This document contains information that is proprietary, privileged, and confidential. 1

Reasons to deploy an integrated Supplier Management Solution

This document contains information that is proprietary, privileged, and confidential.

Supplier Management : Numbers you must know

40-70%SUPPLIER COSTSOf company’s total cost are contributed to by the Supplier Costs

$585 -$1,000

SPENDPer supplier annually in supplier management costs - AMR Research

>85%INACCURATE DATACompanies identify significant costs from poor data -Gartner Research

67%POOR DATA Of CPOs identify poor data quality as a key barrier to implementing their systems -Deloitte

95%DATA QUALITYImportant in achieving procurement objective by procurement professionals -Procurement Leaders

50%IT SystemsCompanies have delayed/ cancelled new IT systems due to poor data -Gartner Research

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Pain-points of Supplier Data: Challenges faced by Organizations

Inaccurate Data

Multiple Source Systems

Lack of Standardized Processes

Legacy systems

Multiple Users

No Data Validation

Manual processes

Roles not clearly defined

Outdated technology

This document contains information that is proprietary, privileged, and confidential. 4

The impact of poor supplier data across the P2P process takes many forms and each is costly

Peop

le • Companies suffer from a limited ability to centralize & enforce governance

• Employees working outside the system increase the threat of loss and fraud

• The ACFE estimates that fraud costs organizations about 7% of annual revenues

Proc

ess • Material monetary losses

occur due to contract leakage & maverick spend

• Multiple personnel across many departments waste time searching for data

• Duplicate supplier records lead to millions of dollars in duplicate payments

Syst

ems • Risk increases significantly

without proper oversights put into place

• Downstream Software systems and initiatives lose value potential

• Manual Supplier on-boarding can cost up to $1MM per year

This document contains information that is proprietary, privileged, and confidential. 5

Supplier data is the lifeblood of procurement technology but is often lacking in quality which undermines value

Supplier Information

Management

Identify Business Requirements and Assess Suppliers

Select suppliers and manage contract and catalogue

Manage Supplier Performance and Innovation

Analyze Market and Demand

Spend

Performance

Assessment

Contract

This document contains information that is proprietary, privileged, and confidential.

The Way forward: Deploying integrated Supplier Management Solution

Better insight and visibility into all aspects of supplier management

Visibility

Gap prevention – consistently stay compliant with changing requirements

Compliance

Accuracy and efficiency – search and leverage accurate data quickly

Efficiency

Supplier Information Management (SIM)

Low Cost Per supplierHigher ComplianceMinimize reputational cost

As-Is State High Supplier Costs Lack of CompliancePoor Supply Data

Auditability of any aspect of supplier information and supplier management processes

Audit

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Add value to your organization with a digital Supplier Management platform

Value addressed to organizationsProcess

On-Boarding Collect, manage, and ensure the accuracy of core supplier information

RiskProactively monitor and rollup a variety of

risks: market specific, product specific, geo/political, financial

Compliance Compliance to Industry specific and generic compliance requirements

PerformanceGet the full picture from all internal

sources of supplier information and track progress toward business goals

MDM Single point within the organization for duplicate free and validated information

Reduce internal overhead by automating supplier onboarding function

Supplier Risk Alerting helps devise a risk strategy and uncover additional business value from suppliers

Global visibility, aggregation and discovery of supplier information within the organization to reduce reputational costs

KPI’s and Supplier Segmentation help identify Strategic Suppliers and lead to Supplier Collaboration for a more sustainable and profitable business

Enriched and validated high quality data to minimize poor supplier data costs

This document contains information that is proprietary, privileged, and confidential. 8

Step 1: Identify potential areas of benefit, savings, and ROIAccounts Payable

• Time savings• Capture early payment discounts

Compliance• Time• Fines/Penalties/Costs

Diversity/Small• Missed revenue for lack of compliance (small business)• Time

General• Elimination of paper/scanned documents• Other error reconciliation• Time

Legal• Time spent searching for contracts• Standardized contracts• Decreased cost of liability

Procurement IT

• Time• Product Displacement

Risk/Performance• Reputational/brand risk• Costs attributed to delays upon supply chain disruption reaction• Cost increase due to Tier-n insolvency• Loss of revenue due to supply chain disruption• Missed opportunities to scorecard supplier• Time

Sourcing• Capture of Rebates• Minimize off-contract spend• Limit increase/cost in suppliers onboarded• Elimination of 3rd Party Data Enrichment (e.g., parent/child,

commodities, etc.)• Time

Supplier Master• Loss of revenue due to cycle time of onboarding• Time

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Step 2: attribute a value to create a data driven value proposition

AVERAGE GROSS SAVINGS = $8,477,801

Function AreaLow High What Low High What Low Avg. High

Accounts PayableTime savings

Time spent collecting W8/W9 Number of People: 6.0 Average Cost (fully burdened): $80,000 Average Time Spent: 8.0% $38,400 -80% -95% reduction in time spent -70% -85% reduction in time spent $26,880 $29,760 $32,640Time spent reissuing returned checks Number of People: 1.0 Average Cost (fully burdened): $150,000 Average Time Spent: 10.0% $15,000 -50% -80% reduction in time spent -50% -70% reduction in time spent $7,500 $9,000 $10,500Time spent finding/Identifying proper supplier/bank for payment Number of People: 8.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $32,000 -50% -80% reduction in time spent -40% -80% reduction in time spent $12,800 $19,200 $25,600Time spent communicating with suppliers to extend payment terms Number of People: 1.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $4,000 -50% -80% reduction in time spent 0% 0% reduction in time spent $0 $0 $0Time spent on AP helpdesk (e.g., invoice collection, status, etc.) Number of People: 8.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $64,000 -50% -80% reduction in time spent 0% 0% reduction in time spent $0 $0 $0

Capture early payment discounts Percent of Missed Opportunities: 20.0% Total Spend: $10,000,000 Average Discount: 2.0% $40,000 75% 90% newly captured (of missed) 75% 90% newly captured (of missed) $30,000 $33,000 $36,000

LegalTime

Time spent searching for contracts Number of People: 2.0 Average Cost (fully burdened): $175,000 Average Time Spent: 10.0% $35,000 -75% -90% reduction in time spent -50% -75% reduction in time spent $17,500 $21,875 $26,250Standardized contracts Annual Cost of Non-Compliance: $100,000 $100,000 50% 100% increase in compliance 25% 75% increase in compliance $25,000 $50,000 $75,000Decreased cost of liability Annual Cost Due to Lack of Insurance Coverage: $1,500,000 $1,500,000 95% 100% increase in coverage 70% 90% increase in coverage $1,050,000 $1,200,000 $1,350,000

