Best Practices in Government Procurement

Transcription

1 Best Practices in Government Procurement Presentation to : Public Procurement Agency, Vietnam Ministry of Planning & Investment Jonathan Koh Director Trade Facilitation Centre of Excellence All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

2 Agenda 1. Intro to CrimsonLogic 2. Issues and Pains in Govt Procurement Practices 3. Trends in Government eprocurement Practices 4. S pore Govt s GeBIZ / GeBIZ Functionalities 5. Our Proposal for Vietnam Procurement Excellence Roadmap 2010 CrimsonLogic Pte Ltd 2

3 Intro to CrimsonLogic All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

4 About Us We work in partnership with Governments so that they may serve their citizens better by harnessing the transformative power of information technology Incorporated in March 1988 Four shareholders: An economic agency under Ministry of Trade & Industry 2010 CrimsonLogic Pte Ltd 4

5 Business Focus End-to-end egovernment solutions Provider Our Flagship Domains 1. Trade Facilitation 2. Law & Justice 3. egovernment Services CrimsonLogic Pte Ltd 5

6 Trade Facilitation Platforms key foundation to National Competitiveness Trade Facilitation CrimsonLogic Trade Facilitation Platforms Port Community System Single Electronic Window System Free Zone Management System Customs Management System Strong Domain based software components Strong Infrastructure and Security Management Policies for reliable service delivery 2010 CrimsonLogic Pte Ltd 6

7 TradeNet to 2007 World s first nationwide trade documentation system Single point for trade-related transactions with the Government Integrates ALL 35 controlling units requirements 100% of the total Trade transaction are processed by the TradeNet system. Handles ~ 30,000 transactions per day; ~ 9 million per year. Used by approximately 2,500 companies with 8,000 users. TradeNet Version 4.0 implemented in October Before After 2010 CrimsonLogic Pte Ltd 7

8 Impact of TradeNet Processing time/permit Fees charged Number of documents Before TradeNet 2 7 days US$6 US$ docs After TradeNet 1 min or less approx. US$ eform/edoc Singapore s TradeNet - The most studied national trade facilitation system! Harvard Business School TradeNet is the World s First Nationwide Electronic Data Interchange System IBM s Robert M Howe - It is estimated that TradeNet saves Singapore traders around US$1 billion per year. McKinsey Quarterly - Fill in one online form and receive the import or export license 15 seconds later Awards - Received the Top easia award under the Trade Facilitation Category 2010 CrimsonLogic Pte Ltd 8

9 Our Trade Facilitation Track Record Country Project Go Live Date Business Model 1 Singapore TradeNet / TradeXchange 1989 PPP 2 Mauritius Mauritius TradeNet 1994 PPP 3 Ghana Ghana Community Network 2002 PPP 4 Panama Panama Canal Authority 2004 Self Funded 5 Colon Free Trade Zone 2008 Self-Funded 6 Panama Customs Saudi Arabia SaudiEDI 2006 PPP 8 Madagascar Madagascar (GASYNET) 2007 PPP 9 India Port Community System 2007 Self-Funded 10 Ivory Coast Ivory Coast TradeNet 2008 PPP 11 Qatar Qatar Customs Clearance Single Window 2010 Self Funded 12 Trinidad & Tobago Trinidad & Tobago 2011 Self Funded Single Electronic Window 13 Mozambique Mozambique TradeNet 2011 PPP 2010 CrimsonLogic Pte Ltd 9

10 Global Projects Copyright Private & Confidential CrimsonLogic Pte Ltd 10

11 Issues and Pains in Government Procurement Practices All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

12 Principles of Public Procurement Transparency Open and Fair Competition Value for money 2010 CrimsonLogic Pte Ltd 12

13 Many Inefficiencies in today s s Public Procurement Practices Many inefficiencies, which lead to higher costs and inadequate service levels in the traditional purchasing environment. Typical Issues Poor information available to end-users regarding pricing, availability, contracted suppliers Multiple process handoffs before orders are placed Little or no facts available regarding true demand Minimal service level tracking Slow, paper-based processes Inconsistent processes/ policies or lack of knowledge about them High levels of rework, errors Poor Results Purchasing volume not effectively leveraged Poor service levels to users Unreliable and fragmented supply chains 2010 CrimsonLogic Pte Ltd 13

