Hi. My name is Eric Zager, and I'm from the Calculum team. And today, going to be explaining how the Calculum platform works.

The first screen that we're on right now is the home module. This is where you're gonna see an overview of all the different updates surrounding the spend file and your company. We also have a tab on recent news that's come out about your suppliers. Up top, you can select different spend files. You can also change the currency, which platform is reflected in. We have an academy where you can learn about any feature or module on the tool and notification center as well as changing any user settings.

The first module which we're gonna look at today is the match module.

This is where you can see what data has been matched by Calculums at a platform as well as which suppliers have been purposely excluded either because they're missing critical data points like payment terms, spend volume, maybe they're subsidiary of your company or they request to be taken out, or they are a from an industry or spend category that's difficult to negotiate with, such as tax authorities, government, insurance companies.

This can be viewed at the spend line level, the spend volume level, or the supplier level.

The data can also be viewed in Excel style format list where you can filter and sort out the different suppliers, which are matched, unmatched, or excluded, and see the updated data as well.

The next module we're gonna look at is the opportunity module.

This is where all the matched and analyzed suppliers are held at a portfolio level. So we can see what the opportunity is when looking at the global portfolio of the company. In this first box, we're looking at weighted average payment terms, both contractual payment terms as well as actual days paid, see if there's any early or late payments. Your module may look a little different if there's financing programs that are not enabled, such as virtual card and supply chain finance, which are enabled in this example.

The next line lap down is the seventy seven days weighted average full opportunity. This is looking at the best strategy for each individual supplier and the weighted average, what would that be if we were to increase the days.

The expected sixty three days weighted average is taking into account the probability of success for each individual supplier. This is the conservative, estimation that the platform has as to what your team will be successful at negotiating.

The payment float will appear here if you have virtual card enabled, and this is looking at the additional float you get from the billing cycle and the due date of your call.

The boxes to the right, the cash flow, reflect what would be achieved if we're successful with achieving the seventy seven or the sixty three expected days. Again, this is in the currency, that's selected up top. The rebate will appear here if you have virtual card enabled, and this is the rebate of the card. And the profit takes into account the rebate and the weighted average cost of capital when it comes to the additional cash flow of your company, and that can be changed in the financial data under the user settings.

The spend volume that's been analyzed, the global parent companies, the suppliers, well as the more granular spend lines have been analyzed by the platform. We have different charts that can look at where you've stood already from last year in the spend file, such as the number of suppliers and the spend volume, but also where the potential is when it comes to cash flow opportunity and payment terms opportunity.

If you select a certain data point in the chart, let's say we wanna look at all suppliers with an a minus credit rating, it changes which ones appear below, and you can look at this at the parent level as well.

We have a global filter button where you can drill down the platform into any data point, whether it's provided by us or customized data point that you put in the spend file. You can drill down into different categories, negotiators, credit ratings. All that's done by the global filter.

The next tab is supplier prioritization. This is the nine box model. We have a few different options. If you have supply chain finance or virtual card enabled, you'll have different nine box models for those, but everybody has access to the term extension model, which is looking at in the y axis, the probability of a successful negotiation, and on the x axis, the cash flow impact for your organization. So if we select boxes one, two, and four, we can maybe assume those are the low hanging fruits. Sometimes clients assume box seven as well. As you select and deselect, it changes the numbers in the box to the right as well as the suppliers below.

We can view this on the parent level as well as the granular level.

The waterfall, this is where you can see the cash flow opportunity by the different strategies on the platform. You can filter out for each strategy. On the virtual card side, we filter out for the suppliers, which the platform estimates would be eligible for using a virtual card payment, looking at that opportunity when just honing in on those specific suppliers and what that rebate opportunity is as well as well as the float. The list view is a full list view of, all the suppliers that have been analyzed by the platform.

The next module is the plan module. This is where we come in. The customer success team works with your team once you get started and ties together your category managers and negotiators with the suppliers or spend categories or countries that they're responsible for and timelines. So we can break these into different phases.

We can do this around the nine box model we just showed for the low hanging fruit, or we can customize it for whatever your requests are as to how you wanna approach your suppliers. But then this way, all your negotiators know who they're expected to reach out to and when they're expected to reach out.

The next module is the manage module. This is where you can track how your plan is is going and how your team's performing. So we can see which suppliers still need to be put into a plan, which ones we've contacted waiting for a response from, and what has been agreed upon. If you have virtual card enabled, you'll also see the rebate achieved from using the card that would be popping up there.

And up top, you can track the overall progress. The second tab is email negotiations. This is if we're handling negotiations on behalf of your organization. We can track how our team is doing. We work with your team on messaging responses, build out an FAQ, and then we approach the suppliers with the best strategy and track how our team is doing with unlocking the cash flow.

The next module I'll show is the suppliers. This is where most of the time is spent. To get to a supplier, there's a few different ways. Anytime you see a supplier in any of these modules, you can click into it, and it pops open the supplier card.

You can also search for a supplier or parent company at up top at any time, and it will pop it up. Or the third way is on the suppliers module, where you'll get a full list, either a a grid view or a list view of the suppliers that have been analyzed by the platform.

