Leveraging D

1
Leveraging DBs trusted supplier information to
help you reduce spend to improve your
profitability
February 2005
2
Every day you make critical business decisions to
reduce spend to improve profitability and for
those decisions you need quality information
Reduce Spend

• How can you negotiate a better price with this
  supplier?
• Are you currently capturing all of your
  company-wide spend with this supplier?
• Is this supplier part of a larger entity that you
  are also doing business with?
• Is there non-compliant spend that you should
  shift to this supplier to increase leverage?
• Are there other products you should be buying
  from this supplier?
• Should this supplier get more or less of your
  business?
• Is this supplier likely to go out business and
  disrupt your supply chain?
• Are there other suppliers that better meet your
  needs?
• Does this supplier help you achieve your
  diversity objectives?
• Is this supplier compliant with Sarbanes-Oxley
  and Patriot Act requirements?

3
When making these decisions, you are challenged
by
Reduce Spend
Accessing spend data across multiple data sources
Duplicate, outdated or incomplete supplier records
Computer Associates C.A. Management C.A.
Investments Computer Research
Inability to track savings and control rogue spend
Inability to consolidate spend to identify
immediate savings
Under reporting and mis-stating spend with
diversesuppliers
Lack of external market perspective
Limited visibility to total spend and/or diverse
spend
Changing market and supplier dynamics
Time-consuming qualification process
4
You are also challenged by how frequentchange
among suppliers impacts your decision making
Reduce Spend
Every
14 seconds a judgment is filed against a supplier
4 hours a suppliersownership changes
60 seconds a suppliers risk profile changes
8 minutes a supplier filesbankruptcy
2 minutes a directorship (CEO, CFO, etc.) change
occurs
3 minutes a supplier ceasesoperations
2 minutes a new business opens
5
Without accurate, complete and timely
information, it is difficult to reduce spend
Reduce Spend

• Spend objectives
• Gain total visibility to company wide spend
• Increase negotiating leverage among fewer
  suppliers
• Stop rogue spend
• Meet annual savings targets

• Information needs
• Spend information gathered from all data sources
• Corporate Linkage information on suppliers to
  negotiate at the most strategic level
• Current spend information to pinpoint whos
  buying off contract
• Current spend information to track progress
  against savings targets

6
The consequences of not reducing spend may be
severe and may damage your brand
Reduce Spend

• Missed leverage leads to unrealized savings
• Missed earnings per share (EPS) targets from
  unrealized savings
• Underleveraged supplier relationships from a
  corporate family and customer perspective
• Inefficiencies in supply chain because of too
  many suppliers per spend category

7
We have been in business for over 160 years to
provide the insights you need to make confident
business decisions
Reduce Spend
To be the most trusted source of business
insight so our customers can decide with
confidence
8
Our patented process of collecting from multiple
sources and enhancing data into the quality
information is called DUNSRightTM
Reduce Spend
Entity Matching 2
D-U-N-S Number 3
Corporate Linkage 4
Predictive Indicators 5
Global Data Collection 1
Quality Information
DB Global Database
Quality Assurance
9
DUNSRight provides the quality information and
insights you need to reduce spend
Reduce Spend
Mitigate Risk
Achieve Supplier Diversity Goals
Improve Compliance

• What is your total spend (who, what and by whom)?
• Where are the opportunities to increase
  negotiating leverage?
• Which other low-cost suppliers meet your needs?
• Are you achieving your annual savings goals?