14 Transparency Purchasers don t reference contracts Low coordination among departments Lack of sharing contracts Duplicate contracts Consolidation of purchasing volume across different systems only with a lot of manual work Standardization of products & services Having too many products for the same purpose Using non standardized products Challenges in Public Sector Procurement Heterogeneity of data Heterogeneous IT landscape with legacy systems Lack of knowledge about actual spend Tedious to map categories to each other to analyze spend and prepare contract negotiations Inefficient processes High manual administrative workload Complex rules for approval Long order cycle times 2010 CrimsonLogic Pte Ltd 14

15 Our Understanding of Vietnam s Difficulties In Procurement Implementation Capacity of Investment Owner/Procuring Entity fail to satisfy with the assigned procurement tasks Untrue procurement still exists Management after procurement (contract management) is not paid much attention Professionalism in procurement is not yet developed Weak competitiveness of domestic bidders Challenges in Public Sector Procurement 2010 CrimsonLogic Pte Ltd 15

16 Public Sector Procurement Process & Pains Requirement Definition Structured process, referral process, complex Invoice receipt Pain #1: Monitoring & enforcing contract & procurement compliance Prompt Payment Receipt vs. Acceptance Source Acceptance Goods receipt Purchase Requisition Pain #2: Openness and full visibility Regulatory governance Internal compliance Contract compliance Pain #4: Managing high volumes of transactions accurately Vendor eligibility Obligation Incremental funding Modifications Sourcing Budget Check / Approval Budget officer approval, annual appropriations Workload emphasis on automation Structured Bid Opening Purchase Order / Award Pain #3: Standardizing procurement RFQ / Offer process Amendments Socio-economic policies Preferential programs Special Clauses Content Management Capability 2010 CrimsonLogic Pte Ltd 16

17 Trends in Government eprocurement Practices All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

18 Top Challenges for Public Procurement Procurement issues and challenges are similar all around the world.. Many Governments have found that. Whole-of-Govt Approach 2010 CrimsonLogic Pte Ltd 18

19 Government Procurement today... Buyer D Buyer C Comm. 1 Buyer B Comm. Comm. 1 2 Buyer A Comm. Comm. 2 3 Comm. 1 Comm. Comm. 2 3 Comm. 1 Comm. Comm. 2 3 Comm. 3 Agency A Commodity 1 Commodity 2 Commodity 3 ie. Min. of Finance Agency B Commodity 1 Commodity 2 Commodity 3 Agency C Commodity 1 Commodity 2 Commodity 3 ie. Education ie. Energy Commodity 1 Commodity 2 Commodity 3 ie. Health Increasing Procurement Centralization People Process Tech. ROLE OF THE BUYER IS CHANGING DRAMATICALLY Buyers executing own strategies Varying levels or buyer skill Role of the buyer is changing dramatically From back office to strategic spotlight Drive incremental value through enhancing procurement skills Being asked to do more with less (resources & time) SHIFTING PRIORITIES IN PURCHASING Increase Government-wide aggregation of spend Formalize global business processes across Departments Optimize spend outside of regional requirements Increase Outsourcing & Shared Services where appropriate Leverage global purchasing opportunities Further integration of suppliers into Procurement processes LACK OF SUITABLE TOOLS Strategic Sourcing execution Supplier enablement Contract management Supply-base management Performance monitoring 2010 CrimsonLogic Pte Ltd 19

20 Government Procurement Reform Procurement Reform Projects at Many Governments have the common key initiatives: Strategic Sourcing Achieve savings through strategic sourcing initiatives Policy and Process Establish a simplified policy setting and standardise procurement processes People Create a government-wide team of professional procurement specialists Centres of Expertise Create regional Centres of Procurement Expertise (CoPEs) to coordinate procurement activities across the agencies Technology Deliver a whole-of-government approach to procurement technology Co-ordinate Governance Create a framework for efficient service delivery and management of procurement outcomes 2010 CrimsonLogic Pte Ltd 20

