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RECENT POSTINGS

The SIG Career Network is

bursting with opportunities.

New jobs are posted daily by some

of the best known global companies in the world for those

seeking careers in sourcing, outsourcing, procurement and

related functions.

For more information go to: www.sig.org/career-center.php

NEW to the Career Network!

• Workday – posted Nov 4:

• Senior Strategic Sourcing Specialist

• FedEx – posted Nov 2:

• Sourcing Principal

• Options Clearing Corp. – posted Oct 28:

• Manager, Contracts & Corp. Services

• Strategic Sourcing, Lead Buyer

• Huntington National Bank – posted Oct 27:

• Senior Sourcing Manager

• Guardian Life Insurance – posted Oct 14:

• Manager, Vendor Management

• Travelers – posted October 14:

• Procurement Program Manager

• University of Notre Dame – posted Oct 13:

• Associate Director, Strategic Sourcing

• N. Carolina State Univ. – posted Oct 13:

• Director

• Travelers – posted October 8:

• Sourcing Manager

• Sourcing Manager - IT

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Upcoming Free SIG Webinars:

November 10, 2015European Court Halts Flow of Personal Data from EU to US Through Safe Harbor ExceptionPresented by Mayer Brown

November 12, 2015Building a Procurement Analytics Platform to Mitigate Risks and Empower Category StrategiesPresented by IBM

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SIG Global Summits are semi-

annual events with 350-450

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• Non-commercialized

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leaders

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69% of delegates are director level or above, of which 43% are VP/C-level

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Online learning environment

Sourcing and Governance certifications with Professional and Executive level courses

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Certification good for 5 years

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Partnering with Universities

Introducing students to seasoned supply chain executives

Sharing thought leadership with students in class, SIG University courses and at SIG events

Giving access to internship and job postings on the SIG Career Network

Allowing students to get real world insight into supply chain careers

Finding tomorrow's supply chain professionals today

Nipun Sehgalnipun@enlighta.com (510)304-3566

Joe Wroblewski Director, Third Party GovernanceTime WarnerJoseph.Wroblewski@timewarner.com

Nipun SehgalCEO and Co-FounderEnlightanipun@enlighta.com

Nipun is the Founder & CEO of Enlighta; Enlighta’s solutions havebeen deployed by global 2000 enterprises to simplify andstreamline performance management, risk management,contracts compliance, relationship and financials managementacross strategic supplier relationships.

Over the last 25 years (including 10+ years at Enlighta), Nipun hasbeen involved with architecture, implementation and deploymentof enterprise grade web solutions and middleware for Global2000 clients.

Nipun’s interests and focus areas are enterprise-class solutionsand platforms for complex, challenging and “big” problem areasthat remain unaddressed in enterprises.

Today’s Presenters

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Joe has a track record of over 20 years working with seniorexecutives to deliver business results by defining and aligningbusiness process, technology, organizational talent, andvendors. He has strong experiences across consulting, businesstransformation, outsourcing, procurement, and IT.

Joe is currently the lead for Third Party Governance for TimeWarner where he seeks to maximize the value of relationshipsbetween Time Warner and various vendors. Prior to Time Warner,Joe served as the head of Business Transformation as well as theLead of Sourcing & Procurement for a financial services companywhere he was responsible for strategic vendor relationships. Joespent over 15 years at a Management and IT Consulting firm wherehe was a Partner responsible for delivering consulting andoutsourcing services and maintaining high client satisfaction.

Joe has served as a member of The Quality Council of The ExecutiveBoard – an industry group focused on sharing best practices fordriving process and performance excellence.

Today’s Agenda

• Enlighta Introduction

• Why is Vendor Governance and Risk Management important?

