Spend Manager

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					Spend Manager
Improve spend visibility and identify immediate savings and
efficiency opportunities in your supply chain processes




                 Powerful analysis and reporting tools
                 Ease of use
                 Flexible deployment options
                 Cost effective – quick ROI
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                                                             Achieve Spend Visibility
                                 With its ease of use and flexible deployment options, Enporion’s
                                 Spend Manager puts spend analysis into the hands of ordinary
                                 business users. Spend Manager allows users to load spend data
                                 from multiple systems and then enhance the data by defining
                                 dimensions, grouping vendors, and applying custom categorization
                                 structures. The resulting dataset can then be analyzed with
                                 advanced analytical tools and customizable reports. Spend
                                 Manager can run self-contained on a desktop or laptop computer,
                                 so you can improve spend visibility and identify immediate
                                 savings, without IT support or a long implementation process.




 Ease of use                       Flexible                         Powerful analysis
                                   deployment options               and reporting tools

      •Flexible and                     •Over the web                    •Customizable
       ultra-fast dataset               •Behind a firewall                report
       creation                         •On a personal                    development
      •Real-time                         desktop or laptop               •Automatic Excel
       dataset                           computer                         pivot table
       modification                     •Multiple                         generation
      •Supports 100M+                    servers/mixed                   •Reports can be
       transaction                       mode                             easily refreshed
       datasets                         •Compatible with                  as new data
      •Create multiple                   existing systems                 becomes
       spend cubes and                   and                              available
       apply multiple                    infrastructure                  •Dynamic filtering
       categorization                   •On-demand, one-                  capability
       structures                        time assessment,                •Multiple users
      •Combine data                      or on-going                      can coordinate
       from different                    spend analysis                   their analyses
       systems and                       options available
       several locations




“  Having Enporion use their Spend Manager to analyze this data helped us to focus our
resources on other strategic issues. With Spend Manager, the team completed this work in
days or weeks with limited direction; without this tool, we would have taken months. This
was a monumental effort to get vast amounts of data analyzed and organized in an easy to
use format. Our buyers will have the ability to use these results in sourcing efforts to
develop initial bid packages.”
Principal Purchasing Agent, National Grid
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                                                                                         Spend
  An aggregate spend analysis effort directly solidifies the foundation of an           Analysis
  efficient procurement strategy. Spend analysis encompasses the activities             Process
  beginning with extraction of raw data from purchasing or financial systems
(such as Accounts Payable data) to applying sophisticated tools to the datasets
   to develop an actionable understanding of spend patterns, key suppliers,
        degree of aggregation, types and categories of spend, and more.



                                             Validate data for
     Collect spend data from                                                      Cleanse and enrich
                                            completeness and
            all systems                                                                  data
                                                 accuracy




        Classify data with                  Analyze data and
                                                                                     Refresh data
     standard or customized                develop customized
                                                                                     periodically
     categorization structure                spend reports




         Flexible
       Deployment             Spend Manager can be deployed in three ways: client-server, independent
         Options              desktop or laptop, or peer-to-peer. Enporion offers Spend Analysis as part
                              of our Professional Services. We can provide one-time or on-going spend
                              assessment services, depending on your company’s needs.

     Desktop/laptop                                                                 One-time or on-
                          Client-server      Mixed model         Peer-to-Peer
     (individual) use                                                                going services
    •Simple, easy to    •Centralized       •Includes both     •Each user           •Ideal for
     administer/roll     control            client-server      potentially both     companies with
     out                •Supports larger    and individual     client and           fewer resources
    •Access to data      datasets and       users              server               or categories of
     at all times        larger user       •Best of both      •Team of              interest
    •No internet or      communities        worlds             analysts can        •Enporion will
     network                                                   share results        construct spend
     connection                                                and work             cube and
     needed for                                                together             provide spend
     independent                                               efficiently          analysis and
     users                                                                          reporting

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                                                                                      Key Features


       Flexible and Intuitive User Interface

•Every window individually resizable
•All windows represent the current filter set at all
 times
•Sub-second drill times on 20M+ transactions
•Dynamic filter navigation
     •Remembers last 100 filters applied and can
       move backward and forward within filter
       history
     •Individual filters can be turned on and off
       within any filter set
     •Filter sets can be saved
     •Graphic to the right shows filtered view




                                                                       Real-time Spend Classification

                                                               •Generate rules directly from the data viewer
                                                               •No “publish” phase – changes are applied
                                                                immediately and can be undone easily if
                                                                mistakes are made
                                                               •Classify majority of spend within hours using
                                                                rules based on Vendor Name, GL Account, and
                                                                Item Description dimensions
                                                               •Utilize standard or customized categorization
                                                                structure
                                                               • Supports multiple classification structures
                                                               •All rules are saved within spend cube and are
                                                                automatically applied with each data refresh
                                                               •Collaborate with colleagues on dataset
                                                                changes – export changes from one user’s
                                                                dataset and import them into another user




            Real-time Hierarchy Editing
                                                                                                Before
•Drag-and-drop hierarchy editor enables the
 power to make massive changes in data
 hierarchies easily
•Changes can be viewed immediately and all roll-
 up quantities are adjusted automatically
•Allows quick cleansing and normalization of data
 (e.g., vendor grouping, UOM normalization)
•All hierarchies and groupings are saved within
 spend cubes and are automatically applied with
 each user data refresh
                                                       After



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 Outputs and Reporting
Enporion understands each business requires different reporting needs. To meet these
needs, Enporion’s spend tool is fully equipped to produce standard, ad-hoc and
completely custom snapshots into a company’s spend for improved visibility and rapid
opportunity assessments.

