1. CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved. Sept. 24, 2009 Presents The Road to Vendor File Excellence

2. P-2 About The Speaker Sherry DePew, Vice President of Product Strategy & Solutions Integration for Lavante 14 years at Boise Cascade, Director of Shared Services President and founding member of Idaho IAPP Chapter Treasurer: Oracle/PeopleSoft Supplier Relationship Mgmt. Product User Group President: Oracle/PeopleSoft Accounts Payable Product User Group Co-founder and Board member of Oracle/PeopleSoft Link Users Group As VP of Product Strategy for Lavante, Sherry is responsible for using her experience as a former Director of Shared Services to collaborate with our customers to define Lavante’s P2P solutions CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

3. P-3 Agenda Your Vendor Master File - A Strategic Resource Key Goals Vendor File Issues A Vendor Management Program Best Practices Solutions Demonstration Questions and Answers CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved. ON-DEMAND SOLUTIONS FOR THE P2P WORLD

4. P-4 Your Vendor Master File - A Strategic Resource Vendor file is a key corporate resource Ownership belongs in AP (87%) Many disbursements are made to payees that typically do not have involvement with purchasing tax payments, garnishments, employee reimbursements, donations and customer refunds are some examples Limit who can add or update vendors People who can add or update vendors must not be allowed to process transactions such as invoices and purchase orders CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved. ON-DEMAND SOLUTIONS FOR THE P2P WORLD

5. P-5 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved. Key Goals - Vendor Master File ON-DEMAND SOLUTIONS FOR THE P2P WORLD Make accurate and timely vendor payments Reduce duplicate payments Comply with laws and regulations Catch / reduce fraud Know where you spend money Know your vendors Save money Company wide tracking requirements Diversity Business Continuity Treasury Procurement (Contracts)

6. P-6 Know Your Vendors How are these related? Marriott JW Hotels Renaissance Courtyard Residence Inn Fairfield Inn TownePlace Suites SpringHill Suites Ritz-Carlton ExecuStay Executive Apartments CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

7. P-7 Comply with Laws & Regulations Including: Independent Contractor and 1099-MISC Non-Resident Alien and 1042S Gramm Leach Bliley Privacy Act Health Insurance Portability and Accountability Act (HIPAA) Office of Foreign Assets Control (OFAC) Foreign Terrorist Organizations (FTO) Bureau of Industry and Security Lists Patriot Act Sarbanes Oxley Other - Industry, Country, State specific CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

8. P-8 Cause and Effect Third party recovery efforts show the majority of duplicate payments today are caused by vendor set up problems and related suppliers Records show that 7% of the vendor population changed their name or corporate structure each year prior to July 2008 Experts predict that by the end of 2009 the rate will increase to 11 to 15%. If duplicate vendors are identified and merged in the vendor database over 75% of duplicate payments can be eliminated CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

9. P-9 Return on Investment Purchase Smarter Know your full spend with the supplier family to negotiate better pricing Process Smarter Reduce the vendors in your active list to eliminate confusion and errors at the requisition, purchase order, and voucher level Pay Smarter Get the payment to right place the first time and eliminate stale dating, phone calls, past due invoices and escheat due diligence. CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

10. P-10 Vendor File Issues Some Vendor File Problems Missing or Invalid Tax Ids. Missing or Incorrect 1099 Categories Names Inconsistent with Tax Ids. Vendors tied to inventory items with very low turn rates. 35% - 65% of “active” vendors are one-time vendors Resource requirements result in a reactive approach to updates Electronic payments/purchase orders eliminate the dependency on good vendor data CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

11. P-11 A Vendor Management Program Assess Survey Current Situation Identify and collect ALL relevant documentation Identify ALL vendor files and data sources including those used for e-procurement, e- payment and p-cards Review and verify your actual Vendor Setup and Maintenance Processes and Controls against documentation Centralize the collection, storage and updating of all vendor related requirements in an environment accessible to invested users CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

12. P-12 A Vendor Management Program Cleanup (cont’d) Other Vendors You May Want to Look At Federal Government Departments and Agencies States Local Governments Postal Service Garnishments Petty Cash Foreign One Time CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

13. P-13 A Vendor Management Program Cleanup (cont’d) Review Possible Duplicates and Decide Impact of rules on other files/tables Which to keep Which to drop Which to merge CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

14. P-14 A Vendor Management Program Re-Assess Verify New Adds and Changes against Guidelines and Standards Review and revise procedures, guidelines and documentation, as required Train and/or Re-train, as required Utilize the next generation tools to prevent duplicates Remember to be successful this will have to be a process, not a project How do companies manage this without adding people? CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

15. P-15 A Vendor Management Program Enhance IRS TIN - Name Consistency Verify Name and TIN against IRS data OFAC and FTO Checks Check vendors against OFAC / FTO list and other lists Utilize 3rd Party Databases Add D&B Numbers Add SIC or NAICS codes Add Credit Information Obtain W-9 or Substitute Obtain Minority Owned Business, Women Owned Business status, etc. CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

16. P-16 Vendor Master File Enhance (Continued) Verify vendors against internal database and check to published lists Restrict adding and updating Review all adds and changes Secure a W-9 or substitute Purge and cleanup every year Use standard rules for names Use USPS and UPU rules for addresses Capture phone & fax number Involve purchasing for any new vendor who will be issued a purchase order CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.

17. P-17 Vendor Master File Enhance (Continued) Lexis Nexis Bank Account Validation Diversity Business Continuity Scheduled & Ad Hoc Blanket Updates Vendor Self Service CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.