©2007 SciQuest, Inc. Confidential Achieving Strategic Procurement University of Hawaii System Discussion and Demonstration May 22, 2008

©2007 SciQuest, Inc. Confidential

Achieving Strategic Procurement

University of Hawaii SystemDiscussion and Demonstration

May 22, 2008

Page 2

2©2007 SciQuest, Inc. Confidential

Introductions

University of Hawaii Attendees

SciQuest Attendees• Mark Garvella - Account Executive• Dan Traub - Lead Solutions Engineer• John Fabris - Vice President of Higher Education

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Today’s Agenda

• 8:30 – 8:45 Introduction & Brief SciQuest Overview• 8:45 – 9:10 Trends, Observations & Results• 9:10 – 9:30 SciQuest Solution Overview• 9:30 – 11:00 Demonstration• 11:00 – 11:15 Building the Business Case• 11:15 – 11:30 Final Questions


SciQuest Background

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SciQuest is the global leader in helping academic and research-centric organizations realize the potential of strategic procurement.

Our specialized knowledge, on-demand software and service-first approach empower organizations to manage spend, drive ROI and advance their critical missions.

What we do: Improve existing procurement systems Add value to planned procurement implementations Provide end-to-end procurement solutions

How we do it: Combination of software and services Web-based, Software-as-a-Service model Integrations into any existing systems, including Kuali,

Banner, SAP, Oracle, PeopleSoft and more

Connect to your suppliers

Capture more transactions

Control your spend

About SciQuest

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The SciQuest Difference

• Higher Education focus and experience• Recognized leader in academic and research-centric organizations• 70+academic and research universities • Extensive relationships with Higher Education suppliers• Community-driven development approach

• One stop supplier enablement • Critical mass of supplier catalogs• Local suppliers, diversity suppliers• Automated transaction processing: order delivery and electronic

invoicing• Research supplier catalog and research specific search tools

• Proven Return On Investment (ROI)• Strategic spend and supplier reporting• Aggregate and leverage spend across campuses• ROI achieved within one year• Client reference cases and results

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• Iowa State University•University of Pennsylvania•California Inst. of Technology •Yale University•Arizona State University•University of Notre Dame•University of Arizona•University California Santa Cruz•University of California San Diego•University of California Riverside•East Carolina University•University of Pittsburgh•University of Vermont•M.I.T•Dartmouth College•Harvard University•West Virginia University•Tennessee Board of Regents Joint SciQuest/Kuali KFS Clients

Sample SciQuest Higher Education Clients

•University of Michigan•Indiana University •Pennsylvania State University•University of Illinois (system) •University of Texas Health and Sciences Center •University of Missouri - System •Clemson University•University of California Berkeley•University of Virginia•University of New Mexico•University of Louisville•Cornell University•Rockefeller University•Colorado State University•Virginia Polytechnic Institute•University of Louisville•University of Florida•Florida State University


Trends and Observations

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Higher Education Priorities

• Build accountability into purchasing process

• Leverage buying power across campus and across systems

• Promote consortium contracts, diversity suppliers

• Decentralize execution, but centralize sourcing expertise

• Re-focus procurement staff on strategic priorities• Strategic sourcing / analysis• Contract management• Customer service• Risk mitigation

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The Evolution of Strategic Procurement

Traditional Procurement Strategic Procurement

SupplierIntegration

LeveragedSupplierStrategy

‘The

Cha

sm’

Paper-BasedProcesses

AutomatedProcesses

(e-Requisition)

Reduction inprocess costsReqApprovalPO

Reduction of“maverick spend”

Lower Cost of Goods

Aggregate actionable data

Inadequate Front End“Shopping” Experience

SearchReq

• No single platform• Poor search process• Content = too lean• Suppliers = too few

Confused, frustrated, and time-pressured

end-users go around the system

Increase in end-user adoption(More spend under management)

Opportunity to direct end-users to preferred suppliers

Ability to capture uniform, detailed spend data

Complete and integrate the SearchPO process

Create a single online managed marketplace

Enable a critical mass of suppliers & content

11

22

33

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Strategic Supplier Management

MANAGED SERVICES

• Supplier connectivity• Extensive product

taxonomy• Centralized eCatalog• Price/content management• Transaction integrity• Transaction tracking • Customer support

TRANSACTION DATA

• Purchase Order• Advanced Ship Notification• Invoicing• Receipt notification• Contract data• Payment data

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SciQuest Supplier Network

* This is a partial list. The full list is available upon request.


Real Results

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University of Missouri Sample Savings

“We expect to achieve as much as $17.9 million annually at full system maturation. What other “back-office” function at a university can create such a financial impact?”