SourcingCapture of Rebates Percent of Missed Rebates: 50.0% Outstanding Rebates: $10,000,000 $5,000,000 15% 55% newly captured (of missed) 5% 25% newly captured (of missed) $250,000 $750,000 $1,250,000Minimize off-contract spend Percent of Off-Contract Spend: 6.0% Total Spend in Commodities Sourced: $1,700,000,000 Average Sourcing Savings: 7.0% $7,140,000 60% 85% reduction in off-contract 40% 50% reduction in off-contract $2,856,000 $3,213,000 $3,570,000Limit increase/cost in suppliers onboarded Number of Suppliers: 17,500.0 Average Cost to Onboard Supplier: $250 Average Growth Rate: 1.0% $43,750 60% 85% reduction in growth 40% 50% reduction in growth $17,500 $19,688 $21,875Elimination of 3rd Party Data Enrichment (e.g., parent/child, commodities, etc.) Spend on Data Enrichment: $80,000 $80,000 50% 100% reduction in enrichment needs 25% 100% reduction in enrichment services $20,000 $50,000 $80,000Time

Time spent on existing supplier research Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $23,750 -50% -80% reduction in time spent -20% -40% reduction in time spent $4,750 $7,125 $9,500Time spent on identify new suppliers Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 10.0% $47,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $9,500 $14,250 $19,000Time wasted on walk-up suppliers Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $23,750 -50% -80% reduction in time spent -20% -40% reduction in time spent $4,750 $7,125 $9,500Time spent on ad-hoc spend analysis (aggregation, cleanse, etc.) Number of People: 2.0 Average Cost (fully burdened): $60,000 Average Time Spent: 5.0% $6,000 -25% -75% reduction in time spent -20% -40% reduction in time spent $1,200 $1,800 $2,400Time spent on contract research Number of People: 2.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $9,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $1,900 $2,850 $3,800Time spent on market-making research Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 10.0% $47,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $9,500 $14,250 $19,000

Diversity/SmallMissed revenue for lack of compliance (small business) Number of Incidents: 1.0 Average Revenue Lost: $500,000 Probability of Incident: 2.0% $10,000 -30% -70% reduction in probability -20% -50% reduction in probability $2,000 $3,500 $5,000Time

Identifying and collecting small/diverse information Number of People: 3.0 Average Cost (fully burdened): $65,000 Average Time Spent: 40.0% $78,000 -40% -90% reduction in time spent -75% -100% reduction in time spent $58,500 $68,250 $78,000

Risk/PerformanceReputational/brand risk Number of Incidents: 1.0 Average Impact: $20,000,000 Probability of Incident: 0.3% $60,000 -50% -80% reduction in probability -35% -75% reduction in probability $21,000 $33,000 $45,000Costs attributed to delays upon supply chain disruption reaction Number of Incidents: 8.0 Average Disruption Cost per Day: $15,000 Number of Days to React/Replace: 11.0 $1,320,000 -20% -80% reduction in probability -10% -60% reduction in probability $132,000 $462,000 $792,000Cost increase due to Tier-n insolvency Percent of Spend Affected: 0.5% Total Spend: $6,350,000,000 Assumed Affected Increase: 3.0% $952,500.0 -10% -25% reduction in probability -5% -10% reduction in probability $47,625 $71,438 $95,250Loss of revenue due to supply chain disruption Number of Incidents: 8.0 Average Loss of Revenue per Incident: $100,000 Probability of Incident: 100.0% $800,000 -30% -70% reduction in incidents -20% -50% reduction in incidents $160,000 $280,000 $400,000Missed opportunities to scorecard supplier Number of Scorecards: 50.0 Loss of Supplier Productivity Improvement: $10,000 $500,000 -40% -80% reduction of oversights -30% -70% reduction of oversights $150,000 $250,000 $350,000Time

Time spent to collect risk metrics Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 10.0% $310,500 -40% -80% reduction in time spent -25% -70% reduction in time spent $77,625 $147,488 $217,350Time spent managing scorecarding process Number of People: 7.0 Average Cost (fully burdened): $95,000 Average Time Spent: 7.0% $46,550 -60% -85% reduction in time spent -40% -75% reduction in time spent $18,620 $26,766 $34,913Time spent researching for Business Continuity Planning Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 3.0% $93,150 -10% -40% reduction in time spent -5% -25% reduction in time spent $4,658 $13,973 $23,288Time spent to enforcing/communicating mitigation plans Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 1.0% $31,050 -60% -90% reduction in time spent -50% -75% reduction in time spent $15,525 $19,406 $23,288

ComplianceTime

SOX Number of People: 1.0 Average Cost (fully burdened): $65,000 Average Time Spent: 2.0% $1,300 -10% -20% reduction in time spent 0% -15% reduction in time spent $0 $98 $195FCPA Number of People: 1.0 Average Cost (fully burdened): $125,000 Average Time Spent: 30.0% $37,500 -50% -85% reduction in time spent -25% -55% reduction in time spent $9,375 $15,000 $20,625Information Security Number of People: 3.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $54,000 -50% -85% reduction in time spent -25% -55% reduction in time spent $13,500 $21,600 $29,700ISO20001 Number of People: 1.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $18,000 -50% -85% reduction in time spent -25% -55% reduction in time spent $4,500 $7,200 $9,900SAS70 Number of People: 1.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $18,000 -85% -95% reduction in time spent -60% -75% reduction in time spent $10,800 $12,150 $13,500NDA Number of People: 5.0 Average Cost (fully burdened): $75,000 Average Time Spent: 10.0% $37,500 -85% -95% reduction in time spent -70% -80% reduction in time spent $26,250 $28,125 $30,000CMR Number of People: - Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $021 CFR Number of People: Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $0CSR Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $40,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $28,000 $30,000 $32,000OFAC/debarment checks Number of People: 6.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $28,500 -95% -100% reduction in time spent -70% -80% reduction in time spent $19,950 $21,375 $22,800COI coverage Number of People: 5.0 Average Cost (fully burdened): $55,000 Average Time Spent: 20.0% $55,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $38,500 $41,250 $44,000HSE Number of People: 1.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $8,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $5,600 $6,000 $6,400Audit Number of People: 2.0 Average Cost (fully burdened): $90,000 Average Time Spent: 35.0% $63,000 -30% -60% reduction in time spent -10% -35% reduction in time spent $6,300 $14,175 $22,050RoHS/REECH Number of People: - Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $0Other Number of People: 6.0 Average Cost (fully burdened): $85,000 Average Time Spent: 5.0% $25,500 0% -100% reduction in time spent -15% -35% reduction in time spent $3,825 $6,375 $8,925

