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Chevron eCatalog Initiative Presented to PIDX by Randy Nance October 10, 2000

Chevron eCatalog Initiative Presented to PIDX by Randy Nance October 10, 2000. Presentation Outline. Brief overview of e Procurement at Chevron Importance of Catalogs and Content Benefits to Chevron and Suppliers for using eCatalogs How far along is Chevron in implementing eCatalogs?

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Chevron eCatalog Initiative Presented to PIDX by Randy Nance October 10, 2000

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  1. Chevron eCatalog Initiative Presented to PIDX by Randy Nance October 10, 2000

  2. Presentation Outline • Brief overview of eProcurement at Chevron • Importance of Catalogs and Content • Benefits to Chevron and Suppliers for using eCatalogs • How far along is Chevron in implementing eCatalogs? • Next Steps

  3. What Is eProcurement at Chevron? eProcurement is an on-line buying and selling process. It allows buyers and sellers to do business faster and more efficiently through the internet.

  4. Strengthen global sourcing efforts eCatalog Impact Simplify supply chain process Efficiently integrate preferred suppliers React quickly to market changes e-Procurement is a key enabler to Chevron’s Global Procurement Strategy Chevron’s eProcurement Strategy

  5. How important are eCatalogs? The eCatalog is at the center of our overall eProcurement solution. All of our suppliers’ catalogs must be on-line. Our suppliers must build an industry specific eCatalog. eCatalog eCatalog

  6. Content Issues What is this? • Garbage can? • Wastepaper basket? • Waste paper basket? • Waste basket? • Waste Container? • Circular file?

  7. Why is the Content So Important ? • The key to success of Business to Business eCommerce rests on the quality of the eCatalogs • eCatalog content must be accurate and up todate • High quality eContent creation process is designed to ensure that products are consistently findable If users can’t find it, they can’t buy it!

  8. Length of Time for Conversion Time to Process Category IV Category III Category II Category I Clean Electronic Data , Classified with Attributes & Pictures Commercial Paper Catalog with Long Descriptions & Pictures Unstructured Electronic Data with Long Descriptions No Commercial Paper Catalog and/or Poor Electronic Data

  9. Oil & Gas Internet Market place • Buyer access to catalog data through network • eContent Management Services Supplier Data eCatalog Enablers

  10. Business Case - Chevron Benefits • Direct purchases to preferred suppliers including SMWBE • Reduce supplier inquiries and accounts payable processing problems • Enhance productivity (reduce cycle & lead times) • Standardization of material descriptions • Allow uniform access to all supplier information • Minimize contract maintenance

  11. Business Case - Supplier Benefits • Up-to-date supplier content in a uniform classification structure • Minimize catalog publishing / distribution costs • Can reduce maverick buying • One source to update information • Streamline accounting - accurate pricing, timely payments • Reduced costs for order input errors and related item return

  12. eCatalog Implementation Status • 85 key suppliers provided us with their data to create eCatalogs in two of our business units

  13. eCatalog Implementation Status Chevron OpCo’s Suppliers identified based on strategic relationships US E&P Bakersfield GOM Mid Con Permian Basin Canada US Refineries Overseas locations Pilot #1 Worldwide Other OpCo’s Time Today

  14. Next Steps • Continue working through PIDX to develop consistent classification scheme using the UNSPSC system • Punch-out to external supplier sites to retrieve catalog data • Integrate additional ERP system with eCatalogs

  15. Conclusion Questions...

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