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CVM is the enterprise supplier management provider to combine a strong technology platform with a deep knowledge of suppliers and a managed services delivery model. Contact us at 630-629-5800. Visit us at : http://www.cvmsolutions.com

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Supplier central tm

Supplier CentralTM

Executive Overview

Jon Bovit, VP of Marketing & Strategy


2008 and beyond supplier management becomes boardroom issue
2008 and BeyondSupplier Management Becomes Boardroom Issue

Pfizer Blighted by Viracept Scare

Supplier Bankruptcy Forces Chrysler Plant Closures

By Corey Willims, Associated Press Writer

THE WALL STREET JOURNAL

China Plant Produced Key Ingredient for Baxter’s Heparin

GM Sues Bankrupt Supplier for Access to Parts

Satyam: A Timely Warning for Outsourcing Customers

Protect Your Company Against Outsourcing Supplier Instability

By Michael Murphy, Joshua B. Konvisser, Vipul N. Nishawala and Jonathan D. Butler

MasterCard, Visa Notifying Consumers of Possible Security Breach

Recalls of Chinese Auto Parts are a Mounting Concern

Lead Paint Prompts Mattel to Recall 96,7000 Toys

Published: August 2, 2007

Lenovo to Recall 526,000 NotebookBatteries

The battery problem keeps exploding

© 2009 CVM Solutions Confidential


Mattel case study an important lesson about supplier risks
Mattel Case StudyAn Important Lesson about Supplier Risks

Mattel to pay $12 million settlement for lead toys

Posted: 9:23 PM Dec 15, 2008

First News of Lead Paint on Toys

$12M Settlement

Continued Recalls

Lead Paint Prompts Mattel to Recall 967,000 Toys

Published: August 2, 2007

Dec 10, 2008:

MAT 14.96

28

26

24

22

20

18

16

14

12

@ 2008 Yahoo! Inc.

2006

Oct

2007

Apr

Jul

Oct

2008

Apr

Jul

Oct

© 2009 CVM Solutions Confidential


What is supplier management
What is Supplier Management?

All supplier information centrally available to all people,processes,andsystems that “touch” suppliers

1

2

3

Manage compliance and risk

Goal is to reach 100%“suppliers under management”

Post-contract Supplier

Processes

  • Accounts Payable Enablement

  • Qualification & Compliance Management

  • Scorecards

  • Tier 2+ Analysis

  • Supplier Diversity

  • Risk Management

  • Pre-contract Supplier

  • Processes

  • Strategy

  • Requirements Gathering

  • Sourcing Process

  • Contract Management Process

  • Spend Analysis

  • Request Management

Supplier Management Processes

© 2009 CVM Solutions Confidential


Where is the problem over time supplier management needs grow
Where is the Problem?Over Time, Supplier Management Needs Grow

1

2

3

4

Supplier DBs

  • 1 to 5 Applications

  • 10 Excel Spreadsheets

  • 20%+ “out of date”

  • Marginal Cost per Supplier

  • 100s of Suppliers

Costs Rise Over Time

Risk and Uncertainty Increase

Supply Chain Complexity Increases

Data Quality Degrades

Problem Gets Worse Over Time

  • Supplier DBs

  • 20 to100 Applications

  • 1000 Excel Spreadsheets

  • 60%+ “out of date”

  • 20X+ Cost per Supplier

  • 100Ks of Suppliers

  • Supplier DBs

  • 5 to 20 Applications

  • 100 Excel Spreadsheets

  • 40%+ “out of date”

  • 3X+ Cost per Supplier

  • 1000s of Suppliers

© 2009 CVM Solutions Confidential


What are the current issues different groups have different needs
What are the Current Issues?Different Groups have Different Needs

  • How do I measure and compare supplier performance?

  • How do I track supplier qualifications and compliance?

  • How do I audit suppliers?

  • How much am I spending with each supplier and by category?

  • How much contract leakage do I have?

  • How do I find new potential suppliers?

  • How do I handle all the requests?

Sourcing

Sustainability

Supply Chain

Procurement

  • How do I assess and monitor supplier risk?

  • How do I manage my programs?

  • How do I ensure participation?

  • How do I ensure accuracy?

  • How do we currently add/change suppliers?

  • How do I engage all suppliers to provide all required information?

  • How do I process changes?

  • How do I ensure accuracy and results?

