Executive Forum: Driving the Digital Supply Chain Agenda

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Executive Forum: Driving the Digital Supply Chain Agenda

Welcome to the Age of Digital Disruption

Jigish Avalani President & COO, Tradeshift

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Technology forces disrupting businesses

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Ornskoldsvik Airport, Sweden

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Old habits die hard!

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The Future of Business

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Age of Urbanization

Accelerating Technological Change

Aging world & millennial workforce

Greater global connections

Beyond Shanghai

Tip of the iceberg

Getting old isn’t what it used to be

Trade, People, Finance & Data

How the Supply Chain Fits In

Dollar Shave Club Supply Chain

■ Total Cost to Launch: ~$500,000 | Total Time to Market: ~3 months

■ Gillette’s Response: ~$2.5mm & ~2 years!

Inbound Logistics Operations Outbound

Logistics Marketing &

Sales Services

Procurement HR

Infrastructure Technological Development

Rapid Change

Rapid Change

Static

Tradeshift Overview

Tradeshift at a glance

Global Supplier Collaboration Platform

User base: 200+ countries, Offices: 9 countries

Global Client Portfolio Awards

Tech Tour Growth 50 "Among Europe’s fastest growing pre-exit

high-tech companies"

The Top 100 Cloud-based "Enterprise Software Startups of 201

The Circulars' 2015

Digital Disruptor Award

Global Network

40+ F1000 Clients

500K Suppliers

1.5M suppliers on contract to be onboarded

Diverse Team

250+ Employees

42 Nationalities

Software built for change

Connected. Collaborative. Agile. Data-driven A networked platform built with suppliers at its core. Connecting buyers, suppliers, and all their processes in one place.

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All your suppliers. All in one place Transform the way you buy, pay and work with suppliers

Rethink Supplier Management. All your supplier master data, compliance, risk and performance in one place.

Rethink Apps. Our apps ecosystem extends the value you get from Tradeshift as your business needs change

Rethink eProcurement. Buy everything you need from one place, where any online purchase can be within policy

Rethink AP Automation. Transact with all your suppliers for 100% of your invoice volume

Competing in Disrupted & Re-invented Industries

www.linkedin.com/in/jigishavalani

@jigish_avalani

[email protected]

Work Force Management Source to Pay Utility Tail Spend Management Strategic Sourcing Certified Diverse

Roy Anderson Chief Procurement Officer MetaProcure 470-514-3640 [email protected]

Digital Supply Chain

Digitizing in the Industrial Space

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"   I thought it was all about technology.

"  Hire a couple thousand technology people

"  Upgrade our software

Insights & Publications, McKinsey and Company About the authors: Jeffrey R. Immelt has been the chairman and CEO of General Electric since 2001. Rik Kirkland is the senior managing editor of McKinsey Publishing and is based in McKinsey’s New York office.

Jeff Immelt


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“I was wrong”


Jeff Immelt


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"  Product managers have to be different

"  Salespeople have to be different

"  On-site support has to be different.


Jeff Immelt


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Infecting everything "   IT "  Finance "  Manufacturing "  Supply Chain


Jeff Immelt

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Digital bidding, Mainframe to Supplier EDI

Savings Unit Price Order entry Cost of Money Shipping errors Restocking Sales time

AP Invoice errors Finance reclassification Expediting

Buyers Production delays

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The Person with the Gold

Makes the Rules

"   Program "   2002 First e-mail based approval widget "   10,000 unique users "   3,000 new users each year "   250 catalogs

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E-Procurement

"   Impact "   Average approval cycle from 10 days to 4 hours

Wireless Laptop on the Beach in Maui

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I had a dream

"   Program "   2002 First e-mail based approval widget "   10,000 unique users "   3,000 new users each year "   250 catalogs

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E-Procurement

"   Impact "   Average approval cycle from 10 days to 4 hours "   Moved all transactional work to Noida India "   Massive reduction in invoice errors "   Corresponding reduction in AP "   Removal of finance controllers whose only role was to reclassify GL errors

