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The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITSMar 10-12 2015 – Amelia Island
SYMPOSIUMS
March 25 – Minneapolis, MN
May 20 – Toronto, Canada
REGIONAL ROUNDTABLES
Feb 4 – Seattle, WA
Feb 25 – Hartford, CT
Apr 15 – Sydney, Australia
Apr 29 – Chicago, IL
For more information and to register for all SIG events:
www.sig.org
Become a SIG Champion and earn points in the process by…
• Attending an event
• Dialing into a webinar
• Speaking at a Summit
• Submitting content to our blog or SRC• Referring a new member
• And more
For more information and to register for all SIG events:
www.sig.org
RECENT POSTINGS
The SIG Career Network is
bursting with opportunities.
New jobs are posted daily by some
of the best known global companies in the world for those
seeking careers in sourcing, outsourcing, procurement and
related functions.
For more information go to: www.sig/career-center.org
NEW to the Career Network!
• Illinois Tool Works – posted Jan. 30
• Senior Analyst – Procurement BI
• Senior Analyst – Training and Tools
• Holyoake Search Group – posted Jan. 29
• Strategic Sourcing Specialist – MRO
• Director of IT & Telecom Sourcing
• Senior Strategic Sourcing Manager
• Strategic Sourcing Associate - IT
• Director of Strategic Sourcing
• HBO – posted January 21:
• Procurement Manager
• Buyer
• Ecolab – posted January 20:
• Procurement Manager
• Ecolab – posted January 14:
• Procurement Manager – Packaging
• Procurement Director – Travel & Fleet
bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebookbit.ly/SIGYouTube
Join the discussion in SIG’s Peer2Peer Resource program too!
Stay connected with other SIG members through various social media channels
SOCIAL MEDIA
bit.ly/SIGBlog
New Topic Each Week2:00 pm Eastern
(11:00 am Pacific)
Upcoming Free SIG Webinars:
February 10, 2015Cybersecurity and Privacy Issues in Sourcing Support of M&A DealsPresented by Mayer Brown
February 26, 20156 Reasons Why Procurement Loves SOW ProgramsPresented by PeopleFluent
March 17, 2015Thought LeadershipPresented by Canon Business Process Services
Register at www.sig.org
For more information and to register for all SIG events:
www.sig.org
Upcoming Town Hall Teleconference:
February 11th
The Keys You Need for Acquiring and Managing Talent
Presented by:
Clyde Dornier
Independent Consultant
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated
discussion on top-of-mind issues in an open-mic, private conversation.
Town Hall Teleconferences are NOT recorded.
Calendar of Town Hall Teleconferences
Taking place at 1:00 pm Eastern on the following dates:
February 11 August 12 April 8 September 9 May 13 October 14
June 10 November 11July 8 December 9
For more information and to register for all SIG events:
www.sig.org
SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users
Symposiums 2015:
Minneapolis – March 25
Toronto, Canada – May 20
Columbus – Sep 16
New York– Oct 15San Francisco Bay Area – Nov 13
Regional Roundtables 2015:
Seattle – Feb 4
Hartford – Feb 25
Sydney AU – April 15
Chicago – April 29 Houston – May 6
For more information and to register for all SIG events:
www.sig.org
A SIG Global Summit is…
• Non-commercialized
• Almost 70% buy-side
• Global brands
• 3 days of networking
• Executive Roundtables
• Nearly 50 breakout sessions
69% at director level or above, of which 43% are VP/C-level; Recent speakers include:
www.sig.org/summits.php
Dr. Kenneth SullivanNext Practices in Leadership and
Sourcing: Create Value for the Greater
Good
Randy LewisAdding Meaning to Your Mission:
Improving Results While Making the
World a Better Place
Steve PetersonThe Source of Value: Research-based
Insights into How Procurement Drives
Value
Keynote speakers:
10© 2014 Ariba - an SAP company. All rights reserved.
Speakers
Leslie Martensen is senior product manager for Ariba Contract Management Solution. In
this role, she is responsible for the Contract Management solution including, new features,
roadmap and plan.
