Quadrem: eOTD and releasing Supply Chain value

1. Quadrem: eOTD and releasing Supply Chain value ECCMA Annual Conference October, 2006

2. Agenda • A little about Quadrem • Buyer & Supplier Pain points • How have we approached this • Standards • Education, Development, Management • Systems Integration • Some “Requirements” • Benefits and Lessons learned

3. Launched in 2000 by global natural resources leaders to streamline procurement and reduce supply chain costs Global Supply chain solutions leader with: Global MRO-Centric Supplier Network XML Messaging Hub Sourcing Solutions Financial Solutions Data Management Solutions Company Overview

4. The Community as at September 2006 $12.5 billionannualized transaction volume 34Active Buyers 635Buyer Sites 516Integrated Connections 46,000Suppliers 35,000P2P Supplier Users 356Integrated Connections XMLTransactionHub

5. Transaction and Throughput Record 2002 2003 2004 2005 2006 Throughput Transactions

6. Global footprint – Global customers Paris, France Amsterdam, The Netherlands Singapore Montréal, Canada Toronto, Canada Dallas, USA Seoul, Korea Jakarta, Indonesia Houston, USA Brisbane, Australia Mexico City, Mexico San Jose, Costa Rica Lima, Peru Santiago, Chile Sydney, Australia Dubai, UAE Riyadh, Saudi Arabia Perth, Australia Rio de Janeiro, Brasil Johannesburg, South Africa Worldwide Quadrem Offices and Partners 250+ employees and associates worldwide

7. Key Strength - MRO Supply Largest community of industrial MRO suppliers Assets stand idle without these mission critical suppliers Leveragability - MRO suppliers cover many industries Standardized eOTD industry dictionary for more than 6,000 MRO categories Becoming the de facto standard for the mining, minerals and metals industries Platform for expansion to related industries where technical descriptions are key 19 business process documents designed for MRO materials and services procurement Appreciates the criticality of timing and availability of supply Need for machine to machine integration

8. Pain Points

9. Buying Organizations – Pain Points

10. Supplying Organizations – Pain Points

11. Plan Design Build Test Deploy How have we approached this? • Standards • System Integration 1 + 1 = 3

12. Quadrem and Standards • Wherever possible Quadrem bases its services and products on open, international standards • The philosophy being that it lowers the changemanagement effort and rework over time • Quadrem facilitates two standards groups for its customers • Integration Standards Council • XML, document choreography coordination • Content Standards Council • Classification, Codification and industry templates

13. eOTD Management Methodology • Close liaison with customer (and their data) to develop and extend the eOTD to meet industry context • Focus on “minimal” requirements to find, describe and buy in a commercial perspective • Put in place robust standards maintenance processes to ensure adoption, consistency and reuse • Once stabilized move relevant structure to public domain • Lowers cost over time, increases adoption

14. Stages Plan Design Build Test Deploy Prioritize integration project based on business needs, benefits, & targets Define Scope & Implementation Phases Define Business Process & Workflow Define Connection Architecture Gather Data Mapping Requirements Decide Catalogue strategy & requirements Establish Team & Timeline Set Up Integrated DDID Conduct Connection/ Document Training for Trading Partner Tech Exchange Connection Info – IDs, Passwords, e-mails, URLs Provide Document Standards & Samples, Connection User Guides & Test Script Specify Data Mappings -transformation rules & values Collect Catalogue Data Create detailed Project Plan Populate catalogue for Quadrem catalogue and/or Buyer ERP catalogue Supplier or Quadrem builds Document Mappings in Dev environment Migrate Mappings to UAT environment Install & Configure UAT environment (routing rules, certs) Test Connectivity to Quadrem in Test environment Conduct end-to-end integration and catalogue test with Buyer & Supplier Migrate Mappings to Production environment Install & Configure Prod environment (routing rules, certs) Test Connectivity to Quadrem in Production environment Assist as needed with End-User Training & Communications Quadrem monitors initial production transmissions through marketplace Gather feedback & resolve issues Summary Tasks System Integration Methodology

15. Some “Requirements” • Classification - UNSPSC / Material Groups / Other • Codification – eOTD / Other • Use as is? • Customize internally? • Leverage existing process and customized templates? (QTAG) • Business Rules required • Special Characters • Units of Measure (Imperial and / or metric) • Valid Values (or free text) • Cleansing and standardization rules • OEM Items • Generic Items • Mnemonics and Part Numbers • QA guidelines and rules • Descriptions • Patterns leverage existing or develop / customize internally • Short Text (40 Characters) • Long Text • PO Text

16. Some real benefits delivered

17. Lessons • Get the strategy right, set expectations early and clearly • Pick a standard and stick to it • “All models are wrong some are useful” • eOTD is useful !!! • Interlocking “systems integration” and “catalogue” standards saves time and plants seeds for long term success • Maintenance is just as important as creation

18. In Conclusion • Recommend taking “baby steps” and understand catalog in relation to larger Procurement strategy • Need to decide on some standards!! • There is no simple solution for some sourcing groups • i.e. OEM catalogs • Some Phases to consider: • Phase 1 • Focus on small key group of Suppliers • Use common tool to maintain catalogue and pricing • Define simple load format / process for ERP Material Master • Put in place process to have items distributed from Supplier  Buyer • Phase 2 • Catalogue management services for other spend groups or integrate as part of Strategic Sourcing initiatives • Phase 3 • Re-analysis of Content strategy in light of value released

19. Quadrem: eOTD and releasing Supply Chain value ECCMA Annual Conference October, 2006