The PremierConnect ROI Calculator referred to in this document is provided to you subject to the Dell Software License Agreement terms located here:

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1 The benefits of Dell PremierConnect The PremierConnect ROI Calculator referred to in this document is provided to you subject to the Dell Software License Agreement terms located here: The Calculator provides estimates, the general accuracy of which depends on many factors, including your inputs. Although these real world factors dictate that we can t guarantee the accuracy or reliability of the Calculator s specific results, we believe in the power of the Calculator as a helpful tool for general business planning.

2 The benefits of Dell PremierConnect Dell s B2B ecommerce solution, PremierConnect, can do more than just save you money. With streamlined, efficient ordering, PremierConnect can free your team to focus on your company s core business. Lower costs Increased productivity Recognizing your need for a global end-to-end electronic procurement process, Dell offers PremierConnect. An efficient eprocurement solution from catalog through payment, PremierConnect integrates your current Enterprise Resource Planning (ERP)/procurement system with a customized Dell catalog to create a user-friendly purchasing environment that offers only your organization s agreed-upon products, prices, and standard configurations. And because PremierConnect helps automate everything from ordering to invoicing, time-consuming and error-prone manual entry is virtually eliminated, saving your organization time and money. Global end-to-end electronic procurement process From catalog through payment Securely shop a catalog customized with your standards and pricing Over 1,500 PremierConnect customers globally User-friendly purchasing environment

3 Benefits Streamlined order processing Increased compliance Increased accuracy Reduced cycle time By electronically automating your order processing, PremierConnect can help reduce labor costs, boost productivity, and maximize your category spend management. With a user-friendly digital catalog of approved configurations, PremierConnect can help significantly reduce expensive unauthorized, and off-contract spending. PremierConnect can help reduce the costs related to duplicates, errors, and omissions found in traditional, manual-entry ordering processes. PremierConnect s direct-to-dell connection can significantly cut the time it takes to receive your ordered products. Dell s end-to-end solution approach helps to limit the workload involved in coordinating multiple suppliers. Bertus van der Meer ICT Purchasing Department, University Medical Center

4 Streamlined order processing Reduce transaction costs By automating order processing, invoicing*, and approvals, PremierConnect can help free up labor resources. In fact, eliminating paper-based systems can lower your company s labor costs significantly. According to industry research, companies can reduce the cost of Purchase Order requisition, submittal, and approval by up to 75%. 1 Invoice processing costs can also be reduced by up to 90%. 2 PO processing cost reduction $100 Time reclaimed ~45 minutes per order of procurement man-hours freed up for higher value activities 4 Increase labor productivity With PremierConnect, time previously spent faxing, ing, or manually processing procurement and invoicing systems can now be used to help your company focus on more important things. Whether looking for new vendors or simply sourcing new products, your team will have more time to focus on higher value, strategic purchasing activities. $25 Invoicing cost reduction $30 Optimize category spend management Integrating your Enterprise Resource Planning/procurement system with PremierConnect gives you direct insight into your total category spend and helps your company harness the power of your ERP. Better category management not only helps you monitor budgets, it can also help ensure you are getting the best prices from your suppliers by allowing easy cost comparison on every item in your company s catalog. Reduced from an average manual cost of $100 to an average automated cost of $25 3 $3.5 Reduced from an average manual cost of $30 to an automated cost of $ % reduction in order processing costs 6 90% reduction in invoice processing costs 7

5 Increased compliance Reduce off-contract spend PremierConnect s online integration with your ERP system can make compliance easier for your company s end users. According to industry research, a B2B ecommerce solution can increase compliance up to 95%. 8 And with off-contract purchasing accounting for up to 30% of IT spend, the potential savings can be significant. 9 Increase category spend visiblity PremierConnect offers management tools that allow increased visibility into category spending. With easy access to pricing details and order history, your company can optimize its budget more effectively. Increase volume negotiating power An increase in compliance allows better tracking of actual buying and spending patterns. Plus, PremierConnect paired with your ERP can eliminate the need for manual reconciliation, giving you easy access to real numbers to help negotiate future volume rates. On average, items bought off-contract cost up to 20% more 10 B2B On-contract Spend Off-contract Spend Percentage of unauthorized IT spending Industry average 8% 30% Without B2B integration On average, IT category spend has 8% unauthorized spending 11 : Companies without B2B integration have up to 30% unauthorized IT Category spending 12 80% reduction in unauthorized spending 14

