Presentation by John Coster, Strategic Sourcing and Procurement Consultant from Solusoft

1. Increasing Profit during the Global Economic Crisis Solusoft’s Management Excellence Series Strategic Sourcing Best Practices

4. Solusoft Historically: Solusoft is well known as an Oracle Database administration outsourcing services provider as well as a reseller of software like NetSuite & Oracle software licenses and support. Additionally: Solusoft is a Business Consulting & IT Solutions provider. Our seven core services include Business Technology Optimization, Enterprise Performance Mgt, Financial Mgt, Human Capital Mgt, Outsourcing, Service Oriented Architecture & Supply Chain Mgt.

8. Increase ROI by Increasing Savings Recent Annual Report: Net Sales = $967M Operating Income = $167M Total Assets = $88M Profit Margin = 17% Asset Turnover Rate = 11 ROI = 18% With Strategic Sourcing: Savings = $14M Total Assets = $74M Profit Margin = 17% ATR = 13 ROI = 22% $14M savings equals $82.4M of new sales Or an 8.5% increase in sales

10. Benefits of Strategic Sourcing

11. How to Best Identify Savings Opportunities Knowledge Through Spend Analysis

15. Savings Examples Overall Savings Potential Annual Spend - $100,000,000 Average Savings from Strategic Sourcing 14.4% ( Aberdeen 2005 ) - $14,400,000 Additional Savings of 12% due to Spend Analysis - $1,800,000 Travel Commodity Savings Potential Example Annual Spend - $8M Annual Savings from strategic sourcing project 8% - $640,000 ( annually & should be higher ) Additional 12% from Spend Analysis - $77,000 ( annually )