Fines/Penalties/CostsSOX Number of Incidents: 1.0 Average Incident Cost: $1,700,000 Probability of Incident: 1.0% $17,000 -20% -50% reduction in probability -10% -25% reduction in probability $1,700 $2,975 $4,250FCPA Number of Incidents: 1.0 Average Incident Cost: $3,500,000 Probability of Incident: 1.0% $35,000 -40% -80% reduction in probability -30% -60% reduction in probability $10,500 $15,750 $21,000Information Security Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability 0% 0% reduction in probability $0 $0 $0ISO20001 Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability 0% 0% reduction in probability $0 $0 $0SAS70 Number of Incidents: 2.0 Average Incident Cost: $200,000 Probability of Incident: 4.0% $16,000 -40% -80% reduction in probability -30% -60% reduction in probability $4,800 $7,200 $9,600NDA Number of Incidents: 4.0 Average Incident Cost: $350,000 Probability of Incident: 10.0% $140,000 -40% -80% reduction in probability -30% -60% reduction in probability $42,000 $63,000 $84,000CMR Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability -30% -60% reduction in probability $0 $0 $021 CFR Number of Incidents: Average Incident Cost: $0 Probability of Incident: 0.0% $0 0% 0% reduction in probability 0% 0% reduction in probability $0 $0 $0CSR Number of Incidents: 1.0 Average Incident Cost: $5,000,000 Probability of Incident: 0.2% $10,000 -40% -80% reduction in probability -30% -60% reduction in probability $3,000 $4,500 $6,000OFAC/debarment checks Number of Incidents: 3.0 Average Incident Cost: $1,000,000 Probability of Incident: 2.0% $60,000 -90% -100% reduction in probability -80% -90% reduction in probability $48,000 $51,000 $54,000HSE Number of Incidents: 2.0 Average Incident Cost: $1,500,000 Probability of Incident: 0.5% $15,000 -40% -80% reduction in probability -30% -60% reduction in probability $4,500 $6,750 $9,000RoHS/REECH Number of Incidents: 60.0 Average Incident Cost: $2,500 Probability of Incident: 5.0% $7,500 -30% -50% reduction in probability -15% -30% reduction in probability $1,125 $1,688 $2,250W8/W9 Number of Incidents: 5,000.0 Average Incident Cost: $100 Probability of Incident: 20.0% $100,000 -95% -100% reduction in probability -80% -100% reduction in probability $80,000 $90,000 $100,000Other Number of Incidents: 1.0 Average Incident Cost: $1,000,000 Probability of Incident: 10.0% $100,000 0% 0% reduction in probability -20% -40% reduction in probability $20,000 $30,000 $40,000

Supplier MasterLoss of revenue due to cycle time of onboarding Cycle Time on Direct Spend (days): 21.0 Total New Product Revenue: $15,000,000 $863,014 -50 -80 reduction in cycle time -30% -70% reduction in cycle time $258,904 $431,507 $604,110Time

Time spent on supplier onboarding helpdesk Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 15.0% $60,000 -50% -80% reduction in time spent -40% -80% reduction in time spent $24,000 $36,000 $48,000Time identifying and syndicating proper enrollment forms (e.g., by country, etc.) Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $20,000 -80% -100% reduction in time spent -50% -85% reduction in time spent $10,000 $13,500 $17,000Time spent on data Reentry Number of People: 2.0 Average Cost (fully burdened): $45,000 Average Time Spent: 75.0% $67,500 -80% -100% reduction in time spent -50% -85% reduction in time spent $33,750 $45,563 $57,375

Procurement ITTime

Time on aggregation efforts (e.g., reports across downstream systems) Number of People: 2.0 Average Cost (fully burdened): $110,000 Average Time Spent: 12.0% $26,400 -60% -80% reduction in time spent -40% -70% reduction in time spent $10,560 $14,520 $18,480Product Displacement

Contract Management Systems: 1.0 Average Annual Cost $80,000 $80,000 100% 100% reduction in system cost 100% 100% reduction in system cost $80,000 $80,000 $80,000Spend Analysis Systems: 1.0 Average Annual Cost $225,000 $225,000 100% 100% reduction in system cost 0% 0% reduction in system cost $0 $0 $0Proprietary system (includes: maintenance, servers, etc.) Systems: 2.0 Average Annual Cost $115,000 $230,000 100% 100% reduction in system cost 100% 100% reduction in system cost $230,000 $230,000 $230,000

GeneralElimination of paper/scanned documents Number of Documents: 50,000.0 Cost per conversion: $0.50 $25,000.0 75% 95% reduction in conversions 50% 85% reduction in conversions $12,500 $16,875 $21,250Other error reconciliation Number of Errors: 3,000.0 Cost per error: $100 $300,000.0 30% 60% reduction in errors 10% 30% reduction in errors $30,000 $60,000 $90,000Time

Time spent finding missing information Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 2.0% $61,200 -60% -80% reduction in time spent -20% -50% reduction in time spent $12,240 $21,420 $30,600Time spent on duplicate efforts (30%) Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 5.0% $153,000 -25% -35% reduction in time spent -25% -35% reduction in time spent $38,250 $45,900 $53,550Time calling suppliers due to missing email addresses Number of People: 6.0 Average Cost (fully burdened): $60,000 Average Time Spent: 2.0% $7,200 -60% -80% reduction in time spent -30% -60% reduction in time spent $2,160 $3,240 $4,320Time spent on general supplier communication Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 7.5% $229,500 -25% -35% reduction in time spent -15% -20% reduction in time spent $34,425 $40,163 $45,900Time spend on approval processes Number of People: 73.0 Average Cost (fully burdened): $165,000 Average Time Spent: 1.0% $120,450 -60% -80% reduction in time spent -40% -75% reduction in time spent $48,180 $69,259 $90,338Time spent coordinating supplier performance reviews Number of People: 14.0 Average Cost (fully burdened): $85,000 Average Time Spent: 15.0% $178,500 -25% -35% reduction in time spent -25% -35% reduction in time spent $44,625 $53,550 $62,475Other time spent on onboarding supplier Number of People: 73.0 Average Cost (fully burdened): $130,000 Average Time Spent: 0.5% $47,450 -40% -80% reduction in time spent -30% -60% reduction in time spent $14,235 $21,353 $28,470