90% of the Resources Moved to

Strategic Sourcing

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"   200 suppliers digital

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The Problem

"   8,000 suppliers and growing

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NAFTA

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Changing Income Statement

2000 2015

Net Sales $100,000 $100,000

Cost of Goods Sold $20,000 $35,000

Gross Profit (Loss) $80,000 $65,000

Employee Benefit, TAXES, WAGES $45,000 $25,000SGA $5,000 $5,000SUPPLIERS $10,000 $15,000 Total Expenses $60,000 $45,000

Net Operating Income $20,000 $20,000

Other Income

YearRevenue

Cost of Goods Sold

Expenses

Income Statement

Supplier 30%

Employee 50%

2000

Supplier 50%

Employee 30%

2015 IT BPO HR Payroll, RPO Call Centers Customer Service Web Design Accounting Contract Manufacturing Data Entry R&D

Advertising Facilities Management Creative Design Engineering Mail Room Legal Services Travel Warehouse Logistics

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Suppliers drive results

Where is the Innovation

Statistics of U.S. Businesses Employment and Payroll Summary: 2012 Economy-Wide Statistics Briefs By Anthony Caruso Released February 2015

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0%

10%

20%

30%

40%

50%

60%

70%

0

10

20

30

40

50

60

70

Large (over 500) very small (<20) small (20-99) medium (100-499)

Employment by Enterprise Employment Size

Employees (M) Percent

"   Global corporations are an inescapable presence.

"   25 million small businesses in the U.S.

"   Account for half of all U.S. jobs

"   This is where the game changing innovation lives.

Data Driven Decisions

YOU CAN HAVE A SEAT AT THE TABLE AS SOON AS YOU CAN BACK UP YOUR SUPPLIER INNOVATION IDEAS WITH DATA

OUTPERFORM

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Risk

"We are going to see a big awakening around supply chain risk in the coming decade"

John Campi, former CPO Home Depot, Chrysler, DuPont

Digital Supply Chain

Dynamic Knowledge

Network

Suppliers

Internal Customers

Competition

Service

Category

Customer

Internal Dynamic

Knowledge Network

R&D

Finance

Customer

Operations

Marketing

Customer Service

Peer Group Knowledge

Network

Universities

Trade Groups

Mentors

Service

SUPPLIER

Friends

Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition

Global Dynamic

Knowledge Network

Operations

Category

Countries

Operations

NASA

X Prize

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Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition


Network

Universities

Trade Groups

Mentors

Service

SUPPLIER

Friends

Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition

Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition

Internal Dynamic

Knowledge Network

R&D

Finance

Customer

Operations

Marketing

Customer Service


Network

Universities

Trade Groups

Mentors

Service

SUPPLIER

Friends

Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition

Global Dynamic

Knowledge Network

Operations

Category

Countries

Operations

NASA

X Prize

Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition


Network

Universities

Trade Groups

Mentors

Service

SUPPLIER

Friends

Supply Chain

Knowledge Network

Suppliers

Supplier

Supplier

Supplier

Supplier

Competition

Internal Dynamic

Knowledge Network

R&D

Finance

Customer

Operations

Marketing

Customer Service

Social-media platforms across an interconnected network of suppliers

Will turbo-charge decision-making in the supply chain

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Internal Customers

Suppliers

Corporate Strategy LOB Expectations Long Term Goals

The Decision Table

SCM Rigid Bid Rules

Limit Conversation Compliance Mandates

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The Transformation Roadmap

Longtermbusinessplans

DecisionPoint

SupplierRiskManagement

SupplierInnovation

SupplierCollaboration

StrategicSourcing

RFP

PurchaseOrder

Invoice

3years 2.5years 2years 1.5Years 1year 180days 90days 30days 30dayslate

The transactional space The next generation strategic space Internal Team Focus

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Suppliers work in partnership with your Internal Customers

SCM is at the table bringing forward Supply Chain solutions to support corporate strategy

Corporate Goals are embedded in SCM Goals

SCM is with the Internal Customers

Data Driven Decisions Guidance

Tools that make it easy

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Supply Chain Innovation

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CellPhonePenetra,oninAfrica28%in200990%in2014

GlobalAccess

AMassiWarriorinKenyaWithamobilephonehasbe@ercapabilitythanPresidentReagan.

