AP Workflow

1. AP Workflow Stephanie Shaw Bill Behen Director, Enterprise Solutions Grant Thornton LLP

2. Agenda • About The Wendy’s Company • About Grant Thornton • Oracle Footprint • Evolution of the AP Workflow Business Case • Grant Thornton Partnership • Grant Thornton Process and Findings • Current Initiatives

3. The Wendy’s Company • Founded in 1969 by Dave Thomas in Columbus, Ohio • Headquarters: Dublin, Ohio • Third-largest quick-service hamburger company in the world • More than 6,500 franchise and Company-operated restaurants in the United States and 28 countries and U.S. territories worldwide. • About 5,500 locations are franchised, 1,000 company-owned • 2013 Company Revenue: $2.5 billion • 2013 Ave. Annual Sales per US Company restaurant: $1.51 million

4. Grant Thornton LLP Grant Thornton International • Revenues of $4.2B • 600 offices worldwide • Nearly 35,000 employees • More than 2,800 partners Grant Thornton LLP • Revenues of $1.2B • 54 offices nationwide • More than 6,000 employees • More than 500 partners V I S I O N To be the leadingaudit, tax and advisory firm, serving dynamic organizationsin our chosen markets.

5. Oracle Footprint

6. Why • Workplace Digitization • Reduce Carbon Footprint • Minimize Restaurant Management Focus on Administrative Tasks

7. Once Upon a Time • Shared Services Model • Oracle WebCenter Purchase • Company Transition

8. Fire! Ready! Aim? • 2014 Project Restarted • Gaps Identified • Disparate business processes • Lack of data governance • Oracle EBS deferred maintenance • Reflection

9. Process Maturity Model Process Maturity Continuum Description Key Attributes • Uniform, well-documented process design • Optimized best practices and rigorous performance measurement and process improvement methodoligies in place • Process risk strategy implemented and managed; automated controls • Knowledge accumulated and shared • Fully integrated work-flow enabled systems & data integration Level 5 “Optimized” (World Class) Process is source of competitive dvantage Alignment to Strategic Objectives Level 4 “Defined” (Scaleable) Policies, process and standards defined and institutionalized • Uniform, well-documented processes; limited performance management focus • Best practice capabilities generally incorporated • Process is generally scalable; minimal dependency upon institutional knowledge • Combination of best-of-breed and integrated technology solutions; limited cross-application data integratoin • Some automated controls; generally enforced • Process is generally understood, may not be fully documented • Execution is dependent upon assignment of quality people and “institutional knowledge”; limited scalability • Select system usage – standard extracts, imports, etc may be developed, but executed manually; limited data integration • Primarily manual contorls; generally aduitable Level 3 “Repeatable” (Intuitive) Process repeatable, but dependent o individuals Process/Systems Evolution • Undefined – process cannot be consistently repeated • Relies on initiative & “Just do it” mentality of key people • Heavy use of Excel, Access, etc.; manual extracts from core systems • No data integration • Manual controls; limited enforcement & audit ability Level 2 “Initial” (Ad Hoc/Chaotic) Dependent on heroics, institutional capability lacking Level 1 “Incomplete” (Non-Existent) Complete lack of any recognizable processes • No definable process exists – function performed differently each time • Heavily manual / paper-based • Automation developed “on the fly” • Limited to no auditable contorls Risk of Failure Adapted from the Capability Maturity Model Integration framework developed by Carnegie Mellon University

10. Current vs. Future State Vision AP Business Process Level 3 Level 1 Level 5 Level 2 Level 4 Current State Proposed Future

11. What We Learned Invoice Submission is Highly Decentralized; Requesters May Hold Onto Invoices for Over 30 Days Available ERP Functionality is Under Utilized Invoice Approval Process is Paper Based Unable to generate/provide spend analysis reporting Limited Early Payment Discount Terms Currently Setup Item Master has been Neglected Over Time

12. Root Cause 30% Poor Process Definition, Execution, or Supporting Organizational Structure 40% Not Fully Leveraging the Existing ERP Modules 30% Lack of Enabling Systems/ERP Modules

13. Benchmarking Utilizing APQC Validation of Findings Through Benchmarking Data Collection Analysis Results Review Key Activities • Complete Rapid Assessment Data Collection Process • Submit to APQC Key Activities • APQC/GT prepares results • Additional follow-up based upon anomalies in data set • Provide scorecard results to client • 25, Median, and 75 percentile results within industry Key Activities • Review results and discuss root causes for gaps • Prioritize which gaps the team should focus on filling • Identify target metric values • Deliverable • Benchmarking Results • Deliverable • Prioritized Gaps • Target Metric Values for Future State • Deliverable • Completed Data Collection Spreadsheet 2 – 3 Weeks 1 - 2 Weeks 2 – 3 Weeks