21 Strategies in Government eprocurement Higher-level procurement will begin to shift how purchasing and supply organizes its activities and responsibilities Traditional Purchasing Manage thousand of component part numbers Manage thousands of component suppliers Manage hundreds of basic contracts Employ many buyers Pursue traditional relationships with most suppliers Shift Procurement and Supply s Role Strategic Procurement Manage 100 or fewer critical suppliers Manage strategic relationships Develop alliances and partnerships Pursue crossorganizational integration Pursue value-creating strategic sourcing activities 2010 CrimsonLogic Pte Ltd 21

22 Strategies in Government Procurement From Tactical To Strategic Procurement TACTICAL PURCHASING Generate savings Manage compliance Expedite processes Improve product quality Analyze spend history One-off initiatives STRATEGIC PROCUREMENT Generate value Manage contribution Extend processes Improve product differentiation Analyze supply strategy Continuous improvement TRADITIONAL ACTIVITIES VALUE ADDING ACTIVITIES 2010 CrimsonLogic Pte Ltd 22

23 Government Procurement Key capabilities Strategic Purchasing & Sourcing Supply strategy development Spend analysis Supplier selection Contract management Catalog management Better supply strategies through focused sourcing initiatives, supplier selection, contract and catalog management. Operational Procurement Self service procurement Services procurement Plan driven procurement Supplier Collaboration Supplier registration Design collaboration Order collaboration Collaborative replenishment Higher supplier participation through supplier self-service, connectivity, collaboration and supply chain visibility. Expedited procurement processes through process automation and compliance management for goods and services CrimsonLogic Pte Ltd 23

24 E-Tendering Portals Transactional Focus Government eprocurement Platform Present Requirements Strategic Sourcing Focus Post 2008 E-Tendering / Electronic ITQ Electronic Bids Submission Suppliers Portal Suppliers Registry Catalog Mgt Contract Mgt e-auction Full Cycle Contract Mgt Collaborative Processes Interfaces to Back-end systems (fund mgt, financial, material mgt) Automated Bid / Tender Evaluation Acquisition Project Management Category Mgt / Spend Analysis Supplier Performance Digital Sign. & Encryption E-Payments CrimsonLogic s Next Gen Public Sector Procurement Platform 2010 CrimsonLogic Pte Ltd 24

25 Our Understanding of VN eprocurement Vietnam e-procurement system development consists of 2 phases Phase 1: Piloting Phase 2: Nationwide application Phase 1: Piloting A project to develop e-procurement system funded by KOICA, SAMSUNG developed and hand-over the system to Vietnam on late of 2009 From early of 2010 up to now: pilot in Ha noi, EVN, VNPT Scope of application: competitive bidding, limited bidding and shopping for following contents: Invitation for bids, Issuance of bidding documents, Submission of bids, Announcement of bidder selection result Phase 2: Nationwide application 2011: Finish piloting phase, scale up and scale out e-procurement application nationwide 2012: Develop 3 new module: e-shopping, e-contract and e-payment Difficulties for application and development Insufficient awareness Inadequate IT infrastructure Inadequate IT infrastructure Unsatisfactory e-procurement skills Website: CrimsonLogic Pte Ltd 25

26 Setting the New Agenda for Govt Procurement What is the appropriate eprocurement platform needed to ensure the overall success of your procurement strategies and initiatives? Automate and Accelerate Processes E-procurement is widely appreciated Supplier connectivity equally important $ Optimize and Reduce Cost Spend analysis at top of agenda Collaboration valued higher than auctions Improve Strategy and Compliance High demand for performance management Contract management is seen as key 2010 CrimsonLogic Pte Ltd 26

27 Prioritizing Value Delivery in Purchasing Automate and Accelerate Processes Simplify procurement Standardize global processes Automate supplier transactions Embed within supply management Requisitioning Order Management Supplier Enablement Empower employees with intuitive systems for selfservice procurement Streamline purchasing with integrated workflow and business process management Accelerate connectivity with the Supplier Network 2010 CrimsonLogic Pte Ltd 27