                                       Standard Reports
                                       • Multiple data options available
                                       • Data at the touch of a button
                                       • Easily repeat reports as needed
                                       • Identify opportunities immediately




  Ad-Hoc
  • Utilize outputs for use in PowerPoint and
     Excel
  • Incorporate charts and tables
  • Data flexibility




                                             Custom Reports
                                             • Ability to change dataset
                                             • Create “booked” reports
                                             • Multi-dimensional extracts
                                             • Sensitive to drill positions
                                                  Emphasis on Quick ROI
Traditional approaches to Spend Analysis and Strategic Sourcing have proven to be effective,
but they require significant financial and/or resource commitment. Consider this, the goals of
a robust and repeatable spend analysis and sourcing process can also be achieved by
alternative approaches that get to the same destination in a shorter timeframe with a focus
on cost effectiveness and time to value. Enporion has defined the following options to
accelerate the ROI from Spend Analysis and Strategic Sourcing:
    One-time Spend Assessment Services
    On-going Spend Assessment, Analysis, and Reporting Services
    Opportunity Assessment Services
    Leveraging Existing Contracts, Sourced Agreements, or Group Contracts
    Targeted Category Sourcing

For a complete discussion of the approach described above, go to the Enporion Whitepaper:
       “Approaches to Spend Analysis and Sourcing with Immediate ROI
                  That No One Told You About Until Now.”

Our results using this approach have been impressive, for instance:
   We have delivered Spend Assessments to clients and helped highlight opportunities in a
   matter of weeks – not months, resulting in dramatically better ROI for Spend Analysis
   services starting in matter of weeks
   Using Sourced Agreements and existing contracts, we delivered immediate savings to
   clients using the results of the Spend Assessment




                                                                                  Prioritized List of
                                                                                   Opportunities



       Spend Assessment


                    Opportunity Assessment




                            Leveraging Existing Contracts        Targeted Category Sourcing
                                                                                Case Studies


Innovative Analysis of Inventory and Spend Data by Enporion Allows Two Merging Companies to
Optimize MRO Strategy and Realize Merger Synergy Savings.

A recently merged multi-national Fortune 500 company with two US subsidiaries and MRO
category spend in four different business units was attempting to develop a coordinated post-
merger sourcing strategy. The relevant MRO inventory data resided in different ERP systems
(PeopleSoft and Oracle) and included different defined fields and levels of detail in the data. MRO
data was classified under several different sub-category structures, and obtaining a consolidated
report of the usage, item availability, and spend within each sub-category was extremely difficult.
The expectation following the merger was that there would be a combined and coordinated
category sourcing strategy resulting in significant savings to the merged company.

For over 80,000 items in inventory, the client used tools such as Access and Excel to analyze the
information and made little progress in combining and sorting through the vast amounts of data.
The delay in completing this analysis was also postponing the realization of the anticipated benefits
from the coordinated sourcing strategy.

Although inventory data residing in ERP systems can be sorted, linked, and analyzed for
procurement or sourcing related efforts, many companies have admitted that it is difficult to get
the right data fields exported and fully analyzed for a strategic sourcing effort. Additionally, many
companies do not have the resources with the core competency to perform a detailed spend
analysis. Other daunting challenges faced by the client were different naming conventions and
incomplete data records which required filling-in gaps in information. The datasets also contained
a large number of linked fields and manually linking these fields was very resource intensive and
difficult.
  To read the entire case study go to http://enporion.com/landing_pages/CaseStudy_Spend_Nov08.html


Global Spend Issues for $2B Manufacturer Resolved for Indirect and Direct Categories Yielding
Time-Critical Savings

For a large global electronics manufacturer, Enporion was chosen to develop a comprehensive
Global Spend Assessment program for their indirect spend. The first objective of the program was
to classify all spend into a detailed commodity structure and analyze indirect category spend. After
the indirect spend was categorized, Enporion preformed analyses and developed reports that
helped the client prioritize, plan, and implement numerous sourcing initiatives within the supply
chain organization and across multiple global plant locations. Heavy emphasis was placed on
gaining immediate savings while realigning the supply chain organization structure for indirect
categories. For the client’s indirect spend categories, Enporion developed detailed sourcing
strategies to realize over $20M savings in annual cost savings.
   To read the entire case study go to http://enporion.com/media/case_studies.html
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                                                                      About Enporion



                                                                 For Spend Analysis and
                                                                 Sourcing Information:
                                                                 Keith Stanton
                                                                 Vice President of Professional
                                                                 Services at Enporion
                                                                 (813) 864-8205
                                                                 Kstanton@enporion.com



 .



Enporion is a supply chain management solutions and services company, providing strategic
sourcing and e-procurement applications, and related professional services. Enporion is
delivering results for customers in the gas and electric utilities, manufacturing and distribution
industries.

Enporion’s Supply Chain Manager®, an integrated suite of e-commerce tools, delivers cost
reduction through price and process savings, and includes capabilities in catalog management,
supplier enablement and connection, spend reporting, e-sourcing including auctions and
electronic RFx’s, and contract management. These applications are delivered in a Software-
as-a-Service environment, resulting in quick implementation and early realization of benefits.
Visit Enporion online at www.enporion.com.




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