$450m to $500m
                                                 Supply Interruption,                   Employee
                           IT – Security,          Product or Service                  or Supplier
                            Transaction                    Failure                        Fraud?
         Price or            Integrity, 
        Total Life          Licenses?
       Cycle Cost?
                                                                                             Brand/Reputation
                                                                                                Regulatory/
                                  Lack of                                   Quality/           Environmental
             Wrong              Negotiation           Unwanted              Service/         Non-Compliance?
          Sourcing  &            Strategy?         Auto Renewals,       Scope Creep?
          Relationship                             Non-Compliance 
           Strategy?                                With T’s & C’s?
                                                                                           Other
                            Lack of Post-Award                                        Supplier Risks
                          Contract Management?                  Legal Risks,            Financial?
                                                                 Insufficient         Dependency?
                                                                Protections,            Diversity?
                      Lack of Information,                          Costly
                       Reporting, Tools,                          Disputes?
                    Technology & Workflow
           Skills/Competencies, Planning &Project
      2                Management etc?
                     Procurement  Process Capabilities
         Procurement                   Procurement                   Procurement                   Procurement                  Procurement                   Procurement
        Strategies and                    and Risk                   Organization                  Information                   Information                     Systems
             Policies                  Management                     and People                  for Decision-                Methodologies                     and Data
                                         Processes                                                    Making                        & Tools
        Current & Continuous          Integrated Strategic        Purchasing Executive        Spend Analysis               •                             Integrated Procure to 
                                                                                                                                Expenditure data 
         Procurement Strategic         Sourcing/Commodity           Clearly defined              Reporting                    mining and analysis            Pay System 
         Planning                      Management                    central and de-central      Sourcing & Supply            •Market Analysis              Data Warehouse
         Procurement                  Processes                     roles and  job               Risk Strategy                •Supplier Analysis             CXML/EFT etc.
         Strategic Plan aligned        Integrated Supplier          descriptions                 Monitors, Alerts &           •Category Analysis             Electronic Supplier 
         with key Company              Management Process           Cross Functional             Reporting                    •Contract & Library            Catalogues
         Plan                          Integrated Risk              Category & Risk              Contract Mgmt &             Database Analysis              Internet-based  
         Current and aligned          Management Process            Management Teams             Administration               •Risk Analysis and             Purchasing
         Procurement Policies          Integrated Contracts        Buyers Trained &             Reports/Alerts               Control Tools                  Integrated P2P to ERP
         Clear Responsibilities       Management Process            Certified                    Supplier & Category         •Supply Risk                  internal & external for 
         Defined & Segregation         Efficient, Integrated       Trained End Users            Reports                      Dashboards                     links for Supply Risk 
         of Duties                     Purchasing, P-Card &         Skills and                   Purchasing, AP,             •Expenditure Control &         Contract Workflow & 
         Ethical Purchasing           AP Procedures                 Qualification matrices       Contracting and P-           Contract Compliance            Management System
         Standards                     Supplier Stratification     Supportive Culture           Card Compliance  and         Analysis                       Contract Library
        IT Plan for Process          Supply Risk Mgmt            Segregation of Duties         Reporting                    •External Info Services       Electronic Approvals 
      There is risk to the process if infrastructure component is deficient:
                         Procurement                Personnel are unable to        Reports do not provide       Procurement/AP               Reliable, Relevant and 
                         Services processes         perform necessary              information for              Analysis methods do          Timely Business Workflow 
                         not designed to            Procurement activities &       effective management         not adequately               and Data is not 
                         achieve strategy or        processes effectively          and control of               produce complete,            available/used for analysis, 
                         comply with policies                                      Procurement and risks        relevant information         ordering and controls 
                                                                1 Complete
                                           Scan Business 
        7                                   Environment                                     2
             Evaluate, Measure,                                       Set High – Level  
               Take Corrective                                       Mission , Vision & 
             Action (Continuous 
                Improvement)                                               Values
    From Oct 2012                                                                       Complete
                                            Strategic                 Analyze the process 
             Finalize Vision &              Planning                  – ROWS & Set Initial 
      6          Mission                                                                      3
                                            Process                           Goals
      End Sep                                                                       Complete
                    5       Validate Action                Develop Strategic      4
        September           Plans & Goals                    Action Plans             End Aug
    Advisory Team: MMDC, Food Services, Supplier Diversity, ITaP, 
    Athletics, Treasury, Business Management, Physical Facilities, 
    Housing, Regional Campuses and Procurement Services Leadership
        Procurement Process Transformation
                            MISSION                                          VISION                                         VALUES
       n               Effectively and                               Deliver excellent                           Customer Service Orientation
       o                                                                                                        Protective of Purdue’s Interests 
       i                                                            service, value and 
       s  s         efficiently manage                                                                              Collaborative, Inclusive, 
       s  e                                                          expertise to our 
       i  u     procurement, accounts                                                                                       Responsive
       M  l                                                      internal partners and                             Proactive and Data Driven
          a        payables and travel 
       ,  V                                                    stakeholders through a                                Respect For Suppliers
       n            services risks and 
       o  &                                                       “managed process”                                 Commitment to Diversity 
       i              opportunities in 
       s                                                       and a high performing,                           Commitment to Sustainability
       i
       V            support of Purdue                           innovative and diverse                         Professional Integrity, Courtesy, 
                    University’s Goals                                                                                Fairness, Objectivity, 
        s                                                                supply base                                      Accountability
        l
        a
        o
        G
                                                                                                                                Integrated 
                                                                        Professional                                              Systems, 
                2012-2015                   Utilize Best               & Dedicated,                   Timely &                        Data 
        s         Targeted                 Procurement                                             Fact-Driven                    Integrity 
        e         Sourcing,                  Practices -               Organization                   Decision-                       and  
        i                                                                                               Making
        g       Consolidati                Consistently                   & Culture                                            Completene
        e             on,&                                             Center-Led, Qualified        Leverage Tools and 
        t                                    Strategic Sourcing,                                                                         ss
        a      Negotiation                  Category, Supplier,           and Professional,           Information for  
        r                                   Supply Risk, Project,       Customer-Focused,           Efficient Workflow &       Passion for Excellence 
        t        Programs                  Contracting, Supplier         Cross-Functional &            Collaboration, 
        S                                                                                          Accurate & Complete             in Technology 
                                            Diversity, Accounts        Collaborative, Process                                    Adoption, Source 
                Funding Sustainable           Payables, Travel           Ownership, Skills-          Analysis, Decision-        Data Standards and 
                Process Capabilities          Management, &              Based Roles, Total               Making,                  Data Integrity 
                   Improvements            Purchasing Execution            Value, Risk and             Measurement,             (Category, Supplier, 
     5                                                                    Control Focused          Reporting & Controls            Market etc) for 
     * First Pass based on limited data/information detail – further opportunities to be identified as data/information improves    Procurement 
     * *Assumes Total Spend that could be influenced at $450m and current coverage at $150m ($137m confirmed to date).             Transactions