• Third Party Risk Framework & Case Study

• Supplier Governance Framework & Case Study

• Key Takeaways

• Q&A

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Since 2002, providing best-in-class Supplier Governance & Third party Risk management solutions

#1 Managed Governance Tool used by Leading Advisors

#1 Customer Adoption- 50+ direct clients and partner deployments

Global Clients

- F100 Financial Svcs

- F500 Media Company

- F500 Insurance Svcs

- F500 Global Svcs provider

- F100 Retailer

- F100 Hotel Chain

- Top 5 IT Services

- F500 Bio-PharmaProfitable & Growing (CAGR over last 3 Years is 50%); In business since 2002

Only Tool deployed by all 3 players –Buyers, Advisors, Suppliers as clients

"Enlighta has proven to

be a powerful

solution for enabling

efficient

outsourcing

governance. The

support provided both during and since

implementation has been

outstanding." - Project Manager, F500 Financial Services

Introducing Enlighta

• San Ramon, HQ• Global Delivery Centers• SSAE 16 Hosting Dedicated• Cloud Hosting (AWS)• Client On-Premise Hosting

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Why is Third Party Risk & Governance Important?

• Volume – 3rd party work has increased drastically.

• Core Processes – 3rd Parties are more deeply entrenched in areas

of the business that in the past would have been “off the table”.

• Complexity – The activities being performed cover a wider and

more complex set of functions and business processes.

• Expectations – Clients continue to increase expectations of their

3rd parties.

Several dimensions of 3rd Party activity have evolved which increase the need for governance and risk management:

The success of businesses is increasingly more reliant on services provided by 3rd

parties.

• Location – The places from which work is done has exploded.

• Technology – Mobile, Freeware, Social, App integration, …

• Inter dependencies – 3rd Party X dependent on 3rd Party Y.

• Regulation – There is closer scrutiny from Federal, State, Industry,

and internal groups on what is being done and how it is being done.

The risk of failure and the impact (cost, reputation, market share, product launch, etc.) is also higher.

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Why is Third Party Risk & Governance Important?

Third-party relationships have been a significant area of concern for years…. We’ve unfortunately found it necessary to take serious enforcement action against some of our large institutions for problems brought on by poorly-managed third-party relationships, from debt collection companies to telemarketers.” - Thomas J. Curry, Comptroller of the Currency

A primary cause of Business Value Leakage in relationships between buyers and providers is the lack of proper governance after contract execution:

Poor Governance can erode up to 90% of the anticipated value from outsourcing- The Corporate Executive Board

Poor Governance plays a role in outsourcing failures as much as 62% of the time- The Outsourcing Center

Regulators are holding banks responsible for the faults of their vendors. About a half a billion dollars in enforcement actions.- American Banker

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Audience Polling Question

What is your organization’s current level of maturity in governing 3rd party relationships and mitigating risks to ensure delivery of business value?

Level of Maturity1) Expert – We know this stuff cold, we’re attending the webinar for fun.

2) Above Average – We have a very good handle on this but looking to improve.

3) Average – We have been doing a good job but have work to do.

4) Below Average – We aren’t doing as well as we want and are looking for best practices and tools.

5) Low – Please help me.

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Third Party Management Framework

Manage Contracts

Relationship Management

Performance Management

Consumption Management

Classify Third Party

Acquire Third Party

Assess Risk

Governance3rd Party Risk Mgmt.

Third Party Exit Mgmt.

Financial Management

Supporting Activities

Sourcing

Monitor Risk

Risk Mitigation

Re-Assess Risk

Enlighta Risk

Typically 1000-20000 Third Parties

Typically 5-250

Third Parties

Once, initially when acquiring a third-party or a new contract

When acquiring a third-party or a new contract or renewing or updating existing contract

Continuously, on an ongoing basis. Some activities are typically monthly

Once, on exit

Enlighta Govern

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Contract• Contract Register

• Pricing: Transactional, Fixed, Rate Card ARC/RRC Dead-bands

• Contract Requests

• Contract Issues

• Interpretations

• Spend Pool Mgmt.

• Service Requests

Performance• Service Levels definition

• Internal SLA computation

• External SLA import

• Mgmt. Dashboards

• Metric Reports

• Deliverables & Obligations

• Balanced Scorecard

Financials• Invoice Validation for

consumption, timing, pricing and credits

• Disputed Charges

• Service Credits and Earn-backs tracking

• Resource Consumption, Overtime and Forecast

• Spend Actuals, Budget and Forecast & Variance

Relationship• Governance Issues

• Engagement Level (Meetings, Action Items)

• Communications

• Supplier Assessment

• Ideation

• Survey Management

Role-based Workflow, Secure Access, Configurable Processes

Risk ManagementSupplier Risk Profiler Contract Risk Profiler Risk Register Action Plans Risk Monitoring & Alerts Audits & Findings Risk Scorecards

Supplier Management Data Analytics

How Enlighta simplifies Supplier Governance & 3rd Party Risk mgmt.

