1. page 1 PURCHASING PLAN 2000 CLIENT LOGO HERE

2. page 2 Objectives  Negotiate 5-7% price reduction with 2 suppliers by end of Q2.  Reduce total cost of ownership by 6-8% through standardization of laptops and desktops.  Streamline the purchasing process through the implementation of 3 process changes by the end of Q3, resulting in 25% reduction in cycle-time.  Research enterprise-wide software licensing agreements, resulting in 4-6% cost reductions.  Develop and write clear purchasing procedures by end of Q4 CLIENT LOGO HERE

3. page 3 Negotiations Influence purchasing patterns and prices. Identify purchasing as a resource for end- users. 1) Printer/Copier Lease *IT & END-USERS* i.Identify possible suppliers (Feb) ii.Submit RFP (Feb) iii.Evaluate Proposals (Mar) 2) Computer-related Purchases *IT & ENDUSERS * i.Coordinate Implementation 1)Identify potential suppliers (Mar) 2)Identify/Negotiate pricing structure, % above cost (Mar) 3)Evaluate administrative support provided (Apr) 4)Transfer purchases to selected supplier (Apr) CLIENT LOGO HERE

4. page 4 Standardization  Standardize Dell purchases *IT & ENDUSERS * 1)Identify current standards used (April) 2)Obtain access to Premier Page (April) 3)Arrange Road Map meeting with local dell rep, repeat quarterly. (April, July, Oct) 4)Arrange contract pricing (May) 5)Propose Standardization (May) CLIENT LOGO HERE

5. page 5 Software Licensing 1)Determine what software to propose for enterprise-wide licensing (May) 2)Identify what software licenses currently exist (May) 3)Negotiate discount agreements as necessary (Jun-July) CLIENT LOGO HERE

6. page 6 Process Changes In order to streamline the purchasing process, we propose to: 1) Expand use of requisition beyond IT *END-USER & IT* 1)Identify and document unwritten policies (Apr) 2)Obtain and/or develop signature authority information (Apr) 3)Propose written policy to Finance (May) 2) Expand use of requisition beyond IT *END-USER & IT* 1)Contact Lotus Notes Administrator (May) 2)Submit spending policy (May) 3)Identify obstacles and solutions to expanding use of requisition (Jun) 4)Lead Implementation (Jun) 3) Expand use of purchasing services on off-site locations *END-USER* 1)Identify how off-site purchases are currently being made (July) 2)Determine what purchases can benefit from The Purchasing Group involvement (July) 3)Announce corporate purchasing department (July) 4)Begin providing services for off-site locations (July) CLIENT LOGO HERE

7. page 7 Purchasing Infrastructure To strengthen the purchasing process, we propose clearly defining the procedures and guidelines. 1) Develop spending policy (see Process Changes) 2) Analyze Spending *FINANCE* 1)Obtain A/P tab (July) 2)Identify top suppliers (July) 3)Develop strategic initiatives based on analysis, resulting in 7- 9% savings with top 5 suppliers that currently bypass purchasing system. (July-Nov) 3) Requisition Form (see Process Changes) 4) Training Manual 1)Document spending policies and guidelines (Sept) 2)Write step-by-step purchasing instructions (Sept) CLIENT LOGO HERE

8. page 8 Timeline Copy/Print Lease Comp-related Negotiations Spending Policy Software Licensing A/P Analysis Dell Standards Road Maps Expand to Off-site locations Strategic Initiatives FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CLIENT LOGO HERE