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The eCommerce Owner’s Manual:

A Suppliers Perspective from the Trenches

Our presentation will begin shortly…

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Pool Safety…Drowning Can Happen In An Instant

§ Stats of Children Under the Age of 15:‒ 74% of drowning incidents between 2015 and 2017 occurred in residential locations‒ Boys from drowning at twice the rate as girls‒ 351 children died in pools and spas in 2015‒ Emergency departments treat about 6,400 child related pool and spa injuries every year

§ Swimmers should keep a few safety precautions in mind:‒ Don't dive in unfamiliar areas‒ Don't go in the water unless you know how to swim and never swim alone‒ Make sure the body of water matches your skill level‒ Swim in areas supervised by a lifeguard‒ If you do get caught in a current, don't try to fight it and

swim parallel to the shore until you can swim free‒ Learn CPR and rescue techniques

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Agenda

§ eCommerce Overview»Introduction to Halliburton eCommerce»B2B Network Cross Section»Electronic Catalogs Overview»Halliburton Investment Mix»eInvoicing Process Overview

§ Our Perspective»Benefits & Challenges»Catalogs»Integrations

§ Industry View

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Introduction to Halliburton eCommerce

Halliburton’s eCommerce Journey

Halliburton completes global SAP deployment

Leads effort with API PIDX commercial document development project

Co-founder of OFS Portal, LLC for global publication and syndication of catalog content & data contracts

Deployed industry first ebusiness document transmission project utilizing API PIDX XML

Replaced eCommerce engine with SAP & Oracle B2B

Where are we today?

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Introduction to Halliburton eCommerce cont.

Today…

Our electronic invoicing adoption rate has been increasing at a rate of 2.5% per quarter since January of 2016 and there is no indication that it will slow down.

32%

68%

eCommerce Type

B2B Connections eMail Connections

61%39%

Revenue Type

Electronic Invoice Paper Invoice

eCommerce Cross Section• 2,890 - eMail Customer Connections• 1,360 - B2B Customer Connections

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B2B Network Cross-Section

Currently Oildex/ DrillingInfo comprise the majority of our network connections.

With B2G continuing to pick up steam internationally EDICOM will represent a significant portion of our international network integrations.

OB10

HUBWOO

ACTIAN

ACIG

TRALIX

DIRECT CONNECT

CORTEX

OILDEX/ DRILLINGINFO

0 10 20 30 40 50 60 70 80

B2B Network Cross-Section

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Electronic Catalog Overview

Our top revenue customers currently leverage B2B integration and as

part of the integration these customers are taking advantage of price

validation in the form of a Price Catalog.

The current trend amongst our B2B customers is to integrate electronic

catalogs and the trend does not look like it will slow down or stop.

§ 2011 – 1st Published Electronic Catalog to OFS Portal

§ 2017 to Present – 24 active catalog customers

To date we have uploaded 3,525 catalogs for our customers.

An average of 35 catalog updates are made every month.

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Halliburton Investment Mix

Integrations

Domestic

International

B2G

Maintenance & Support

Dispute Mitigation

Configuration Updates

Ad-hoc Requests

Catalogs

New & Updates

Pricing Dispute

Mitigation

Training

StrategicInitiatives

CustomerPilots

ProcessStreamlining

SystemEnhancements

Our departmental focus spans across four key areas allowing us to support a growing business while at the same time maintaining a high-level of service quality and customer relationship building.

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eInvoicing Process Overview

Paper Billing

Process

Electronic Billing

Process

SAP Invoice

Print Invoice

Mail/ Hand Deliver

SAP Invoice

Oracle Invoice +

Job Packet

Customer Network Customer

Key Changes to make eCommerce work:§ Purchase Order Functional Mailbox (when applicable)§ Price Catalogs (when applicable)§ Documented Customer-Specific Requirements§ Electronic Document Repository§ Field Ticket EDI Popup Screen§ Invoice Dispute Resolution System and Process

PO Retrieval(Mailbox)

PO Retrieval(Manual)

Customer

Manual StepsSystematic Steps

SAP Sales Order

SAP Sales Order

Invoice:Paid or

Disputed

Invoice:Acknowledged,

Paid, orDisputed

Price Catalog

OFS Template

Price Catalog(Non-

Existent)

Job Packet Upload

(International)

Job Packet Upload

(North America)

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Our Perspective: Benefits & Challenges of eCommerce

Customer Benefits Supplier Benefits§ Reduces Administrative Costs and Improves Efficiencies