14. Benchmarking Utilizing APQC • The following Accounts Payable process metrics were benchmarked… • Total cost to perform the process "process accounts payable" per $1,000 revenue • Personnel cost to perform the process "Process accounts payable" per $1,000 revenue • Value of purchases (in millions) per "process accounts payable" FTE • Cycle time in hours to enter manual invoice data in to the system • Percentage of invoice lines that are matched the first time • Percentage of invoice line items paid on time • Number of FTEs that perform the process "Process accounts payable (AP)" per $1 billion revenue • Percentage of discounts available that are taken • Percentage of disbursements that are first time error free • Percentage of invoice line items matched with a PO • Percentage of invoice line items received electronically • Total cost to perform the process "Process expense reimbursements" per $1,000 revenue • Personnel cost to perform process "Process expense reimbursements" per $1,000 revenue

15. Time to Realize the Vision The Problem The Imperative The Expected Outcome Re-engineer Process Assuming Central Invoice Submission and Supplier Collaboration • Reduced invoice cycle time • Opportunity to better take advantage of early payment discounts • Existing audit deficiencies remediated • Suppliers empowered to maintain information and inquire on processing status Inefficient Business Process • Enable smarter buying decisions via spend analysis reporting • More transparency surrounding spend • Consistent use of transactional elements to support enhanced reporting (e.g, purchasing category) Build Reporting Capability After Driving Increased Transaction Discipline Unable to Generate Spend Analysis Reporting Identify and Implement Key Technology Enablers • Via use of imaging technology, enable resources to focus on value add tasks vs. manual data entry and chasing invoices • Electronic invoice approvals using Oracle AME • Suppliers empowered to electronically participate in the AP process via Oracle iSupplier Portal • Reduced storage and/or destruction costs Lack of Enabling Key Technology

16. Prioritized Phases Quick Wins(1 – 2 Month Duration) Simple process or technology changes/enhancements resulting in value to the organization; To-Be process communicated/accepted & imaging technology selected/procured Foundational(3 – 5 MONTH DURATION) To-Be AP business process & technology implemented; initial group of suppliers on-boarded to iSupplier Portal Increased visibility available as enhanced reporting available to stakeholders Extend(2 – 3 MONTH DURATION) To-Be AP process and enabling technology stabilizes; next group of suppliers on-boarded to iSupplier Portal

17. Prioritized Phases Vision Execute Change Assurance and Solution Adoption Strategy to Wendy's and Supplier Stakeholders/Users Execute Change Assurance and Solution Adoption Strategy to Wendy's and Supplier Stakeholders/Users A Leading Practice AP Process That Drives Efficiencies and Value Across the Organization Communicate Roadmap to Broader Team & Stakeholders People Implement Organizational Changes Supplier Clean-Up & Enablement for iSupplier Portal Group X to Group X Identify Organizational Impact Resulting From New Process & Technologies Supplier Clean-Up & Enablement for iSupplier Portal Group 1 to Group X Extend Use of iSupplier Portal to Group X to Group X Item Master Rationalization and Clean-Up Additional Suppliers On-Boarded to iSupplier Portal Extend Utilize Oracle AME for Requisition and Invoice Approvals Implement To Be AP Process Including Centralized Submission of Invoice & System Approvals Payment Reconciliation Process 2 – 3 Months Socialize and Obtain Buy-In/Acceptance of To-Be AP Process Enhance Use of AP Subject Areas in Financial Analytics (e.g., Spend Analysis) Stratify Suppliers for Applicability & On-Boarding Sequence to iSupplier Portal Implement Imaging Solution Foundational Business Process & Technology Implemented; Initial Group of Suppliers On-Boarded to iSupplier Portal Reporting Capabilities Enhanced after Initial POC Establish Item Master Maintenance Process Implement Oracle iSupplier Portalfor Supplier Group 1 to Group X Enter Invoices Related to Manual & Wire Payments in Oracle Process Foundational 3 – 5 Months Select and Procure Imaging Solution Current State Implement Personalization to Warn of Duplicate Invoices Oracle ADI or 3rd Party to Upload Select Manual Invoices Quick Wins Provide Immediate Value Process Buy-In and New Imaging Technology Selected; Basic Understanding of BI Capability Established Proof of Concept: AP Subject Areas in Financial Analytics Enable Oracle Cash Management for Payment Reconciliation Quick Wins 1 – 2 Months Technology Outcome

18. Business Case • Developed a Business Case that resulted in a payback of 1.9 years • Primary Cost Drivers • Imaging Software & Hardware • Implementation Services • Incremental Internal Resource • Primary Benefit Drivers • Increased Labor Productivity • Early Payment Discounts • Reduced Shipping Costs • Reduced Storage and Retrieval Costs • Business Case Included in Current 2015 Budgeting/Planning Cycle

19. Current Initiatives • Q4 2014: Deferred Maintenance/Patching • Q4 2014/Q1 2015: Infrastructure/Technology Enablement • Q4 2014/Q1 2015: Restaurant Invoice Process Streamline