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©2014 Coupa Software, Inc.
Inspired Peer CollaborationIs it possible in Procurement?
Hyrum KirtonVP Procurement
Avalon Healthcare
David LaneSr. Director Strategic Sourcing
Rent A Center
Michael WagnerSr. Manager Sourcing & Procurement
BBA Aviation
Avalon HealthcareRegional Long Term Care/Post Acute Care health care provider covering 8 U.S states
Avalon Procurement Use a mix of self sourced and GPP categories
Small procurement team focuses on mission critical spend
Category management
Two criteria for GPP spend• Size of spend in the category
• Limitations with vendor require participation
Rent-A-Center The largest operator in the United States
rent-to-own industry
Over 4,000 locations (2,983 Core U.S.; 763 RAC Acceptance; 87 International, 218 ColorTyme franchisees)
Stores offer high quality, brand name durable products such as major consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements
Allows customers to obtain ownership of the merchandise at the conclusion of an agreed-upon rental period
Approximately 20,000 employees
Annual revenues exceed $3.0 billion
NASDAQ: RCII
Headquarters: Plano, Texas
Rent A Center Sourcing / Procurement• Centralized Sourcing Group
with over 12 members
• Manage more than 160 categories
• Reports into the CFO
BBA Aviation Global HQ in London, traded on
FTSE
Focused on flight support/aftermarket services for commercial, business and general aviation
Currently have 12k employees in over 220 locations
US HQ in Orlando, FL
Globally have 32% market share of commercial movements
In NA, 68% market share of business and general aviation
BBA Sourcing & Procurement:• Located in Orlando
• Responsible for North and South America procurement across all categories
• Indirect purchases are decentralized; all equipment procurement is centralized
• Seat on Procurement Council with other division procurement heads
• Two member team; responsible for all sourcing activities
• Own Coupa relationship and the administration part
• $268mn in spend through Coupa in 2013
Why Collaborate?
Gaining leverage
So many categories, so little time
Sharing best practices
How To Collaborate?
Informal groups
GPOs
Coupa Group Purchasing Program (GPP)
Coupa GPP Structure
GPP Steering
Committee
Compliance
Coupa Audit Team
Customer Members
Category Panels
Coupa Panel Lead
Customer Category Managers
Coupa Sourcing
Team
• Customers In Control• Industry Leaders
• Expert Panel• Supplier Partner Interface
Category panel executes sourcing events & selects supplier partners
Formalizing Relationships
Members enter into contract with supplier
Coupa GPP establishes master contract with selected supplier(s)
Customers sign up for Coupa GPP membership
Active Category Management Market trends analysis
Establish benchmarks
Periodic sourcing events as needed for the category
Quarterly review of spend with members & suppliers
Compliance audits
Supplier Integration
Pre-enabled suppliers at no cost to customers
cXML based punch-outs or catalogs or web-forms
Categories, Savings, Suppliers
* Typical savings over and above the pricing negotiated by typical customers
Experience So Far Traditional GPOs are good at
• Spend aggregation, price catalog, basic contract
• We are targeting those categories
What is different about Coupa GPP?
Update on current sourcing projects
Next Steps
Target Categories
Coupa Investment
Sourcing expertise
Category management
©2014 Coupa Software, Inc.
Q A&
©2014 Coupa Software, Inc.
When: TONIGHT! Where: Mezzanine SF
444 Jessie St. mezzaninesf.comTime: 6 - 11pmDress: Business casual or
semi-formalSponsored by:
INSPIRE Party!
