Page 4 - Eversource and SAP Supply Chain Value Expansion with SAP Working Capital Management & Supplier Risk Management

Expanded SAP Procurement Function Delivers Increasing Value

By operating an SAP Cloud platform used for over $3 trillion in annual spend, SAP gains insights into improvements our clients achieve. Business value can be
achieved across five dimensions and linked directly to Boeing strategic priorities. As shown, Boeing enjoys current benefits from Spend Visibility, Sourcing,
Contracts and Commerce Automation, but can also achieve additional savings with Guided Buying, Supplier Management, Risk and Fieldglass.
Phase1B
Phase1A Expand
Expand Boeing Phase2 Phase3 TOTAL
Boeing Current Boeing Sourcing Enable Add FG
State Estimate Catalog Savings Network SOW & Incremental Expansion Value
SAP Savings Levers Improvement opportunity April 2021 (TTM) Content Capture Invoicing Expand
• One-off savings from self
service Guided Sourcing $27.9 M $27.9 M Working Capital
Price Reduction (3-bids & buy) during
Budgets go farther requisition Process $1.6M Price
when Boeing buys products • Finance & Budget $2.1M $74.6M $76.7 M $2.9 M Reduction
and services at market alignment: visibility and $129.5M
or below market prices collaboration $27.0M $27.0M
• External workforce rate card
& project savings $131.6M
Spend Compliance • Employees follow the right
policy to buy the right goods $148M
Autonomous compliance and and services from the right
real time policy supplier at the right price $34.2M $4.4M $10.0 M $48.6 M Steady State
management works when • Ensure that suppliers bill P&L Savings
Boeing and the Supplier are you accurately and pay
using the same platform your suppliers accurately
Compliance
Process Improvement • Reduce cost of processing
purchase orders with $14.4M
Doing it right means not doing catalogs $4.2M $0.5M $2.4M $7.1M
it twice, or maybe not doing it • Reduction in FTE effort
at all invoice process & ICS fees
• Enable immediate payment Savings on NPV $xxM
Free-up Working Capital within Guided Buying Spot 4.0% Addressable IRR xx%
Slow moving and excess Buy; realize Pcard rebates $3.5M $1.6M $5.1 M Spend
inventory converted to cash; • Capture more early Enterprise-level value opportunities created through
payables​ are transformed from payment discounts from greater alignment of P2P are estimated to be around
a liability into a strategic asset already existing supplier 4.8% of addressable spend
discounts
Total $44.4 M $4.9M $76.6M $39.5M $27.0 M $192.4M The Hackett Group

Value Assessment opportunity assumptions are based upon SAP customer benchmarks, Boeing current spend, suppliers and buying channels
Revenue $14B | Controllable Buying & Invoicing Spend $7B | Requisitionable Spend $3B | Contract Invoicing Spend $4B | Fieldglass SOW eligible $0.5B | Current Spend under Mgmt./Contract 80%
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ 4