$6,298,387 $8,477,801 $10,657,215

Low Avg. High$3,136,000 $3,996,000 $4,856,000$1,311,625 $1,555,863 $1,800,100

$710,233 $970,931 $1,231,630$420,904 $715,007 $1,009,110$330,000 $360,000 $390,000$329,625 $783,438 $1,237,250

$60,000 $96,563 $133,125

$285 $396 $506

Current Expected Change (range) Conservative Change (range) Savings

AVERAGE GROSS SAVINGS = $8,477,801

Function AreaLow High What Low High What Low Avg. High

Accounts PayableTime savings

Time spent collecting W8/W9 Number of People: 6.0 Average Cost (fully burdened): $80,000 Average Time Spent: 8.0% $38,400 -80% -95% reduction in time spent -70% -85% reduction in time spent $26,880 $29,760 $32,640Time spent reissuing returned checks Number of People: 1.0 Average Cost (fully burdened): $150,000 Average Time Spent: 10.0% $15,000 -50% -80% reduction in time spent -50% -70% reduction in time spent $7,500 $9,000 $10,500Time spent finding/Identifying proper supplier/bank for payment Number of People: 8.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $32,000 -50% -80% reduction in time spent -40% -80% reduction in time spent $12,800 $19,200 $25,600Time spent communicating with suppliers to extend payment terms Number of People: 1.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $4,000 -50% -80% reduction in time spent 0% 0% reduction in time spent $0 $0 $0Time spent on AP helpdesk (e.g., invoice collection, status, etc.) Number of People: 8.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $64,000 -50% -80% reduction in time spent 0% 0% reduction in time spent $0 $0 $0

Capture early payment discounts Percent of Missed Opportunities: 20.0% Total Spend: $10,000,000 Average Discount: 2.0% $40,000 75% 90% newly captured (of missed) 75% 90% newly captured (of missed) $30,000 $33,000 $36,000

LegalTime

Time spent searching for contracts Number of People: 2.0 Average Cost (fully burdened): $175,000 Average Time Spent: 10.0% $35,000 -75% -90% reduction in time spent -50% -75% reduction in time spent $17,500 $21,875 $26,250Standardized contracts Annual Cost of Non-Compliance: $100,000 $100,000 50% 100% increase in compliance 25% 75% increase in compliance $25,000 $50,000 $75,000Decreased cost of liability Annual Cost Due to Lack of Insurance Coverage: $1,500,000 $1,500,000 95% 100% increase in coverage 70% 90% increase in coverage $1,050,000 $1,200,000 $1,350,000

SourcingCapture of Rebates Percent of Missed Rebates: 50.0% Outstanding Rebates: $10,000,000 $5,000,000 15% 55% newly captured (of missed) 5% 25% newly captured (of missed) $250,000 $750,000 $1,250,000Minimize off-contract spend Percent of Off-Contract Spend: 6.0% Total Spend in Commodities Sourced: $1,700,000,000 Average Sourcing Savings: 7.0% $7,140,000 60% 85% reduction in off-contract 40% 50% reduction in off-contract $2,856,000 $3,213,000 $3,570,000Limit increase/cost in suppliers onboarded Number of Suppliers: 17,500.0 Average Cost to Onboard Supplier: $250 Average Growth Rate: 1.0% $43,750 60% 85% reduction in growth 40% 50% reduction in growth $17,500 $19,688 $21,875Elimination of 3rd Party Data Enrichment (e.g., parent/child, commodities, etc.) Spend on Data Enrichment: $80,000 $80,000 50% 100% reduction in enrichment needs 25% 100% reduction in enrichment services $20,000 $50,000 $80,000Time

Time spent on existing supplier research Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $23,750 -50% -80% reduction in time spent -20% -40% reduction in time spent $4,750 $7,125 $9,500Time spent on identify new suppliers Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 10.0% $47,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $9,500 $14,250 $19,000Time wasted on walk-up suppliers Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $23,750 -50% -80% reduction in time spent -20% -40% reduction in time spent $4,750 $7,125 $9,500Time spent on ad-hoc spend analysis (aggregation, cleanse, etc.) Number of People: 2.0 Average Cost (fully burdened): $60,000 Average Time Spent: 5.0% $6,000 -25% -75% reduction in time spent -20% -40% reduction in time spent $1,200 $1,800 $2,400Time spent on contract research Number of People: 2.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $9,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $1,900 $2,850 $3,800Time spent on market-making research Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 10.0% $47,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $9,500 $14,250 $19,000

Diversity/SmallMissed revenue for lack of compliance (small business) Number of Incidents: 1.0 Average Revenue Lost: $500,000 Probability of Incident: 2.0% $10,000 -30% -70% reduction in probability -20% -50% reduction in probability $2,000 $3,500 $5,000Time

Identifying and collecting small/diverse information Number of People: 3.0 Average Cost (fully burdened): $65,000 Average Time Spent: 40.0% $78,000 -40% -90% reduction in time spent -75% -100% reduction in time spent $58,500 $68,250 $78,000

Risk/PerformanceReputational/brand risk Number of Incidents: 1.0 Average Impact: $20,000,000 Probability of Incident: 0.3% $60,000 -50% -80% reduction in probability -35% -75% reduction in probability $21,000 $33,000 $45,000Costs attributed to delays upon supply chain disruption reaction Number of Incidents: 8.0 Average Disruption Cost per Day: $15,000 Number of Days to React/Replace: 11.0 $1,320,000 -20% -80% reduction in probability -10% -60% reduction in probability $132,000 $462,000 $792,000Cost increase due to Tier-n insolvency Percent of Spend Affected: 0.5% Total Spend: $6,350,000,000 Assumed Affected Increase: 3.0% $952,500.0 -10% -25% reduction in probability -5% -10% reduction in probability $47,625 $71,438 $95,250Loss of revenue due to supply chain disruption Number of Incidents: 8.0 Average Loss of Revenue per Incident: $100,000 Probability of Incident: 100.0% $800,000 -30% -70% reduction in incidents -20% -50% reduction in incidents $160,000 $280,000 $400,000Missed opportunities to scorecard supplier Number of Scorecards: 50.0 Loss of Supplier Productivity Improvement: $10,000 $500,000 -40% -80% reduction of oversights -30% -70% reduction of oversights $150,000 $250,000 $350,000Time

