1. 1 BOISE CASCADE USING WORKFLOW SUPPLIER RELATIONSHIP MANAGEMENT PRODUCT USER GROUP CONFERENCE APRIL 4, 2006

2. 2 Presenters  Mark Kirkland, Corporate Procurement  Marci Struzinski, Corporate Shared Accounting Services  Dave Howard, Corporate Systems Development

3. 3 Topics Covered  Boise Cascade Company Information  Use of Delivered Work Flow  Use of Customized Work Flow  Strategies and Implementation of Work Flow  Questions and Answer Session

4. 4 Boise Cascade Company Background  Company Headquarters in Boise, Idaho  10,000+ Employees  Operations  Domestically throughout the United States  Internationally in the United Kingdom, Brazil, and Canada  Four Major Divisions  Building Materials Distribution (29 Distribution Centers)  Paper Manufacturing (4 Paper Mills)  Timber and Wood Products (21 LVL, Plywood, Lumber, & Veneer Plants)  Packaging and News Print (1 Paper Mill, 5 Packaging Plants)

5. 5 2005 Sales by Business -- $ Millions

6. 6 Versions of PeopleSoft  Began Converting to PeopleSoft Version 5.1 in 1996  Upgraded to Version 7.5 in November 1999  Added eProcurement 8.0 in 2002  Upgraded to 8.8 on November 28, 2005  Currently on PeopleSoft 8.8 - SP 1 - MP 2  Preparing to ‘Get Current’ through Maintenance Pack 5

7. 7 2005 Finance and Purchasing Statistics  ~ 2,400 Purchasing and Finance Users  20 Purchasing Business Units  26 Inventory Business Units  179 AP Business Units  238 General Ledger Business Units  ~ 280,000 Item Ids

8. 8 2005 Finance and Purchasing Statistics  293,688 Journals  1,447,625 Vouchers  328,794 Payments  1473 Pay Cycles  107,880 Purchase Orders  68,546 Requisitions  191,737 Receipts

9. 9 Modules In Use  Purchasing  Inventory  Accounts Payable  Accounts Receivable  Asset Management  Project Costing  General Ledger  Budget  Billing  Contracts  eProcurement  Human Resources  Benefits Administration  Payroll  ePay

10. 10 Integrated Systems  Maximo 4.1 and Maximo 5.2  Maximo is a maintenance planning application used by  some Business Units  Requisitions that are written in Maximo and ‘Replicated’  into PeopleSoft  PeopleSoft and Maximo also share the following:  Purchase Orders  Receipts  Vouchers  Item IDs and Descriptions

11. 11 Three Types of Work Flow  Delivered Work Flow for Requisition Approvals  Customized Work Flow for Receipt Notification  Customized Work Flow for Entering Two-Way Vouchers

12. 12 Delivered Work Flow for Requisitions  Requisitions that are written in eProcurement  go through an Approval Process  Approval Process Varies depending on the Business Unit  Self Approvals  Yes/No Approvals  Monetary Value Based Approvals

13. 13 Yes/No Approvals  Static Approval Process Definition  All Requisitions Require Supervisor Approval  If a User is allowed to Self Approve Requisitions, the User is their own Supervisor

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26. 26 Monetary Based Approvals  Each Business Unit has Specific Levels of Approval  One Business Unit has Seven Levels  A Dynamic Setup is Used  Every User in the Business Unit has a Supervisor

27. 27 Example of Approval Levels Level 0 – Any Requisition Written Requires Approval Level 1 – Self Approval up to $1,000 Level 2– Self Approval up to $5,000 Level 3 – Self Approval up to $10,000 Level 4 – Self Approval up to $20,000 Level 5 – Self Approval up to $25,000 Level 6 – Self Approval up to $100,000 Level 7 – Unlimited Self Approval Make sure every user has a Supervisor, and every Supervisor ultimately leads to a Level 7 Approver.