Leslie has been with Ariba for almost 5 years. She started as the senior product manager
for Ariba Platform and became senior product manager for Ariba Contracts Management in
June of 2012. Before joining Ariba, Leslie worked as senior product manager at Callidus
Software for 10 years where she was responsible for the Callidus TrueComp product
strategy, features and roadmap. She also spearheaded the new product design for the
Callidus TrueResolution product.
Michael Koch, Director, Ariba Solutions Marketing, has been with Ariba since 2011, He is
responsible for Sourcing and Contract Management. Michael has held positions in the
Network Growth and the Customer Management Organization within Ariba. He has
worked with some of the larger and tenured customers as well as new customers joining
Ariba. Prior to Ariba, Michael worked in Marketing and Product Development at
MasterCard and GE.
11© 2014 Ariba - an SAP company. All rights reserved.
Topics
Introduction
Typical Contract Management Business Requirements
Solution Overview and Differentiators
Customer Success in Action
Demo
12© 2014 Ariba - an SAP company. All rights reserved.
Increased Globalization Expansion into new markets
Global process standardization
International supply chains
Economic Volatility Volatility in markets
Decreased stock valuation
Slow economic growth
Pressure on Margins Profitability by segments
Decreased budgets and spending
Determination of the cost to serve
Focus on Risk Supply chain disruption
Financial risk and fraud
Commodity risk
New Business Models Shared services organizations
Business partnerships
Leveraging big data for decisions
Regulatory Changes Increasing disclosure requirements
Country-specific regulations
Industry-specific disclosures
CPOs Need Help to Navigate a Changing EnvironmentCompeting Pressures on Procurement Organizations
14© 2014 Ariba - an SAP company. All rights reserved.
Contract lifecycle managementRisk management, visibility, and compliance concerns are paramount
Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
Top 5
reasons
cited
Establish better control of enterprise spend66%
Poor visibility of contractual relationships 44%
Pressure to reduce supply and supplier risk40%
Need to improve compliance 37%
Poor visibility into supplier performance on
contracts34%
Contract lifecycle
management technology
provides an opportunity
for procurement
organizations to take
contract maintenance out
of the hands of legal
counsel while allowing
them to focus on
increasing efficiency and
driving cost savings.*
Contracts of the future will
be seen as instruments to
describe and safeguard the
delivery of economic value
and will achieve this
through an apportionment
of risk and responsibilities
that is appropriate to the
capabilities of the
contracting parties and the
nature of the transaction.*
*Source: THE FUTURE OF CONTRACTING : Ariba and IACCM 2012
16© 2014 Ariba - an SAP company. All rights reserved.
Ineffective Contract Lifecycle Management Results in Increased Compliance Risks
Draft Contract
Negotiate Contract
Approval/ Signatures
Storage/ Repository
Manage Compliance
Admin/ Optimize
Creation Visibility Performance Management
Inconsistent and email-intensive
processes
Long Negotiations approval cycle
times
Lack of tight controls ( e.g. for non
standard contracts /language
Legal Risk
Organizationally dispersed contracts
Redundant contracts
No visibility into commitments
(financial, legal)
Inability to track regulatory
compliance or understand contract
history
Poor contract compliance
( PO, Invoice, SLAs )
Poor renewals management
Lack of performance
information hinders re-
sourcing or resale efforts .
17© 2014 Ariba - an SAP company. All rights reserved.
60% of corporate
litigations are
related to
contract disputes
Source: Fulbright & Jarowski 2010
Annual Litigation Survey
18© 2014 Ariba - an SAP company. All rights reserved.
Companies Leveraging Contract Management Solutions
Drive Superior Procurement Results*
* Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
Laggards – Bottom 30%
Industry Average – Middle 50%
Best in Class – Top 20%
67%
4%
8%45%
8 16
Spend Under Management Average Days for Contract
Review & ApprovalRealized Contract Savings
79%17%
47
Up to 50 percent reduction in contracting cycle times
More than 50 % increase in realized contract savings
25% increase in Spend Under Management
19© 2014 Ariba - an SAP company. All rights reserved.
