Procure-to-PayA Journey from Simple to Sophisticated Focused on

Process Efficiencies

REIT = Real Estate Investment Trust (NYSE:BXP)*• 157 Properties• 60.3 Million Square Feet In-Service• $28.4 USD Billion Total Combined Market Cap

Five Regions/Markets• Boston• New York• Washington DC• San Francisco• Princeton

* December 31, 2012

720+ Employees across 100+ Physical Locations- Corporate Office with Five Regional Offices

JD EnterpriseOne 9.0 / Tools 8.98.4.3 • Implemented January 1999 / Upgraded May 2009 / Implemented Tools Upgrade

Procurement• Originates Across Many Locations; Decentralized• Centralized Accounting• Small to Large Transactional Value• Striking a Balance between Risk/Controls and Efficiencies

THE ENVIRONMENT

6+ Year Evolution of Procure-to-Pay Processes and Systems

OUR JOURNEY…

“We’re a PO culture….”

THE TRIGGER…

…four different systems.

….five different processes.

We standardized: NexusPayables (real estate solution provider)

Workflow Process

PURCHASE ORDERS

…but

INVOICES BY TYPE

2008 2012

Rationalize – Process Improvement (2009)• Invoice Scanning• Invoice Consolidation• Preferred Vendor Program• Recurring Vouchers

…HAS TO BE A BETTER WAY

Invoice Scanning- 235 File Drawers- Centralized Scanning- #1 Used Application- Complete Transparency

…HAS TO BE A BETTER WAY

Invoice Consolidation - Examples• Otis = National Contract 350• Janitronics = 1,700 to 600• Temco Industrial = 1,800 to 430

Preferred Vendor Program• Within Each Region

Recurring Vouchers• Leveraging JD Edwards to Recycle Vouchers during the

Contract Period = 250

…HAS TO BE A BETTER WAY

Reduce InvoiceCount by 18%from 2009-2010

New Programs (2010-12)• Outsourcing Utility Invoice Processing-Payment• US Bank P-Card• US Bank C-Card

JD Edwards Integration

…HAS TO BE A BETTER WAY

• Electricity, Water & Sewer, Natural Gas, Steam & Fuel Oil

• Invoice Processing• Invoice Audit

• Future: Energy Reporting

…OUTSOURCING UTILITY INVOICES

• 207 P-Cards = 14,000 Transactions/$4.2 Million• 150 C-Cards = $2.4 Million

• Online Coding, Receipts, Online Approvals• Rebates• Audit• JD Edwards Integration

…P-CARD & C-CARD

INVOICES BY TYPE

2008 2012

87,000 60,000

6+ Year Evolution of Procure-to-Pay Processes and Systems

OUR JOURNEY…

PAYMENTS

2008 2012

• Bank of America ePayables (Ghost Card)• 2012 = $12.5 Annually = 4,000+ Payments• 340 Vendors• Rebate = $157,000

• Bank of America Paymode (ACH)• 2012 = $161.3 M = 7,000+ Payments• 1,000 Vendors• Cost = $.50 vs. $2.11/Check• Cost Effective/Efficiency for Both Parties

…GHOST CARD & PAYMODE

PAYMENTS

2008 2012

45,500 42,000

• 85% of Transactions are Only 10% of Spend

2013 RE-BASELINE

• Establish PO Threshold Minimum

• Eliminate PO Requirements for Contracted Purchases

• Receiving Optional for PO’s under a Dollar Threshold - TBD

• Migrate Lower Dollar Transactions from PO to P-CARD• Push Spend to $10,000,000+

• Raise Single Transaction Limit• From $2,500 to $5,000

2013 ‘PROCURE’ OBJECTIVES

Reduce the Number of Checks!!!

• Convert to ACH or Ghost Card (36% -> 50%)

• US Bank P-Card• One Auto-Debit/Month ~ 1,200 Transactions

• US Bank C-Card• One to Two ACH Payments/Month ~ 200 Cardholders

2013 ‘PAY’ OBJECTIVES

• Partnership

• Challenge your Banking Relationships

• Push the JD Edwards Solution

• Measure then Re-Measure

…LESSONS

Questions? Comments?

A PeopleSoft Modular Deep-Dive EventJuly 23-25, 2013 Rosemont,

Illinois

A JD Edwards EnterpriseOne Deep-Dive EventDecember 2-4, 2013 Denver,

Colorado

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