1. CC
Five Steps to Better
Trading Partner
Collaboration
A panel of thought leaders – representing
buy-side and sell-side
© 2012 Ariba, Inc. All rights reserved.

2. Inefficiencies Between Companies
Hinder Results
Sellers “The White Space” Buyers
Finding Qualifying
leads customers
Sales /
Responding to Sourcing
Marketing
RFI’s
Negotiating
Getting orders
Publishing
Operations / catalogs Procurement
Fulfillment Acknowledging
orders
Getting order
cancellations
Submitting
Managing invoices
Accounts Accounts
Receivable / errors Getting Payable /
Treasury Finance
Getting paid payment
status
80% of transactions completed manually – costing $650 Billion
Source: Celent Communications, Basex Research- “Information Overload”
2 © 2012 Ariba, Inc. All rights reserved.

3. Collaborative Business Commerce
Addresses These Challenges
SELLER: MARKET-TO-CASH
Market Bid Sell Contract Fulfill Invoice Collect
E-Marketing Online Business Better Automated Greater Early payment
and exposure negotiating opportunities compliance collaboration visibility opportunities
Identify Source Select Contract Procure Receipts Pay
BUYER: DISCOVER-TO-PAY
3 © 2012 Ariba, Inc. All rights reserved.

4. Collaborative Business Commerce
Provides Value to Sellers and Buyers
Seller Value Buyer Value
Faster AR Processing Sales Total Increased Sourcing Req Invoice Compliance WCM & Total
Payment Process Orders & Savings Revenues to Process Discount Savings
Mktg PO
15-20% 60-75% 5-32% 3-9% $3-20 1-8%
Improvement Process Revenue Process Savings/ Spend
Savings Increase Savings Document Savings
Increased visibility across the entire value chain
4 © 2012 Ariba, Inc. All rights reserved.

5. Ariba Can Help Your Collaborative
Business Commerce Evolution
Innovating
Collaboration
as a strategic
Collaborative Commerce
Extending mandate
Business Value
Establishing
repeatable
Growing processes while
expanding the
footprint across
Expanding into geographies,
Exploring additional processes,
process and/or business units,
Just getting
segments of trading partners
started
trading partners
Enablement Transformation
5 © 2012 Ariba, Inc. All rights reserved. Phases of Buyer and/or Seller Evolution

6. Introductions
• Cindy Fox
Process Development and Support
• Anna LaBelle
VP, Customer Service and eProcurement
• Jamie Banks
Director, Customer Support Systems and
eProcurement
• Salim Lakha
E-Procurement Manager
6 © 2012 Ariba, Inc. All rights reserved.

7. Objectives
• Share the goals for Electronic Invoicing and
Ordering (EIO)
• Discuss supplier collaboration and its fit
• Guiding principals
• Keys to success
7 © 2012 Ariba, Inc. All rights reserved.

8. Kimberly-Clark

9. A Global Health and Hygiene Leader
• 56,000-plus employees worldwide
• $2.1 Billion in Net Sales in 2011
® ® ®
• Well-known global brands HUGGIES KLEENEX SCOTT
®
KOTEX
® ®
PULL-UPS DEPEND
• #1 or #2 position in more
than 80 countries
• 1.3 billion consumers
use our products daily
9 © 2012 Ariba, Inc. All rights reserved.

10. Our Business Commerce Vision
• Enable round-trip electronic procure-to-pay process with suppliers
Establish electronic transmittal of purchase orders, changes, and
acknowledgements to and from K-C vendors
• Establish electronic invoicing with vendors and pass the invoices
to K-Cs back-end system for direct entry and workflow
Automated validation of invoice
Verification of invoices against PO
Supplier self-service
• Project launched late 2009
10 © 2012 Ariba, Inc. All rights reserved.

11. Our Business Commerce Vision: Why
Electronic Invoicing and Ordering?
• Challenge:
Manual paper-based PO and invoice process
– Extensive mailroom/data entry resource requirements
Invoice errors and rework
No easy way to administer EDI process
• Approach:
Strong alignment between Procurement and Accounts Payable to drive
process improvement
Ariba Network for PO delivery, invoice automation
Standardized Ariba Supplier Enablement approach
Original Project: Three Enablement Phases totally approximately 1,000 suppliers
Project had 70% Conversion Rate for enabling suppliers
Original goal: 60% Electronic Invoicing now expanded to 80% by end of 2013
11 © 2012 Ariba, Inc. All rights reserved.

12. The Tools
Suppliers
Ariba Network
Purchase Orders Portal
Supplier
Order Confirmations
Change Orders EDI
Supplier
eInvoices
Invoice and Pay Status
cXML
Kimberly Supplier
Clark
SAP
Flow of Information
12 © 2012 Ariba, Inc. All rights reserved.