6 Increased accuracy Order accuracy Time reclaimed Reduce error-related costs PremierConnect s streamlined eprocurement can significantly reduce expensive errors associated with manual ordering processes. From duplicate orders to omissions, integrating with Dell can help reduce the costs of returns and exchanges from inaccurate orders. And elimination of manual entry can lead to 83% fewer order entry errors. 15 Save error-related time With its automated ordering process, PremierConnect can free time spent on returns, exchanges, and re-ordering. It can also virtually eliminate the need to manually verify PO receipts, allowing your team to focus on maximizing effective purchasing. 83% reduction in PO errors 16 ~10 minutes per order of procurement man-hours freed up for higher value activities 17 1% cost savings by eliminating inaccurate pricing from manual POs and invoicing 19 37% reduction in invoice errors 18

7 Reduced cycle time Receive products faster Implementing PremierConnect can cut cycle time from 7 days to 2 days. Not only does this mean you receive product for key projects sooner, it can also increase invoice-to-pay efficiency. Order cycle time reduced 7 Days 2 Days Resources Results are estimates based on public Industry Data from the following sources: 1) Tomkins Associates, 2) Sterling Commerce, 3) Tomkins Associates, 4) Summit Strategies, 5) Sterling Commerce, 6) Ariba, 7) Sterling Commerce, 8) Sixhills Consulting, 9) Tomkins Associates, 10) BuyIt, 11) Hackett Group, 12) Sixhills Consulting, 13) Sixhills Consulting, 14) Sixhills Consulting, 15) Ariba, 16) Ariba, 17) Summitt Strategies, 18) Sterling Commerce, 19) Ariba, 20) Sixhills Consulting. These figures are not a reflection of any one specific company or one organization s data. The numbers used represent a compilation of data based on Dell-commissioned research. Time from PO creation to order confirmation reduced from 7 days to 2 days receive product 5 days faster 20 Additional benefits Earth friendly Because PremierConnect s electronic procurement process reduces the amount of paperwork associated with manual-entry systems, it doesn t just help save you money, it can also help save trees. That s good for the planet and good for everyone. Dell expertise Not only is PremierConnect easy to integrate into most ERP systems, it also comes with Dell expertise. After thousands of implementations over many years, we can help guide you through the whole process with ease.

8 Example savings & benefits Every company s results will be determined by their size, goals, and region. Ask your Dell sales team about our B2B Integration ROI Calculator, a tool to generate a customized report filled with detailed analysis of the potential savings and benefits your company can appreciate. Based on industry research, we ve created four scenarios using the B2B Integration ROI Calculator to demonstrate the potential increase in productivity and savings your company could see by integrating your ERP with PremierConnect. Section Key Benefit color key Each benefit is color coded to help you track the savings directly. Streamlined order processing Increased compliance Increased accuracy Reduced cycle time Company profile Each profile offers the example company s goals and the inputs used to calculate potential ROI. Total B2B impact These numbers demonstrate the total potential savings and benefits the example company could realize. Benefit-by-benefit savings This section subtotals the example company s potential savings by benefit. Tactical savings The charts in this section the break each benefit into smaller, more tactical savings.

9 University with no B2B implementations Total B2B impact North American educational institution Purchases $5.0 million from Dell via 1,625 annual orders Currently does not have any B2B integrations with any suppliers Plans to eventually go full B2B with all of their suppliers Has a year 1 goal of 80% of Dell transactions through B2B $327,155 in annual cost savings 1,355 hrs total Procurement man-hours per year saved/reallocated to higher value activities 6.5% total B2B savings as percentage of total Dell spend Potential savings PO processing $97,500 Invoice processing 260 Total order processing costs reduced $141,375/yr PO processing costs drop from $162,500 to $65,000 for an annual post-b2b savings of $97,500 Savings $43,875 Savings Invoice processing costs drop from $48,750 to $4,850 for an annual post-b2b savings of $43, Off-contract orders reduced from 260 orders per year to 52 per year PO accuracy savings of $7,780 Invoice accuracy savings of $50,000 Total off-contract spend savings $128,000/yr Total savings from increased accuracy $57,780

