1. What steps in the purchasing process are done electronically versus on paper?

- Purchase request:

This step to identify and understand the needs of the customer. It involves filling out a paper form and
going through the required approvals for the authorization process.

+ Electronic: The Systemized digital creation of the forms on the online

+ Paper: Manual creation of form printed and signed by all the respective authorities.

- Supplier selection:

The process involves the supplier to purchase the item that is requested. This will also result in a quote
process if it required to be initiated.

- Purchase order:

+ Electronic: The immediate notification to the supplier about the required order.

+ In the manual process, it involves the dispatch to the supplier in the paper copy in situations of a
manual process.

- Fulfillment:

The dispatch of goods to the organization by the supplier is carried out. The lead time will be decided
based on the type of processing which is either electronic or paperwork.

+ Electronics: the lead time will be very less

+ Paper: The Lead time will be very high

- Receipt of goods:

+ Electronics: This includes letting go of the goods through a receipting process which matches the orders
and checks for the correct quality.

+ Paper: The product cross checking takes lot of time Invoice and payment:

- Invoicing and Payment

+ Electronic: E-invoice can be easily generated within a second

+ Paper: Paper invoice takes lot of time.

2. Who are the users in this case that you believe Patrick Hopkins is referring to when it comes
to the “four truths”?

Patrick’s four truths are:

1. The product must be in the catalog

2. Users must be able to find what they need
3. The data must be right
4. Users must want to use the system

Patrick suggests that internally hosted catalogs deliver, in his view, a preferred model to managing
content (instead of punch-out or website search/crawling capability). He believes that internal catalogs
deliver a faster response time and help share the burden between suppliers and customers without
putting the entire onus and responsibility on vendors.

 The users that he has referred to when it comes to the four truths are the employees of the
organization and customers.

3. Why do you think a different system was adapted instead of the SAP ERP system in this case?

One of the central elements of Patrick Hopkins’ (Procurement Director, Coke) presentation this morning
was what he described as the “Four Truths of Procurement” at Coke. Coke used these to help determine
the right P2P solution for their needs, and they were in part a deciding factor in selecting Coupa over SAP
(and others).

Because The Coupa system would issue the PO to the provider, and a companion non-functional PO
would reside in SAP, out of which payment would occur from the invoice. The system captured spend
visibility, had become device agnostic (as it was hosted in the cloud as a service), it was easy to use and
streamlined the travel and expenses reimbursement process, and was easy to add new suppliers.

4. Do you agree with the Four Truths?

I agree with the Four Truths. Because the Four Truths were based on a set of requirements of 48 items
in the P2P standard.

- Users thought they might be able to get a “better deal” as the discounted pricing was not shown.
- Users were able to find their exact match or 100% of all alternatives the first time using ONE
SEARCH.
- The system was able to drive good visibility and inventory availability of material, and the accuracy
of the master data file was established.
- Users must want to use it. This was a critical element, the major element of success is whether users
are satisfied with a P2P system. The system allows mobility across different applications, including
iPhones and Android devices, and is easy to use.