Breakout Session # 1207 JACQUES ABADIE III CPCM CONTRACTS MANAGER Date APRIL 26, 2005

2. ENTERPRISE SPEND MANAGEMENT Breakout Session # 1207 JACQUES ABADIE III CPCM CONTRACTS MANAGER Date APRIL 26, 2005 Time 4:30 PM – 5:30 PM NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. DO YOU KNOW WHERE YOUR MONEY IS BEING SPENT ????????????????? • How many of you know what you spent last year? • Is it Important? • Do we need to control “Spend”? • Do we have processes in place? • Are there checks and balances • Is this related to the financial health of the Enterprise? NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. ENTERPRISE SPEND MANAGEMENT MANAGEMENT OF ANY ENTERPRISE MUST FOCUS ON: • SPENDING $$$$$ • WHEN AND WHERE • TIMING • NEED • IS THERE ANY LEFT OVER? NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. ENTERPRISE SPEND MANAGEMENT HOW MANY OF YOUR ORGANIZATIONS USE THE FOLLOWING METHODOLOGY TO PRODURE GOODS AND SERVICES? • CREATE THE NEED. • BUY THE PRODUCT. • MANAGE THE FINANCES AFTER THE TRANSACTION. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. ENTERPRISE SPEND MANAGEMENT WHAT IS SPEND ANALYSIS? (WHERE DID MY MONEY GO?) • CENTRALIZATION OF PROCESSES • CONSOLIDATE PROCUREMENT INTO SIMILAR GOODS/COMMODITIES • SUPPLIER MANAGEMENT • SPEND CENTRIC FOCUS NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. ENTERPRISE SPEND MANAGEMENT • SHIFT FINANCIAL FOCUS TO THE FRONT END • CREATE SAVINGS PRIOR TO THE SALE • COST CONTROL ACROSS BUSINESS ENTERPRISES (GOVERNMENT ALSO) NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. ENTERPRISE SPEND MANAGEMENT IS EVERYBODY DIFFERENT? THE ENVIRONMENT AND CHANGE! • DECENTRALIZATION VS CENTRALIZATION (SAVINGS?) • COMMODITY GROUPS • CENTRALIZED COMMODITIES • STRATEGIC SOURCING NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. ENTERPRISE SPEND MANAGEMENT A TYPICAL MODEL BUSINESS/GOVERNMENT ENTERPRISE • $2.8 BILLION TOTAL SPEND (FY) • ACROSS MULTIPLE AGENCIES OR BUSINESS UNITS • APPROXIMATELY 480,000 TRANSACTIONS PER YEAR NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

10. ENTERPRISE SPEND MANAGEMENT SOME REASONABLE GOALS CONCERNING SPEND/PROCUREMENT/CONTRACTING. • LEVERAGE SUPPLIER RELATIONSHIPS COMPETITION/NEGOTIATIONS • IMPROVED DELIVERY TIME OF PRODUCT AND SERVES TO CUSTOMERS • SOCIO-ECONOMIC GOALS NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. ENTERPRISE SPEND MANAGEMENT SOME APPROACHES TO CONSIDER • DECENTRALIZED SOURCING, CENTRALIZED PURCHASING • CREDIT CARD PURCHASES • EMPOWER END USER • COMMODITY BUYING • PREDIFINED WORKFLOW AND BUSINESS RULES NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

12. ENTERPRISE SPEND MANAGEMENT POTENTIAL BENEFITS • REDUCES MAVERICK PURCHASING • REDUCE CYCLE-TIME THROUGH AUTOMATION IN THE RIGHT PLACES • REDUCTION OF REPORTS • FOCUS ON THE FRONT END OF THE PROCESS NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. ENTERPRISE SPEND MANAGEMENT TOOLS TO CONSIDER • WEB-BASED APPLICATION • INTERFACES SEAMLESSLY WITH ACCOUNTING SYSTEM • PROCUREMENT SYSTEM PRIMARY TOOL FOR REPORTING BUYING INFO • SYSTEM ACCESS IS ANYWHERE/TIME NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. ENTERPRISE SPEND MANAGEMENT MAY WANT TO RE-THINK THE PROCUREMENT PROCESS • CONSIDER COMMODITY VS ORGANIZATIONAL PROCESS • ACQUISITION PLANNING • TRACKING STATUS OF ORDERS • IMPROVED PAYMENT PROCESS NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

15. ENTERPRISE SPEND MANAGEMENT DO WE CHANGE AUTOMATION? HOW MUCH? • COST AND RESOURCES NEEDED TO IMPLEMENT AND SUPPORT • TRAINING • SHOULD YOU OUTSOURCE? • CHANGING METHODOLOGIES MAY BE DIFFICULT TO KEEP UP WITH NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. ENTERPRISE SPEND MANAGEMENT SPEND ANALYSIS CAN HELP YOU • FIND THE MONEY YOU HAVE • MANAGE SCARCE RESOURCES • PRESERVE THE MAXIMUM AMOUNT OF REVENUE FOR GROWTH NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

17. ENTERPRISE SPEND MANAGEMENT FIND IT USE IT KEEP IT NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

18. ENTERPRISE SPEND MANAGEMENT CONTACT INFORMATION JACQUES (JACK) ABADIE III CPCM CONTRACTS MANAGER PHONE: 757-673-2408 FAX: 757-673-2390 EMAIL: jacques.abadie@gd-ais.com NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”