Coupa Crank Up the savings roadshow presentation. See how your company can save by using innovative on demand spend management software. Presentation from analyst Jason Busch

2. Agenda
Time Item Presenter
8:30 – 9:00 Coffee All
9:00 – 9: 30 Welcome – Coupa Roadmap Tony Wessels, V.P. Marketing
Coupa
9:30 – 10:30 Amplifying Procurement’s Role Ravi Thakur, V.P. Customer Success,
Coupa
10:30 – 10:45 Break All
10:45 – 11:30 Spend Smart Kerry Clare-Piantek , e-Procurement
Manager, McDonalds
11:30 – 12:15 Strategic Supply Chain Management Eric Lynch, IBM / Emptoris
12:15 - 12:30 Break
12:30 – 1:15 Ask The Analyst Jason Busch, SpendMatters
1:15 – 1:30 Closing Remarks Tony Wessels
1:30 Coupa Demo Ravi Thakur

4. Purchasing

5. Procurement
Purchasing

6. Procurement
Spend Purchasing
Management

7. Procurement
Spend Purchasing
Management
Spend Optimization

8. Coupa Overview
Tony Wessels
Vice President, Marketing

9. Coupa’s Mission
Delivering software innovation that
breeds responsible spending while
impacting the company bottom line.

10. Innovation

11. Responsible Spending

12. Bottom Line

13. Spend Optimization

14. Coupa’s Explosive Growth
180%
Bookings
+95% 150%
Renewal Rate Platform Usage
YOY YOY YOY

15. One World, One Platform
10 Languages
40 Countries
100,000 Users

16. Customers Highlights
Retail Finance Mfg. Health Care High Tech

17. Amplifying Procurement’s Role
Ravi Thakur
Vice President, Customer Success & Services

18. CFO Financial Books
Sales & Mktg Customer Records
HR Personnel Files

19. Procurement Needs To Own Spend Transactions

20. Own The Optimize Spend
Transaction
Spend Optimization Platform & Processes

21. Procurement Must Orchestrate
VS.

22. How Do You Do It?
 Proactively participate in growth strategy
 Manage change effectively
 Measure & demonstrate success

23. Participate In Growth Strategy

24. Understand Growth Strategies
Geographic Expansion

25. Understand Growth Strategies
Geographic Expansion
New Lines Of Business

26. Understand Growth Strategies
Geographic Expansion
New Lines Of Business
Acquisitions

27. Provide Truly Strategic Value
 Ensure executive team supports your Spend
Optimization strategy
 Work with R & D / Product Development
 Be aligned with M & A and global expansion

28. Develop Agile Spend Processes
 Bring distributed locations
under management
 Involve all stakeholders
e.g. facilities, marketing
 Proactively integrate
acquisitions

29. Managing Change

30. Change Management Requirements
Leveraging Frictionless
change agents transition

31. Leveraging Change Agents
Functional Users
IT
Procurement
Payables
Suppliers

32. Functional Users
Needs Solution
 A solution that they  Familiar user
can use interface
 Not stand in their  Support for function
way specific spend

33. Procurement
Needs Solution
 Ensure policy  Enables transaction
compliance ownership
 Attain savings goals  Measurable results

34. Payables
Needs Solution
 Reduce manual &  Automation for
error prone steps invoice processing
 Simplify tasks  Eliminates tedium

35. IT
Needs Solution
 Reduce burden on IT  SaaS/Cloud based
resources platform
 Focus on value-add  User configurable
tasks solution

36. Suppliers
Needs Solution
 No additional cost of  No network fees or
doing business processes to support
 Ease of adoption  Innovation e.g.
Universal Search

37. Frictionless Transition
 Familiar & convenient user interface
 Weave into daily life

38. Demonstrate Success

39. Measure Success
• Establish benchmarks and determine
Set Targets targets
• Use data to analyze:
Achieve Targets • Tradeoffs and interdependencies
• Root cause
• Measurement excellence = capability
Be Excellent to improve and stay ahead

40. Benchmark Success
Effectiveness Productivity
 Spend under management  Transaction cycle time
 User adoption = customer  PO & invoices processed
satisfaction per FTE (#)
 % saving / spend  Support costs – not just IT

