Eskom iSpec presentation and workshop

1. Eskom iSpec presentation and workshop

2. Company background

3. Remy InfoSource Our solutions • iSpec (Tender, Bid and Contract Management) • iTech (Artificial Intelligence Diagnostics) • ICAM (Equipment Logistics System)

4. Remy InfoSource Our customers • Siemens Transportation (MagLev Train) • Hutchison Port Holdings (largest port operator) • DP World (3rd largest port operator) • SABMiller (2nd largest brewer)

5. e-Sourcing with iSpec Agenda • Thursday • Background • iSpec - hands-on demo tender • Implementation • Q & A • Friday • SABMiller iSpec PM 2010-11 • Background • iSpec - hands-on demo tender • Implementation • Q & A

6. The issues

7. Historical background-SABMiller example

8. Performance Management Driving transformational change • Performance Management • Translate strategies into goals • Drive execution at speed • Organization alignment • Change the organization to ensure strategic capabilities • Talent and capacity management • Get the right skills and talent for today • Build a pipeline of talent for key positions

9. World Class Manufacturing WCM program • Efficiency • Asset care - reducing TCO • Short interval controls - reduce waste • Automated systems - improving materials handling • Organization • Procurement - upgrading skills, leveraging global supply network • Technical skills - equipment diagnostics, flexibility • KPIs - throughout operations teams • CAPEX • Increasing investment in equipment, systems

10. Global purchasing

11. Evaluation Negotiation Sourcing RFx Trials & Supplier Accreditation External info gathering Contract draft and review Tech Spec Management Strategic Sourcing Contract implemented Internal business requirement Reporting Planning systems Requisition Payment Transactional Processing MRP Purchase order Invoice processing Approval Goods receiving Inventory Management Quality Management Typical ERP gaps Typical ERP gaps • Strategic sourcing design based on category sourcing • No technical specification design, collaboration and management • Simplistic sourcing events based on SKUs • No allowance for alternatives • Short cycle time for review • No project management • Item/event vs project

12. A revolution in Tender, Bid and Contract Management Systems ERP gaps filled by iSpec Evaluation Negotiation Sourcing RFx Trials & Supplier Accreditation External info gathering Contract draft and review Tech Spec Management iSpec Strategic Sourcing Contract implemented Internal business requirement Reporting Planning systems Requisition Payment Typical ERP system Transactional Processing MRP Purchase order Invoice processing Approval Goods receiving Inventory Management Quality Management

13. Critical issues Compile contract documents from all negotiations, minutes of meetings, addenda, emails, etc. Quality of tender documents Multi-disciplinary geographically distributed teams Sequential access to documents Negotiations, minutes of meetings, addenda, emails, tedious manual process. Post-It, highlights Clarifications and correspondence Data mining Evaluation Tendering process Prepare tender documents Prepare tender documents Publish tender Publish tender Vendors correspond and submit bids Vendors correspond and submit bids Open bids and evaluate Open bids and evaluate Negotiate & award Negotiate & award Prepare & sign contract Prepare & sign contract Issue PO Technical, financial and other approvals Slow inspection and other reporting leads to delays and can cost you money. Construction Delivery process Guarantees & bonds Guarantees & bonds Design review Design review Inspections Inspections Delivery Delivery Performance testing & Commissioning Track contract deliverables and milestones. Certifications Track and manage amendments Track and manage deliverables and liquidated damages

14. The problem Where is the info? • Project information is scattered on computers and in documents throughout multiple organizations • Missing/outdated documents • Accountability • Audit-ability • Control/authority • Transparency

15. Result Price padding • Price padding • Project delays • High cost of tender management • Loss of transparency

16. The process

17. Three key areas Key areas • Tendering • Bidding • Contract Management • Historically 3 totally isolated processes

18. Electronic age Bid Documents @ @ @ Tender Documents @ @ @ @ Bid Documents @ @ @ @ @ Evaluation & Negotiation @ @ Bid Documents Bid Bid @ Bid @ @ @ @ @ @ @ @ @ @ @ @ Contract Delivery @ @ @ @ @ @

19. Electronic age Problem • Still no proactive coordination and synchronization of parties, activities or information • No integration of the 3 key areas

20. The Solution

21. Centralized control, global access Master templates Project Management Project planning MRO Supplier Submissions Transactional Systems ERP Interface Bid Evaluation & Negotiations Delivery Tracking Quality Assurance Contract Awarding

22. Structured collaboration in a unified workspace No integration • Integration of the 3 key areas • Tendering • Bidding • Contract Management (Monitoring of the works) • Comprehensive audit trail - easy to find data • Automation - as much as possible

24. Create a template Create master set • Add template • Add documents that form part of master set

25. Create a template Adjust document settings • Add new content • Add content from library • Only certain items are editable

26. Create a template Requirement/response settings • What are requirements? • Delivery dates • How will responses be scored • What response is expected? • Deliver dates • Prices • Product data

27. Audit trail - version tracking Audit trail • All changes recorded: • By whom • When • Compare • Roll back

29. Create a new tender Add a tender • Set basic options • Publication dates • Type - RFx • Currency • Business Unit

30. Prepare tender Overview • Dates • Status • Reports • Open and completed tasks

31. Prepare tender Tender preparation phase • Documents copied from master template • Documents requiring attention have alert icons • Select project team and roles • Select vendors to invite

32. Prepare tender Document preparation • Only items with pencils require editing • Other headings are pre-approved and cannot be changed • Less work - less checking

33. Prepare tender Preparation • Orange pencils turn green as items are completed • Select options as set up in template - no editing required • Import BOQ from Excel

34. Upload attachments/addenda Attachments • Upload multiple documents at a time • Attach drawings, pictures, documents, spreadsheets, etc.

35. Team works simultaneously Concurrent document access • Multiple users can access document simultaneously from different geographic locations • All changes are recorded

36. Vendor management Vendors • Register • Assign to Groups • Panels • Trades

38. Obtain approval Approvals • Approvals can only start once all pencils are green • It is impossible to publish an incomplete document

40. Prepare bid and submit Vendor online submission • Vendor sees same basic overview • Control panel for submitting/withdrawing bid • Documents with alerts

41. Prepare bid and submit Vendor response • Red items turn black as they are completed • Vendor response for each item is specified and simple

42. Prepare bid and submit More requirements • Some items require more detailed response • Delivery dates • Prices • Compliance • Documentation

44. Clarifications - Audit trail Clarifications • All correspondence is recorded in iSpec automatically linked to the heading it relates to • Creates comprehensive audit trail

45. Modifications/addenda Addenda/clarifications • Messages/addenda can be sent to one or all vendors • Part of audit trail

46. Prepare bid and submit Response validation • Vendor cannot submit bid unless all items have been completed

48. Open bids Approval status • Track and expedite approvals

50. Compare pricing Bid evaluation • One click pricing comparison • No data mining required