1. Prepared by SRA International, Inc. Confidential April 7-8 2009 Web-Based Supply Chain Management IFAC Conference – Commodity Vendors

2. 2 Prepared by SRA International, Inc. Confidential Agenda Overview –WBSCM Vision –WBSCM Release 1 Program Timeline How This Benefits You Commodity Vendor Functionality ** –Master Data –Portal Navigation –Commodity Bidding –Purchase Orders –Inspection Lot –ASN –Invoicing –Reporting WBSCM Summary ** simulations will follow to showcase functionality

3. 3 Prepared by SRA International, Inc. Confidential WBSCM Vision FSA USAID FNS AMS FAS WBSCM will provide new capabilities and functionality to support doing business with USDA!

4. 4 Prepared by SRA International, Inc. Confidential Search and Selection Business Requirements Definition RFIs, RFPs Product Evaluations & Selection 0 Strategy & Selection 0 Strategy & Selection Requirements, Contract Scoping Team Setup Project Kick- off Planning & Budgeting 1 Project Kick Off 1 Project Kick Off Detail Design Specifications (Blueprint) Process Design Configuration Design RICEFW Functional Design Data Mgmt Plan Training & Communication Plan Technology Design Planning & Budgeting 2 Design 2 Design Step by step process Leads to strong structure Configuring RICEFW Technical Spec Building: Processes Training Programs Technology Testing Go-live Planning Communicating 3 Build / Test 3 Build / Test Final Walk Through Acceptance Testing Training Planning & Budgeting Communicating Production Cutover! 4 Deploy 4 Deploy Moving in!! Go-live! Monitoring Final Revisions Support 5 Go Live 5 Go Live A Home Building Analogy WBSCM Release 1 Program Timeline We are here 2009

5. 5 Prepared by SRA International, Inc. Confidential How This Benefits You Overall Benefits Easier and faster to do business with USDA Lower administrative costs Paperless, non-duplicative processes Easier, transparent registering, bidding, contracting, shipping, and payment processes Commodity Vendors Online submission of invoices, Quality Certificates, and Proof of Delivery Online submission of ASNs (Applicable for Commodity only) Automation of Bulk Procurement Easier access to all bid invitations Simplified submission of bid responses Visibility of submitted Bids Electronic notification of purchase awards Real time status of invoice payments Online reporting & information access capabilities

6. 6 Prepared by SRA International, Inc. Confidential Commodity Vendor Functionality Master Data Portal Navigation Commodity Bidding Purchase Orders Inspection Results ASN – Advanced Shipping Notification Invoicing Reporting

7. 7 Prepared by SRA International, Inc. Confidential Master Data Definition Current Definition –Commodity COMMODITY : 682066 COMM GROUP: 68 OIL COMM TYPE : 20 OIL, VEGETABLE PACK SIZE : 66 PLASTIC BOTTLE 6/4 L WBSCM Definition –Material Number MATERIAL: 102420 DESCRIPTION: OIL, VEGETABLE BOTTLE, PLSTC- 6/4 L = Other Examples F102418 OIL, VEGETABLE PAIL-20 L-F F102419 OIL, VEGETABLE CAN-6/4 L-F Key Changes Commodity identifiers will be converted to SAP Material numbers Freight Materials will be defined for Freight Bidding and Booking documents. –Freight FREIGHT : Not used in current system –Material Number - Freight MATERIAL: F102420 DESCRIPTION:OIL, VEGETABLE BOTTLE, PLSTC- 6/4 L-F = Other Examples 102418 OIL, VEGETABLE PAIL-20 L 102419 OIL, VEGETABLE CAN-6/4 L

8. 8 Prepared by SRA International, Inc. Confidential Vendor Master Data Definition WBSCM Vendor Definition –Business Partner oDefinition: Organization (firm, branch office), person or a group of persons or organizations in which USDA/USAID has a business interest. This includes the roles: –Central Vendor – Based on the DUNS Number Interface to CCR and ORCA –Plant Vendor –Shipping Points –Contact Person Information –Vendor Qualifications oRequest for New Plants and Shipping Points will be managed on-line. –USDA will review the qualifications and send notification to application for acceptance and rejections –Locations oDefinition: These types of Business Partners will be used to support the selection of load points in the Price conditions for Commodity Bidding. Based on the evaluation results, the applicable locations will be defined on the Purchase order awards. –Load ports –Intermodal Bridge –Intermodal Plant –Terminals/Berths Key Changes Vendors will be converted to SAP Business Partners Request for New plants and Shipping points will be managed on-line.

9. 9 Prepared by SRA International, Inc. Confidential Vendor Self-Service Portal View Key Changes WBSCM Portal requires Level 1 e-Authentication Key Functionality Manage Organization Bid Management Vendor Self-Service Reporting Simulation Portal Navigation

10. 10 Prepared by SRA International, Inc. Confidential Master Data: Manage Organization Manage Organization –This function provides the ability for the vendor to request plant and shipping point definitions to be setup in WBSCM on-line. –USDA will review the request and determine if it will be approved/rejected.