Supplier RegisterSupplier Profile Contacts Capabilities Ratings Resources

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Why use Enlighta for Strategic Supplier Governance & Risk Management?

Automation of end to end Risk processes

Integrated “Governance and

Risk” approach

Dynamically Auto-update of Risk

Scores on real-time basis

Drill-down insight via Risk Scorecards

and Dashboards

Consistency across Categories,

Divisions and Suppliers

Easy on your Budget

Easy to Adapt Forms, Reports &

Processes

Seamless Data Aggregation

No Need to Deal with Software

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INT

ER

FAC

ES

(b

atch

, AP

I an

d m

anua

l)E

nlig

hta

Ena

bled

Fun

ctio

nalit

ies

Seamless Integration with existing client systems and applications

Single Sign On

( LDAP )

MS Outlook

Calendar

Look Up

Performance Management

( ITSM BMC Remedy )

Contract Depository

( PeopleSoft / SAP )

Invoices ECO system

( Oracle / PS )

Asset Management

( BMC Atrium )

GRC

( MetricStream )

Financial

( PS / Oracle )

Policies Regulations

( SharePoint )

Time Tracking

( Fieldglass )

Sourcing Tools

( Ariba )

Email

Send / Receive

Automated

Performance

Dashboard

SLA

Management

Contracts, SLA’s

Metrics Database

Invoices

& Credits

Balanced

Scorecard

Change Request /

Request for Service

PricingRisk Issues

& Actions

Risk

Controls

Contract

Risk/Audits

Contract

Risk Assessments

GEO

Risk Contract Risk

Scorecard & Analysis

On boarding /

Renewal ChecklistsSupplier

Profile

Relationship Survey

& Benchmarks

DNOs

RFX

Vendor Client Employees

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Define Risk & Scope

AssessRisk

Interpret & Manage

Risk

Report & Monitor Risk

VerifyRisk

• Define Risk Framework • Define Risk Elements

viz. Service Categories, Suppliers and Contracts

• Define Risk Stakeholders

• Define Risk Tiers e.g. High, Med, Low

• Select Scope of Third-Parties and Contracts

• Define Risk Assessment Plan

• Define relevant Controls points

• Run Preliminary Supplier Risk Profiler or

• Preliminary Contract Risk Profiler

• Run Initial Supplier Risk Assessment or Initial

• Contract Risk Assessment• Generate Initial Supplier

(or Contract) Risk • Score & Tier• Request detailed

information/ meetings for • Recurring Supplier (or

Contract) Risk Assessment

• Review Supplier Survey responses, notes & operational data

• Recurring Supplier or Contract Risk Assessment

• Create Risk Issues and interpret risk

• Collaborate internally & with Supplier to create Remediation Plans

• Execute Remediation Plan & Reduce Risk

• Conduct Final Supplier or Contract Risk Assessment; generate Final Risk Score & Tier

• Create Risk Audit Plan• Conduct Internal and or • Third party Audits• Record Risk Audit

Findings• Record Risk Audit

Results

• Share Final Risk Score & Tier of Suppliers and Contracts with BUs, Sourcing, Legal, VG&M

• Update systems; and publish Risk Dashboards

• Periodically refine Controls & Monitor Risks

Phased Approach to Implementing Framework

enlighta

Third Parties & Contracts Register

Complete &Accurate?

Register Certification Process

no

SAPAribaOracleFeed

Service ownersContract owners

Case Study: Leading Multi-National EU/APAC Bank

23

Third-Party Entity and Contract On-boarding

Case Study: Leading Multi-National EU/APAC Bank

Third Party On-Boarding

Contract On-Boarding

Supplier and Contract On-boarding and On-goingRisk Assessments and Risk Scoring

24

Client Relationship Owners,Contract Managers and Risk Officers can provide Narratives to interpret the Risk

Visual dashboardshighlight the Risk Scores in a Scale e.g. here on a 1-5 scale

Clients can set custom RiskTiers and associated Risk Score ranges e.g. High Risk= Color Red= Score of >3 on a 5 point scale

Risk Scorecards & Automated Alerts

25

Location and Subcontractor Risk by Contract

On-boarding Assessments & Capture Site and Subcontractor Details and Location

Data Elements Accessed by

Supplier & Sub-Contractors

26

Supplier Governance Simplified

Manage Contracts

Relationship Management

Performance Management

Consumption Management

Classify Third Party

Acquire Third Party

Assess Risk

Governance3rd Party Risk Mgmt.