Time spent to collect risk metrics Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 10.0% $310,500 -40% -80% reduction in time spent -25% -70% reduction in time spent $77,625 $147,488 $217,350Time spent managing scorecarding process Number of People: 7.0 Average Cost (fully burdened): $95,000 Average Time Spent: 7.0% $46,550 -60% -85% reduction in time spent -40% -75% reduction in time spent $18,620 $26,766 $34,913Time spent researching for Business Continuity Planning Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 3.0% $93,150 -10% -40% reduction in time spent -5% -25% reduction in time spent $4,658 $13,973 $23,288Time spent to enforcing/communicating mitigation plans Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 1.0% $31,050 -60% -90% reduction in time spent -50% -75% reduction in time spent $15,525 $19,406 $23,288

ComplianceTime

SOX Number of People: 1.0 Average Cost (fully burdened): $65,000 Average Time Spent: 2.0% $1,300 -10% -20% reduction in time spent 0% -15% reduction in time spent $0 $98 $195FCPA Number of People: 1.0 Average Cost (fully burdened): $125,000 Average Time Spent: 30.0% $37,500 -50% -85% reduction in time spent -25% -55% reduction in time spent $9,375 $15,000 $20,625Information Security Number of People: 3.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $54,000 -50% -85% reduction in time spent -25% -55% reduction in time spent $13,500 $21,600 $29,700ISO20001 Number of People: 1.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $18,000 -50% -85% reduction in time spent -25% -55% reduction in time spent $4,500 $7,200 $9,900SAS70 Number of People: 1.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $18,000 -85% -95% reduction in time spent -60% -75% reduction in time spent $10,800 $12,150 $13,500NDA Number of People: 5.0 Average Cost (fully burdened): $75,000 Average Time Spent: 10.0% $37,500 -85% -95% reduction in time spent -70% -80% reduction in time spent $26,250 $28,125 $30,000CMR Number of People: - Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $021 CFR Number of People: Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $0CSR Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $40,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $28,000 $30,000 $32,000OFAC/debarment checks Number of People: 6.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $28,500 -95% -100% reduction in time spent -70% -80% reduction in time spent $19,950 $21,375 $22,800COI coverage Number of People: 5.0 Average Cost (fully burdened): $55,000 Average Time Spent: 20.0% $55,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $38,500 $41,250 $44,000HSE Number of People: 1.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $8,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $5,600 $6,000 $6,400Audit Number of People: 2.0 Average Cost (fully burdened): $90,000 Average Time Spent: 35.0% $63,000 -30% -60% reduction in time spent -10% -35% reduction in time spent $6,300 $14,175 $22,050RoHS/REECH Number of People: - Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $0Other Number of People: 6.0 Average Cost (fully burdened): $85,000 Average Time Spent: 5.0% $25,500 0% -100% reduction in time spent -15% -35% reduction in time spent $3,825 $6,375 $8,925

Fines/Penalties/CostsSOX Number of Incidents: 1.0 Average Incident Cost: $1,700,000 Probability of Incident: 1.0% $17,000 -20% -50% reduction in probability -10% -25% reduction in probability $1,700 $2,975 $4,250FCPA Number of Incidents: 1.0 Average Incident Cost: $3,500,000 Probability of Incident: 1.0% $35,000 -40% -80% reduction in probability -30% -60% reduction in probability $10,500 $15,750 $21,000Information Security Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability 0% 0% reduction in probability $0 $0 $0ISO20001 Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability 0% 0% reduction in probability $0 $0 $0SAS70 Number of Incidents: 2.0 Average Incident Cost: $200,000 Probability of Incident: 4.0% $16,000 -40% -80% reduction in probability -30% -60% reduction in probability $4,800 $7,200 $9,600NDA Number of Incidents: 4.0 Average Incident Cost: $350,000 Probability of Incident: 10.0% $140,000 -40% -80% reduction in probability -30% -60% reduction in probability $42,000 $63,000 $84,000CMR Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability -30% -60% reduction in probability $0 $0 $021 CFR Number of Incidents: Average Incident Cost: $0 Probability of Incident: 0.0% $0 0% 0% reduction in probability 0% 0% reduction in probability $0 $0 $0CSR Number of Incidents: 1.0 Average Incident Cost: $5,000,000 Probability of Incident: 0.2% $10,000 -40% -80% reduction in probability -30% -60% reduction in probability $3,000 $4,500 $6,000OFAC/debarment checks Number of Incidents: 3.0 Average Incident Cost: $1,000,000 Probability of Incident: 2.0% $60,000 -90% -100% reduction in probability -80% -90% reduction in probability $48,000 $51,000 $54,000HSE Number of Incidents: 2.0 Average Incident Cost: $1,500,000 Probability of Incident: 0.5% $15,000 -40% -80% reduction in probability -30% -60% reduction in probability $4,500 $6,750 $9,000RoHS/REECH Number of Incidents: 60.0 Average Incident Cost: $2,500 Probability of Incident: 5.0% $7,500 -30% -50% reduction in probability -15% -30% reduction in probability $1,125 $1,688 $2,250W8/W9 Number of Incidents: 5,000.0 Average Incident Cost: $100 Probability of Incident: 20.0% $100,000 -95% -100% reduction in probability -80% -100% reduction in probability $80,000 $90,000 $100,000Other Number of Incidents: 1.0 Average Incident Cost: $1,000,000 Probability of Incident: 10.0% $100,000 0% 0% reduction in probability -20% -40% reduction in probability $20,000 $30,000 $40,000

Supplier MasterLoss of revenue due to cycle time of onboarding Cycle Time on Direct Spend (days): 21.0 Total New Product Revenue: $15,000,000 $863,014 -50 -80 reduction in cycle time -30% -70% reduction in cycle time $258,904 $431,507 $604,110Time

Time spent on supplier onboarding helpdesk Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 15.0% $60,000 -50% -80% reduction in time spent -40% -80% reduction in time spent $24,000 $36,000 $48,000Time identifying and syndicating proper enrollment forms (e.g., by country, etc.) Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $20,000 -80% -100% reduction in time spent -50% -85% reduction in time spent $10,000 $13,500 $17,000Time spent on data Reentry Number of People: 2.0 Average Cost (fully burdened): $45,000 Average Time Spent: 75.0% $67,500 -80% -100% reduction in time spent -50% -85% reduction in time spent $33,750 $45,563 $57,375

Procurement ITTime

Time on aggregation efforts (e.g., reports across downstream systems) Number of People: 2.0 Average Cost (fully burdened): $110,000 Average Time Spent: 12.0% $26,400 -60% -80% reduction in time spent -40% -70% reduction in time spent $10,560 $14,520 $18,480Product Displacement