28 Prioritizing Value Delivery in Purchasing Optimize and Reduce Cost Improve spend visibility Develop a qualified supply base Reward suppliers for innovation Focus on supply cost instead of price $ Data Improvement Category Management Supplier Negotiation Cleanse and classify data for spend analysis and opportunity identification Capture, share and improve sourcing knowledge with category management Conduct multi-round sourcing events and negotiations 2010 CrimsonLogic Pte Ltd 28

29 Prioritizing Value Delivery in Purchasing Improve Strategy and Compliance Ensure regulatory compliance Enforce contract compliance Measure savings and performance Instill method into strategy development Purchasing Planning Restriction Validation Purchasing Controlling Translate projects into goals and tasks to align strategy with execution* Maintain audit trails and ensure regulatory compliance with contract management and global trade services Measure effectiveness of purchasing department and policies with embedded analytics and questionnaires * Future focus area 2010 CrimsonLogic Pte Ltd 29

30 Best in Class Government Procurement Platform Adapting S pore Govt s GeBIZ for Vietnam All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

31 Singapore Government Electronic Business (GeBIZ( GeBIZ) GeBIZ Developed by the Singapore Government to conduct trade with suppliers Launched in 2000 as a one-stop e- procurement system 137 Ministries/Agencies / 10,000 users Global reach to suppliers > US$20 billion annual spend Compliant to the requirements of WTO-GPA: Transparency, Open And Fair Competition, Value for Money Typical saving of 3-20% in procurement value depending on the procurement category Partnership bet IDA-International & CrimsonLogic to promote / market GeBIZ internationally 2010 CrimsonLogic Pte Ltd 31

32 A Joint Collaboration CrimsonLogic partners with IDAI to promote / enhance the Public Sector Procurement platforms incorporating the Singapore Government s GeBiz to customers in S pore and overseas. Develop, enhance, operate and manage a commercial version of the GeBiz software 2010 CrimsonLogic Pte Ltd 32

33 GeBIZ Functionalities All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

34 eprocurement Overview Enterprise User Approver Sourcing Contracting Purchasing Invoicing Supplier Management Dashboard & Analysis Supplier Supplier Batch Files Integration Enterprise Systems Financial System 2010 CrimsonLogic Pte Ltd 34

35 Typical eprocurement Scenario Analyst/Mgmt Commodity Mgr Sourcing Committee Contract Mgr Requester Analysis & Reports Initiate, Publish & Monitor Sourcing Activities Evaluate & Award Establish Contract Create, Change / Cancel PR & PO Goods Receipt New Awarded Supplier New Item Code Map PO GR Enterprise Procurement Dashboard & Analysis Sourcing Contract Procurement data Sourcing data Contract data Catalog Purchase Price Term Invoice & Payment data GR/Invoice/Payment Invoice / Credit Notes Payment Update Partner Registration & Profiling View & Participate Sourcing Events & History Catalog Management Order Management Invoice & Payment Register & Update Sourcing Response Award Notification Prepare, Publish & Update Catalog Supplier Order Notification & Confirmation Ship Notice & Invoice Supplier Supplier Payment Status Receiver Corporate & Finance Systems 2010 CrimsonLogic Pte Ltd 35

36 Typical eprocurement Process Procurement Dashboard Analysis Spend Analysis Pre-Procurement Plan Sourcing Management Demand Aggregation Reports Sourcing Sourcing Publication Monitoring Clarification Evaluation Award Contract Contract Creation Contract Management Contract Compliance Purchasing Catalog Management Purchase Requisition Order Management Good Receipt Invoice & Payment Purchasing Invoice / Credit Notes Payment Supplier Management Supplier Information Supplier Performance Supplier Profiling Catalog Management Supplier Portal Business Opportunities Order Management Other Procurement Integration Past Opportunities Invoice / Payment Policy & Management / WTO-GPA Compliant 2010 CrimsonLogic Pte Ltd 36