Are your suppliers likely to go out of
business? Are your suppliers too dependent on
you? Where is the risk and exactly who is at
risk? Are your suppliers involved in any
fraudulent activities? Which other stable
suppliers meet your needs? How is your risk
changing over time?
How diverse is your supplier portfolio? Are you
spending enough with diverse suppliers? Which
other diverse suppliers should you be using? Are
you meeting all corporate, federal and state
requirements?
Are you achieving your annual savings goals?
Are you spending enough with diverse
suppliers? Are you reporting your high risk
suppliers as part of Sarbanes-Oxley compliance?
Do know if your suppliers are linked to
terrorist organizations as required by the
Patriot Act? Are your suppliers involved in any
fraudulent activities?
10
To help you reduce spend, our DUNSRight process
combines database depth, matching expertise and
global linkage capabilities
Reduce Spend
Most powerful predictive indicators in the
industry help you identify and manage the risk in
your supplier portfolio to prevent supply chain
disruption

• Data collection expertise and our comprehensive
  database of 92 million businesses in over 200
  countries helps capture your total spend and
  source new suppliers

Patented matching process creates immediate
leverage by eliminating duplicate records within
your supplier master
Unique identifier tracks business change
including merger and acquisition activity that
can create more negotiating leverage or identify
bankruptcies that can disrupt your supply chain
Unparalleled global linkage capabilities provide
a total view of your leverage opportunity and
supplier risk
Quality Assurance
11
This process provides the quality information
and insights you need to reduce spend
Reduce Spend

• What is your total spend?
• Who you are buying from?
• What you are buying?
• Who is doing the buying?
• Where are the opportunities to increase
  negotiating leverage?
• Removing duplicates in your supplier master to
  identify immediate leverage
• Aggregating spend with related suppliers to a
  single corporate family
• Prioritizing and consolidating spend within a
  spend category
• Which other suppliers meet your needs?
• Confirm if they are financially stable
• Know if they are diverse
• Identify if they are an existing customer
• Are you achieving your annual savings goals?
• Savings to date
• Off-contract spending
• New savings opportunities

12
These insights allow you to make more confident
spend decisions as you analyze, source and manage
your supplier portfolio
Reduce Spend

• You can analyze your spend better because
• You have the most up-to-date and accurate
  supplier information
• You have visibility to total spend across
  multiple systems
• You know if you are negotiating based on the
  total supplier relationship
• You can source new sources of supply in new
  markets quickly because
• You can source suppliers by industry, location,
  diversity and/or financial stability
• You can manage your spend better because
• You will understand where to look for your next
  savings opportunity
• You will know if you are on track to meet your
  savings targets
• You can quickly identify if you are buying from
  non-approved suppliers
• You can pinpoint who is not buying from your
  preferred suppliers and contracts

13
You have the most up-to-date supplier information
to analyze your supplier diversity since we
update our database over one million times a day
Reduce Spend

• Direct Investigations, News and Media
• 115 million phone calls annually to businesses
• Top news providers
• Merger/acquisitions

• Payment and Financial Data
• 580 million trade records updated annually
• 100 coverage of public company financials
• 97 of all financials are from privately held
  companies

DB Global Database 92 million businesses
Over 200 countries Over One Million Daily Updates

• Public Records and Government Registries
• 134 million
• Suits, liens, judgments and bankruptcy filings
• Business registrations

• Web Sources and Directories
• 4.7 million URLs
• Updates from 27 million domains
• 90,000 customers providing online updates