We also have the ability to work with your sourcing team and look at potential suppliers. Say, okay. We're analyzing these three suppliers. We wanna choose one, and we wanna use the analytics on the Calculum platform to help inform our decision to who we're gonna go with. So we can accept those on a rolling basis, and you can view those here.

On the individual supplier level, when you click into a supplier, the card pops up. And the first tab we're gonna go to is the opportunity tab on the individual supplier level.

In the first box, we see what is the current spend volume. Again, this is reflected by these currency selected in the top bar. And then what's the cash flow opportunity as well as the equivalent discount if you're looking at cost savings rather than working capital for a supplier. If there's an agreement, you'll see this agreed, box pop up with what was achieved in terms of cash flow. You'll have the multiple spend lines here if there's if there are, you know, one, two, three, four. They'd all pop up here. In this case, there's only one spend line.

The box buyer leverage materiality is the negotiation leverage, the the Calculum platform estimates that you have with the supplier, mainly looking at your spend volume compared to the annual revenue of the supplier.

The next box is the credit rating. Every supplier gets a credit rating no matter how small private or emerging market they're in.

We always tell you the source. Is it coming from an external agency, or is it internally estimated by the Calculum platform?

Below, we can see a summary of the relationship with the supplier as well as the status where we currently stand. In this case, thirty days contract, twenty five days. We're paying five days early, so there's an opportunity to increase terms or unlock working capital without increasing terms or conversation. But the full opportunity in this case is seventy five days.

What was agreed upon was sixty. If you wanna override what was here, you can hit add target, and it'll override the platform suggestion. And below are the different strategies. Anytime you see a strategy, you can click on it and hover over the info button and explains that strategy and how it works.

For the supplier standard and peer group standard, which are the internal benchmarking from the Calculomata platform, We do show the number of occurrences as well as the average days and the third quartile of that, as well as the buyers in our database, how much leverage they had compared to your own without disclosing the names of the other buyers.

We have a new tab called supplier insights. This is generated by AI, so please give it a few seconds to populate the information. But what we're looking at here is procurement insights on this supplier as well as the category that you're purchasing from them, negotiation arguments with these suppliers. So by taking into account any current news that's going on, as well as market share.

So looking at, you know, if there's any duopolies for this category, what's going on overall with PPI, and inflation for this specific category. This gives you those insights. And lastly is tariffs. So looking at up to date tariff information, what's going on with them.

Is there a new tariff that's on the books trading between these two countries with this h HS code? So this is all, in the supplier insights section.

The supply chain finance section will pop populate if you have the supply chain financing module enabled where it looks at the overall opportunity for offering the supplier to join your supply chain finance or reverse factoring program, looking at estimating their cost of debt compared to your SCF rate that you can offer them through your bank or your platform provider.

The next tab is the corporate tree. This is looking at shared sister relationships all falling under one global parent company as well as different spend lines, so we can look at that. If you wanna look at from ABB India that we're now ABB France, you can just pop that open, and then it pops open the ABB France supplier card.

Company details, this shows you the relationship that you have with the supplier, a description of the company, the location, phone numbers, as well as small medium enterprise or SME status. Every country has a different definition of what an SME is, so our platform is considering do they qualifies an SME. Are there any laws on the books? And are there laws enforced or just recommendations?

The next tab is ratings and metrics. This is where we're looking at financial ratios as well as company ratings, leverage, d e I e s g.

Without any financing program, the calculator is just looking at straight terms changes versus price changes. It works both ways. We always look at the impact not only to the buying organization, but also the supplier.

So we're estimating the weighted average cost of capital of the supplier and the tax rate, and we can make suggestions for your team to accept or reject certain deals. So if we're gonna increase forty five days without giving up pricing, obviously, it's a good impact for us. Maybe the supplier comes back and says we have to increase pricing by sixty five bps.

In this case, is it still a good deal? And it says, yes. We should still take that deal. This is why it impacts us positively. It works the other way as well. So maybe we wanna reduce to ten days and get a one and a half percent discount.

Calculate. Does this make sense? Yes. At that level, it does. We can see some chart breakdowns below as we change the calculator. Where's the profit breakeven matrix? So price change versus change in terms.

Then the weeds calculation where you can change some of the assumptions.

The last tab is the news. This is looking at recent news articles and scandals around your supplier. We can also track the activity as members of your team change things about the supplier card. You can track that here. You can also download PDF versions of this card so that you can have all the information in one PDF file and requesting any changes to the information that you see here.

Once there's an agreement, you can change the status. I'll pop it to one. This was already agreed. So if we pop into Arrow Electronics Estonia, We have, yes, other information on them.

Same thing, supplier insights, so we can look at different information on this relationship, this category. But on the overall opportunity, we can then come down here and see agreed. There's no agreement here. You come in, say what was achieved with or without the cash discount?

Was card accepted? Was SCF accepted? When was it accepted? When are we reviewing this next?

And then you can get feedback on how the negotiation went. Once you hit save, it moves it over to that agreed upon section in the manage module, which we saw before over here, the last section.

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