37 GeBIZ Sourcing & Contracting Functionalities All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

38 GeBIZ Specific Tendering Process Internal Request Processing Purchase Request Processing Public Sector Tendering Purchase Order Processing Goods and Service Confirmation Supplier Invoice Processing Due Item Processing Payment Processing Tendering Financing Bidders Schedules Description of Services Bid Invitation Receive Bids Bid Opening Evaluate Bids Bidder Proposal Bid Acceptance Amendments 2010 CrimsonLogic Pte Ltd 38

39 Tender Menu IDA International. All rights reserved CrimsonLogic Pte Ltd 39

40 Sourcing & Contracting Requester Buyer Supplier Approver Sourcing Committee Contract Manager 2010 CrimsonLogic Pte Ltd 40

41 Sourcing & Contract Functions & Features Features: Sourcing creation & publication Sourcing monitoring Sourcing evaluation & awards Sourcing workflow Contract creation, managament & compliance Benefits: Sourcing visibility & control Faster execution of strategic sourcing with knowledge capture Ready large pool of suppliers to transact with the buyers Contract visibility with utilisation & expiry date alert 2010 CrimsonLogic Pte Ltd 41

42 GeBIZ Procure to Pay Functionalities All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

43 Procure to Pay Requester Supplier Receiver Account 2010 CrimsonLogic Pte Ltd 43

44 Features: Comprehensive catalog search on contract and e-mall catalogues Workflow & shopping cart Auto-generation of PO Good receipt Invoice matching & verification Fund & budget check Integration with financial systems Benefits: Spend capture Rapid supplier enablement for catalog, PO & invoice Leverage on organisation-wide contract and pricing Fast, efficient, convenient on-line shopping experience Automate manual purchasing process Seamless integration with financial system Facilitate internal audit Procure to Pay Functions & Features 2010 CrimsonLogic Pte Ltd 44

45 GeBIZ Supplier Portal All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

46 Supplier Portal Features: Supplier registration & profiling information Business management Catalog management Order routing & management Invoice management Payment Status Benefits to Supplier: New business opportunity discovery Complete e-business tool Demand intelligent Amazon -like e-mall facility Low barrier entry 2010 CrimsonLogic Pte Ltd 46

47 GeBIZ Spend Analysis Functionalities All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

48 Spend Analysis 2010 CrimsonLogic Pte Ltd 48

49 Standard eprocurement Analysis Reports Spend Analysis Spend by Accounting Date Spend by Organisation/Agencies Spend by Commodity Spend by Supplier Spend by Geography Supplier Analysis Supplier Fragmentation Supplier Grouping (SME,Local, Overseas, etc) Supplier Commodity Analysis Commodity Analysis Supplier Optimization By Commodity Organisation Analysis Buyer PO Analysis Buyer Invoice Analysis 2010 CrimsonLogic Pte Ltd 49

50 Dashboard & Analytics Managemen t User Senior Analyst CSV XML XLS DOC PPT PDF Database 2010 CrimsonLogic Pte Ltd 50

51 Dashboard Analysis Buyer Agency 2010 CrimsonLogic Pte Ltd 51

52 Dashboard & Analysis Functions & Features Features: Dashboard with multi-lingual support Drag & drop analysis Visual data logic design for extraction, aggregation & transformation Extract multiple data sources Scheduler Benefits: Identify savings opportunity Prioritize sourcing activities for top spend categories Increase more spend under control Track Maverick spend Increase productivity with visual tool Automated schedule task 2010 CrimsonLogic Pte Ltd 52

53 Procurement Digital Exchange Hub Fostering Paperless Procurement All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

54 Digital Exchange Model 2010 CrimsonLogic Pte Ltd 54

55 Key Components 2010 CrimsonLogic Pte Ltd 55

56 GeBiz Product Roadmap GeBiz Version 1.0 GeBiz Version 1.x This is a ongoing process. Every quarter, there will enhancement roll-out. GeBiz Version CrimsonLogic Pte Ltd 56

