University of Pennsylvania Next Generation of the Penn Marketplace

1. University of PennsylvaniaNext Generation of the Penn Marketplace Supplier Forum August 26, 2003

2. Supplier Forum Agenda • Welcome and Introductions • Penn Marketplace Enhancement Project • About the Penn Marketplace • Enhancement Project Objectives • Overview of Penn’s eProcurement Solution • Advantages & Disadvantages to Suppliers • Supplier Enablement Strategy • Penn Marketplace Supplier Testimonial • SciQuest’s SpendDirector Demonstration • Supplier Enablement Requirements • Data Submission • Rich Data • Catalog Content • Next Steps and Q & A

3. About the Penn Marketplace • Penn’s private supplier exchange implemented in January 2002 • Recognized as leading eProcurement solution in higher education • Hosted content business model for most commonly ordered items • Buying method used by all faculty and staff with purchasing authorization • Participating suppliers are currently receiving 54% of all purchase transactions • Commitment to and greater utilization of eProcurement at Penn is a top senior management business objective

4. Enhancement Project Objectives • Streamline buying experience for faculty and staff by reducing time & effort related to creating purchase transactions • Reduce errors associated with non-marketplace supplier requisitions through greater use of marketplace suppliers • Increase variety and volume of “preferred supplier” catalog content and Penn specific pricing • Ensure contract compliance, eliminate maverick buying, and shift purchase activity to Penn Marketplace suppliers • Issue 70+% of purchase transactions to Penn Marketplace suppliers

5. Oracle iProcurement Penn’s eProcurement Solution • SciQuest • SpendDirector • Search electronic catalog • View rich product data & details • Link to suppliers’ websites for additional detail • Create requisitions for any Penn Marketplace supplier item Researcher, Faculty and Staff Workstation Approver Reviews Requisition Fax or EDI Supplier 1 Supplier 2 Supplier Receives PO

6. No cost to the supplier Direct channel to reach University faculty and staff Opportunity for preferred positioning in search results Opportunity to significantly increase sales and market share Non-participation will be a competitive disadvantage No product visibility to faculty and staff in the Penn Marketplace Non-catalog orders require significantly more time and effort to create Advantages & Disadvantages

7. Supplier Enablement Strategy • Purchasing Services identified key suppliers • Target supplier list derived from a recently completed university-wide spend analysis • Analysis driven by University’s faculty and staff buying habits, pricing and overall importance to the University’s mission • Supplier participation requires establishment of new or renegotiated “preferred supplier” pricing agreement • Penn specific catalog content development based on mutually agreed upon product offering and previous Penn purchase history • Suppliers required to provide content to SciQuest, Penn’s eProcurement business partner

8. Marketplace Supplier Testimonial TKR Biotech Products Theresa Ruch - President

9. SpendDirector Demo Bobby Feigler SciQuest Founder Account Executive Phone: 919.659.2108 Email: bfeigler@sciquest.com

10. Supplier Enablement Requirements • Data Submission • SciQuest Catalog Management Tool (CMT) format • Excel spreadsheet template • UPenn contract pricing and list pricing • Pricing is confidential. Only UPenn authorized users will see your pricing • Provide Rich Data • Robust product description • Images • Web site links • Keywords • Product attributes

11. Link to detailed product information on supplier’s own web site Image Detailed description of image Detailed product description (Note: suppliers are encouraged to embed links throughout product description information) Electronic Catalog Data

12. Supplier Content Maintenance • Regular product and/or price updates (usually on a quarterly basis) • All price file updates will be approved by Purchasing Services prior to loading into production environment • Price file updates should include Stock-Keeping Unit (SKU), Unit of Measure (UOM), Price • Catalog Management Tool (CMT) to be used for product additions/deletions

13. Next Steps for Supplier • If catalog currently exists at SciQuest: • Send Penn contract price file to SciQuest at data@sciquest.com by September 19, 2003 • Send catalog updates to ensure freshness of content and completeness of catalog by September 19, 2003 • If new supplier catalog: • If you have not received the CMT via email, request the CMT from data@sciquest.com • Send catalog and Penn contract price file to data@sciquest.com by September 19, 2003 • Send DUNS number and supplier contact information

14. Contact Information Vira Homick –eProcurement Manager Phone 215.898.9187 Email homickv@pobox.upenn.edu Ralph Maier – Associate Director of Purchasing Phone 215.898.1452 Email maierr@pobox.upenn.edu Chris Bordeaux – Supplier Enablement Mgr. SciQuest Phone 919-659.2387 Email cbordeaux@sciquest.com