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RAINBOW 2002 Cap Gemini Ernst & Young - All privilege held ...
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Top Gemini Ernst & Young Business Benefits and ROI from Oracle 11i iProcurement

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Cap Gemini Ernst & Young UK ~ No 1 Forge End, Woking Surrey GU21 6DB Tel: 44 20 74 34 21 71 ~ www. cgey. com One of the world\'s biggest counseling firms giving world class administration consultancy, IT configuration and coordination and frameworks outsourcing administrations on a worldwide premise. CGE&Y has more than 6,500 representatives situated in UK & Ireland.

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Services Management and innovation counseling Systems change Systems administration (outsourcing) Local expert administrations Competitive Advantages Customized Services and Solutions Industry Experience & Documentation Seamless way to deal with methodology, operations, and data innovation Revenues: €1.1bn

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"Our way of life is one which urges individuals to point high, to surpass desires, and to have a fabulous time while doing it!"

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Executive Conclusions "CGE&Y\'s underlying undertaking with Oracle 11i Financials was to a great degree effective. We have proceeded with this advancement with the Procurement and HR modules. This has made CGE&Y a more successful association, better ready to convey better arrangements than our customers." Brian Bodsworth, CIO CGE&Y, UK & Ireland

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PROJECT RAINBOW

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Executive Conclusions "CGE&Y had four vital prerequisites to enhance our sourcing operations Reduce the expense of our outside buys through vital sourcing Use very coordinated frameworks to bolster the rearrangements of our buy to pay forms Produce administration data to screen and authorize consistence for supported cost savings Web empowered innovation for low upkeep cost, whilst permitting access for all staff to permit de-brought together obtaining forms." Brian Bodsworth ,CIO CGE&Y, UK & Ireland

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Cap Gemini Ernst & Young UK & Ireland Procurement Challenges Develop Strategic Sourcing Expertise Improve Relationships with Suppliers Eliminate Localized Procurement Process Correct Inefficient Procurement Systems Not incorporated Manual workarounds Achieve a Competitive Advantaged Cost Structure

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Cap Gemini Ernst & Young UK & Ireland Procurement Challenges Develop Strategic Sourcing Expertise Improve Relationships with Suppliers Eliminate Localized Procurement Process Correct Inefficient Procurement Systems Not coordinated Manual workarounds Achieve a Competitive Advantaged Cost Structure Solution: Strategic Sourcing & Business Process Change iProcurement Enabled System to Sustained Process Improvements Oracle 11i

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Responses to Procurement Challenges Oracle 11 i Solution : iProcurement One Stop Shop for all Procurement Web empowered Application Offers spend Analysis and Supplier execution following Increases key center via robotizing and disentangling routine exchanges Enables discipline around the acquiring procedure disposing of non favored seller spending Control & Visibility of Spend before Commitment is made

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Procurement Pre-Oracle 11i Resulted In Various Prices Realized Discounts Based on "Neighborhood Volume" Economies of scale lost Manual Administration Effort Low record center and need Poor Supplier Management: Loss of influence through expansion of items & administration norms driven by supplier differences. Unique Systems & Processes Localized Buying Manual Purchasing & Approval Processes Poor Service Lack of Standardization NO Visibility of Spend before Commitment was made!!

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Post-Oracle 11i - Procurement & Business Process Re Engineering Results! Data Available to Negotiate Lowest Price with Key Vendor Lower Prices for Products & Services 1 Instance Complete Procurement Information Spending occupied (Controlled) to Preferred Vendors P.O. Obligatory Administrative reserve funds with robotized business process empowered by iProcurement Automated Purchasing & Approval Process

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Executive Conclusions "Vital sourcing in CGE&Y has been empowered by Oracle iProcurement. We now have better perceivability into our definite spend, duties & supplier contracts. CGE&Y is currently empowered to deliberately source, utilizing our uses through less suppliers enhancing terms. Supplier combination advances our innovation administration procedure, whereby we decide the best mechanical answer for a specific kind of issue. We utilize these items and administrations wherever conceivable as opposed to beginning with a \'perfect sheet of paper\' on every undertaking." Wendy Irvin, Chief Purchasing Officer CGE&Y, UK & Ireland

