New Victories in Retail Indirect Procurement

Welcome – Thank You for Joining Us

Copyright © 2013. CombineNet, Inc.

Agenda
CombineNet Presenters:
– Jennifer Sikora, VP of Marketing
– Wes Willoughby, VP of Account Management

CombineNet Overview
Retail indirect procurement categories
Retail indirect procurement challenges & case
studies:
– Transportation complexities & seasonality
– De-centralized store facilities spends
– Evolving store networks
– Business alignment
Q&A
Bonus Offer: Participants who attend the duration of this webinar will be eligible for CEH credits. They may be applied toward ISM CPSM
recertification, CPSD recertification, C.P.M. recertification, and/or A.P.P. reaccreditation program requirements. (Note: ISM does not
endorse, certify or sponsor this program or its content.)


CombineNet Company Overview

The Company The Technology Customer Value

Established in 2000. Best of Breed Solutions that Capture >2X spend under E-
improve Strategic Sourcing – Sourcing management.
Global: Offices in holding 21 U.S. patents.
Pittsburgh, PA; London, UK; Address complex spends
Hamburg, Germany. Software-as-a-Service (SaaS) with advanced functionality.
Partners for Latin America, delivery model for ease of
Middle East, APAC. adoption and scale Fast implementation and
broad adoption for any type
Customers: Global 2000 Easy integration into your of user.
spanning CPG, Food & Bev, environment to complement
Retail, Manufacturing, existing applications. Nearly 100% see full payback
Transportation, and more. after 1st sourcing event.


CombineNet is used by 10 of the Top 50 retailers in
the U.S. and 17 of the Top 200 retailers in the world.

Focused on the Needs of Supply-Chain Driven
Global Companies:


CombineNet ASAP® for Advanced E-Sourcing

Key Differentiators:
SaaS-based Best-of-Breed product used Flexibility and Usability.
by sourcing teams and their suppliers.
Expressive Bidding® and Expressive
Speeds, simplifies, and centralizes the Feedback support an expressive,
creation and management of sourcing collaborative marketplace between
events of any size, scale, or complexity. buyers and suppliers.

For any spend category (direct materials, Optimization Engine and Scenario
indirect materials, transportation, Builder enables rapid and advanced
services). ‘what-if’ analysis. 21 U.S. Patents.

Complements and enhances existing Fast Implementation – 1 ½ day training,
solutions and processes. quick-start wizards, template uploads,
event services enable fast, smooth
adoption and immediate ROI.


Key Components of CombineNet ASAP

Create Bid Analyze & Award
Scenario Builder
RFxpress: RFIs, RFPs,
Expressive Bidding Bid Optimization
E-Auctions
Expressive Feedback Awarding
Category Templates
Reports & Dashboards

CombineNet ASAP


Indirect Spend Categories & Retail:
CombineNet’s Experience
Facilities Services & Materials Merchandise Displays Transportation

Renovations Fixtures Price Tags Ocean
Plumbing Lighting Price Labels Ground (FTL, LTL)
Painting HVAC Hangers Intermodal
Landscaping Security & Alarm Shelving Air
Housekeeping Systems Racks Small Parcel
Trash Removal POS Systems Hooks Home Delivery &
Snow Removal Holiday Décor Signage Assembly
Armored Cars Shopping Carts & Mannequins
Maintenance Baskets
Electric Utilities

Paper and Packaging Corporate Services

Bags Marketing/Ads
Gift Boxes/Wrap Legal
Tissue Paper HR
Shrink Wrap/Films IT Equipment
Folding Cartons


3 Major Retail Supply Chain Challenges
Impacting Indirect Procurement

Complex, ever-evolving
store networks
 Store openings & closings
 New/changing DCs Business Alignment
 Store format conversions  Procurement Transformation
 Countless preferences  Sustainability & reduced waste
 Supplier diversity & local sourcing

Seasonality Pressures
 Transportation carrier services
 Store facility services
 Merchandising displays & signage
 Marketing spends


Retail Indirect Strategic Sourcing Solutions

Targeting Complex Spends:
How to better tackle complex transportation
requirements
How to effectively aggregate store facilities spends
and preferences to gain improved results