Contract Management Systems: 1.0 Average Annual Cost $80,000 $80,000 100% 100% reduction in system cost 100% 100% reduction in system cost $80,000 $80,000 $80,000Spend Analysis Systems: 1.0 Average Annual Cost $225,000 $225,000 100% 100% reduction in system cost 0% 0% reduction in system cost $0 $0 $0Proprietary system (includes: maintenance, servers, etc.) Systems: 2.0 Average Annual Cost $115,000 $230,000 100% 100% reduction in system cost 100% 100% reduction in system cost $230,000 $230,000 $230,000

GeneralElimination of paper/scanned documents Number of Documents: 50,000.0 Cost per conversion: $0.50 $25,000.0 75% 95% reduction in conversions 50% 85% reduction in conversions $12,500 $16,875 $21,250Other error reconciliation Number of Errors: 3,000.0 Cost per error: $100 $300,000.0 30% 60% reduction in errors 10% 30% reduction in errors $30,000 $60,000 $90,000Time

Time spent finding missing information Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 2.0% $61,200 -60% -80% reduction in time spent -20% -50% reduction in time spent $12,240 $21,420 $30,600Time spent on duplicate efforts (30%) Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 5.0% $153,000 -25% -35% reduction in time spent -25% -35% reduction in time spent $38,250 $45,900 $53,550Time calling suppliers due to missing email addresses Number of People: 6.0 Average Cost (fully burdened): $60,000 Average Time Spent: 2.0% $7,200 -60% -80% reduction in time spent -30% -60% reduction in time spent $2,160 $3,240 $4,320Time spent on general supplier communication Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 7.5% $229,500 -25% -35% reduction in time spent -15% -20% reduction in time spent $34,425 $40,163 $45,900Time spend on approval processes Number of People: 73.0 Average Cost (fully burdened): $165,000 Average Time Spent: 1.0% $120,450 -60% -80% reduction in time spent -40% -75% reduction in time spent $48,180 $69,259 $90,338Time spent coordinating supplier performance reviews Number of People: 14.0 Average Cost (fully burdened): $85,000 Average Time Spent: 15.0% $178,500 -25% -35% reduction in time spent -25% -35% reduction in time spent $44,625 $53,550 $62,475Other time spent on onboarding supplier Number of People: 73.0 Average Cost (fully burdened): $130,000 Average Time Spent: 0.5% $47,450 -40% -80% reduction in time spent -30% -60% reduction in time spent $14,235 $21,353 $28,470

$6,298,387 $8,477,801 $10,657,215

Low Avg. High$3,136,000 $3,996,000 $4,856,000$1,311,625 $1,555,863 $1,800,100

$710,233 $970,931 $1,231,630$420,904 $715,007 $1,009,110$330,000 $360,000 $390,000$329,625 $783,438 $1,237,250

$60,000 $96,563 $133,125

$285 $396 $506

AVERAGE GROSS SAVINGS = $8,477,801

Function AreaLow High What Low High What Low Avg. High

Accounts PayableTime savings

Time spent collecting W8/W9 Number of People: 6.0 Average Cost (fully burdened): $80,000 Average Time Spent: 8.0% $38,400 -80% -95% reduction in time spent -70% -85% reduction in time spent $26,880 $29,760 $32,640Time spent reissuing returned checks Number of People: 1.0 Average Cost (fully burdened): $150,000 Average Time Spent: 10.0% $15,000 -50% -80% reduction in time spent -50% -70% reduction in time spent $7,500 $9,000 $10,500Time spent finding/Identifying proper supplier/bank for payment Number of People: 8.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $32,000 -50% -80% reduction in time spent -40% -80% reduction in time spent $12,800 $19,200 $25,600Time spent communicating with suppliers to extend payment terms Number of People: 1.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $4,000 -50% -80% reduction in time spent 0% 0% reduction in time spent $0 $0 $0Time spent on AP helpdesk (e.g., invoice collection, status, etc.) Number of People: 8.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $64,000 -50% -80% reduction in time spent 0% 0% reduction in time spent $0 $0 $0

Capture early payment discounts Percent of Missed Opportunities: 20.0% Total Spend: $10,000,000 Average Discount: 2.0% $40,000 75% 90% newly captured (of missed) 75% 90% newly captured (of missed) $30,000 $33,000 $36,000

LegalTime

Time spent searching for contracts Number of People: 2.0 Average Cost (fully burdened): $175,000 Average Time Spent: 10.0% $35,000 -75% -90% reduction in time spent -50% -75% reduction in time spent $17,500 $21,875 $26,250Standardized contracts Annual Cost of Non-Compliance: $100,000 $100,000 50% 100% increase in compliance 25% 75% increase in compliance $25,000 $50,000 $75,000Decreased cost of liability Annual Cost Due to Lack of Insurance Coverage: $1,500,000 $1,500,000 95% 100% increase in coverage 70% 90% increase in coverage $1,050,000 $1,200,000 $1,350,000

SourcingCapture of Rebates Percent of Missed Rebates: 50.0% Outstanding Rebates: $10,000,000 $5,000,000 15% 55% newly captured (of missed) 5% 25% newly captured (of missed) $250,000 $750,000 $1,250,000Minimize off-contract spend Percent of Off-Contract Spend: 6.0% Total Spend in Commodities Sourced: $1,700,000,000 Average Sourcing Savings: 7.0% $7,140,000 60% 85% reduction in off-contract 40% 50% reduction in off-contract $2,856,000 $3,213,000 $3,570,000Limit increase/cost in suppliers onboarded Number of Suppliers: 17,500.0 Average Cost to Onboard Supplier: $250 Average Growth Rate: 1.0% $43,750 60% 85% reduction in growth 40% 50% reduction in growth $17,500 $19,688 $21,875Elimination of 3rd Party Data Enrichment (e.g., parent/child, commodities, etc.) Spend on Data Enrichment: $80,000 $80,000 50% 100% reduction in enrichment needs 25% 100% reduction in enrichment services $20,000 $50,000 $80,000Time