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30. 30 Adding Approvers and Reviewers

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32. 32 Receipt Work Flow Notification  Customized Work Flow  Alerts a Requestor when Material is Received  PeopleCode in place to exclude Inventory Items

33. 33 Email for Receipt Notification From: peoplesoft@bc.com [mailto:peoplesoft@bc.com]mailto:peoplesoft@bc.com Sent: Monday, March 27, 2006 8:54 AM To: Herbert, Diana Subject: Notification: Receipt for Requisition A receipt has been processed for your Requisition 4005/0000022149, PO 4005/ 0000100518, PO Line 1 Ship Seq Number 1 Distribution Line 1. The item, STUFF FOR APPROVAL, for a quantity of 2000 is available for pick-up at the warehouse/stores location unless other arrangements have been made for delivery to LENA STORE. Receiver ID: 4005/0000158130

34. 34 Prior to ‘Two Way’ Email Creation  Vouchers entered against ‘Two Way’ POs were placed on hold  Voucher faxed to requestor/buyer for approval  Requestor/ buyer notifies AP if voucher is ‘ok to pay’ or if voucher is ‘not ok to pay’  AP monitors via query all vouchers ‘pending approval’ and follows up with requestor/buyer

35. 35 Two Way Notification for Vouchers  Customized Work Flow  Notifies a Requestor or Buyer via Email when a Voucher has been entered against a ‘Two-Way’ PO  Negative approval  Public Folders Copied and Emails Stored

36. 36 Two Way Email Scenarios  Online Requisition  Non-Requisition PO - Data in PO Ref field  Non-Requisition PO - No Requestor Identified

37. 37 Email for Online Requisition Invoice Number: 27717833-001 Voucher Number: 2006/00386064 Vendor: RENTAL SERVICE CORP Invoice Total: $1460 Freight Total: $0 Invoice Due Date: 2006-03-13 Buyer: Cook,Larry Requestor: Charlie Bordelon Requisition Number: 2006/152164 PO Ref Field: Online Src From Req 152164 Notification To:CharlieBordelon@Contractor.BC.com PO Number: 2006 / 0000106203 PO Line Number: 1 Line Description: RENTAL, CRANE, 8-TON CARRYDECK Amount Vouchered on PO Line: $895 PO Line Total: $895 Dollar Amount Matched to PO Line: $0 Project ID:

38. 38 Email for Non-Requisition POs – PO Ref Field Invoice Number: 47617 Voucher Number: 2002/00038044 Vendor: GRAYS HARBOR PAPER LP Invoice Total: $20897.28 Freight Total: $0 Invoice Due Date: 2006-04-04 Buyer: Medley,Sue Requestor: Requisition Number: / PO Ref Field: sa-32106 PO Number: 2002 / 26419 PO Line Number: 1 Line Description: 60.5 X 58 - 20# - 55112 - MAXB Amount Vouchered on PO Line: $20897.28 PO Line Total: $769003.2 Dollar Amount Matched to PO Line: $0 Project ID:

39. 39 Email for Non-Requisition POs – No Requestor Identified Invoice Number: 5383 Voucher Number: 6003/00051586 Vendor: DANS FORKLIFT SERVICE & REPAIR Invoice Total: $101.15 Freight Total: $0 Invoice Due Date: 2006-03-11 Buyer: Garcia,Mark Requestor: Requisition Number: / PO Ref Field: Delivered Email Notification To: MarkGarcia@BoisePaper.com PO Number: 6003 / 0000006938 PO Line Number: 2 Line Description: Ser#A3EC340846 #4 Parts- Switc Amount Vouchered on PO Line: $41.15 PO Line Total: $41.15 Dollar Amount Matched to PO Line: $0 Project ID:

40. 40 Two Way Email Issues  Security Set Up  Notifications created as a ‘Post’ from Peoplesoft@bc.com Peoplesoft@bc.com  Manual Forwarding of Notifications (Offline Requisition - Data in PO Ref)

41. 41 History  We had a directive to stay vanilla, but customizations became necessary for numerous reasons.  Resource constraints.  We re-implemented workflow in 7.5.  We used eProcurement rules-based workflow.  We re-implemented in version 8.8.  We shifted our security model over time.

42. 42 Current situation  We have had issues with each workflow process that we implement.  We have ongoing issues.

43. 43 Going Forward  We now have several pieces of documentation related to implementing the delivered AWE: a lengthy red paper, a step-by-step document and a summary example.  We have trained more developers to handle workflow.  We have many additional requests for workflow- type applications and these will be addressed in future months.

44. 44 Considerations  Set up can be considerable.  Maintenance is required.  Be sure to allow for exceptions.

45. 45 Boise-specific Issues  Upgrade from 7.5 to 8.8 introduced problems.  Merging eProcurement and mainstream purchasing was a goal.

46. 46 Workflow Design

47. 47 Workflow Design

48. 48 Workflow Design

49. 49 Workflow Design

50. 50 Questions and Answer Session