41. Communicate Success

42. CFO Financial Books
Sales & Mktg Customer Records
HR Personnel Files
Procurement Spend Transactions

43. Break

44. Spend Smart
Kerry Clare-Piantek
e-Procurement Manager
McDonalds Restaurant Operations Inc.
44

45. Coupa User Group Meeting
May 3, 2012
45

46. About Me
E-Procurement
Manager
Joined McD in 2008
Charged with
building/rolling out a
Marketplace
Focus is on indirect
spend
46

47. McDonalds at a Glance
 McDonald's brand mission is to be our customers' favorite place and
way to eat. Our worldwide operations are aligned around a global
strategy called the Plan to Win, which center on an exceptional
customer experience – People, Products, Place, Price and Promotion.
We are committed to continuously improving our operations and
enhancing our customers' experience.
 Some fun facts –
– We have more than 33,000 restaurants world wide
– 1.7 million employees
– Restaurants in 119 countries
– 80% of restaurants are franchised
47

48. Business Opportunity
 Identified some trends indicating we had some opportunities
– G&A growth as a % was growing
– McOpCo Margin was decreasing (company owned restaurants)
– ROI was strong but growing at a slower rate
 Put together a business case for an indirect procurement
process/team
– First category sourced was safety shoes
– Savings of over 25% achieved
– Proved to the company that there was substantial opportunity
 Tried to implement a solution at least 3 times previously
unsuccessfully
48

49. Deciding the Best Course of Action
 McD was rolling out Oracle in the US so options were limited
 Previous attempt to roll out Oracle iProcurement was unsuccessful
- change management largely ignored
- different processes existed for purchasing capital items vs.expense items
- authorization limits and approval process complicated
- required purchase order number for payment to supplier
 Field wrote a compelling letter to management about what needed to
be fixed if folks were going to use the system
49

50. Managing Change
 We engaged the hearty few that were still using the system to help us
drive the system changes to make it “user friendly”
 Engaged influential folks internally to participate in a pilot
 Designed system initially knowing that eventually we would want to
extend system to the franchisees
 Held several conference room pilots including job impact analysis
 Included operators to participate in the RFP to pick the system for the
operators
 Piloted system with a handful of operators
50

51. Managing Change
 Several hurdles had to be overcome
– Operators not always supportive of Home Office Programs
– Information for operators is considered confidential so home
office access had to be extremely limited
– McDonalds doesn’t mandate programs
 Took feedback from pilot and incorporated changes into
the system
– Needed to accommodate “combo operators”
– Single sign on mandatory
– Needed to build champions
– Focus on large operators first
51

52. With Coupa Today
 Over 1,100 operators are now using Coupa representing 5,200 user
and over 6, 100 restaurants
 Mainly using it for expense items, slowly moving to capital (uniforms,
office suppliers, small kitchen wares)
 Metrics we use include:
– Weekly spend/number of purchase orders
– Embedded users
– Average spend per restaurant
 Feedback indicated biggest benefits are time savings and
control/visibility
 Operators think what we are doing is “a no brainer”
52

53. With Coupa Tomorrow
 Next steps based on our user feedback
– Leveraging the reporting capabilities
– Instituting a budget component to the system
– Being able to control what suppliers their employees can purchase
from
– Added services to the system
– Potentially doing orders on behalf of our operators
53

54. Best Practice Recommendations
 Recommendations
– Change management is key
– Don’t try to onboard everyone – be realistic
– Build champions
– Make sure you include the users in the decision making process
 Opportunities
– Looked for broader groups to engage to help spread your message
– Staff appropriately
– Simplify the on-boarding process (set up is complex due to
structure)
54

55. Strategic Supply Management Overview
Eric Lynch
Director, Global Alliances and Channels
IBM - Emptoris
55
Confidential and proprietary

56. Emptoris Strategic Supply
Management Overview
Powering Procurement Transformation
Eric Lynch – Director, Emptoris Global Alliances and Channels