Time spent on existing supplier research Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $23,750 -50% -80% reduction in time spent -20% -40% reduction in time spent $4,750 $7,125 $9,500Time spent on identify new suppliers Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 10.0% $47,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $9,500 $14,250 $19,000Time wasted on walk-up suppliers Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $23,750 -50% -80% reduction in time spent -20% -40% reduction in time spent $4,750 $7,125 $9,500Time spent on ad-hoc spend analysis (aggregation, cleanse, etc.) Number of People: 2.0 Average Cost (fully burdened): $60,000 Average Time Spent: 5.0% $6,000 -25% -75% reduction in time spent -20% -40% reduction in time spent $1,200 $1,800 $2,400Time spent on contract research Number of People: 2.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $9,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $1,900 $2,850 $3,800Time spent on market-making research Number of People: 5.0 Average Cost (fully burdened): $95,000 Average Time Spent: 10.0% $47,500 -50% -80% reduction in time spent -20% -40% reduction in time spent $9,500 $14,250 $19,000

Diversity/SmallMissed revenue for lack of compliance (small business) Number of Incidents: 1.0 Average Revenue Lost: $500,000 Probability of Incident: 2.0% $10,000 -30% -70% reduction in probability -20% -50% reduction in probability $2,000 $3,500 $5,000Time

Identifying and collecting small/diverse information Number of People: 3.0 Average Cost (fully burdened): $65,000 Average Time Spent: 40.0% $78,000 -40% -90% reduction in time spent -75% -100% reduction in time spent $58,500 $68,250 $78,000

Risk/PerformanceReputational/brand risk Number of Incidents: 1.0 Average Impact: $20,000,000 Probability of Incident: 0.3% $60,000 -50% -80% reduction in probability -35% -75% reduction in probability $21,000 $33,000 $45,000Costs attributed to delays upon supply chain disruption reaction Number of Incidents: 8.0 Average Disruption Cost per Day: $15,000 Number of Days to React/Replace: 11.0 $1,320,000 -20% -80% reduction in probability -10% -60% reduction in probability $132,000 $462,000 $792,000Cost increase due to Tier-n insolvency Percent of Spend Affected: 0.5% Total Spend: $6,350,000,000 Assumed Affected Increase: 3.0% $952,500.0 -10% -25% reduction in probability -5% -10% reduction in probability $47,625 $71,438 $95,250Loss of revenue due to supply chain disruption Number of Incidents: 8.0 Average Loss of Revenue per Incident: $100,000 Probability of Incident: 100.0% $800,000 -30% -70% reduction in incidents -20% -50% reduction in incidents $160,000 $280,000 $400,000Missed opportunities to scorecard supplier Number of Scorecards: 50.0 Loss of Supplier Productivity Improvement: $10,000 $500,000 -40% -80% reduction of oversights -30% -70% reduction of oversights $150,000 $250,000 $350,000Time

Time spent to collect risk metrics Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 10.0% $310,500 -40% -80% reduction in time spent -25% -70% reduction in time spent $77,625 $147,488 $217,350Time spent managing scorecarding process Number of People: 7.0 Average Cost (fully burdened): $95,000 Average Time Spent: 7.0% $46,550 -60% -85% reduction in time spent -40% -75% reduction in time spent $18,620 $26,766 $34,913Time spent researching for Business Continuity Planning Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 3.0% $93,150 -10% -40% reduction in time spent -5% -25% reduction in time spent $4,658 $13,973 $23,288Time spent to enforcing/communicating mitigation plans Number of People: 27.0 Average Cost (fully burdened): $115,000 Average Time Spent: 1.0% $31,050 -60% -90% reduction in time spent -50% -75% reduction in time spent $15,525 $19,406 $23,288

ComplianceTime

SOX Number of People: 1.0 Average Cost (fully burdened): $65,000 Average Time Spent: 2.0% $1,300 -10% -20% reduction in time spent 0% -15% reduction in time spent $0 $98 $195FCPA Number of People: 1.0 Average Cost (fully burdened): $125,000 Average Time Spent: 30.0% $37,500 -50% -85% reduction in time spent -25% -55% reduction in time spent $9,375 $15,000 $20,625Information Security Number of People: 3.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $54,000 -50% -85% reduction in time spent -25% -55% reduction in time spent $13,500 $21,600 $29,700ISO20001 Number of People: 1.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $18,000 -50% -85% reduction in time spent -25% -55% reduction in time spent $4,500 $7,200 $9,900SAS70 Number of People: 1.0 Average Cost (fully burdened): $90,000 Average Time Spent: 20.0% $18,000 -85% -95% reduction in time spent -60% -75% reduction in time spent $10,800 $12,150 $13,500NDA Number of People: 5.0 Average Cost (fully burdened): $75,000 Average Time Spent: 10.0% $37,500 -85% -95% reduction in time spent -70% -80% reduction in time spent $26,250 $28,125 $30,000CMR Number of People: - Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $021 CFR Number of People: Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $0CSR Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $40,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $28,000 $30,000 $32,000OFAC/debarment checks Number of People: 6.0 Average Cost (fully burdened): $95,000 Average Time Spent: 5.0% $28,500 -95% -100% reduction in time spent -70% -80% reduction in time spent $19,950 $21,375 $22,800COI coverage Number of People: 5.0 Average Cost (fully burdened): $55,000 Average Time Spent: 20.0% $55,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $38,500 $41,250 $44,000HSE Number of People: 1.0 Average Cost (fully burdened): $80,000 Average Time Spent: 10.0% $8,000 -85% -95% reduction in time spent -70% -80% reduction in time spent $5,600 $6,000 $6,400Audit Number of People: 2.0 Average Cost (fully burdened): $90,000 Average Time Spent: 35.0% $63,000 -30% -60% reduction in time spent -10% -35% reduction in time spent $6,300 $14,175 $22,050RoHS/REECH Number of People: - Average Cost (fully burdened): $0 Average Time Spent: 0.0% $0 0% 0% reduction in time spent 0% 0% reduction in time spent $0 $0 $0Other Number of People: 6.0 Average Cost (fully burdened): $85,000 Average Time Spent: 5.0% $25,500 0% -100% reduction in time spent -15% -35% reduction in time spent $3,825 $6,375 $8,925

