future is Predictive

• “In the future, procurement

will focus on more forward

looking, predictive

analysis…We need to be able

to predict how a product will

perform from quality and total

cost perspectives. We need to

know rapidly and be able to

react immediately when

changes in the data predict a

problem in the future.” • -- Kevin Castle, ex-CPO Varian, Inc.

Vision 2020: Ideas for Procurement in 2020

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Automate Predict Connect

Getting to Predictive

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SAP: All Categories. All Processes. One Platform.

INDIRECT – (source and non source)

Source &

Contract

Collaborate

& Transact

Invoice &

Pay

COMPLEX SERVICES

TRAVEL & EXPENSES

INTEGRATION TO SAP SYSTEMS AND NON SAP

CONTINGENT WORKFORCE & SERVICES

DIRECT MATERIAL - LOGISTICS

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All Powered by the Global Business Network

Your Trading Partners

Your

Company

Your Company

Your Systems

Risk &

Sustainability

Workforce

Management

Sales &

Marketing

Finance

Supply Chain

Management

Sourcing and

Procurement"

Travel &

Expenses

Business Network

Discover

Connect Collaborate

Gain

Insights

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Sales /

Marketing

Procurement /

Supply Chain Finance

Risk &

Compliance

Workforce

Management

$100M in total labor

spend solely managed

with VMS solution

50% reduced in cycle

time to find diversity

sellers

Processing costs

reduced from $8 to

$2 per purchase

80% fewer people

required to support

compliance

98%+ touchless

invoicing -- integrate

with 8 SAP systems

worldwide

40% overall account

growth and 75%+ in 4

major accounts

70% reduction in per

PO operating costs

75% reduction

in cycle time

Reduced time to deal

with regulations from

years to weeks

>30% reduction in

BPO costs

Driving Value Across Functions / Areas

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You are the future… Networked

Intelligent

Predictive

Thank you

Contact information:

Alex Saric

Vice President, Business Networks Marketing

SAP