Supporting Business Requirements:
How to be more efficient with constantly changing
store networks
How to better align with business initiatives (i.e.
sustainability, supplier diversity) in the indirect
sourcing process


Retail’s Complex Transportation Requirements

Challenges: CombineNet’s Solution:
Size of networks Scalable solution –
Seasonality manage network in a
Special handling single sourcing event to
requirements increase efficiency and
carrier competition
Home delivery and Allow carriers to bid on
growth of small parcel the pieces they can
(e-business fulfillment) support
services
Manage & secure capacity
– at both the lane level
and network level
Qualify carriers and
conduct scenario analysis


Ocean Sourcing Case Study

Low-cost & growing apparel Case Study Fast Facts
retailer in Europe with over 250
stores, owned by Associated
250+ stores CombineNet also
British Foods (ABF)
used by parent
Sourcing Ocean cargo shipping 100,000 TEUs of
ABF
from Asia sites to Europe. annual container
volume Savings of $2.5M
– China labor costs rising
– Adding new lower-cost sources of $100 million spend Committed
supply (Bangladesh, Vietnam, India) Multiple points of weekly business
Seasonality required capacity origin across Asia in exchange for
commitments at a competitive seasonal service
price.
3PL’s tool couldn’t handle “We are a volume supply chain, so everything
optimization scenarios. has to be low cost…. [CombineNet] enabled us
Results: to say, for instance, this is the carrier you
– 2.5% savings on spend should be able to give freight to from a given
– CombineNet scenarios run in port and at such-and-such rates.”
minutes – handled complex
allocations to carriers – Martin White, Supply Chain Director

(Source: SupplyChainBrain, May/June 2012)

Case Study: Truckload

Consolidating Truckload
Using CombineNet ASAP enabled Key Facts
consolidation across multiple 2,500 lanes 8% + savings
regions, creating a better overall
Mostly Full Truckload Retained 80% of
picture of what was available for incumbent carriers
carriers: Inbound/Outbound
between locations across Single sourcing event
– Encouraged carriers to pick and supply chain for multiple regions
choose which transportation lanes
Previously handled as
to bid on
multiple events
– Enabled carriers to leverage their
assets to best customer’s needs “With more data under one tender event, there was the
with Packaged Bids and Conditional need to support the process with a strong e-sourcing
Offers solution. We chose CombineNet based on its intuitive
Using CombineNet’s Expressive handling of large data sets, the flexibility in defining
tender variables, and the strong analytical engine to
Feedback provided carriers with
assess and visualize different implementation
guidance on their competitiveness scenarios.”
during bidding - Global Category Director for Freight and Fleet


Store Facilities Spends: Fragmented,
De-Centralized Sourcing

Regional and location- Centralize/aggregate the
specific preferences spends into single larger-
Difficult to aggregate using scale event
existing technology (size Collect preferences up-
limits, event set-up front in the RFI  and later
challenges, etc.) use for analysis
Invite regional and national
suppliers to bid on the
business


Case Study: Retailer Common Area
Maintenance
Background: Case Study Fast Facts
Corporate sourcing group for large, US-
based retailer handling all not-for resale 800+ stores 10% savings –
purchases. 18 regions half from
Wanted to improve results in sourcing packaged offers
$20 million+ spend
common area maintenance services Bid analysis
(landscaping, snow removal, trash Analyzed 8 different conducted 10x
removal, lot sweeping, etc.) price points. faster
Many stakeholder Reduced project
CombineNet Details preferences. time by 3 weeks
– Replaced time-consuming
spreadsheet-based approach. “Being able to inject or take out different
– Expressive Bidding allowed suppliers suppliers in different districts to see where
to submit “package” offers with the savings lie was a huge benefit to our
further discounts. process. We wouldn’t have had the time to
– Results: 10% savings, reduced consider this without the bid analysis and
sourcing project timeframe by 3 optimization speed of CombineNet.”
weeks.
– Retailer’s senior sourcing manager


Armored Car Services Case Study

Large retail chain with 1,000+ Case Study Fast Facts
stores
Traditionally used 3 national 1,000+ stores Invited 20
suppliers 92% of stores suppliers to bid
historically 16% savings
Using CombineNet, consolidated
supported by 3
all regions into single online suppliers
Awarded to 7
sourcing event suppliers
Spend size of >$5
– Invited nearly 20 suppliers to bid
million
– Collected additional cost drivers
– Used analytics to look at scenarios
that favored incumbents and at
increasing supplier diversity
Results:
– 16% savings
– Allocated the business to 7
suppliers