Fines/Penalties/CostsSOX Number of Incidents: 1.0 Average Incident Cost: $1,700,000 Probability of Incident: 1.0% $17,000 -20% -50% reduction in probability -10% -25% reduction in probability $1,700 $2,975 $4,250FCPA Number of Incidents: 1.0 Average Incident Cost: $3,500,000 Probability of Incident: 1.0% $35,000 -40% -80% reduction in probability -30% -60% reduction in probability $10,500 $15,750 $21,000Information Security Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability 0% 0% reduction in probability $0 $0 $0ISO20001 Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability 0% 0% reduction in probability $0 $0 $0SAS70 Number of Incidents: 2.0 Average Incident Cost: $200,000 Probability of Incident: 4.0% $16,000 -40% -80% reduction in probability -30% -60% reduction in probability $4,800 $7,200 $9,600NDA Number of Incidents: 4.0 Average Incident Cost: $350,000 Probability of Incident: 10.0% $140,000 -40% -80% reduction in probability -30% -60% reduction in probability $42,000 $63,000 $84,000CMR Number of Incidents: - Average Incident Cost: $0 Probability of Incident: 0.0% $0 -40% -80% reduction in probability -30% -60% reduction in probability $0 $0 $021 CFR Number of Incidents: Average Incident Cost: $0 Probability of Incident: 0.0% $0 0% 0% reduction in probability 0% 0% reduction in probability $0 $0 $0CSR Number of Incidents: 1.0 Average Incident Cost: $5,000,000 Probability of Incident: 0.2% $10,000 -40% -80% reduction in probability -30% -60% reduction in probability $3,000 $4,500 $6,000OFAC/debarment checks Number of Incidents: 3.0 Average Incident Cost: $1,000,000 Probability of Incident: 2.0% $60,000 -90% -100% reduction in probability -80% -90% reduction in probability $48,000 $51,000 $54,000HSE Number of Incidents: 2.0 Average Incident Cost: $1,500,000 Probability of Incident: 0.5% $15,000 -40% -80% reduction in probability -30% -60% reduction in probability $4,500 $6,750 $9,000RoHS/REECH Number of Incidents: 60.0 Average Incident Cost: $2,500 Probability of Incident: 5.0% $7,500 -30% -50% reduction in probability -15% -30% reduction in probability $1,125 $1,688 $2,250W8/W9 Number of Incidents: 5,000.0 Average Incident Cost: $100 Probability of Incident: 20.0% $100,000 -95% -100% reduction in probability -80% -100% reduction in probability $80,000 $90,000 $100,000Other Number of Incidents: 1.0 Average Incident Cost: $1,000,000 Probability of Incident: 10.0% $100,000 0% 0% reduction in probability -20% -40% reduction in probability $20,000 $30,000 $40,000

Supplier MasterLoss of revenue due to cycle time of onboarding Cycle Time on Direct Spend (days): 21.0 Total New Product Revenue: $15,000,000 $863,014 -50 -80 reduction in cycle time -30% -70% reduction in cycle time $258,904 $431,507 $604,110Time

Time spent on supplier onboarding helpdesk Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 15.0% $60,000 -50% -80% reduction in time spent -40% -80% reduction in time spent $24,000 $36,000 $48,000Time identifying and syndicating proper enrollment forms (e.g., by country, etc.) Number of People: 5.0 Average Cost (fully burdened): $80,000 Average Time Spent: 5.0% $20,000 -80% -100% reduction in time spent -50% -85% reduction in time spent $10,000 $13,500 $17,000Time spent on data Reentry Number of People: 2.0 Average Cost (fully burdened): $45,000 Average Time Spent: 75.0% $67,500 -80% -100% reduction in time spent -50% -85% reduction in time spent $33,750 $45,563 $57,375

Procurement ITTime

Time on aggregation efforts (e.g., reports across downstream systems) Number of People: 2.0 Average Cost (fully burdened): $110,000 Average Time Spent: 12.0% $26,400 -60% -80% reduction in time spent -40% -70% reduction in time spent $10,560 $14,520 $18,480Product Displacement

Contract Management Systems: 1.0 Average Annual Cost $80,000 $80,000 100% 100% reduction in system cost 100% 100% reduction in system cost $80,000 $80,000 $80,000Spend Analysis Systems: 1.0 Average Annual Cost $225,000 $225,000 100% 100% reduction in system cost 0% 0% reduction in system cost $0 $0 $0Proprietary system (includes: maintenance, servers, etc.) Systems: 2.0 Average Annual Cost $115,000 $230,000 100% 100% reduction in system cost 100% 100% reduction in system cost $230,000 $230,000 $230,000

GeneralElimination of paper/scanned documents Number of Documents: 50,000.0 Cost per conversion: $0.50 $25,000.0 75% 95% reduction in conversions 50% 85% reduction in conversions $12,500 $16,875 $21,250Other error reconciliation Number of Errors: 3,000.0 Cost per error: $100 $300,000.0 30% 60% reduction in errors 10% 30% reduction in errors $30,000 $60,000 $90,000Time

Time spent finding missing information Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 2.0% $61,200 -60% -80% reduction in time spent -20% -50% reduction in time spent $12,240 $21,420 $30,600Time spent on duplicate efforts (30%) Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 5.0% $153,000 -25% -35% reduction in time spent -25% -35% reduction in time spent $38,250 $45,900 $53,550Time calling suppliers due to missing email addresses Number of People: 6.0 Average Cost (fully burdened): $60,000 Average Time Spent: 2.0% $7,200 -60% -80% reduction in time spent -30% -60% reduction in time spent $2,160 $3,240 $4,320Time spent on general supplier communication Number of People: 36.0 Average Cost (fully burdened): $85,000 Average Time Spent: 7.5% $229,500 -25% -35% reduction in time spent -15% -20% reduction in time spent $34,425 $40,163 $45,900Time spend on approval processes Number of People: 73.0 Average Cost (fully burdened): $165,000 Average Time Spent: 1.0% $120,450 -60% -80% reduction in time spent -40% -75% reduction in time spent $48,180 $69,259 $90,338Time spent coordinating supplier performance reviews Number of People: 14.0 Average Cost (fully burdened): $85,000 Average Time Spent: 15.0% $178,500 -25% -35% reduction in time spent -25% -35% reduction in time spent $44,625 $53,550 $62,475Other time spent on onboarding supplier Number of People: 73.0 Average Cost (fully burdened): $130,000 Average Time Spent: 0.5% $47,450 -40% -80% reduction in time spent -30% -60% reduction in time spent $14,235 $21,353 $28,470

$6,298,387 $8,477,801 $10,657,215

Low Avg. High$3,136,000 $3,996,000 $4,856,000$1,311,625 $1,555,863 $1,800,100

$710,233 $970,931 $1,231,630$420,904 $715,007 $1,009,110$330,000 $360,000 $390,000$329,625 $783,438 $1,237,250

$60,000 $96,563 $133,125

$285 $396 $506Savings per Supplier (exempt liabilities/penalties):

Reduction of Liability/Penalties:Time Savings:

Recovered Revenue:System/Service Displacement:

Other Risk/Performance Related Opportunities:Other Operational Efficiencies:

Summary

Direct Financial Capture:

Example

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