Risk Mgt

Finance

AP

Diversity

© 2009 CVM Solutions Confidential


Get all your suppliers under management total suppliers under management
Get All Your Suppliers Under Management…“Total Suppliers Under Management”

Manage & Maintain

Evaluate & Assess

100% of Suppliers Under Management

  • Governance, Risk, and Compliance

  • Highest Potential Impact

  • High Collaboration

Strategy & Planning

Source & Contract

Central Supplier Repository

Strategic

  • Strong Business Impact

  • Manage Compliance

  • Manage Risk

Tactical

  • Self-service

  • Data Quality

  • Process Controls

  • Spend Controls

Transactional

© 2009 CVM Solutions Confidential


Supplier management process where are the supplier risk performance impacts
Supplier Management ProcessWhere are the Supplier Risk & Performance Impacts?

Strategy and Planning

Source andContract

Manage andMaintain

Evaluate andAssess

Financial DueDiligence

On-boarding andData Gathering

PerformanceScorecard

Capable Suppliers

Financial AssessmentIncluding Liens, Judgments

Security DueDiligence

Quarterly RiskAssessments

Available Suppliers

Define OverallRisk Profile

Corrective ActionPlanning

Market Conditions

Insurance Verification

Define AssessmentTeam

OSHA ViolationHistory

Supplier Audits

Customer Demand

OFAC and DebarmentReview

Risk MitigationExecution

Risk Planning

Contract Terms Risk

EPA and RegulatoryCompliance

Risk MitigationPlanning

© 2009 CVM Solutions Confidential


Supplier risk it s not just about credit rating anymore
Supplier RiskIt’s Not Just about Credit Rating Anymore

Do your suppliers carry sufficient insurance?

Are your suppliers under financialstress? Can they perform?

2

1

Insurance

Financial

Stability

Is my confidential information secure? Continuity for disasters?

Security &

Continuity

3

Does a suppliers’ failure pose risk to your production?

7

Production

Impact

Health &

Safety

Performance

Are suppliers meeting your expectation on delivery, cost, quality, scale?

4

Do your suppliers meet your safety standards?

Regulatory

6

5

Do your suppliers have the necessary certifications? SOX? US Patriot Act?

© 2009 CVM Solutions Confidential


How many people do i need to manage suppliers risk
How Many People do I need to Manage Suppliers & Risk?

1

2

Too many

specialties required!

How can wemanage it alone?

© 2009 CVM Solutions Confidential


Supplier risks increase across supplier tiers
Supplier Risks Increase Across Supplier Tiers

  • Supplier risks become magnified

  • Supplier risks can be hidden

  • How can overall supplier risk be measured?

Your Organization

Business Unit1

Business Unit2

Tier1Supplier

Tier1Supplier

Tier1Supplier

Tier1Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

Tier2Supplier

© 2009 CVM Solutions Confidential


What does it cost to manage a supplier
What does it Cost to Manage a Supplier?

Total SupplierManagement Costs

e.g. $500+ per Supplierper year*

Spend RelatedSavings

Process Costs

Source &Procure Process Costs

Non-Contract AddressableSpend

AP Process Costs

OtherGroups Costs

SpendLeakage

$1M+ per year

$200 per Supplier per year

Risk

Direct Costs

Data MgtCosts

Systems Costs

Communication Costs

Supply Disruption

Fines, Legal

Brand Risk

$300 per Supplier per year

$1M+ per Incident**

**A. T. Kearney estimates $10M to $34M per bankruptcy

*Calculation based on CAPS Research Benchmarks

© 2009 CVM Solutions Confidential



Supplier data enrichment the first step in enterprise supplier management journey
Supplier Data EnrichmentThe First Step in Enterprise Supplier Management Journey

  • Cannot manage suppliers without clean, quality, and up-to-date data

  • Best practice says start with data enrichment before deploying supplier portals and other projects

  • Halt the perpetuation of bad data across the enterprise

© 2009 CVM Solutions /Confidential


Supplier management critical requirements what do you need to be successful
Supplier Management Critical RequirementsWhat do you Need to be Successful?

TechnologyRequirements

DataRequirements

ServicesRequirements

Accurate, Validate,and EnrichedEnterprise Supplier Data

SupplierSelf-service Portal

Supplier On-boardingServices

Accurate, Validate,and EnrichedSupplier DiversityData

Supplier ManagementProcess AutomationFramework

Supplier DiversityProgram Management

Supplier Risk andComplianceManagement

SPM ProgramManagement

Integration, Security, Workflow, etc.

