2013 and Beyond The Road Ahead Historical Product Roadmap 2000 Reporting Agg. On the fly; On Demand 2001 Onboard Self-service model supported by Webex 2004 2006 Billing Invoice & Payment Mgmt Transparency, Sales tax 4 way match validation & accounting system W/O Mgmt integration; Quantitative & Blast ACH Qualitative feedback on each W/O; Validation 2010 Find Matched search using detailed parameters 2010 2010 2011 2012 2012 Business Parts and Credential Analytics Trade Capture more: Micro Expertise Analytics Supplies Consulting Management expertise, Reporting FM training, expertise Catalog education on demand Purchasing only as needed Value Proposition ServiceChannel provides value for the whole supply chain Participation is Growing Our Mission Continues OurServiceChannel mission is to be the Clients global leader for successful business Select collaboration between leading facility managers and contractors What Facilities Clients are Saying What Contractors are Saying What’s new in 2013 and Beyond 2013 represents the beginning of a new phase in ServiceChannel’s history. We have made a multi-year, multi-million dollar investment to drive more value for the service buyer and the contractor community: 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Your own footer 2013 • Major New Services and Value for Service Buyers • Major New Services and Value for Contractors • New Business Model for Top Contractors Your Logo What’s new for ServiceBuyers? 2013-14: New Features and Functionality Highlights: 2013 Q1 Go live of SupplyClick (2012) Q2 Q3 Q4 SSAE 16 Certification New Website Co-development of new industry invoice standard Investment in Technical support team and Client Services SupplyClick Enhancements Improved documentation and training investment Addition of strategic sourcing services SAML single sign on Client Knowledgebase Increased investment and upgrades in hardware and hosting resources UI re-write for core sections of the ServiceClick applications Improvements to Proposal functionality z z 2014 Q1 Q2 New Select Contractor Program (SCP) As part of our ongoing commitment to provide valuable tools to both sides of the facilities management equation, we are launching the ServiceChannel Select Contractor Program (SCP) – a new program that provides value-added features and services to all contractors transacting with clients via the ServiceChannel platform. The SCP helps contractors to maximize the benefits of the ServiceChannel platform for their business: • Functionality, services, and support • Tailored to contractor’s level of activity on the platform. Benefits Select Contractors receive The SCP levels grow with contractors’ e-commerce needs, providing evergreater levels commerce management tools, training, technical support, and account management resources. Benefit Highlights include: • New Contractor console - puts all client relationships in one place • Improved documentation and training • Improved support options—including dedicated toll-free support with direct agent access for some levels, prioritized assitance with proposals, invoices and work orders. • Improved registration process • Fixxbook badging and ratings - drive more business, differentiates company • Contractor support satisfaction survey • Dedicated account managers – for largest contractors • Contactor customer advisory board - for contractor input into product process Benefits Select Contractors receive SEE HANDOUT FOR PROGRAM DETAILS: New Business Model for Top Contractors Contractors receive these additional services and capabilities based on their transaction volume. The Select Contractor program offers four levels of benefits for contractors: • We expect that about 70% of contractors will use the Green level which is free • The Silver, Gold, and Platinum levels cost $1 per invoice and add services and capabilities based on invoice volumes. Select Contractor Program (SCP) How do Select Contractors access the specific services and features available at their level? Most of the subscription features and services are available directly on ServiceChannel.com, so Select Contractors can access them by simply logging in to their accounts. Platinum level Select Contractors will be contacted by their new assigned account managers to assist them with additional benefits. Select Contractor Program (SCP) How are Contractor Select fees calculated? Over 70% of contractors may use the ServiceChannel platform for free using the Green subscription level. If a contractor submits 52 or more invoices with at least one customer relationship they receive Silver designation and pay will pay $1 per invoice or $52. After that, SCP fees are simply $1 per invoice for all relationships which have 52 or more invoices per year. There are no fees for: • Relationships with less than 52 invoices per year • Work orders, acknowledgements, IVR access, reminder calls from our call center, mobile apps and all the benefits above listed under the green subscription level New Business Model for Top Contractors What Your Contractors Get What SCP Gets Reduced receivables, speedier payments Reduced costs of doing business Exposure to other revenue opportunities Tools for better customer experience $1 per invoice* (less than the cost of mailing an invoice) *Applies only to contractor relationships with clients who submit 52 or more invoices per year We will handle contractor communications Materials to help contractors understand the new services, how to take advantage of them and for 25% of them, the rationale for the fees Communications include: • Presentation materials/Webinars • Letters and emails • Contractor ROI analysis • Collateral showcasing SC’s investment in vendors • FAQs 17 Resources for Contractors There are several ways in which contractors can get more information about the Select Contractor Program: • Visit the Select Contractor Program micro-site at: www.xxxxxxx.com • All contractors can contact us via email at: contractorsupport@servicechannel.com • Gold and Platinum level contractors can access support via Instant Chat when logged into their ServiceChannel account. • Platinum contractors will be contacted by their new assigned account managers to assist them with additional benefits. • US/Canada-based contractors may call toll-free: (877) 468-2746 • Non-US-based contractors may call toll-free: 0808-234-2202 Communications Timeline We will Take a Proactive Rollout Communications Approach over the Next 4 Months Feb 8 Feb 22 Mar 1 Apr All Contractors Aware Top Contractor Communication Kickoff/ All