11. 11 Prepared by SRA International, Inc. Confidential Commodity Bid Management Overview Bid Management Functionality –Enter Bid Response o1 Bid submitted per vendor plant oCopy from Preferences –Can maintain multiple preferences (Ex: Plant Specific preferences) oCopy Bid functionality from same Solicitation oNew AGAR Numbering for Solicitations –Current numbering - Bid Invitation 019 –WBSCM Numbering – AG-INTP-09-S-0032 –Where AG – Agriculture INTP- Office Code for International Process Commodity INTB – International Bulk Commodity 09 – Fiscal Year S – Bid Invitation/Solicitation XXXX – Sequence Number –Manage Vendor Constraints oVendor Constraints can be applied to a specific plant/commodity or across multiple plants that have submitted responses to the same invitation

12. 12 Prepared by SRA International, Inc. Confidential Commodity Bid Invitation Preferences Commodity Preference Bid Invitation will be published for the Commodity Vendors to define their default pricing conditions

13. 13 Prepared by SRA International, Inc. Confidential Commodity Bidding Simulation Commodity Bidding Key Changes Easier access to all Bid Invitations All USDA Bid Invitations will be available Vendor can setup multiple preferences and copy from preferences or other submitted bids/offers Key Functionality Visibility for Submitted Bids

14. 14 Prepared by SRA International, Inc. Confidential Commodity Purchase Orders Simulation Purchase Order Key Changes Paperless, non-duplicative processes Key Functionality Purchase Orders will be available on the Vendor Self- Service Email notification (PDF Output) will be sent to the Contact Person information when the PO is approved

15. 15 Prepared by SRA International, Inc. Confidential Commodity Specifications and Grading Factors Characteristics will be defined based on the Commodity Requirements Document. Inspection results will be based on the Grading Results from FGIS or Certificate of Analysis (COA). Quality discounts will be calculated based on the actual results. –Characteristic defined for Vegetable Oil with discounts: oExcess COLOR RED (LOVIBOND) RangesDiscount per CWT (Per 100 lb) –2.1 – 2.2$.05 –2.3 – 2.4$.10 –2.4 – 2.6$.15 oExcess Peroxide –1.1 – 1.3$.35 –1.4 – 1.5$.50 oExcess Free Fatty Acid –.06 -.07$.10 –.08 -.09$.20 –.10 -.11$.30 Discount Calculation –Inspection Lot quantity : 100 MT –Quality Results: oColor Red: 2.5 – discount applied for $.15/CWT oPeroxide: 1.0 – No Discount applied oFatty Acid:.05 - No Discount applied –Calculated Discount: o100 MT * 2204.6 lb/MT * $.15/CWT = $330.69 Discounted from Invoice

16. 16 Prepared by SRA International, Inc. Confidential Certificate/ Inspection Results Processing Certificate/ Inspection Results will be required to validate the specifications required by product and also determine if discounts may need to be applied –Commodity Specifications will be included in USDA Commodity Requirements Documents or Grading Specifications. Key Changes On-line submission of Quality Certificate results to support Invoice Matching process Key Functionality Actual certificate results will be recorded against material specific characteristics and determine if quality discounts will be applied to the Invoice Upload functionality available for FGIS Certificates Simulation Certificate Results

17. 17 Prepared by SRA International, Inc. Confidential Inspection Lots Key Changes To streamline invoice verification, online entry of results will need to be performed Key Functionality QM data analysis Discounts calculated at time of entry Simulation Purchase Order Discount Results Key Changes To streamline invoice verification, online entry of results will need to be performed Option available to load FGIS Certificates Key Functionality QM data analysis Discounts calculated at time of entry

18. 18 Prepared by SRA International, Inc. Confidential Advanced Shipping Notification (ASNs) Advanced Shipping Notification is a follow-on document from the Purchase Order Key Changes Advanced Shipping Notifications will be required from the vendors when the product has been shipped from their plant or shipping point location Key Functionality ASN’s can be entered one at a time or use the upload Excel functionality to process multiple ASN’s Simulation ASN

19. 19 Prepared by SRA International, Inc. Confidential Commodity Invoice Matching Overview Purchase Order Quantity Goods Receipt Quantity Certificate Results Quantity Invoice Quantity = = = 4 Way Invoice Matching criteria Recipient Agency - performs Goods Receipt Vendor – enters Certificate results includes Certificate of Analysis (COA) FGIS Certificates Vendor enters Invoice includes Proof of Delivery USDA – awards Purchase order Key Functionality Automated invoice matching, approval, release, of payments for commodity, freight, storage, and other services

20. 20 Prepared by SRA International, Inc. Confidential Invoicing Simulation Invoicing Key Changes Automated invoice matching, approval of payments for commodity, freight, storage and other services Key Functionality Real time status of invoice payments Selecting this inspection lot results in a discount of.95$ Net Value will be adjusted by the Total Discount/Premiums applied

21. 21 Prepared by SRA International, Inc. Confidential Vendor Reporting Overview Reporting –Specific reports will be made available to the Vendors to report on their different types of documents oContracts oPurchase orders oASN – Advanced Shipping Notification oCertification/ Inspection Results oInvoices oVendor Business Partner information

22. 22 Prepared by SRA International, Inc. Confidential WBSCM Summary Key Changes: –Vendor Self-Service functionality –Contract award notification –Online invoice status review –Advanced Shipping Notification –Quality Management functionality –Online reporting & information access capabilities WBSCM provides new capabilities and functionality to makes it easier to do business with USDA

23. 23 Prepared by SRA International, Inc. Confidential Next Steps Vendor Testing & Training oVendor testing to begin in the Summer 2009 oTraining materials will be available in the Fall 2009 Deployment Activities –WBSCM User Administration oConfirm Corporate Admin Contacts oE-Authentication Registration –Data Validation oBusiness Partner relationships oContracts and Purchase orders WBSCM Go-live Dec 2009 For more information visit us online at www.usda.govwww.usda.gov Interested in participating or have questions? Contact us at WBSCM@kcc.usda.govWBSCM@kcc.usda.gov