Constantly Evolving Store Networks

Challenges: CombinNet’s Solution:
Entry into new Enables faster time to
geographical markets market for sourcing events
Store openings & – RFX templates
closings – Spreadsheet to e-sourcing
event in 6 steps
New DCs
– Event copy
New store formats
Quickly add new suppliers
/ re-bid
Qualification & analysis of
new suppliers using RFI
and RFP data collected


CombineNet ASAP’s RFxpress™ Feature
Start events from Excel or an existing RFP template.

Our RFxpress Wizard is an “on-ramp” where new
users migrate existing Excel-based bid templates into
CombineNet ASAP -- in just 6 steps.
If users are familiar with Excel, they can easily adopt
ASAP.


Alignment with Corporate Initiatives

Improving supplier Invite more suppliers to
diversity the table to bid on parts of
Supporting sustainability & the business
reduced waste – Run scenarios to determine
commitments the optimal mix of
incumbents and new
– Local sourcing suppliers
– “Green” practices
RFI questions linked to
Gaining visibility into the your analysis, which
cost trade-offs of business means:
preferences – Collect sustainability
requirements from
suppliers up-front and
analyze later for what-if
costing – what is the cost of
sustainability?


Easily Creating Your Rules in CombineNet


CombineNet ASAP - Expressive Bidding®
Increase collaboration with suppliers to drive savings, innovation and efficiency

Encourage suppliers to express their value beyond price, introduce innovation, and bid
to their strengths with multiple Expressive Bidding capabilities in CombineNet ASAP.

RFI/Questionnaire Flexible collection of supplier information for evaluation and assessment of capabilities
and risk profiles. RFI responses can be analyzed along with price and non-price factors
in award scenarios.

Unbundled Bidding Each item is treated as a separate line item in your RFP, letting suppliers pick and
choose the business on which they want to compete.

Alternate Offers Allow suppliers to propose alternates to your item specifications based on their
capabilities or production efficiencies: Materials, production processes, service levels,
price structures, lead times, equipment, etc.

Non-price Factors Any non-price bid item requested, including capacity, lead times, service levels,
inclusive of the RFI.

Conditional Offers If/Then proposals that reflect supplier business strategies, offering volume discounts,
rebates or tiered pricing on items based on unit volumes, percentages, or $$ in
awarded business, for any combination of items

Package Offers Discounted, Supplier-defined bundles or lots of items based on their business
strategies.


CombineNet’s Retail Strategic Sourcing
Solutions
Solution of technology + best practices support service

CombineNet’s Strategic Sourcing Solution for Retail:
CombineNet ASAP® – Our industry- Retail Best Practices Center –access to
leading best-in-class e-sourcing a wide range of best practices solutions
platform for creating and managing and guidance. Included:
online RFIs, RFPs, and e-auction Retail Template Library
events. Key features include: Event Start-Up Service
RFxpress Unlimited RFP Readiness
Expressive Bidding® Reviews
Expressive Feedback Event Coaching Services
Scenario Builder Premium Content
Bid Analysis and Premium Training
Optimization 15% Discount on Other
Reporting and Dashboards Services


CombineNet’s Solutions Fit a Market Need

70% of our customers already have Nearly 100% of customers see full
sourcing tools from SAP/Ariba, Oracle,
IBM, or other procurement suites – but
ROI on their total contract value
turn to CombineNet to take it to the next following their first event with
level. CombineNet.

CombineNet’s Growth – 2011 to 2012:
45% growth in customers. 10% savings on average on spend size,
101% growth in sourcing events with ranges typically 8-40% .
supported.


To Learn More…

Visit the Webcast Resources folder to access:

White Paper Case Study LinkedIn Group

Also visit our Website Resources at:
 www.combinenet.com


Thank You.
Questions & Discussion
www.combinenet.com
info@combinenet.com
Phone: 412-471-8200
jennifer.sikora@combinenet.com
wes.willoughby@combinenet.com


New Victories in Retail Indirect Procurement

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