- - - - Leading to Better Visibility and Compliance*
Stated Benefit Contract Management
Metric
Best-in-
Class
All Others
Spend Visibility Compliance by Suppliers to
Service Level Agreements
75% 58%
Contract Visibility Percent of suppliers managed
under contracts
71% 51%
Supplier Visibility Percentage of supplier
contracts stored in a central
repository
75% 52%
* Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
20© 2014 Ariba - an SAP company. All rights reserved.
These are the Challenges We Hear From Our Customers
Legal
Weak Contract Management. Poor
contract compliance, belated
renewals management, and lack of
performance information
Ineffective Contract Creation. Lack
of tight contract authoring controls,
creating legal risk
Poor Contract Visibility. Dispersed
and redundant contracts and the
inability to track regulatory
compliance or understand contract
history
Disconnected Negotiation
Processes. Inconsistent and e-mail-
intensive processes, long negotiation
and approval cycle times, and risk of
not including the correct stakeholders
Slow Time-to-Value. Poor user
adoption, lengthy deployment, and
limited process and data integration
21© 2014 Ariba - an SAP company. All rights reserved.
What if you could…?
Manage all of your agreements on
an integrated SaaS platform
Address your complex scenarios
with robust, configurable workflows
Leverage pre-built best-practice
templates and workflows
Execute contracts electronically
making the contracting process 100
percent paperless
Improve collaboration with suppliers
via the Ariba Network
Incorporate deployment and best
practices services in order to
achieve your ROI
...And receive all of this in a single
subscription pricing model with no
hidden or additional costs?
Average $3.5 million in annual savings with
14x ROI on a $250K investment from an
Ariba customer:
$1M to $2M due to improved efficiencies in contract search and visibility
$1M to $2M due to contract creation efficiencies (eliminating rekeying, reduced time drafting, etc.)
$400K to $800K due to approval process improvements
$400K due to reduction in FTE support for ongoing enhancements (comparison of CD installed software vs. SaaS delivery model)
$350K with elimination of support and maintenance of CD software
Improved data integrity between contract data and transactional systems
Improved consistency and use of standard terms
22© 2014 Ariba - an SAP company. All rights reserved.
Topics
Introduction
Typical Contract Management Business Requirements
Solution Overview and Differentiators
Customer Success in Action
Demo
23© 2014 Ariba - an SAP company. All rights reserved.
Ariba Contract ManagementSupports the entire contract lifecycle
Draftcontract
Negotiate contract
Approval and signatures
Storage and repository
Manage compliance
Admin and optimize
Contract visibility and repository
Contract execution and compliance
Contract creation
Automates the contract creation cycle, from draft
to reviews and approvals
Contract authoring tools, including clause libraries
and conditional templates
Creates a contract repository with access-
controlled search and reporting
Audit trail for internal and external and regulatory
requirements
Deep, bidirectional integration within the source-to-
contract process
Expiry notification for improved renewal
management
Centralized electronic task-driven notification alerts
Rapid time to value with on-demand deployment
Microsoft Word integration
Integration to leading eSignature providers –
DocuSign and Adobe EchoSign
24© 2014 Ariba - an SAP company. All rights reserved.
Delivering Optimized Contract Lifecycle Management
Improved Contract Management.
Improved contract compliance, timely
renewals management, and visibility to
performance information
Effective Contract Creation. Tighter
controls and minimized legal risk
Full Contract Visibility. Single repository
for contracts, elimination of redundant
contracts, visibility into commitments, and
the ability to track regulatory compliance
and understand contract history
Streamlined Negotiation Processes.
Streamlined and controlled processes,
abbreviated negotiation and approval
cycles, and inclusion of the right
stakeholders
Rapid Time-to-Value. Enables strong user
adoption, delivers rapid on-demand
deployment, and provides process and
data integration
25© 2014 Ariba - an SAP company. All rights reserved.
Third Parties Agree: Ariba is THE Single Best-in-Class SaaS
Solution for ALL Contract Types and Agreements
More than four million contracts every day…
At Ariba, we help our customers manage more than four
million contracts every day with than 500 total customers
Extensive experience and customer reach across both
procurement as well as sales contracts
Consistent Leader in CLM according to…
Gartner Magic Quadrant, June 2013
Forrester Research, SVM Toolset, Q1 2013
Benefits of OnDemand deployment …
Y1 TCO 5X-10X less than installed software
50% faster implementation cycles
25% more spend under management
2X-4X more innovation releases
Sources: Aberdeen, AMR, Triple-Tree, Ariba
Publication Date: June 2013
Gartner MAGIC
QUADRANT
Forrester WaveTM Q1 '13
26© 2014 Ariba - an SAP company. All rights reserved.
