Manufacturing Success - $200M in Cost Reduction at Armstrong

Today’s Speakers

Neal Amsden Sr. Director, Marketing Coupa

Srini Rao Director, Global Procurement Armstrong

Kevin Turner VP, Customers for Life Coupa

What’s on the Agenda

§ Who’s Coupa (briefly)

§ Armstrong’s 3 Year Success Story

§ Coupa Customers for Life (even more briefly)

§ Q&A Throughout

Who is Coupa: Our Mission

Delivering software innovation

that breeds responsible spending

while impacting the company bottom line

Who is Coupa: Our Mission

Delivering software innovation

that breeds responsible spending

while impacting the company bottom line

Who is Coupa: Our Mission

Delivering software innovation

that breeds responsible spending

while impacting the company bottom line

A Unified Suite Of Financial Applications

Invoicing Expenses

Customer Momentum

1Q14 4Q13

400+ customers hq’d in over 40 countries

120% growth YOY for 6 years

95%+ renewal rate

Forrester Wave: eProcurement Q2 2014

§  11 vendors rated on 69 criteria

§ Coupa received highest scores

"Coupa has one of the best user interfaces combined with broad

functionality and flexible configuration."

coupa.com/forrester

Who is Armstrong? § Founded in 1860 as cork business

§ Revenues ~$2.6 billion

§  35 plants in eight countries

§ ~8,700 employees

We are a Global Company, we need a Global Solution

Business Challenges

Utilized Lean to develop system requirements addressing key organization and process pain points

Increased Visibility of

Spend

§  40%+ of rogue spend

§  Fragmented / unleveraged buying

§  Disparate global reporting data

Process Automation

§  Largely manual process (non-US)

§  47+ Process steps

§  9 Approval processes

§  10 Non-integrated systems

Common Global Process

§  Fragmented /laborious supplier on-boarding

§  Manual/offline tools to manage spend and procurement processes

Improved User Experience

§  Complex Legacy systems

§  Offline management by Excel

§  Lack of process knowledge

Coupa Delivered §  Intuitive Solution

§ Superior buyer toll gate management

§  Integrated supplier on-boarding

§ Coupa shared our vision

11

Extensive RFx process undertaken; Coupa was the clear winner

Coupa @ Armstrong Corporate Campus Fully Launched

2012 2013 2014 2011

North America Plants Live

China (May) India (Feb) Europe under review

SCOPE

§ Indirect Services & Non Inventory Goods

§ Plants Go Live in 30 days

NEXT INITIATIVES § Coupa Supplier Network

Refresh

§ Order to Payment System

Challenges Met With Success

Vast improvement on all 4 vectors of differentiation, but our work is not complete

Increased Visibility of

Spend Process

Automation Common Global

Process Improved User

Experience

§  26 Process steps

§  2 Approvals within one system

§  3 Fully-integrated systems

§  Single global platform/toolset

§  Actively managed spend with improved visibility

§  Single source for global indirect spend

§  88% Spend under management

§  Automated & Integrated supplier on-boarding

§  Enterprise standard business process/tools

§  Intuitive web-based “shopping”

§  One place to shop, with real time online status

§  Coupa drives process clarification/education

Metrics for Success: 2011 vs 2013

Paper PO

Continuous Improvement provides for process and cost savings

Spend Under Management 88% 56%

Catalog POs 26% 0%

ACH Payments 58% 33%

100% 0%

No Cost PO Flip Invoicing 78% 0%

Fully Integrated Invoicing 22% 0%

Coupa Helps Drive Business Impact §  Divestiture of under performing

businesses

§  Internal restructuring and outsourcing

§  Increased productivity in our manufacturing through LEAN

§  Efficient working capital management

§  Improved sourcing and P2P process compliance

Benefits include price initiatives and procurement driven or supported productivity initiatives

$200m internal cost reduction in the past 3 years

Key Learnings §  Leadership’s continued support beyond

initial project buy in

§ Procurement and IT Roadmap Alignment

§ Do not change policies during solution deployment

§ Never underestimate the impact of change management

Closed loop learning facilitating expedited further rollouts

Coupa Customers For Life Mission – “Ensure the renewability, growth, reference-ability, and overall long-term health and success of Coupa’s customers.”

Strategy, expansion and adoption initiatives

Business and usage reviews focused on your savings goals

Executive Engagement

Manage and coordinate interaction with Coupa Product Management

Your Advocate at Coupa

Wrap up

Neal Amsden Sr. Director, Marketing Coupa

Srini Rao Director, Global Procurement Armstrong

Kevin Turner VP, Customers for Life Coupa

Coupa Demos: Live Every Week coupa.com/demo

Thank You!