13. Kimberly-Clark
Current State
• 700 suppliers transacting today
Over 600 transacting suppliers in less than a year
Over 200 in current enablement initiative
• Purchase Orders and Changes
13,000 POs per month (email, fax, EDI, cXML and online)
Service (i.e. Blanket) and Material (i.e. standard)
PO Acknowledgements and Advanced Shipment Notices
• Invoicing
20,000 invoices per month (EDI, cXML, CSV and PO-Flip)
95% straight-through invoice processing via Ariba Network
PO-Flip automatically validates invoice on front-end, virtually
eliminating invoice errors
EDI and cXML feeds for high-volume suppliers to consolidate invoice
processing via Ariba Network
13 © 2012 Ariba, Inc. All rights reserved.

14. Our Experiences
• What Has Worked Well • Lessons Learned
Having Standard PO Mid to higher volume
(material) and Blanket PO suppliers more accepting
(service) has allowed us Integrated suppliers can
flexibility with our business take one to three months
configuration to enable
Collaboration between Internal buyer involvement
Procurement and is key. They have the
Accounts Payable relationship with suppliers
Suppliers already Suppliers need access to
on network up to date training material
14 © 2012 Ariba, Inc. All rights reserved.

15. The Team
• Design Phase
IT (only for system implementation)
Business teams were responsible for design of system and supplier enablement
– Procurement
» 1 Lead
» 1 FTE
– Accounts Payable
» 1 Lead
» 3 FTE
• Ongoing – Supplier Enablement and Day-to-Day Support
Procurement
– 1 Lead (20%)
– 1 FTE
– Internal Buyer as needed for supplier pushback
Accounts Payable
– 1 Lead (20%)
– 2.5 FTE
15 © 2012 Ariba, Inc. All rights reserved.

16. Our Business Commerce Management
Evolution and Roadmap
Innovating
• Strategic
approach to new
Collaborative Commerce
opportunities
Extending
• P2P Council
Business Value
• Internal evaluating new
transformation opportunities
reflecting globally (e.g.,
Growing lessons learned dynamic
• Move to majority • Internal buyer discounting,
of electronic training and invoice receipt
orders knowledge date)
Exploring • Develop suite of transfer
• Invoices and options (paper,
orders (many P-Card, EDI,
manual) Ariba)
• A few EDI
suppliers
• Move to Ariba
Enablement Transformation
16 © 2012 Ariba, Inc. All rights reserved. Phases of Kimberly Clark’s Evolution

17. The Benefits of Vendor
Collaboration
• Reduce Process Costs
Aligns the supplier with Kimberly-Clark’s standard document transmission to drive
down the cost of doing business together.
Transmit purchase orders and related documents to vendors electronically
More options for supplier to select from in terms of how to receive and/or send
documents using the Ariba Network and integration with their systems.
Reduce costs and time of handling paper invoices
– Eliminates 8-12 days of processing time, including mail time, for a mailed invoice
Reduce the amount of problem solving time (caused by vendor or A/P errors) required
by various groups to pay invoices
Reduce the amount of inquiry and statement work from vendors
– Online access through a web portal to allows visibility into the status of invoice
17 © 2012 Ariba, Inc. All rights reserved.

18. Introductions
• Cindy Fox
Process Development and Support
• Anna LaBelle
VP, Customer Service and eProcurement
• Jamie Banks
Director, Customer Support Systems and
eProcurement
• Salim Lakha
E-Procurement Manager
18 © 2012 Ariba, Inc. All rights reserved.

19. Staples
• World’s largest office supply company and trusted source for
office solutions
• We provide products, services and expertise in the categories of
office supplies, technology, furniture, Copy & Print, and cleaning
and breakroom
• Founded in 1986
• Annual sales of $25 billion
• Rank 2nd in the world in eCommerce sales
• 90,000 associates
• 26 countries
19 © 2012 Ariba, Inc. All rights reserved.

20. eCommerce at Staples
• Engaged in eCommerce for 12+ years
• Collaborative commerce evolution began with a
customer request
• Approach is to be proactive, stay ahead of the curve
and be the supplier that customers look to for piloting
eProcurement programs
• Offer multiple solutions to buyers
C2B customers order on Staples.com
Contract customers order on private website
20 © 2012 Ariba, Inc. All rights reserved.

21. Top Objectives for Collaborating –
the Seller’s Perspective
• Customer satisfaction
Through compliance to eProcurement and eInvoicing initiatives
Awarded J.D. Power and Associates certification for 8 consecutive years
• Increase efficiency and eliminate costs for us and for our customers
Automation of transactions – today 94+% of all order line volume is conducted electronically
Eliminate manual handling of as many transactions as possible
Provide round-trip order receipt, order confirmation, invoicing to customers
• Increased order accuracy
Electronic orders ensure compliance and accuracy in pricing, specifications, etc.
• Going green
Staples is saving costs by reducing paper catalogs while offering an
environmentally–friendly alternative
21 © 2012 Ariba, Inc. All rights reserved.

22. Our Business Commerce
Management Evolution
Innovating
• Global adoption
of eInvoicing
Collaborative Commerce
• eCommerce
Extending
implementation
Business Value
• Adoption of in 30 days or less
eInvoicing
• Drive to
Growing PunchOut vs.
• Move to majority hosted files
of electronic • Eliminate most
orders manual
Exploring • Integrate transactions
• Initial customer eCommerce Web
request 12+ storefront to
years ago Ariba Network
through
PunchOut
Enablement Transformation
22 © 2012 Ariba, Inc. All rights reserved.