Ariba Contract Management (Buy and Sell) Driving Spend Compliance Across All Contract Types
Contract Creation
• Contracts of any type: Buy, Sell, Internal/Corporate
• Collaborative authoring – including integration with Procurement & CRM systems
• Single point of access for sellers across all buyer relationships
• Standardized contract creation from templates and clause libraries
• Deep integration with the sourcing process for contract creation
• Powerful workflow and approval engine controlled completely within the user interface
Repository, Reports, and Alerts
• Customizable, role-based dashboard for contracts data
• Advanced repository and search
• Automated compliance monitoring and alerts
Compliance and Usage
• Performance/audit management on contracts
• Integration with back-end systems for automated P2P usage of agreements
eSignatures through DocuSign and Adobe Echosign
L1 Customer Support, BPC expertise, Setup included in Subscription
Out of box integration to Sourcing and P2P systems
27© 2014 Ariba - an SAP company. All rights reserved.
Contract
Complexity
Our Paper Their
Paper
Strategic Alliance
Sales Agreements
Leases
Sales NDAPurchasing NDA
eContracts
Purchasing Agreements
Ariba Contract ManagementAddressing ALL Contract Types
28© 2014 Ariba - an SAP company. All rights reserved.
Effective Contract Management is the Spend Management
Linchpin
• Includes all aspects of contract
creation from initiation through
execution
• Questionnaire-based templates
driving the contracting process
configured to YOUR requirements
• Powerful workflow and approval
engine controlled completely within
the user interface
• Contract management without
eSignatures is incomplete: leading
electronic signature capabilities
making contracting 100 percent
paperless
• Integrate data with your third party
systems for streamlined process
flows
Contract Management with Ariba:
29© 2014 Ariba - an SAP company. All rights reserved.
• Centralized electronic contract
repository permitting search and
reporting across all relevant
documents and correspondence (not
only the contract itself)
• Task-driven notification alerts
scheduled or based on milestone
events/dates
• Expiry notification for improved
renewal management
• Improved collaboration and better
contract fulfillment visibility resulting in
more-satisfied trading partners
• Improve ability to manage cash
through improved revenue and
payment forecasting and visibility
Commitment Management with Ariba
Commitment Management :
30© 2014 Ariba - an SAP company. All rights reserved.
Ariba® Contract Management eSignature Services in partnership with Adobe®
EchoSign® and DocuSign® help customers to go INK and Paper free and close
deals faster and more efficiently, increasing savings, revenue and productivity.
B u y e r s E - S i g n a t u r e P a r t n e r S e l l e r s
Ariba® Contract
Management
API’s
Integration with leading Electronic Signature providers
31© 2014 Ariba - an SAP company. All rights reserved.
Electronic signatures Value Proposition Faster Contract Completion, Reduced Costs, Improved Controls
Source: IDC White Paper, sponsored by Adobe, Bridging the Information Worker Productivity Gap: New Challenges and Opportunities
for IT, September 2012.
Contracts completed in 1-2 days vs. 2-3
weeks
80% reduction in paper and supplies
Detailed audit information and compliance
copies of every signed document
32© 2014 Ariba - an SAP company. All rights reserved.
The Market-Leading SaaS Solution to Better Manage Contracts & Commitments
Key Imperative Why Ariba Contract Management?
• Most widely adopted contract management provider with over 450
total customers
• Manage the entire contract lifecycle for all agreements on an
integrated SaaS, spend management / sales acceleration platform
• Ranked as a leader by numerous independent analysts
End-End Contract
Management
Improve Contract
Management
Efficiency
• Flexible approach with configurable workflows in the contract
management lifecycle incorporating all relevant activity and information
• Process standardization tools driven by best practice templates to
remove bottlenecks and improve overall contracting efficiency
• Tightly integrated electronic signatures capabilities making contract
execution more transparent, faster, and more secure
• Configurable dashboards with robust search, reporting, and task
driven alerts providing audit trails for operational and regulatory
compliance for best value agreements
• Enhance ability to manage cash through improved visibility and
forecasting
• Plug in to the Ariba Network to improve contracting efficiency and
effectiveness while assuring your return on investment
Manage
Commitments
More Effectively
Driving ROI
33© 2014 Ariba - an SAP company. All rights reserved.