§ Improved Contract Compliance

§ Capture and Analyze Spend§ Manage Commitments and Contract Compliance§ More Real-Time View and Transparency of Spend§ Operational Benefits § Less Time Required for Buyer Approval§ Single Point of Delivery for Purchase Orders

§ Improve Buyer Relations§ Digitizes Purchase Order, Pricing, and Invoice Data§ Real-time customer dispute intelligence allows for

faster resolution and dispute trends§ Faster Customer Payments (DSO/ DRO Reduction)

Customer Challenges Supplier Challenges§ Fragmented internal departments and disjointed

cross functional alignment introduce delays in initial price catalog creation as well as data transmission requirements

§ Invoice approval processes span many departments and can be rejected at any point; customers internal routing mechanisms may be incorrect

§ Systems vary slightly and require different data to be keyed into sales orders

§ Internal customer review and approval delays of information/ price catalogs impact invoice transmission timing

§ Local resources at times lack SAP process expertise to create and manage catalogs efficiently

§ Discipline necessary to transact an electronic invoice accurately, grows exponentially in the first three months of any deployment

§ Unique customer requirements create complexity in Halliburton’s system

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Our Perspective: Catalogs

§ Is it better to have the Price Catalogs created before an integration or integrate first or deliver both at the same time?‒ What have we seen to be the best practice?

§ Understand the customer approval process before getting started, do not assume all processes are the same

‒ Some customers require written approval§ Communication is key between customer and internal departments to

ensure timely catalog creation, validation, and approval‒ New contracts and amendments are not communicated ahead of

time and need to be to avoid unnecessary disputes

§ Keep a standard across all catalogs UoMs (UNECE and/or ANSI) § Customer specific catalog templates do not replace the OFS

Portal catalog as the source of truth§ Catalog downloads from OFS Portal are required in order to

publish the correct data thus avoiding unnecessary disputes§ Reiterate the catalog process always and often and stick

to it

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Our Perspective: Integrations

§ Every integration is managed as a project…‒ Kickoff, Requirements, Testing, Change Management, Deployment, Support, and

Documentation‒ Integrations are 30% Technical and 70% Change Management…Why is that?

§ Standardizing and Streamlining the process internally and with your customers increases the speed to deploy.‒ 6 mo.à 4 mo.à 2 mo.à 2wks‒ Internal request process ‒ Customer relationship building and education‒ Expectations (New Requirements & Sign-Off)

§ Not all Networks are created equal‒ What makes a good network from a Supplier perspective?

• Speed to Deploy• Network Reliability• Ease of Use• Accessibility (Data, Help, Engineers, Mgmt.)• Support & Willingness to Partner• Transparency

‒ Is it easy to work through multiple networks? What do you think?§ Looks can be deceiving…What do you mean by that?

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Our Perspective: Industry Status View

§ B2G Integrations‒ Governments are increasingly utilizing invoices as primary evidence in determining

‘indirect’ taxes owed to them by corporations.

‒ Value Added Tax (VAT) is the most significant indirect tax for nearly all of the world’s trading nations, they are reported and paid in full typically monthly or quarterly.

‒ Integrations are lengthy, complex, and require heavy Change Management as country invoicing is transitioning from Paper to Electronic.

‒ This added step will delay invoicing as there is no guarantee of timely invoice certification.

‒ Customer integrations by country are in the hundreds and are part of a big bag deployment.

‒ Q1-2018: Mexico, Q4-2018: Colombia and Norway, Q1-2019: Italy, Argentina, and Portugal

§ Ariba Cloud Integrated Gateway (ACIG)‒ 20 to 25 Buyers most of who are large will be utilizing the ACIG Network

‒ Many implementations will be global in scope

‒ Heavy project management needed on both sides to carefully navigate customer requirements and testing

‒ Successful implementations depend on Ariba and Supplier collaborating and sharing the ownership of system coding/ configuration. This can’t be one sided.

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Our Perspective: Industry Status View

§ Electronic Field Ticket (eFT)‒ Buyer Ticket approval prior to invoicing‒ Successful eFT implementations completed between Buyers and Suppliers‒ Not all integrated suppliers are utilizing eFT’s‒ Customer eFT approval lead time and escalation will differ by Buyer‒ Field Ticket validation and Invoice validation may not be done by the same person/

department thus resulting in validating the same information‒ Still a lot of questions to answer many of which will vary by Buyer‒ Piloting will be key to understand Supplier benefits if any and system/ process needs

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