Revision A - 23 January 2009

1. Revision A - 23 January 2009 Supply Chain Collaboration via iSupplier Portal & ERS (Evaluated Receipts Settlement)

2. Table of Contents • iSupplier Portal Purpose 3 • iSupplier Portal Capabilities 4 • ERS Defined 5 • Business Drivers 6 • ERS Process 7 • ERS Advantages & Disadvantages 12 • Key considerations for Suppliers 15

3. Purpose: Supplier Collaboration • Ingersoll Rand made an investment to implement a true partnership with our vendors through an Oracle product called the iSupplier Portal. • At the end of this presentation, we will provide you with tools you need in order to take advantage of the portal and collaborate effectively with Climate Control Technologies.

4. iSupplier Portal Capabilities • Suppliers can view: • Forecast • Purchase Orders • Orders to be acknowledged • Past Due Orders • Purchase Order History • Receipts • Delivery Performance • Invoices Logged & Payments • Defects & Returns • Product History • Supplier actions: • Acknowledge Orders • Enter Advanced Ship Notices • Reschedule Orders • Cancel Orders

5. ERS: Defined • Evaluated Receipts Settlement (ERS) = business process in which invoices for supplier payments are auto-created based on goods received from supplier. • ERS eliminates need for suppliers to send invoices – instead, relies on pre-negotiated price agreements between supplier and Ingersoll Rand (IR). • With ERS, payment generated based on receipt transaction processed by IR.

6. Business Drivers Traditional Transaction Process: • IR places a Purchase Order (PO) with supplier. • Supplier ships goods and bills IRby sending invoice to Accounts Payable (AP) department . • IRreceives goods. • AP department then enters all invoice information into accounting system and matches invoice to goods received and/or the PO. • Payment is made to supplier based on the match.

7. The Traditional Procure-to-Pay Process

8. Traditional Process • Disadvantages

9. Business Drivers • The ERS Process • In the ERS process IR places a Purchase Order (PO) with supplier. • The supplier ships the goods. • IR receives the goods. • The system automatically generates an invoice number based on the receipt transaction and the actual delivery of goods/services. • Payment is made to supplier based on the receipt transaction.

10. ERS in the Procure to Pay process ERS Process In the ERS process, the invoice creation process gets automated. The receipt transactions are used as the basis for the creation of these auto-invoices.

11. ERS Process • The ERS process differs from the traditional process in that the supplier invoices no longer form the basis for payment in IR’s system. • After goods or service delivered, the buying organization processes a receipt transaction which automatically generates an invoice number. • The receipt transaction facilitates the payment. Invoices Not equal to Basis for Payment

12. ERS Advantages for Suppliers

13. ERS Advantages for IR

14. ERS Disadvantages for Suppliers

15. Key considerations for Suppliers