SaaS Data SecurityWith Ariba, Your Sensitive Contract Data Is Secure
Physical Security
24x7 guarded servers
Surveillance cameras
Motion detectors
Limited Ariba access
Biometric access control
Data Security
Three layers of firewall protection
HTTPS – 128 bit encryption
Intrusion Detection System to monitor traffic for anomalous behavior
Password encryption with expiration
Access control entries on load balancers
Availability & Reliability
99.5% uptime
Comprehensive backup schedule
Redundancy at all tiers: web, application, database
Proactive notification of downtime
24x7 disaster recovery plans & centers
Security Certification
WebTrust audited every six months
Independent CPA has determined Ariba conforms to established principles
WebTrust principles: security, availability, processing integrity, privacy, confidentiality
Hosting facilities in the USA and EU and SAS70 certified
34© 2014 Ariba - an SAP company. All rights reserved.
Topics
Introduction
Typical Contract Management Business Requirements
Solution Overview and Differentiators
Customer Success in Action
Demo
35© 2014 Ariba - an SAP company. All rights reserved.
Ariba Contract Management delivers Measurable
Benefits - - - -
350 Suppliers Enabled to-Date
85-90%+ Spend under Management
1.3 Billion Sourceable Spend
7500 Suppliers
100%+ Compliance within TopSource
1300 Contract Workspaces
11 Different Process for various departments
Multi-Location Benefits
36© 2014 Ariba - an SAP company. All rights reserved.
5500+ Contract Workspaces and
signed till date
2-3 Billion Procurement Spend under
contract
14 Categories managed
1200 Contracts signed through
electronic signatures
Ariba Contract Management delivers Measurable
Benefits - - - -
37© 2014 Ariba - an SAP company. All rights reserved.
Customer Success in Action
Deployed in four weeks! Strategic sourcing initiatives including spend visibility, sourcing, and contract management now on a single, integrated platform.
“Having an external party such as Ariba to assist gives it a burst of energy. The concentrated focus from Ariba has been a great kick start and also reduces the ‘wheel spinning’ that can happen internally.”
The contracting process, which might have taken six months before, has now been greatly reduced. What used to take two weeks now takes only 20 minutes with the push of a button”
• Paper contracts with no
central storage and limited
visibility
• Highly manual,
disconnected processes
with no reminders for
contract-related tasks
• Non-compliant purchases
draining negotiated savings
• Decentralized purchasing
groups with few
consolidated vendor
agreements
• Lack of IT resources to
deploy software
Issues Before Ariba: Some Notable Examples:
38© 2014 Ariba - an SAP company. All rights reserved.
Customer Success in Action
Leveraging solution for many agreement types with benefits to Legal, Audit, Compliance, and Risk Management groups.
“Ariba’s technology has allowed us to create and maintain a centralized contracts repository with rich search capabilities that we can leverage to achieve [our] goals. It’s a significant cost saving to owning and maintaining the software ourselves.”
Over 120 facilities and 1,200 users leveraging solution for sell-side contracts with benefits including process standardization, organizational flexibility, and improved visibility into contract terms.
Paper contracts with no central storage and limited visibility
Highly manual, disconnected processes with no reminders for contract-related tasks
Renewal problems resulting in missed revenue opportunities
Approval bottlenecks, especially during crunch times, delay revenue and cash streams
Lack of IT resources to deploy software
Issues Before Ariba: Some Notable Examples:
39© 2014 Ariba - an SAP company. All rights reserved.
runs Ariba Spend Visibility, Sourcing and Contract Management
Challenges Solution Results
Variety of compliance
issues including operational
and regulatory
Requirement to centralize
contract management
process
Seeking to improve supplier
relationships
Inefficient and costly
contracting cycles longer
than necessary and not
driving significant value to
company bottom-line.