Withasmartphonehehasmoreinforma,onathisfinger,psthanPresidentClinton

Internal Customers Suppliers

Corporate Strategy

LOB Expectations Long Term Goals

The Decision Table

Supply Chain Innovation Data Driven Decisions

Collaboration, common goals

Interconnected Network

of suppliers

Turbo Charged decision making

Direct Connect

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Create Knowledge Networks

"  Enable the free flow of communication "  Real-time feedback from deep within the supply chain "  Powerful knowledge-absorbing trail of communications "  Detailed performance management "  Auditable "   Integrate best-practice intelligence

CFO Magazine http://ww2.cfo.com/supply-chain/2012/02/social-media-and-the-coming-supply-chain-revolution/

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Roy Anderson W- 470-514-3640 M- 978-857-3868 [email protected] www.metaprocure.com https://www.linkedin.com/in/royranderson

https://www.linkedin.com/company/metaprocure https://twitter.com/metaprocure

THE WORLD’S MARKET FOR WORKING CAPITAL ®

STRENGTHENING THE SUPPLY CHAIN WITH WORKING CAPITAL TECHNOLOGY

Early cash flow opportunity

Working capital financed by: •  $1.4T Loans •  $375B Factoring •  $225B SCF

LIBERATE CASH THROUGHOUT THE SUPPLY CHAIN

We can liberate $38T in working capital

Your Opportunity

Our Purpose

The Issues •  On any given day, businesses around the globe have $40T tied up in A/R

•  For any business it takes an average of 60 days to be paid

•  Global funding options are limited, inefficient and only cover 5% of the $40T outstanding

•  Short-term, low-risk debt is at record low yields

•  Create, operate and grow the largest working capital marketplace in the world, liberating cash to increase your profit while providing the world’s suppliers accessible and cost-efficient cash

•  There are record levels of cash on corporate balance sheets

•  Your suppliers are already part of our network

| ©2015 C2FO. All rights reserved

C2FO removes barriers by creating transparency and eliminating risk. Through the power of real-time collaboration, we optimize cash flow between you and your suppliers at a rate that is better for both. Why is it risk-free? On approved invoices, it isn’t a matter of “if” you’re going to pay your suppliers, it’s just a matter of “when”.

NEW SOLUTION TO FINANCIAL GAIN AND SUPPLY CHAIN SECURITY


HOW INNOVATION BECOMES A WIN-WIN FOR BUYERS AND SUPPLIERS

What’s in it for buyers?

What’s in it for suppliers?

•  Increase gross margin & EBITDA

•  Generate higher returns on cash

•  Improve financial health of supply chain

•  Complement other early payment programs

•  Implement in 8 to 12 weeks

•  Improve cash flow

•  Access early payment on demand

•  Eliminate paperwork and contracts

•  Enjoy world-class support

•  Accelerate cash in just 2 clicks


C2FO IS A INTEGRAL COMPONENT OF HOLISTIC APPROACH TO WORKING CAPITAL

A holistic approach to Working Capital requires companies to have multiple levers to pull depending on what is needed.

•  Pay on standard terms to suppliers

•  Maintain Cost of Goods

•  Leverage own balance sheet

•  Increase liquidity for buyers • Obtain participation rebate (~1%)

• Leverage providers’ balance sheet

• Enhance rate of return • Early pay for many suppliers

• Reduce Cost of Goods

• Leverage own balance sheet

•  Increase liquidity for buyers • Lower financing cost to suppliers

• Leverage banks’ balance sheet Supply Chain

Finance

Open Account

Increase Cash Balance

Increase Gross Margin

Purchasing Card


ECOVADIS ® CONFIDENTIAL

DRIVING SUSTAINABILITY�THROUGH GLOBAL SUPPLY CHAINS Introduction to EcoVadis

[email protected]