DB D-U-N-S Number
14
Our data collection expertise helps you gather
all your information from across multiple sources
to gain total visibility to your spend
Reduce Spend
Data Source Amount
of Spend of Total Spend
239,501,704 100 Accounts Payables
104,785,005 44 General Ledger 76,888,632
32 Wire Transfer 23,467,405 10 Credit
Cards 15,570,890 7 Travel 10,001,340
4 Logistics 8,788,432 3
15
Our D-U-N-S Number and Entity Matching removes
more duplicates and identifies leverage so you
can negotiate based on the total supplier
relationship
Reduce Spend
Duplicate records in Internal Systems
Accounts Payable 20M Internal ID 2346 5411
0401 A.B.C. 123 Elm St. Bethlehem, PA
18025 (SIC) 5411-02 Chuck Smith, President
Unique Supplier with Increased Leverage
1
Total Spend 40M DB D-U-N-S Number
12-345-6780 ABC, Inc Alpha Plastics P.O. Box
111 Bethlehem, PA 18055 123 Elm St. Bethlehem, PA
18025 (SICs) 5411 0202, 5541 9901 Charles Smith,
President Mary Worth, VP Marketing Chris White,
Controller 610 882-7600
General Ledger 15M Internal ID 4987 5411
0202 Alpha Plastics P.O. Box 111 Bethlehem, PA
18055 (SIC) 5411-02 Chuck Smith, President
2
Wire Transfers 5M Internal ID 3256 5411
0103 Charles Smith 123 Elm St. Bethlehem, PA
18025 (SIC) 5541-99 215 882-7600
3
16
Our D-U-N-S Numbers enable you to track spend by
individual suppliers so you can understand
exactly who you are buying from
Reduce Spend
D-U-N-S Number Supplier Name Amount of Spend
239,501,704 00-000-0000 Century 21
Real Estate Corp. 104,785,005 00-000-0000
Days Inn Worldwide, Inc. 76,888,632
00-000-0000 Avis Rent A Car Systems, Inc.
10,467,405 00-000-0000 Trendwest Resorts,
Inc. 23,570,890 00-000-0000 TTG
Independent Holidays, Group 15,001,340
00-000-0000 Cendant Corporation
8,788,432
17
Our unparalleled Corporate Linkage capabilities
increase your leverage by linking related
suppliers to a single corporate family
Reduce Spend

• D-U-N-S Number Supplier Name of
  Relationships Total Spend
• 751,829,829
• 00-000-0000 International Business
  Machines 64 453,415,227
• 00-000-0000 SBC Communications 47 132,960,094
• 00-000-0000 Interpublic Group 9 146,204,754
• 00-000-0000 Aegis Group 4 19,249,754

Supplier Name Individual Company Spend Weber
Shandwick Worldwide 1,500,412 True North
Communications 8,662,768 McCann Relationship
Marketing Inc 3,643,212 Ammirati Puris Lintas
Inc 4,211,500 D.L. Blair, Inc. 3,456,890 The
Martin Agency Inc. 2,321,600 Jack Morton
Worldwide Inc 61,450,232 Hill,
Holiday 60,324,900 Golin/Harris International,
Inc 6,333,240
18
The UNSPSC or SIC codes we collect as part of our
global data collection process identifies what
categories you are buying from your suppliers
Reduce Spend

• UNSPSC Code UNSPSC Description Amount of Spend
• 2,785,005,566
• 27000000 Tools and General Machinery 574,331,234
• 31000000 Manufacturing Components and
  Supplies 370,420,179
• 23000000 Industrial Manufacturing and Processing
  Machinery and Accessories 278,487,379
• 41000000 Laboratory and Measuring and Observing
  and Testing Equipment 181,942,616
• 80000000 Management and Business Professionals
  and Administrative Services 141,879,566
• 40000000 Distribution and Conditioning Systems
  and Equipment and Components 130,802,706
• 78000000 Transportation and Storage and Mail
  Services 106,862,307
• 81000000 Research and Science Based
  Services 91,202,814
• 30000000 Structures and Building and Construction
  and Manufacturing Components 88,123,420
• 56000000 Furniture and Furnishings 72,824,232

19
UNSPSC, SIC or other taxonomy codes identifies
the number of suppliers per spend category so you
can consolidate and further increase leverage
Reduce Spend

• UNSPSC Code Description/Spend Category Amount of
  Spend Supplier Count
• 2,785,005,566
• 27000000 Tools and General Machinery 574,331,234
  1043
• 31000000 Manufacturing Components and
  Supplies 370,420,179 1472
• 23000000 Industrial Manufacturing and Processing
  278,487,379 1450 Machinery and Accessories
• 41000000 Laboratory and Measuring and Observing
  and 181,942,616 812 Testing Equipment
• 80000000 Management and Business Professionals
  and 141,879,566 1309 Administrative Services
• 40000000 Distribution and Conditioning Systems
  and Equipment 130,802,706 1145 and Components
• 78000000 Transportation and Storage and Mail
  Services 106,862,307 1452
• 81000000 Research and Science Based
  Services 91,202,814 983
• 30000000 Structures and Building and Construction
  and 88,123,420 1577 Manufacturing Components
  and Supplies
• 56000000 Furniture and Furnishings 72,824,232 195
  