Leverage strategic sourcing
elements of the Ariba
Commerce Cloud including
Ariba Sourcing to improve
collaborative sourcing
processes
Deployed Ariba Contract
Management to improve
efficiency and effectiveness of
contracting processes and to
drive better compliance
Leverage Ariba Spend Visibility
for sourcing pipeline building
activities
Reduced contracting cycle times by
57 percent (average reduction from
30 to 13 days)
Reduced number of contracts
“outsourced” and dependence on
legal
Accommodated 12 percent
increase in volume (35 percent
based on weighted average of
complexity) without addition to staff
or reduction in service levels.
Provided much needed contractual
visibility for M&A activity
Assisted in supplier rationalization
efforts
Get the full story from Robert Muszynski, Vice President of Contracts at Selective Insurance: http://bit.ly/96Lkf8
Reduced Contracting Cycle Times by 57 Percent
Selective Insurance Group, Inc. is a holding company for seven property and casualty insurance companies rated “A+” by
A.M. Best offering primary and alternative market insurance for commercial and personal risks, and flood insurance.
40© 2014 Ariba - an SAP company. All rights reserved.
runs Ariba Spend Visibility, Sourcing and Contract Management
Challenges Solution Results
Shared drive with folders for
templates acted as central storage
vehicle
This approach offered little in the
ways of capabilities, visibility, or
scalability
No audit capabilities – a pressing
requirement for a financial services
organization
Data security was an ongoing
concern – files could be updated or
deleted without notice
No ability to do quantitative analysis
of existing agreements
Poor collaboration between legal
and functional groups
Deployed Ariba
Contract Management
and Ariba Sourcing in
early 2009
Currently used by 20
sourcing professionals
as power users
Usage extended to 30
approvers and over
300 analysts across
the organization
Improved audit capabilities has been
a tremendous benefit given the
organization’s business and focus
Workflow and approvals assure that
standardized processes are being
followed
Data security of sensitive contract
data in SaaS delivery model
Expiration notification allows business
users to take action proactively
Ariba serves as a knowledge-base for
language, terms, and
agreements…something Experian
plans to build upon in using clause
library functionality in the future
Audit of Contracting Critical for Organization Specializing
in Risk Data
Experian’s mission is to help businesses manage credit risk, prevent fraud, target marketing offers and automate decision
making as well as providing individual credit scoring. Hear directly from Stacy Huffman, Financial Analyst at Experian, about
their experience with Ariba Contract Management: http://bit.ly/aCYXc2
41© 2014 Ariba - an SAP company. All rights reserved.
runs Ariba Spend Visibility, Sourcing and Contract Management
Challenges Solution Results
Lack of IT resources and
budget to deploy software
28 disparate ERP systems,
which is why they decided
to go with a best-of-breed
provider
Renewal management is a
problem as they did not
have visibility into contracts
that were expiring
Interested in capturing
all agreements (not
only procurement)
Deployed Ariba Contract
Management, Spend
Visibility and Sourcing
Advantages were flexibility,
ease of implementation,
and single channel delivery
All configuration was
performed by business,
contributing to lower TCO
Deployed in four weeks!
Template-driven process easy to use
and flexible
Powerful workflow capabilities have
allowed better collaboration between
procurement and legal
Now have visibility into expiring
contracts
Strategic sourcing initiatives (spend
analysis, sourcing, and contract
management) are integrated on a
single platform
Ariba has been a true partner, working
with Stanley Works to set goals and
create a plan to achieve them
Stanley Black & Decker, Inc., formerly known as The Stanley Works, is a Fortune 500 American manufacturer of
industrial tools and household hardware and provider of security products and locks headquartered in New Britain, Connecticut
Reduced Contracting Cycle Times by 57 Percent
42© 2014 Ariba - an SAP company. All rights reserved.
Topics
Introduction
Typical Contract Management Business Requirements
Solution Overview and Differentiators
Customer Success in Action
Overview Demo
45© 2014 Ariba - an SAP company. All rights reserved.
For Additional Information . . . . . .
Michael KochDirector
Solutions Management
Ph: 1 203.270.0765