-- Bill Cooper, AVP Management Services and Chief Procurement Officer

• E-Procurement Objectives• One Stop Shopping, Greater visibility into Spend,

Capitalize on ERP Investment, University wide cost savings and process efficiencies, Supports Strategic

• Where the University of Missouri is Today• LIVE in Pilot Phase as of October 1, 2007: 175 users• 80% catalog purchases going thru SciQuest• Renegotiated contracts with top 18 suppliers resulting in

savings of 3%-37% per contract• Annualized estimated cost savings for 18 vendors is

$6,719,715• Realized cost savings to-date: $2,300,000

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Real Results – University of New Mexico

• About University of New Mexico• Research-extensive university• 20,000+ employees; 33,000+ enrolled• Process ~$180M per year in purchases

• Goals• Streamline purchasing process• Improve contract compliance• Enhance and improve administrative efficiency• Direct spend to preferred suppliers• Improve efficiency and compliance with

budgetary and policy guidelines• Results

• Time to process a purchasing request reduced from 2-3 weeks to 2-3 minutes

• Greater accounting control and compliance• Finance staff can focus on the strategic instead of clerical work• Real-time data integration between SciQuest and SunGard Banner

"We have been able to leverage our buying power with more suppliers. We

process about $180 million a year in purchases,

ranging from pencils to natural gas to health

insurance. SciQuest's HigherMarkets solution

allows us to monitor purchases more closely, reduce maverick buying, and also monitor contract compliance. Ultimately, it allows us to manage our

money better."

Bruce Cherrin, Director of Purchasing, University of

New Mexico

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Real Results – UTHSC

• About University of Texas Health Science Center• Oldest school of public health in TX• National reputation as a leader in education

and research• 5,000+ faculty and staff; 3500+ enrolled

• Goals• Ensure consistent and accurate pricing• Consolidate spending across the university• Obtain high user adoption • Achieve better pricing, discounts, and turnaround

through aggregated suppliers and automated payment• Results

• Increased on-contract spending and spend visibility• User adoption increased by 10%• 15 suppliers enabled in 45 days• Reduced internal catalog and punch-out costs

“SciQuest's solutions have allowed our institution to build strong relationships

with our key suppliers, increasing our spend visibility and positively

impacting our bottom line.”

Jerry Fuller, Assistant VP

for Procurement, UTHSC

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Real Results – University of Pennsylvania

• About UPenn• One of the U.S.’s oldest research universities• 12,000 employees; 22,000+ enrolled• $4.4B operating budget

• Goals• Achieve higher returns from Oracle implementation• Enable a critical mass of suppliers• Increase campus-wide compliance with financial

policies and preferred contract suppliers• Reduce the cost of products• Eliminate maverick spending

• Results• 484% increase in contract compliance*• $77.4 million in total product cost savings*• More than 70% of campus spend under management• Average cycle time reduced from 18 days to less than one• ROI realized in 4 months

“Spend Director is a breakthrough solution that will take purchasing at The University of Pennsylvania to the next level. We expect

Spend Director to further streamline the buying

experience for faculty and staff and increase the

utilization of our targeted suppliers resulting in

measurable cost savings.”

Ralph Maier, Chief Procurement Officer,

University of Pennsylvania

* From Aberdeen’s Best Practices in e-Procurement, 2006


The SciQuest Solution

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SciQuest Strategic Procurement

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Elements of a Private Marketplace

Services Forms

Internal Requests

Procurement Policies/InfoContract Details

Personal AssistanceOrder Status

On-site InventoryHosted Catalogs

Science CatalogDiversity SuppliersE&I, UHC, Provista

Punchout Catalogs

E&I, UHC, Provista

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Approve

&

Match

Kua

liH

ighe

rMar

kets

Log In EH&S

Approvals

Validate &

Budget

Check

Create PO

Financial

Approvals Send Via:

cXML

EDI

Email

Fax

Portal

Login ShopCreateReq.

ApproveReq.

Create PO

TransmitPO Settle

Auto

Enhanced

ManualCustom

Approvals

Final

Budget

Check

(optional)

Accept

E-Invoice:

cXML

EDI

Portal

Encumber Funds

(Match)

&

Pay

Invoice

HigherMarkets Integration Scenario

PunchoutCatalogs

CustomForms

Non-CatalogItems

StockroomItems

HostedCatalogs

Outbound Sync: Suppliers, Chart of Accounts, Ship To, Commodity

Auth.

Interface /

LDAP

EnterReceipt

Create

Req.


Product Demonstration


ROI and Building a Business Case

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ROI - Business Case Components

• Savings Drivers: • Contract compliance savings• Strategic sourcing savings• Process savings• Supplier savings• Payment savings• On demand savings

• Stakeholder Efficiency• Researcher • Procurement• Grant Administrators

• Risk / Compliance Improvements


Please Contact:Mark GarvellaAccount [email protected]

Thank You !

Documents

©2007 SciQuest, Inc. Confidential Achieving Strategic Procurement University of Hawaii System Discussion and Demonstration May 22, 2008