23. Staples and Ariba
Current State
• 159 customers on Ariba today
65% engaged in invoicing and orders
• Implementation in 30 days or less
• 94%+ rate of electronic and program
compliance
23 © 2012 Ariba, Inc. All rights reserved.

24. Our Experiences: PunchOut vs.
Catalogs
PunchOut Hosted Files
+ On-line returns - Increased invoicing issues
+ Order status - No customized items
+ Order history
- No order management
+ Personal shopping lists
+ World class search engine
- Costly
+ Real-time price and
product availability
+ No catalog maintenance
+ No on-going catalog creation
costs
24 © 2012 Ariba, Inc. All rights reserved.

25. Introductions
• Cindy Fox
Process Development and Support
• Anna LaBelle
VP, Customer Service and eProcurement
• Jamie Banks
Director, Customer Support Systems and
eProcurement
• Salim Lakha
E-Procurement Manager
25 © 2012 Ariba, Inc. All rights reserved.

26. Objectives
• Share the goals of customer collaboration
• Provide insights into the seller’s perspective
• Share Lawson’s collaborative commerce evolution
• Best practices - what makes buyer-supplier
collaboration work more effectively
26 © 2012 Ariba, Inc. All rights reserved.

27. Overview of Lawson Products, Inc.
• Lawson Products, Inc. founded in 1952
• Headquartered in Des Plaines, IL
• 2010 Sales of $316.8 million
• Publicly traded company listed on the
NASDAQ stock exchange (LAWS)
• Offering over 100,000 standard products
• Serving over 160,000 customers in the industrial, commercial, institutional
and government markets
• Shipping 99% of all lines complete within 24 hours from several strategically located
distribution centers in North America
• Over 1,300 sales representatives throughout North America
• ISO 9000 Registered Company
• GSA Contract Holder: Schedule Contract GS-06F-0027L
• Distinctions:
Listed among Industrial Distribution magazine’s “Big 50” distribution companies
Listed among the Selling Power® “25 Best Service Companies to Sell For”
27 © 2012 Ariba, Inc. All rights reserved.

28. Why Collaborate? A Seller’s
Perspective
• Customer compliance
• Win new customers
• Source of information for customers
• Automation
• Levels the playing field
28 © 2012 Ariba, Inc. All rights reserved.

29. Our Business Commerce
Management Evolution
Innovating
• Edit / Inspect /
Quote
Collaborative Commerce
• Level 2 PunchOut
Extending
• cXML Order
Business Value
• Adoption of Processing
eInvoicing • cXML Invoices
• Adoption of
Growing PunchOut Level
• Move to majority II
of electronic • Ariba Ready
orders Certification
Exploring • Integrate
• Initial customer eCommerce Web
request 10+ storefront to
years ago Ariba Network
through
PunchOut
Enablement Transformation
29 © 2012 Ariba, Inc. All rights reserved. Phases of Lawson Products’ Evolution

30. Collaboration at Lawson Products
Today
Dedicated E-Procurement Website
• Supporting Business Tools and Processes
• Integration into sales ordering system - eVMI
Standards-Based Technology
• Fast integration
• PunchOut Level II and RoundTrip
• Turn-key style implementation
Training and Support
• “Ariba Ready” Certification (six consecutive years)
• Field Sales and Customer training
• Dedicated support team
• Customer Feedback Process
30 © 2010 Ariba, Inc. All rights reserved.

31. Our eCommerce Organization
• Primary contact is a member of the E-Commerce Team
Project Manager – Asses the request and timeline
Participates in conference calls and is single point
of contact
• Level 1 Support is provided by our Web Customer Care
via toll free support
Support provided to both internal / external clients
post production
31 © 2012 Ariba, Inc. All rights reserved.

32. Our Experiences: Catalogs
What Has Worked Well Lessons Learned
• Single point of contact • Getting engaged during
from customer sales cycle (to avoid
• Collaboration before, during surprises)
and after the project • Cover all scenarios
• Using PunchOut over CIF (even those you think
whenever possible that won’t happen)
• Buyer mandate to
use solution
32 © 2012 Ariba, Inc. All rights reserved.

33. Our Experiences: Trading Partner
Onboarding Best Practices
• Supplier • Customer
Standards-based approach Work with “Ariba Ready”
Use business tools to on Suppliers
board customers Engage suppliers in
Provide training for both internal rollouts
buyers and sales reps Mandate use of
Feedback from customer authorized vendors to
for continuous improvement drive compliance
33 © 2012 Ariba, Inc. All rights reserved.

34. Lawson Products – Results
• Over the last five years
Sales have increased by 359%
Relationships have increased by 62%
E-Invoicing has increased from
10% to 50%
95% PunchOut catalogs
(all marketplaces) are still live
34 © 2012 Ariba, Inc. All rights reserved.

35. Thank you!
35 © 2012 Ariba, Inc. All rights reserved.

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36 © 2012 Ariba, Inc. All rights reserved.