57. Eric Lynch
• Emptoris/IBM – Director, Global Alliances and
Channels
• Location: Chicago
• Alliance & Channels Business Development & Sales
experience consulting clients around Strategic
Supply Management best practices, processes and
use of SSM Solutions.
• Started Supply Management career with A.T. Kearney
Procurement Analytic Solutions in 2000 at the onset
of eSourcing.
• Experience selling eSourcing, Spend Analytics,
Enterprise Contract Management, Supplier Lifecycle
Management solutions and consulting.
© 2012 IBM Corporation

58. Our Mission…
Delivering strategic supply and contract
management solutions that enable Global 2000
companies to maximize financial performance and
optimize commercial risk around the world
Manage 100% Gain Visibility Optimize Ensure Flexibility
of Spend And Control Decision
Making
58 © 2012 IBM Corporation

59. Today’s Operating Environment
Tepid economic
environment Complex economic environment
Western cool, growth in emerging
Continued
Globalization Globalization accelerates
New global opportunities
Increased reliance
Increased outsourcing
On suppliers Globalization of supply base
Increasing
Risk and volatility From commodities to currencies
Globalization fuels increased risks
59 © 2012 IBM Corporation

60. Pressures on Procurement
Top Pressure Points
“The State of Strategic Sourcing: Building a Context for the Next Decade”, published by Aberdeen, April 2011
60 © 2012 IBM Corporation

61. Why the supplier is so important
“On average, 50% of the
Brand
value (and costs!) of your Reliance
Missed Revenue Increased
Protection products and services Supply Chain
Opportunities on
are in the hands of CAPS Research
Cross-Industry Report
of Standard Benchmarks
your suppliers”
Commodity Price Regulatory Customer Demands Good
Volatility Pressures Corporate Citizenship
61 © 2012 IBM Corporation

62. Strategic Supply Management (SSM)
E N T E R P R I S E B O R D E R
62 © 2012 IBM Corporation

63. Enabling CPOs to Drive Business Success
Manage Complex
Data and Categories
Believe
The Plan
Connect
Source to Settle
And Automate Process
Data,
Visibility,
Opportunity
Achieve Compliance &
Savings
Price Manage
changes, The Risk
Contract
Terms,
Supplier
Evaluation Commodities,
Currencies, Country
Regulations, Natural
63 © 2012 IBM Corporation
Disasters

64. The solution for Strategic Supply Management :
Emptoris Suite V9
 Procurement Intelligence
Global, enterprise-wide visibility into spending and
suppliers to drive operational and supplier
performance improvement
 Source to Contract
Advanced sourcing and enterprise contract
management capabilities maximize and lock in
savings
 Category Spend Management and
Compliance
Manage complex spend categories and ensure
compliance of service providers and outsourced
workers
 Program Management
Powerful, cross-suite program management
capabilities to drive savings, risk and compliance
programs
 Virtual Supplier Master
A global master repository for supplier and category
information and flexible supplier discovery
capabilities
64 © 2012 IBM Corporation

65. Program Management
Program Management
Enterprise Category Supplier
Spend Supplier Supplier Risk Spend
Sourcing Contract Spend Performance &
Analysis On-Boarding Classification Management Analysis
Management Management Development
 Improve Management Control and  Ensure Compliance
Accountability – Guides users to follow pre-defined processes
– Provides a framework through which all and data collection guidelines compliant with
procurement programs can be managed, corporate rules
including budget and savings programs
 Improve Productivity and Increase
Organization Capacity
– Improves global coordination of procurement
activities and the allocation of resources
– Provides a central, configurable workspace that
simplifies communication, with tools that
automate standard tasks and provide alerts for
exceptions
65 © 2012 IBM Corporation

66. Rent-A-Center Case Study
The largest operator in the United States rent-
to-own industry with ~35% market share based
on store count
 Number of stores: more than 3,000
 Number of employees: over 18,990
 Annual revenues (2009): $2.752 BN
© 2012 IBM Corporation

67. What does best of breed combination really
mean?
Sourcing Engine Transaction Engine
Identify & Contract With Channel Spend Through
Preferred Suppliers Preferred Suppliers
Negotiate Savings & Favorable Ensure Compliance To Realize
Terms Negotiated Savings
© 2012 IBM Corporation

68. REAL RESULTS
SAVINGS $1,000,000 in 3 months
enough for more than
1,000
sofas and flat screen televisions to rent to consumers
© 2012 IBM Corporation

