This document provides an overview of Weatherford International's implementation of a spend analytics solution to support their category management activities. Some key points: 1) Weatherford implemented the Zycus iAnalyze solution in 2009 to gain visibility into their fragmented spend data across multiple systems and improve consolidated reporting. 2) Initial challenges included unclear spend categories, misaligned taxonomies, and engaging spend owners during the shift to category management. 3) Weatherford addressed these gaps by focusing initial efforts, engaging stakeholders, and enlisting third-party support to reclassify spending. 4) The solution supports Weatherford's global indirect spend of $2 billion through category strategies, market intelligence, and sourcing events

2. Closing The Gap Between Spend Analytics &
Category Management
Horizon 2012
New Orleans, LA
Mike Lariviere
Director, Business Process

3. About Weatherford
 Weatherford International Ltd. (NYSE:WFT) is an oilfield service and
equipment company dedicated to helping clients maximize the value of their
oil and gas assets
 Headquartered in Switzerland, we currently operate in more than 100
countries across the globe
 A multinational organization, we are committed to pursuing the highest
standards of excellence in all of our business processes and partnerships
 Vital Statistics
– 2011 Revenue $13 Billion
– Employees 60,000+
– Service Bases 929
– Manufacturing Facilities 100+
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4. Infrastructure Reach
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5. Spend Analytics Solution Success!
Need identified for spend
analytics solution in 2008
– Refresh timing capabilities
Formal RFP process – Currency and global scope capabilities
performed
– Proposed implementation plan
– Knowledge of Weatherford systems & data
Sample data provided to – Pricing
‘down selected’ providers
Zycus solution selected in Selections based on
2009
Weatherford has been using the Zycus iAnalyze solution for the past 4 years, we
continue to extend scope and capabilities, and the solution is considered ‘must
have’ functionality that supports our ongoing Category Management activities.

6. Requirements, Key Decisions & Challenges
Requirements for
implementing a spend Key Design Decisions Development challenges
analytics solution
 Fragmented spend data across  Maintain standard UNSPSC  Internal support from IT to
multiple systems taxonomy support data extract and
validation process
 Lack of consistent, consolidated  Identification of key reporting
and timely spend data data points (dimensions)  Internal support from user
groups/SMEs to validate solution
 Required to identify and confirm  Mapping significant data items test results
strategic sourcing opportunities across multiple systems,
including Pcard data
 Creating ad hoc data items to
allow flexible user defined
taxonomy
 Focused pilot on specific
Weatherford operating regions
 Reclassification refresh cycle
time
 Center-led organization
alignment around proposed
Category Management model

7. The Gaps
The journey to implementing formal spend analytics capabilities, linking this capability to
prioritized sourcing opportunities while transitioning from traditional procurement to formal
Category Management roles and responsibilities presented some challenges, or process gaps.
Specific challenges included;
 Spend categories recognized, but not clearly defined
 UNSPSC classification did not align with our spend categories or user expectations
 Identification, engagement and alignment with spend owners
 Significant unclassified spend in the ‘To Be Categorized’ category
 Fundamental shift from Sourcing to Category Management roles and responsibilities
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8. Closing The Gaps
Spend categories • Focus on North America regions and Indirect Spend categories initially
recognized, but not • With time, additional review and rationalization of categories was performed
clearly defined
UNSPSC classification
• Use ad hoc fields in Zycus to define Weatherford specific categories
did not align with our
• Create Weatherford category/supplier taxonomy alignment, this met user
spend categories or user expectations
expectations
Identification, • Engage spend owners during spend verification phase (perception alignment)
engagement and • Engage spend owners during category strategy development process
alignment with spend • Engage spend owners, or delegates, during sourcing event execution process
owners
Significant unclassified
• Enlist 3rd party support to review and reclassify top spend to Level 2 sub-
spend in ‘To Be categories
Categorized’ category
Fundamental shift from
• Engage 3rd party alliance partner(s) to bridge resource requirements
Sourcing to Category
• Implement formal Category Management people, process and technology
Management roles and methodology
responsibilities

9. Organization / Category Structure
Procurement Specialist
Category Manager
Region Indirect Categories & Sub-Categories
Country Lead HR Services & Information Telecoms & Travel Services
Contracted Technology Networks
Labour
• Technical • Hardware • Fixed / Wired • Airlines
• Administration • Software • Mobile / Wireless • Accommodation
• Relocation • Maintenance & • Audio Visual • Car Rental
Services Support • Maintenance & • Ground
• Recruitment Support Transportation
• Training • Specialized Fleet • Travel Agencies
Director • Insurance Monitoring • Conferences and
Global • Benefits • Telco Management Events
VP Global
Supply Chain Indirect Administration
Procurement
Facilities & Real Professional Marketing Services Fleet Management
Estate Services
• Facilities • Legal Services • Marketing Agencies • Lease / Buy (OEM)
Management • Accounting & Audit • Advertising / Media • Fuel
Services • Management • Printed Materials • Up-fitting
• Office Services Consultancy • Reprographics • Tires
• Office Equipment • Architects & • Promotional • Glass
• Office Supplies Engineers Products • Maintenance
• Couriers • QHSSE • Forklifts
• Utilities Electric /
Gas / Water

10. Sample Global Indirect Spend by Customer Type
Indirect: $2B
Manufacturing: $0.2B Non-Manufacturing: $1.8B
10% 90%
N.A. $137M, Remaining Regions $25M N.A. $877M, Remaining Regions $623M

11. High Level Operating Procedures
General
Category Management
Sourcing
Budget Management Category Strategy Sourcing Pipeline
Performance Market Intelligence Management
Management QBR/SPM Pipeline Execute Sourcing
Management Events
Annual Workplan
Execute QBR Events Negotiate Savings
Recruitment / Retention Targets/Actual/Rebates
Resource Management
Training & Development Resource Management
Spend Analytics
Stakeholder Activities Contract Upload
Management Implementation &
Contract Management
Special Projects Compliance
Compliance Management Plans
Policy & Procedures Management
Management Event Documentation
SUM Targets/Actual
Realized Savings
Tracking
Regional Procurement Teams
3rd Party Sourcing Support
Offshore 3rd Party Procurement Processes Support

12. Sample Global Spend Distribution
Global: $10B
Direct: $4B Other: $0.5B
Indirect: $2B
Intercompany: $3B TBC: $0.5B

13. Continuous Improvement Opportunities
 Finalize center-led category management implementation
 Increase category management scope and standard processes
 Increase user adoption, starting with spend analytics
 Incorporate 3rd party data (i.e. bill payment/audit providers)
 Introduce 3rd taxonomy (i.e. supplier spend segregation)
 Improve dashboard reporting capabilities
 Possibly extend footprint to other integrated solutions
 Facilitate supplier/customer compliance management process

14. Any Final Questions / Comments?