20
By matching all UNSPSC codes associated with an
individual supplier or supplier family you know
what else you can buy from approved suppliers
Reduce Spend

• Supplier Name UNSPSC Codes Products
  and Services Approved Supplier Amount of Spend
• 2,785,005,566
• Tandem Computers 43171800 Computers Yes 2,785,0
  05,566
• 43171805 Mainframe Computers Yes 0
• 43171808 Minicomputers Yes 0
• 81111500 Software or Hardware
  Engineering Yes 0
• 81111600 Computer Programmers Yes 0

21
You can source new sources of supply in new
markets quickly by accessing the 92 million
businesses in over 200 countries in our database
Reduce Spend
22
The 4.1 million socio-economic classifications in
our supplier diversity database help you source
new diverse suppliers quickly
Mitigate Risk
23
Our Predictive Indicators signal the likelihood
of a supplier to either deteriorate or cease
operations so you can confirm your suppliers
financial stability
Mitigate Risk
24
Our Entity Matching process matches your supplier
revenues with your customer revenues so you can
negotiate based on the total supplier
relationship
Reduce Spend

• Supplier Candidates Supplier Spent Customer
  Spent as a Customer with Supplier
• Office Furniture Supplier A 525,460
  1,418,951
• Office Furniture Supplier B 2,763,674
  482,551

25
You can manage your spend better by knowing where
to look for your next savings opportunity
Reduce Spend
Commodity Description Total of
Suppliers Total Spend Sourcing Priority
1,762,031,368 Real Estate Appraisers 11,414
785,320,050 6 Temporary Help Employment
Services 804 490,378,066 1 Mailing Services
Direct Mail Adv. 228 201,198,475 4 Printing
Related Materials 605 180,546,345 2 Office
Supplies 612 104,588,432 3 Legal
Services 623 103, 982,126 5
26
You can also manage your spend better by knowing
if you are on track to meet your savings targets
through periodic updates
Reduce Spend

• UNSPSC Code UNSPSC Description Q1 Spend 2005
  Savings Target
• 31,058,084 320,550,000
• 44120000 Office Supplies 20,271,620
  100,450,000
• 44100000 Office Machines and Their Supplies and
  Accessories 8,376,906 90,500,000
• 44110000 Office and Desk Accessories 1,458,394
  75,250,000
• 44000000 Office Equipment and Accessories and
  Supplies 951,164 54,350,000

27
Periodic updates also identify who is doing the
buying within your organization by matching your
business unit spend with supplier spend
Reduce Spend

• Business Unit Name Supplier Name Spend
• 25,068,199
• Product Development Office Depot Inc.
  16,477,223
• Human Resources Office Depot Inc. 2,115,093
• Marketing Office Depot Inc. 6,475,883

28
Periodic updates help you know whether or not you
are buying from non-approved suppliers
Reduce Spend

• UNSPSC Code UNSPSC Description Supplier Name Q1
  Spend Approved
• 20,271,620
• 44120000 Office Supplies Office Depot,
  Inc. 16,477,223 Yes
• The Cooksey Corporation 2,115,093 No
• The C H Hanson Company 1,234,058 No
• Safco Products Co 445,246 No

29
Periodic updates help pinpoint who is not buying
from your preferred suppliers and contracts
Reduce Spend

• Business Unit Name Contact Supplier Name Q1
  Spend Approved
• 2,115. 093
• Product Development John Smith The Cooksey
  Corporation 2,114,720 No
• Human Resources Jane Doe The Cooksey
  Corporation 373 No

30
We recommend the following next steps
Reduce Spend

• Arrange a meeting with key stakeholders to
  discuss your spend objectives and information
  needs
• Provide a test file so we can demonstrate the
  value of DBs information and insights it
  provides for your company