Apollo Group Confidential – Not for Distribution
Strategic Supplier SummitJune 10, 2009
PATRICK BLISSWorking together toward a mutually beneficial relationship
PATRICK BLISSDIRECTOR, STRATEGIC SOURCING & PROCUREMENT
Apollo Group Confidential – Not for Distribution 2
Agendag
• Introduction to Strategic Partnerships• Apollo Procurement Transformation• Expectations of our strategic suppliers• Benefits to our strategic suppliers• Closing remarksg
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The three pillars of a strategic relationshipp g pm
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Apollo StrategicApollo Strategic Partnerships - Defined
• Unencumbered two-way communication, including pro-active communication ofincluding pro active communication of opportunities
• Information sharing, planning, continuous improvementp
• Best in class pricing, efficiency-reduced transactions costs for both parties
• Risk sharingg• Customer of Choice• Supplier industry development (technology,
service level, cost), )• Social responsibility/sustainability
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The Pyramids of Strategic Partnershipy g p
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The Pyramids of Strategic Partnershipy g p
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The Pyramids of Strategic Partnershipy g p
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The Pyramids of Strategic Partnershipy g p
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The Pyramids of Strategic Partnershipy g p
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Apollo Purchasing – pre 2009p g p
• Transactional in nature• Fewer RFP’s / Less DefinedFewer RFP s / Less Defined• NOT Strategic• Few partnerships
– Supplier changes at random
• Inability to consolidate supply base– Less maximizing of spend volume to key g p y
suppliers
• Manual Processes (PO, Contract, Settlement))– Costly to Apollo/Suppliers– Delays on invoice payment
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Present Day Sourcing & Procurementy g
• Purchase Order AutomationCatalog Items
• Spend Analysis/VisibilityAccurate classification of– Catalog Items
– Immediate PO creation, approval and transmission to strategic supplier (upon
– Accurate classification of spend data
• Less Maverick SpendI d l fstrategic supplier (upon
Requisition approval)– July 2009 go-live
• Increased volume for strategic suppliers
– Visibility into existing volume/consolidationvolume/consolidation
– Supplier record enrichment• Parent/child relationships• Duplicate records
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The Future – 2010 and Beyondy
• Contract Lifecycle Management
• Invoice Settlemente Invoicing solutionManagement
– Robust, automated contract authoring, monitoring and
– e-Invoicing solution• Ariba
– Upgrade to invoice l kflmonitoring and
management tool and repositoryWill enhance contract
approval workflow application
– Enhancement of – Will enhance contract
procedures and process timelinesR l d i ti
Purchasing Card (P-Card) functionality
– Renewals and expirations more diligently controlled
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Apollo Strategic Sourcing & Procurementp g g
• Definition– identifying value opportunities within the Supply environment– …….identifying value opportunities within the Supply environment…….
• The Goal– More value for Apollo’s spend
• The Means– Aggressive, market competitive cost structures/discounts
Developing and maturing key business partnerships to provide– Developing and maturing key business partnerships to provide maximum opportunity
– Integrating transparency in supply process to streamline sourcing activities and acquisitionsactivities and acquisitions
– Finding added value services that enhance Apollo operational and financial processes
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Apollo Strategic Sourcing & Procurementp g g
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World-Class Sourcing/Procurementg• Measurable and sustainable cost savings/cost avoidance• Alignment of strategic plans to organizational objectives and business strategy
Ad ti f i t t h l / t ti t i i P2P ff ti• Adoption of appropriate technology/automation to maximize P2P process effectiveness• Development and retention of highly qualified, highly motivated staff• Standardization of key procurement processes and policies that are clearly defined and
maintain maximum compliance and support within the entire organization• “Green” or socially responsible purchasing considerations• Well-developed strategic supplier partnerships which incorporate detailed supplier
scorecards and measurements• Contract compliancep• Minimal “maverick” spending• Integration into the budgeting/planning process to ensure accurate budgetary expectations• Multi-year strategic procurement plans
C t l d P t f ti lit• Center-led Procurement functionality• Low-Cost Country Sourcing• Utilization of spend analytics to focus sourcing efforts
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Current Apollo Initiativesp• Ariba Implementation
– Spend Visibility, Sourcing Pro, Procurement Content, Invoice Pro
• Contract Lifecycle Management (CLM) tool
• Purchase Order Automation• Improved forecasting with strategic
supplierssuppliers• Supplier Scorecards• Organization changes
– Separation of tactical and strategic duties
• Sustainable alternatives
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Apollo Expectations of Strategic SuppliersSuppliers
• Customer of Choice– Market Competitive/Best-in-Class
pricing– First fill of orders– Advance notice of supply
restrictionsrestrictions• Alternative product
recommendations
– Transparency• Down to 2nd/3rd level of supply
chain
• Supplier financial stability• Business technology adoption
– e-Invoicing (B2B)• Standard/Consistent information
on invoices (PO/CC# Qty Price
Apollo Group Confidential – Not for Distribution
on invoices (PO/CC#, Qty, Price, Description)
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Apollo Expectations of Strategic Suppliersp p g pp
• Communication– Industry Trends– Industry Trends– Upcoming Supplier
Developments– Competitive Insights– Competitive Insights– Open Feedback
• Apollo processes, incompatibility
Focused Communication– Focused Communication• Sourcing – central communication
point for SRM (non-technical discussions)
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Apollo Expectations of Strategic Suppliersp p g pp
• Legal resource commitmentM t i t– Master service agreements
– Timely turnaround
• Early Payment Discounts• Early Payment Discounts• Global Procurement support
S i l ibilit / t i bilit• Social responsibility/sustainability
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Benefits to Strategic Suppliersg pp
Source: Hackett Group 2008
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Benefits to Strategic Suppliersg pp
• Growth Opportunities– Supplier consolidation
• Quicker turnaround/settlement of pp
• Earlier forecasting of Apollo needs
Annual volume commitments
payments• Longer term contracts• Expansion of client base– Annual volume commitments
• Clear understanding of Apollo’s “grade” of supplier’s services/delivery
Expansion of client base – Students/Faculty/Employees/
Alumni
• Academic Allianceservices/delivery• Apollo open communication on
organizational strategy/direction
• Academic Alliance• Apollo recognition
– PR/Testimonial opportunitiesstrategy/direction
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Apollo Group Confidential – Not for Distribution
Questions & Answers