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Savings Lever Calculations




                                                                                                         Addressable   Adoption   Est Savings Rate
             Value Lever   Savings Lever (M)                                                                                                                 Solution Enablers
                                                                                                           Spend        Rate%        (Range)
         Price Reduction   Improve Strategic Sourcing Savings Improve strategic sourcing savings on direct spend                                Spend Analysis, Sourcing
                           Increase Spend Under Management                                                                                      Spend Analysis, Sourcing
                           Improve Tactical Sourcing - 3 bids and buy                                                                           Buying
                           Increase Savings Through Dynamic Rate Management                                                                     SAP Fieldglass
                           Reduce Project Costs - budget, resource, and timeline management                                                     SAP Fieldglass
         Compliance        User Compliance – Approval to buy right product, right price, right supplier                                         Buying, Catalogs
                           Supplier Compliance – Invoice against contract                                                                       Buying & Commerce Automation
                           Invoice Error Reduction – Minimize invoice exceptions, duplicates, fraud                                             Buying & Commerce Automation
                           Increase Worker Quality                                                                                              SAP Fieldglass
                           Increase External Workforce & Service Delivery Compliance                                                            SAP Fieldglass
         Process Improvement Supplier Onboarding Cycle Time                                                                                     Supplier Management & Risk
                           Supplier Management Cost                                                                                             Supplier Management & Risk
                           Source to Contract Efficiency Source to Contract Process Efficiency                                                  Sourcing, Contracts
                           Lower Effort on Service Entry Sheets Creation and Approval                                                           Central Procurement & Buying, Commerce Auto
                           PO Requisitioning & Transmission                                                                                     Central Procurement & Buying
                           Order Expediting & Follow-up – FTE                                                                                   Commerce Automation
                           Invoice Receipt & Processing                                                                                         Central Procurement & Buying, Commerce Auto
                           Audit Cost & Risk Reduction                                                                                          Supplier Management & Risk
                           Planner/Scheduler FTE Cost                                                                                           Risk Management, Supply Chain Collaboration
                                                                                                                                                Supplier & Risk Management, Supply Chain
                           Reduced Logistics Costs
                                                                                                                                                Collaboration
                           Analysis & Reporting Costs                                                                                           Spend Analysis, Intelligent Spend Platform
         Revenue           Revenue Loss due to Stock Out Avoidance                                                                              Supply Chain Collaboration
                           Improved Time to Market                                                                                              Sourcing, Supply Chain Collaboration
                           Supply Chain Disruption Costs                                                                                        Supply Chain Collaboration
         Working Capital   Discount Capture - Missed Discounts                                                                                  Central Procurement & Buying, Commerce Auto
                           Days Inventory Outstanding (DIO) Improvement                                                                         Supply Chain Collaboration
                           P-Card Rebates (Spot Buy)                                                                                            Central Procurement & Buying
         TCO               Application management, integration expense, solution upgrades, IT expense                                           Intelligent Spend Platform
          Total                                                                                            $XY M       $XY M         $XY M



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