ECOVADIS ® CONFIDENTIAL 61

CPOs Nightmare…

Environmental, Social and Ethical Risks in the Supply Chain


Supply Chain Risks are Rising

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Driving up costs from volatility & revenue loss from disruption

Sources: BBC & FT.com


Supply Chain Risks are Rising

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Bad news spreads fast, risking reputation damage


Pressure is Rising for Supply Chain Due Diligence

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USADodd-Frank Act

(2010)California

Transparency Act (2010)

MalaysiaMandatory

Disclosure on CSR Information in Annual Reports

of listed companies

(2007)India

Amendment Companies Act, 1956 on Section

217 (1)(2008)

FranceArticle 225 of the Grenelle II

Law(2010)

UKCompanies Act

(2006)Climate Change

Act (2008)Stewardship Code

(2010)

DenmarkAmendment

Danish Financial Statement Act

(2008)

EUMandatory ESG Disclosure law

(2014)

ChinaGreen Securities

Policy(2008)

2015: UK Modern Slavery act, French ‘Devoir de vigilance’, proposed EU law, and a supply chain due diligence law before the US Senate…


The 3 drivers to Sustainable Procurement

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IncreaseRevenue

•  Product/Service differentiation•  Access new markets•  Income from recycling projects

GE, Bovis, Danone, Unilever, Grainger, Walmart, SNCF

Reduce Costs•  Improved TCO•  Reduced over-specification•  Reduced consumption / demand•  CSR compliance costs

Nokia, Walmart, Baxter, Adobe, SNCF, Accor Hotels, Puma, UPS

ManageRisks

•  Brand protection •  Supply chain disruptions costs•  Remediation costs (ex « recalls »)•  Fines + litigations

BP, Mattel (Recalls), Nike, Gap, Walmart (Child) Total (Fines), Baxter

(Heparin), Palm (ROHS)

Case StudiesDrivers

Source : “Sustainable Procurement Value” – INSEAD Business School – PriceWaterhouseCoopers – EcoVadis (Dec 2010)


93% of CPO’s consider Sustainability a priority*

.…but how do you assess the Sustainability performance of suppliers

and engage them in improvements?

Source: HEC- EcoVadis - Sustainable Procurement Benchmark - 2013)66


Change from Current Situation…

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×  High costs

×  No reliable data

×  No internal adoption

For Buyers×  Audit / Questionnaire fatigue

×  No personalized feedback

×  No focus on improvements

For Suppliers


… to EcoVadis Sustainability Rating platform

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ü  Reliable indicator

ü  Actionable scorecards

ü  Leverage on suppliers

For Buyers For Suppliersü  Identify improvement areas

ü  Competition benchmark

ü  Reduce admin. Burden²


How we work: Three pillars

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PEOPLE

PLATFORMPROCESS


Easy to understand Suppliers Scorecards

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ü  Possibility to add customer specific indicators

ü  Can be linked to your vendor management system

Benchmark suppliers’ performance

Commodity specific Strengths and Improvement Areas

Supplier CSR performance on a scale /100 (overall and by theme)


Integration

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+


TOTAL270

CSR Experts130

Supplier Engagement

50

Program Management

40

International Scientific Committee with members of DJSI, GRI, INSEAD, HEC…

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Our People


... worldwide

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CSR Risks

Key Facts

" Suppliers in 110 countries" Buyers in 25 countries" 10 languages (service)" 10 languages (questionnaire)

Global coverage of the EcoVadis ratings


Power

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In summary: why EcoVadis?

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Simple

Global

Reliable

•  Easy-to-understand scorecards… •  Service combining software, data validation services•  Simple dashboard and intuitive tools

•  Multiple sources of data analysed, by expert analysts•  Proven methodology, supported by Intl. Scientific Committee•  Incorporates global standards

•  Capability to cover all spend categories in a single tool•  Coverage of 100+ countries•  Multi-lingual support for suppliers


Frederic TRINELCo-CEO

[email protected]+1(914) 338 9978

EcoVadis is to CSR what Dun & Bradstreet is to Finance

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THANK YOU