Service Buyers Aware May 1 Jun 1 Jul Contractor Invoicing begins Official Start New Program Service Buyer Kickoff 70% of Contractors on ServiceChannel will continue to transact for free Executive Summary 20 • Substantial new investment by ServiceChannel • Substantial new functionality and value for both facility managers and contractors • Improved alignment of pricing with facility manager and vendor value – Vendors receive value and now contribute a small amount to the community • SC takes the lead in communicating and managing – With supplier outreach and communication tools • Clear vision and timeline for the future Addendum Items Our Vision We recognize the importance of the SC Community as a shared global resource serving some of the world’s largest corporations and literally tens of thousands of their contractors-- contractors with a diverse set of needs and capabilities. As a result, we have established these guiding principles to articulate our future path to this diverse community. • • • • Listen to the broad global community - of facility managers, contractors, and partners. Creating productivity and efficiency for all the participants in the community is the only way to deliver value. Creating and sharing this value is the only reason for ServiceChannel exist. Finding ways to remove costs from the system is the only true “win-win” Maintain a reliable, scalable, secure and predictable infrastructure. Govern the community as if it were a co-op owned by its participants. Our Mission To be the global leader for successful business collaboration between facility managers and contractors More efficient ways for facilities and contractors to discover each other Deeper transactional process support and support for more categories of facility and store operations spend Increase payment and financing capabilities Easier facility and contractor access and integration Continue to drive leading security, reliability, standards, & ease of use The SC Community The SC community is a vibrant community of service buyers, contractors, and partners 24 Value Proposition ServiceChannel provides value to the retailer and contractor Service Buyer • Focus on managing facilities, not paperwork • Process savings in sourcing, procurement, credentialing, payment • Hard $$ savings: • - Sourcing, work order management, contractor compliance, contractor performance scorecarding • Improved data capture, spend visibility • Benefits to contractors Service Buyer • • • • • • • Compliance with customer programs Reduced administration and invoicing costs Better collaboration with customers Improved visibility into transactions Get paid faster - faster order-to-cash cycle Better working cashflow management Opportunities for new business Our Commitment to Contractor Value ServiceChannel offers contractors top and bottom line value. Being a connected contractor makes you a lower total-cost contractor to do business with, which leads to increased wallet share. SC customers also reduce rogue spend By badges and credentialing on Fixxbook, and references from SC clients, the number one source of new contractors for our clients. ServiceChannel makes it easier for retailers and contractors to differentiate based on credentials and real, measured performance, not price. By eliminating calls, faxes, inaccurate orders, automating the process for order management and invoicing, SC reduces contractor operating costs. By automating the order and invoicing processes you eliminate (or reduce) errors – which are costly in terms of labor and delays. Contractors tell us their SC clients have fewer disputes and long delays in payment Eliminates the headaches and unpredictability of invoice and payment cycles; order and change order processes. 26 What is new for Contractors? 2013 Highlights: • Dedicated Contractor Team • Select Contractor Program with additional benefits, features for all contractors, especially top transactors • Contractor console to put all relationships in one place • Improved support options—including dedicated toll-free support with direct agent access for some levels, prioritized assitance with proposals, invoices and work orders. • Fixxbook badging and ratings to drive more business • Contractor support satisfaction survey • Improved documentation and training • Improved registration process • Dedicated account managers for largest contractors • Contactor customer advisory board for contractor input into product process • Access to value added services such as business certification and barter exhanges. New Business Model for Top Contractors Top Contractors get a lot more value from SC than $1/invoice • Still free to start for all contractors • Easy to on-board, see value • Remains free for 70% of all transacting contractors • All those who submit fewer than 1 invoice per week • Only for those contractors who get value, those who submit more than 1 invoice per week (52 per year) there will be a nominal $1 per transaction fee • Affects only the top 25% of transacting contractors • Transaction includes work order, invoice, calls, etc • These contractors will receive the aforementioned value-adds at no additional charge • Extended support • Additional languages • Contractor Scorecard • Contractors who do not qualify can purchase these services at their option Only Top 25% of Contractors are eligible What is a Select Contractor? Select Contractors are contractors who have been invited to provide their credentials to a ServiceChannel client in a private network. Based on the volume of invoices the contractors process annually, contractors are designated as Green, Silver, Gold or Platinum. How many Select Contractors are there currently on ServiceChannel? 25% of all contractors currently using the ServiceChannel platform qualify as Select Contractors. What percentage of contractors use the ServiceChannel platform at the green level? More than 70% of contractors currently using the ServiceChannel platform do so free of charge. Contractor Return on Investment SC Offers the Highest Contractor Return on Investment Cost/Benefit Analysis for Contactors • Trouble shooting on buyer side • On-network validation of invoices • Remove paper, postage costs • Faster payment through faster approval and fewer disputes • Automation into/from our systems • Visibility • Better ability to differentiate (check-in/check-out) • Ease of use • Multiple connectivity options • Fixxbook opportunities Fees Process Cost Savings Faster Error Payment Reconciliation Cost Savings Net Benefit New Revenue Opportunities