10 Large enterprise company with multiple B2B integrations Total B2B impact North American company Purchases $13.8 million from Dell via 3,477 annual orders Currently has over 500 B2B integrations with several high volume strategic suppliers Plans to channel 100% of Dell transactions through B2B $862,580 in annual cost savings 3,491 hrs total Procurement man-hours per year saved/reallocated to higher value activities 6.3% total B2B savings as percentage of total Dell spend Potential Savings PO processing $260,775 PO processing costs drop from $347,700 to $86,925 for an annual post-b2b savings of $260,775 Invoice processing Savings $93,879 Savings Invoice processing costs drop from $104,300 to $10,400 for an annual post-b2b savings of $93, Off-contract orders reduced from 556 orders per year to 111 per year PO accuracy savings of $16,646 Invoice accuracy savings of $138,000 Total order processing costs reduced $354,654/yr Total off-contract spend savings $353,280/yr Total savings from increased accuracy $154,646

11 Large government agency with moderate B2B integration Total B2B impact European agency Purchases 8.0 million from Dell via 4,700 annual orders Currently has 25 B2B integrations with different suppliers Evaluates B2B integrations on a case by case basis for suppliers Plans to channel 80% of Dell transactions through B2B 606,236 in annual cost savings 3,920 hrs total Procurement man-hours per year saved/reallocated to higher value activities 7.6% total B2B savings as percentage of total Dell spend Potential savings PO processing 211,200 PO processing costs drop from 352,200 to 141,000 for an annual post-b2b savings of 211,200 Invoice processing Savings 93,060 Savings Invoice processing costs drop from 103,400 to 10,340 for an annual post-b2b savings of 93, Off-contract orders reduced from 752 orders per year to 150 per year PO accuracy savings of 16,876 Invoice accuracy savings of 80,000 Total order processing costs reduced 304,560/yr Total off-contract spend savings 204,800/yr Total savings from increased accuracy 96,876

12 Large enterprise company with limited B2B integrations Total B2B impact Asian-Pacific company Purchases $6.8 million from Dell via 1,982 annual orders Currently has only 1 supplier on B2B Expects to channel 65% of orders through B2B to Dell $174,080 in annual cost savings 1,653 hrs total Procurement man-hours per year saved/reallocated to higher value activities 2.6% total B2B savings as percentage of total Dell spend Potential savings Savings Total procurement man-hours saved per year 1,921 hrs Off-contract orders reduced from 317 orders per year to 63 per year Total off-contract spend savings $174,080/yr

13 What s next? Dell is committed to integrating your eprocurement system from end-to-end. Our vast experience with unique customer requirements and many platforms has led to the following six-step integration process: 1. Engagement Receive customer request for purchasing system integration. 2. Scoping Work with customer to scope business/technical requirements. 3. Integration Build unique customer requirements, profile, and maps in test environment. 6. Support Provide ongoing production support and test environment. 5. Production Move to production and validate initial production orders. 4. Testing Provide thorough testing of associated transactions/testing sign-off. Ready to get started? Just ask us! Contact your Dell Account team, PremierConnect@dell.com or visit today! We understand that making the decision to implement an integrated B2B solution may involve multiple discussions within your company and we want to be there to help. Our PremierConnect experts can meet directly with your team and answer any questions.

14 Additional resources

15 B2B process PunchOut catalog process Punchout to Premier Page from your purchasing system Add items to your cart and create an Order Requisition Buyer-hosted catalog process Order Requisition is sent to your ERP for approval 4 Electronic Purchase Order is transmitted to Dell from your purchasing system 5 Electronic Invoice is generated and sent to your purchasing system* 1 Our sales team creates and sends your custom catalog 2 Create a purchase request in your purchasing system 3 Send purchase request through your purchasing system approval process 6 Send Electronic Payment* PunchOut catalog Hosted and maintained by Dell, this user-friendly option offers a companyspecific, customized online catalog of your approved products, pricing, and configurations. Because it s integrated into your existing procurement application, processing and approvals are automated, reducing cycle time. Buyer-hosted catalog For customers who cannot implement the recommended PunchOut solution, Dell can create a customized buyer-hosted catalog file that can be easily imported directly into most procurement applications.