57 Our Proposal for Vietnam Procurement Excellence Roadmap All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd (Regn No: N). All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic. All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

58 Procurement Excellence Roadmap Objectives Objectives: Provide MPI PPA with the best practices for government procurement and conduct a Government Procurement Assessment Analysis to determine improvement areas This shall be accomplished by: Gap Analysis Study of the existing PPA s procurement framework and processes Assessment of procurement policies Assessment of procurement functional areas & business processes Comparing existing framework with best practices Identifying process recommendations for as well as the potential changes and enhancements Develop a Procurement Excellence Framework and Enablement Roadmap incorporating short, mid, and long term implementation target initiatives and value opportunities 2010 CrimsonLogic Pte Ltd 58

59 Benefits Realization Plan 2010 CrimsonLogic Pte Ltd 59

60 Approach Gather Data Data Analyze & Assess Recommend Project Planning & Kick Off Develop Initial Hypotheses & Alternatives Validate Opportunities, Proposed Architecture & Gain Business Buy-in Gather Data & Business Requirements Identify & Refine Opportunities Build Out Detailed Cost & Benefit Estimates Document Current Processes, Pain Points & System Architecture Quantify Benefits & Prioritize Opportunities Complete Business Case & Finalize Recommendations 2010 CrimsonLogic Pte Ltd 60

61 Assessment Approach Procurement Optimization Roadmap Implement Recommendations Monitor Understand Procurement Priorities Key Processes: 1 Sourcing Current Situation & Best Practice Analysis Process & Functional Recommendations Recommendations Recommendations and Solution Opportunity Implementation and Change Management: Detailed recommendations Solution design/changes Business & functional roadmap Processes/Technology/Org. Benefits Realization and Monitoring 2 Operational Procurement 3 Invoice Processing Supplier $$ Rationalization Process $$$ automation Right Price... $ Determination 4 Payment 5 Business Intelligence Incorporation of Best Practice Data 2010 CrimsonLogic Pte Ltd 61

62 Quick Win/Foundation Implementation Roadmap STRATEGIC SOURCING e-sourcing RFx + Bid Optimization Supply Chain Linkages Accelerate sourcing Replace legacy Global spend analysis Bid optimization eauction, erfx SPEND ANALYSIS Spend Reports Global Spend Analysis Phase II Leverage spend Visibility of company spend Accelerate sourcing cycle SPEND CONTROL Procurement Catalog Expansion P-Card and Transaction Efficiencies Enables Increase spend compliance Expansion of mysap SRM globally Increase spend going through catalogs FOUNDATION Process Compliance Master Data Management Program Solidify foundation Standardize (DUNS, UNSPSC, etc.) Cleanse master data Agree policies Process Change Approval Year 1 Year 1 Year 2 Year 3 FUTURE Q1 Q3 Q1 Q1 STATE 2010 CrimsonLogic Pte Ltd 62

63 Strategy Enablement Objectives and Goals Strategies Activities / Tactics Examples of Measures / KPI Digital Procurement Optimize supplier collaboration and connectivity Improve Purchase to Pay processes End to end business processes review Sourcing processes Contract processes Transaction processes eprocurement and pcard processes Inventory carrying costs Inventory days supply Rationalize supplier base Provide procurement transparency across all regions Improve procurement responsiveness and contract approvals Proactive Supplier Management Analytics processes Monitoring and compliance Collaboration internal and external processes Supplier self-service Supplier collaboration Proactive supplier notification/commitments Exception handling Accurate reporting and analytics across regions through BW reporting On-time delivery % Sustainability of Sourcing Monitoring of off contract spend Supplier performance Global procurement spend Acceleration of internal procurement processes Central location for global contracts Supplier managed inventory Supplier self service for on line invoices Enabling Technologies Solution Dependencies Document management processes Change management 2010 CrimsonLogic Pte Ltd 63

64 Thank You! All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd

65 Thank you All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd (Regn No: N ). All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic. All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogicPte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic CrimsonLogic Pte Ltd