Patrick Hopkins Coke Consolidated

Transforming Indirect Procurement

Coca-Cola History

Secret Formula Sold to Asa Candler Thought Coke in bottles was “stupid” and sold bottling rights for $1.00

Consolidated Begins First with Dasani and

Fridgepacks One of 64

Independent Bottlers

Famous Contour Bottle

Sold to Investors Globalization

Atlanta Pharmacist Dr. John Pemberton

1888 1902 1916 1919 1886

No visibility to indirect spend detail • Half of indirect on credit cards

Six disparate order/payment processes Use of non-approved suppliers

• Verbal commitments with non-established suppliers, late and duplicate payments, uninsured liabilities

Procurement Opportunities No visibility to indirect spend detail

• Half of indirect on credit cards

Six disparate order/payment processes Use of non-approved suppliers

• Verbal commitments with non-established suppliers, late and duplicate payments, uninsured liabilities

Procurement Opportunities

Use of non-standard, non-approved materials E-commerce solution not widely embraced Significant shopping prior to buying

Procurement’s Mission

Put the right materials and services

In the right hands

At the right place

At the right time

At the right cost

All the time

87% LIES HIDDEN UNDERWATER

PRICE

COST TIME

OPPORTUNITY RISK

Product Liability

Energy Consumption

Safety & Environmental Impact

Contract/SLA Administration Costs

Stock Buy Back Agreements

Consignment Inventory

Error Correction/Customer Support Dedicated Inventory

Training Bin Stocking

Cost Savings Programs

Technical Support Data Management Costs (Pricing, Catalogs)

Technology Enablers (Catalogs, Internet Capabilities) Data Transmission Costs (EDI vs. Paper)

Purchasing Processing Time

Receivables, Accounting Timeliness & Accuracy Desktop Delivery

Requisitioner’s Time

Delivery Performance (Timeliness & Accuracy) Payment Terms & Methods Rebates/Discounts

Shipping/Delivery Costs

Warranty Costs & Benefits

Compatibility with Existing Equipment/Modification Costs

Ongoing Maintenance

Installation Costs

Operating Life Expectancy – Mean Time Between Failures

Spare Parts Purchase & Inventory Holding Fees

Regulatory Compliance

Procurement Transformation Strategy Consolidate Supply Base

• Higher spend = lower mark up • Rebates, incentives, MSAs, terms, insurance…

Standardize Materials & Services • Higher unit volume = lower unit price • Lower inventory, higher quality,

longer life…

Automate Processes • Automation = employee & supplier productivity • Simplify, eliminate, combine

Four E-Procurement Truths

1. The product must be in the catalog

2. Users must be able to find what they need

3. The data must be right

4. Users must want to use the system

So, Why Coupa?

Why Not SAP?

Achieving the 4 E-Procurement Truths 1. Items must be in the catalog

• Internally hosted – Smaller suppliers, smaller scope – Quicker system response – Shared burden between supplier and customer

• Punch-out – More burden on supplier – Must be able to control scope, price – Retrieval to cart process varies

An Unlimited Selection of Limited Options

Achieving the 4 E-Procurement Truths 2. Users must be able to find what they need

• Demands an intuitive, uncomplicated, simple process

• Demands master data excellence in accuracy, consistency & clarity

• Demands ‘uniqueness’

• Demands fast response time

100% Confidence 100% of the Time

Achieving the 4 E-Procurement Truths 3. The data must be right

• Visibility to correct price • Inventory availability • Description & all MD accuracy

& consistency • Delivery accuracy • Billing accuracy • Accounting accuracy – P&L

What Does it Cost if it’s Wrong?

Achieving the 4 E-Procurement Truths 4. Users must want to use the system

• Process must be: – Easy – Intuitive – Fast – Mobile – Pleasant – Successful

Easier than a P-Card

Capture & visibility of spend • Integration to SAP

Mobility that’s device agnostic Process discipline – 3-way match

• Requires receiving but eliminates T&E process

Unlimited supplier expansion • Critical to displace P-cards

Cloud solution pleases ISS Positive user response & adoption

• Highest user rate vs. P-cards

Results

J A S O N D J F M

2012 2013

Questions?