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PROJECT RAINBOW Strategic sourcing conveys advantage yet eProcurement maintains advantage after some time eProcurement must be executed as a feature of a Sourcing Transformation program keeping in mind the end goal to convey feasible advantage Typical advantages accomplished (as % of costs) Using eProcurement as a feature of a Sourcing Transformation venture Increase advantage Increase velocity to advantage Plus 40-half of the expense of purchasing the merchandise/benefits The aggregate open door for expansive organizations could be around $1bn + Total Cost Management , e.g. Lifecycle costing/absolute expense of possession Transaction costs (order, request, endorse, pay) Payment terms administration Tax/traditions enhancement 3-5% Sourcing Transformation Demand Management , e.g. Institutionalized things Reduced contract "spillage" Visibility of agreements Policy consistence and estimation Item substitution Requirements and detail administration Additional quality 5-10% Benefit Commodity/Supplier Management alone Speed Supply Base Management , e.g. Volume influence/redistribution Bid-based re-arrangement Price/execution benchmarking Enhanced rivalry Supply base solidification/favored suppliers 5-10% eProcurement alone Source: CGE&Y Time

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PROJECT RAINBOW 2002 2003 2004 Actual Forecast 0% - 2% - 4% - 6% - 8% - 10% - 1.1% External Spend - 4.8% - 8.7% Procurement Delivered Cost Reduction These are REAL Benefits, not contracts. These reserve funds are DELIVERED, IN PLACE and are CONSISTENTLY MONITORED Savings are removed to the P&L or used to specifically to Drive Revenue Growth

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Executive Conclusions "Before iProcurement we didn\'t have a formal acquisition group and a significant part of the obtaining was done locally, in an uncontrolled way. With Oracle 11 i , acquirement is presently unified. The framework has fabulous administration data, empowering a more taught procedure which permits us to solidify buys with key merchants to secure lower costs. Our buy request obligatory procedure accomplishes consistence with endorsed sellers." David Strickland Purchasing Consultant CGE&Y, UK & Ireland

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PROJECT RAINBOW 2002 €4.8 M 2004 € 36.9M 2003 € 20.1 M Procurement Contract Yearly Savings Delivered to P&L Savings are Cumulative Enabled by Oracle11i iProcurement

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PROJECT RAINBOW IT 71% Other 29% Procurement - Where have we got the Benefit? 2002 €4.8M 100% Communications 80% 60% Print 40% Cleaning 20% Electricity Couriers Stationery 0% 2002

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PROJECT RAINBOW Other 17% IT 62% Flex Resourcing 21% Procurement - What Benefits are Forecast and Targeted? 2003 Cumulative Gains €20.1M! 100% Data Comms 80% Print 60% Cleaning 40% Pensions 20% Electricity Office Consumables Couriers 0% 2003

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PROJECT RAINBOW Procurement Areas of Contract Savings 2004 Cumulative Gains € 36.9M - 6% Cost Reduction Flex Resourcing 11% IT 60% Other 29% - 11% Cost Reduction - 7% Cost Reduction

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Executive Conclusions "When CGE&Y-UK &I settled on the choice to actualize a key sourcing process utilizing acquiring best practices, Oracle\'s iProcurement module was an empowering influence and permitted us to bind the change. The framework keeps workers from returning back to the old method for doing things after some time. The sourcing additions will proceed, and not be a one time event." Jeff Clarke, Project Manager CGE&Y, UK & Ireland

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PROJECT RAINBOW Example of Process Improvement World Class end-to-end computerized adaptable asset process for our outer temporary workers! " Before Oracle iProcurement, every business would cut its own particular arrangements, obviously not an ideal circumstance. An extra advantage empowered by Oracle Technology is the Self Billing capacity for our Flexible Resource Process. We disposed of a week by week receipt for every agreement specialist sparing €670k every year ." Nicholas Mabin Director Recruitment & Resourcing CGE&Y, UK & Ireland

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PROJECT RAINBOW 16,200 Flexible Resource Self Billing Improvement Administrative Savings of € 670k every year!! Yearly Invoices 0 Pre Oracle Post Oracle 11 i Self Billing through Timecard 360 temporary workers 45 solicitations/Yr

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Using the Benefits Achieved to Direct Business Growth In today\'s greatly focused commercial center, evaluating adaptability with the lower cost structure empowered by the Oracle Implementation and extraordinary execution gives CGE&Y the capacity to be more forceful in getting productive new business.

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PROJECT RAINBOW Strategic Procurement systems with our key IT Suppliers have fuelled development "We built up an imaginative contracting approach which is permitting us to drive incremental development and expanded profit of €10.4m crosswise over 4 years.  This is a perplexing contract procedure and Oracle eProcurement permits us to oversee and screen progress. First class execution and Oracle have permitted us to achieve an aggressive edge..... empowering us to win additional business" €15M Revenue 12..0 Shareholder Value Impact + € 7.7M €10M 9.0 6.0 4.2 €5 Earnings 3.0 3.1 2.1 1.0 €0 2003 2004 2005 2006

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iProcurement Initiative Financial Summary

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Financial Performance Measures iProcurement

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