2. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 2 Breakout Session # WC05-147 Mike Kaul, CEO, diCarta, Inc. Date: Wednesday, April 27, 2005 Time: 1:20PM Eliminating Maverick Purchasing and Improving Supplier Performance

3. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 3 Agenda Challenges in Supplier Management Supplier Contract Management Blueprint Case Studies Building a Business Case

4. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 4 LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES Challenges in Supplier Management Spend Analysis ? Procurement Supply Chain Systems eProcurement Operational Systems Sourcing Accounts Payable ?

5. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 5 LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES ? Discounts & Rebates Service Performance Milestones Delivery Quality ? ? ? ? Right Products ? Challenges in Supplier Management Spend Analysis ? Procurement Supply Chain Systems eProcurement Operational Systems Sourcing Accounts Payable ?

6. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 6 Existing Solution Limitations ERP, SRM, SCM Fail to support full lifecycle contract management Limited contract management functionality Disjointed business process “Swivel-Chair” integration Multi-business unit enablement is challenging Requires significant resources for internal development

7. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 7 Agenda Contract Challenges in Supplier Management Supplier Management Solution Blueprint Case Studies Building a Business Case

8. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 8 Spend Analysis Sourcing Procurement Accounts Payable Supply Chain Systems eProcurement Operational Systems Approved Paid Verified Contract Management Solution Discounts & Rebates Service Performance Milestones Delivery Quality Right Products x x x Blueprint for Success

9. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 9 Blueprint for Success

10. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 10 Blueprint for Success Contract Authoring Contract Negotiation Contract Reporting & Analytics Obligations, Compliance, & Renewals Management

11. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 11 Enforced Policies Clause Library Templates Enforced Policies Guidelines Solving Contract Limitations of Sourcing Create and Control

12. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 12 Enforced Policies Clause Library Templates Enforced Policies Guidelines Suppliers Partners Customers Negotiate Author & Collaborate Review & Approve Solving Contract Limitations of Sourcing Create and Control

13. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 13 Enforced Policies Clause Library Templates Enforced Policies Guidelines Suppliers Partners Customers Negotiate Author & Collaborate Review & Approve Operations Systems Mfg. Finance Procurement / SCM Solving Contract Limitations of Sourcing Create and Control

14. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 14 Solving Contract Limitations of Procurement and A/P Administer and Comply Supplier Compliance Renewals,Terminations, Consolidation Manage Obligations, Deliverables Manage Amendments AMENDMENT B AMENDMENT D AMENDMENT A AMENDMENT C AMENDMENT E LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES Discounts & Rebates SLA Performance Milestones Delivery Quality x x x Right Products CALENDAR Operations Systems Mfg. Finance Procurement / SCM

15. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 15 Administer and Comply LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES Operations Systems Mfg. Finance Procurement / SCM TRANSACTION Compliant ?

16. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 16 LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES Operations Systems Mfg. Finance Procurement / SCM Administer and Comply TRANSACTION

17. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 17 Administer and Comply LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES Operations Systems Mfg. Finance Procurement / SCM Compliance Rules Engine Compliance Validation Flows TRANSACTION

18. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 18 LEASE CAPITAL EQUIPMENT PROFESSIONAL SERVICES Operations Systems Mfg. Finance Procurement / SCM Compliance Rules Engine Compliance Manager Compliance Validation Flows Discounts & Rebates SLA Performance Milestones Delivery Quality x x x Right Products Compliant Administer and Comply A Complete, Closed-Loop Process for Supplier Compliance

19. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 19 Solving Contract Limitations of Spend Analysis Analyze and Improve Operational Efficiencies Contract Analysis Contract Audit & Research Workload Planning CALENDAR BUSINESS CONDITIONS Business Trend Analysis BUSINESS CONDITIONS CALENDAR + -

20. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 20 Agenda Challenges in Supplier Management Supplier Contract Management Blueprint Case Studies Building a Business Case

21. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 21 Managing the Procure-to-Pay Process Profile:  3,000 Contracts  80 Global Business Users Objectives:  Single view of contract operations across the enterprise  Reduce procure-to-pay cycle times  Standardize contract language and enforce approval processes Benefits from Deploying diCarta Contracts:  Gained visibility of contract operations across the organization to monitor procurement spend and manage operational efficiencies  Achieved procure-to-pay processes and approval standards  Reduced procurement cycle times Founded in 1873, Kohler is a worldwide leader in plumbing, bath and kitchen products. Revenues: $3.0 billion Headquarters: Kohler, Wis. Employees: 25,000 worldwide Additional Facilities: North America, Europe, and Asia. Featured in Purchasing Magazine’s CM Issue (July 2004)

22. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 22 Global Contract Management Excellence Profile:  40,000 contracts  40 global business units  600 contract administrators Objectives:  Integrate contract management with a single global instance of SAP  Gain total global visibility of all supplier agreements  Standardize global contract operations in a six sigma environment  Drive contract compliance to improve procurement efficiencies  Reduce contract process cycle time  Measure & reduce overall contract administration time and cost Benefits from Deploying diCarta Contracts:  Drive Procure-to-Pay processes across the enterprise  Provide total contract visibility to reduce supplier risk  Monitor supplier compliance and improve procurement efficiencies A Fortune 7 company, ConocoPhillips is the 3 rd largest energy company in the United States and 8 th largest worldwide. Operating in more than 40 countries Revenues: 105.1 billion Assets: $82.5 billion Headquarters: Houston TX Employees: 39,000 worldwide Find out more at the NCMA Webinar on June 15 th !)

23. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 23 Streamlining Contracting Processes Profile:  500,000 contracts per year  $50 billion in aggregate healthcare spend  400,000 physicians  3,600 hospitals Existing Challenges:  Significant volume of contract requests from field  Reduce cost of manual claims processing Benefits from Deploying diCarta Contracts:  Established and enforced standard contract processes to streamline contract request and enable further business growth  Improved auto-adjudication rates  Reallocated 200 FTEs  On target to save $61 million over three years UnitedHealthcare provides individuals with access to cost- effective healthcare services and resources through more than 400,000 physicians and 3,600 hospitals across the United States. It manages approximately $50 billion in aggregate healthcare spending on behalf of more than 170,000 employer- customers and the consumers it serves. Revenues: $31.6 billion Stock symbol: UNH Member: Fortune 100 Headquarters: Minnetonka, MN Employees: 33,000 worldwide

24. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 24 Agenda Challenges in Supplier Management Supplier Contract Management Blueprint Case Studies Building a Business Case

25. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 25 Contract Leakage Lack of an integrated process is costing companies money (1) Independent Survey

26. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 26 Savings Opportunity Across All Commodities (1) Independent Survey

27. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 27 Breakout Session # WC05-147 Mike Kaul, CEO, diCarta, Inc. There has to be some questions….

28. April 25–27, 2005 Phoenix Civic Plaza/Hyatt Regency Phoenix Phoenix, AZ NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” 28 Title of Slide Bullet point 1 –Bullet point 2 Bullet point 3