69. To Learn More…
Visit www.emptoris.com
Resources available:
http://www.emptoris.com/resource-library
Customer Video Testimonials
Meet The Experts Videos
Thought Leadership White Papers
On-Demand Webinars
Podcasts
Contact us at: info@emptoris.com
© 2012 IBM Corporation

70. Ask The Analyst
Jason Busch and Thomas Kase
SpendMatters

71. Ask the Analyst (but first … what’s on
our mind these days)
Jason Busch and Thomas Kase
April 2012
Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com

72. Who we are
The team
Former:
Strategy and sourcing consultants
Metals traders
Heads of procurement
The sites
www.spendmatters.com www.agmetalminer.com
First blog in sector, now much more 4 years old, largest metals pub in NA
www.spendmatters.co.uk www.hcmatters.com
Launched in 2010 Launched in 2011
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73. Our supply markets still won’t rest!
• Total cost/labor cost on the rise
– Country-specific labor
– Trade/export policy
– Shipping (fuel surcharges, bunker
charges)
• Currency volatility
• Production capacity constraints
• Lean extremes
• Raw material availability (e.g.,
rare earth metals)
• New regulations
• Black Swan events
Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com

74. Think big for a moment …
stepping into global procurement
and finance shoes today
Globalization challenges
 Trade imbalances, total cost hiccups (and
missteps) and policy uncertainties
 Different definitions of acceptable behaviors
Currency & commodity volatility
 Currency madness (Dollar, Euro, RMB, Pound, etc.)
 Coming soon or already here: currency inflation (or
deflation)/commodity inflation
Economic uncertainty
 Quantitative Easing (continued)
 Weak demand
 Liquidity concerns, supplier access to capital
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75. When it comes to our procurement and finance groups,
these trends and issues have often upset the apple cart
 Working capital concerns
As much as $5 million in direct costs for each
supplier bankruptcy; which direction will suppliers
turn if Europe and China tank the rest of the world
economy
 Trade worries
Currency manipulation, inflationary commodity
pressure, supply shortages
 Corporate cost cutting
Fewer resources to accomplish more aggressive
margin improvement goals (not to mention lower
SG&A expenses); CEOs looking at supply chain
organizations as profit, not cost centers
 Sustainability & CSR
 CEOs looking for financial impact from
sustainability (and no surprises) when it comes to
CSR programs
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76. What were the top procurement and supply chain priorities we
observed last year (inclusive of finance)?
• Incremental cost reduction (including cost
reduction based on total cost analysis)
• Dealing with capacity challenges (in certain
markets)
• Managing the workforce:
– Contingent/services procurement
– Getting more from the procurement group
• Compliance and risk: supplier performance,
supplier visibility, operational/financial stability,
etc.
• Balancing demand/supply volatility (e.g.,
part/component shortages for the holiday season)
• Evaluating alternative models vs. business as usual
– shared services, BPO, contingent staffing (for
both procurement and A/P)
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77. What will the top procurement and supply chain priorities
we’re expecting for the rest of 2012 and into 2013?
• Continued focus on cost savings either to protect
fortress balance sheets that companies have
amassed or just to survive
• Anticipating/forecasting (cash, revenue, demand,
etc.) and mapping to procurement and working
capital strategies in a questionable recovery or
possible recession
• Continuing to find new ways of becoming more
efficient on the periphery (e.g., A/P, indirect
spend) to focus on core operations
• Commodity, cost volatility and reducing
exposure/risk
• Optimizing for total supply chain/supply
management costs for procurement and payables
(inventory, working capital, unit cost, logistics, tax
implications, etc.)
• Risk management, albeit from an expanded
perspective/definition
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78. Restructuring the market – translating priorities to ten
broader organizational tactics
1. Building the right teams and talent to meet changing requirements
2. Investing in systems to support functional business users capable of shaping
strategy and driving results (not just on maintaining systems of record and
building better transactional environments)
3. Finding ways to do more with fewer (or flat) resource levels
4. Developing strategies, teaming approaches and supporting tools that bridge
functional groups such as procurement, A/P, treasury, internal audit, etc.
5. Getting more from information that should already exist internally (but often
doesn’t)
6. Bringing external information and insight into the organization (e.g., risk, supply
markets, commodities, etc.)
7. Taking a portfolio/finance and risk management view of suppliers and spending
8. Migrating to systems that support emerging business needs and objectives
(keeping an open mind)
9. Deciding what must be done internally (or not)
10. Learning to think globally (not just act globally – a major difference!!)
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79. 2020: Five procurement scenarios to consider
1. Extreme localization and decentralization require new approaches
2. Beyond process: politics, regulation, philosophy and economics
define procurement’s focus
3. Technology proves more then transformative: emerging enterprise
applications, mobile computing, social “intelligence” and technology
democratization change the possibilities (and priorities) of
procurement
4. Global supply chain intelligence dictates winners and losers
5. Core procurement is absorbed (e.g., by shared services such as
corporate Six Sigma, finance, operations, HR, etc.)
Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 79