Supplier Risk Data

Supplier Diversityand CSR Management

Supplier RiskAssessment Service

Tier 2 Supplier Data

  • Supplier Support

  • Services

  • Easy EngagementModel (Self-service)

Scorecards,Performance, andContract Management

© 2009 CVM Solutions Confidential



Cvm corporate overview
CVM Corporate Overview

© 2009 CVM Solutions Confidential


Cvm leadership in supplier management
CVM Leadership in Supplier Management

  • 49% of the 2008 Fortune 100 use CVM

  • 51% of the 2009 DiversityInc Top 100 use CVM

  • #1 in supplier management portals deployments

  • #1 in supplier diversity

© 2009 CVM Solutions Confidential


Cvm solution overview
CVM Solution Overview

Supplier Central

  • CVM Supplier CentralTM 6.0 redefines the next generation supplier management platform combining technology, data, and managed services into a one-stop shop for customer supplier management needs.

  • With the release of 6.0, CVM has focused on 4 main areas:

    • Lowering Costs

    • Mitigating Supplier Risk

    • Industry Focus

    • Next Generation CVM Master Supplier Database

Supplier On-boarding

SpendData

SupplierRisk Data

Compliance

PM

Tier 2

PM

Managed Services

Data

Supplier Diversity Data

TM

RiskPM

Technology

Enterprise Data

with Linkage

Vendor

Central

Performance

Central

Diversity Central

RiskCentral

CVM Master Supplier Database

© 2009 CVM Solutions Confidential


Cvm targeted solutions overview
CVM Targeted Solutions Overview

1

2

3

4

CVM Supplier CentralTM

Enterprise Supplier Management

Vendor Master

Management

Supplier Risk

Management

Supplier

Performance

Management

Supplier

Diversity

Management

© 2009 CVM Solutions Confidential


Supplier risk solution lifecycle
Supplier Risk Solution Lifecycle

© 2009 CVM Solutions Confidential


Cvm risk solutions in the news
CVM Risk Solutions in the News

© 2009 CVM Solutions Confidential


Cvm master database data elements summary
CVM Master Database – Data Elements Summary

Firmographic Information

Commodity Information

  • Name, address, telephone

  • Contact information

  • Revenues

  • Employees

  • SIC codes

  • NAICS codes

Corporate Linkage

Diversity Information

  • Parent/child

  • Location/headquarters

  • Joint ventures

  • Certificates

  • Expiration dates

  • Ethnicity

© 2009 CVM Solutions /Confidential


Before cvm data enrichment and after
Before CVM Data Enrichment and After

Before

After

© 2009 CVM Solutions Confidential


Why use cvm for supplier data services
Why Use CVM for Supplier Data Services?

UniqueData

UniqueApproach

SupplierFocus

© 2009 CVM Solutions Confidential


Cvm unique data
CVM Unique Data

  • CVM knows which suppliers are the most important to the F1000 and large organizations

  • CVM combines the best data sources to create the most accurate supplier database in the industry

  • All supplier data adds/updates go through a strict process before being added to the CVM Master Database

Collect

Release to Production

Match

QualityAssurance

Analyze& Verify

Add orUpdate

© 2009 CVM Solutions Confidential


Cvm unique approach and process
CVM Unique Approach and Process

  • High target service levels:

    • Strategic Suppliers: 95%+

    • Tactical Suppliers: 90%+

    • Transactional Suppliers: 80%+

  • CVM’s QA process performs both a match and data accuracy verificationon records we evaluate

  • Value-added Executive Summary Reports

  • Ensure data is delivered in proper format and is usable (i.e. loads, etc.)by the customer

  • Identify potential new diversity suppliers to maximize diversity spend capture

Initiation and Acquisition

Report and Delivery

Cleanse

QualityAssurance

AutoMatch

© 2009 CVM Solutions Confidential


Cvm focused on supplier management it s all we do
CVM Focused on Supplier ManagementIt’s All We Do

  • Focusing only on supplier data allows CVM to gain deep understanding and expertise with gathering, analyzing, and supporting supplier data projects

  • CVM understands the priorities and needs of procurement, sourcing, compliance, risk, diversity, and supply management organizations

© 2009 CVM Solutions Confidential


Why cvm solutions for supplier management
Why CVM Solutions for Supplier Management?

  • Proven delivery of Tier 2 programs

Suppliers Beyond Tier 1

  • Technology, data, and managed services for Tier 2

Easy Supplier Engagement Model

  • Supplier self-service portal

  • Supplier focused wizards and up-front data validation

  • Proactive supplier follow-up and hand-holding

Accurate and Validated Supplier Data

  • Existing large supplier database

  • Proven data quality and cleaning processes

  • Regular data refreshes and re-validation

Supplier Data Enrichment Services

  • Risk assessment and supplier diversity services

  • Supplier data enrichment with corporate linkage

Supplier Management Process Automation

  • Sourcing request management

  • Workflow and business process management

  • Business rules

Fast, Easy and Cost Effective Deployment

  • Implementation measured in days and not months

  • Proven delivery of managed services

© 2009 CVM Solutions Confidential


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