Third Party Exit Mgmt.

Financial Management

Supporting Activities

Sourcing

Monitor Risk

Risk Mitigation

Re-Assess Risk

Enlighta Risk

Once, initially when acquiring a third-party or a new contract

When acquiring a third-party or a new contract or renewing or updating existing contract

Continuously, on an ongoing basis. Some activities are typically monthly

Once, on exit

Enlighta Govern

Invoice & Line Item Validation, Pre-

Payment Approvals

Supplier Balanced Scorecards

Supplier Health Check Surveys

SLAs, OLAs, KPIs Deliverables &

Obligations

Resource Units Forecasts & Actual

Consumption

Contract Changes, SOWs, T&Cs,

Pricing, Key Dates

Issues, Events, Exceptions &

Actions

27

Service Level Management

Supplier Balanced Scorecards Automated Feeds Exception Handling Requests to Suppliers Supplier Input Resource Units Volume Management Service Levels Service & Resource Credits Deliverables & Obligations Issue Management Events & Automated Actions

Multi-Tower, Region, Supplier, LOB

28

Deliverables & ObligationsPeriodic (Annual, Quarterly, Monthly, Weekly) D&Os with Automated Reminders, Action Items

Shared Calendar of Governance & Risk Activities

29

Supplier Relationship Health Check Surveys

Easy to model and distribute supplier survey health assessments

Report and Analyze Assessment Results

30

Enlighta is used as a Supplier RelationshipHealth Check Assessment platformFor 100s of client-supplier relationships

Case Study: CitigroupAnnual Assessment based on Enlighta for over 4000 participants and 12+ Suppliers and Global Shared Services Organizations

Recent Assessments (in partnership with GSOS): National Bank of Canada and multiple suppliersPratt & Whitney and multiple suppliers

Time Warner Case Study

31

Background• Multiple Business Divisions with Significant Autonomy• Meaningful Reliance on 3rd Parties to Enable Business Success• Desire to Leverage Scale across Multiple Divisions • Various processes, tools for 3rd Party Governance across Business Divisions• Solution needed to be “easy to use” and “easy to tailor”

Manage Contracts

Relationship Management

Performance Management

Consumption Management

Governance

Financial Management

Contracts – Standardize. Repository of obligations.

Relationships – Healthchecks / client satisfaction survey. Issue Management.

Performance – SLA Library. Metric Tracking.

Consumption – Insight into SOWs, resource allocations, dates, checklists.

Financial – Rate card. Rate Management. Forecasting.

• Single Platform shared by 3rd Parties and employees.• Dashboard reporting plus query functionality for ad hoc.• Rules/workflow engine for consistency and notification.

“highly customizable solution and high flexibility for UCB

admin to create and modify elements in

the system”

“modern web-based layout, user-friendliness,

response time, 24/7 support”

“attractive pricing model based on the application use and

scope”

“focus on the functionalities and not on additional

services”

N. Ricci, External Partnerships

S. Baton, External Partnerships

M. Mezei, Finance Shared Services

Case Study: UCB – Leading European Pharma

Enlighta enables supplier contract compliance, performance management and invoice validation across top 20 IT, BPO and clinical trial partnerships

32

Key Takeaways

• Regulatory and Business Drivers make for an easy business case

• Consider a holistic framework that combines Third Party Risk Management & Supplier Governance

• Getting started is easy – go-live within 3 months with phased deployments

• Supplier adoption and rapid adaptability of solution is a key consideration

• Q&A

33

Interested in learning more? (ask about SIG member discount!)

Maximize business value from supplier relationships by measuring performance, monitoringcontract compliance and risk, effective change control and management decision support

Q & A

Please contact: info@enlighta.com

Nipun Sehgalnipun@enlighta.com (510)304-3566

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