80. 1) Extreme localization and decentralization require
new approaches
Themes
• Speed to support constituents/customers in the
business (e.g., local work, labor and
employment rules)
• “First wave” savings initiatives (and beyond)
from sourcing have long been exhausted
• Supporting sourcing in local geographic markets
• Government-directed spend
• Green/CSR
• Shipping costs continue to rise
• Localization of products/services requires
localization of part, material and services inputs
• Continued supply risk incidents force the need to
limit the potential damage that
centralization/concentration of procurement
efforts can create when risk strikes
Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 80

81. 2) Beyond process: procurement on the global
chessboard
Themes
 Economic uncertainty and market volatility
− Continued “jobless” recoveries, EU/debt
hangover that won’t quit?
− Austerity programs European disunity
− Flexible workforce
• Supply chain regulations / traceability
− REACH, ROHS, beyond
− Industry regulations (e.g., pharma)
− Labor practices
 A superpower smack down
− Behind-the-scenes battle for raw materials
(metals, oil/energy, other base materials)
− Punitive measures in response to protectionism
 Blood, sweat and tears
− Traditional military conflicts (e.g., Iran)
− Non-traditional dangers (e.g., terrorism)
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82. 3) New technology models prove “insanely great” and
change the game for good
Themes
• Emerging enterprise applications, mobile computing,
analytics / “intelligence” and technology democratization
change the possibilities (and priorities) of procurement
• Social applications models, social connectivity
• Interfaces
– iPad/iPhone (i.e., touch)
– Video (phones, PDAs, Flip cameras)
– Voice
• Enabling technologies
– In memory DB
– Virtualization (i.e., cloud)
– MDM/CDI (encompassing structured
and unstructured data sets)
• Networks
– Supplier monitoring, collaboration and development
– On-boarding / enablement
– Benchmarking
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83. 4) Global supply chain intelligence dictates winners and
losers
Themes
 Supply chain risk
 Financial
 Labor
 Product/material compliance
 CSR
 Natural disaster/weather
 Etc.
 Commodity insight
 Forecasting
 Budgeting, planning
 Sense and response time – lead-time to respond to
issues
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84. 5) Core procurement is absorbed
Themes
• Procurement absorption (e.g. shared services such as
corporate Six Sigma, operations, IT/CIO, etc. take on
certain aspects of the function)
• Supply chain and finance/internal audit absorb risk
• Direct materials continues to stay with the business
• Complex services never make the transition
• Finance, finance, finance – clear reasons to take
ownership
– Savings implementation vs. identification
– Challenge of forecasting earnings and mid-term cash flow
– Credit lines are still very tight – suppliers and buyers often
alike
– P2P strikes back: working capital strategies working their
way into procurement strategies – and services
procurement tactics and technologies as well
– Speaking the language! margins, gross profit, EBITDA,
OIBDA
Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com 84

85. Contact details
Jason Busch
Managing Director, Spend Matters and Azul Partners, Inc.
Founder and Executive Editor, www.spendmatters.com
Email: jbusch@azulpartners.com
Phone: 773-525-7406
Thomas Kase
Lead Analyst, Spend Matters
Email: tkase@azulpartners.com
Phone: 404-791-3854
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86. Closing Remarks
Copyright © 2012 Azul Partners Inc. All rights reserved. Not for distribution. www.spendmatters.com - spendmatters.co.uk - www.agmetalminer.com

87. Coupa Demo
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