Our vision for the dynamic manufacturer Drive innovation.

March 18-21, 2013New Orleans

#conv13

CSAX23

Process manufacturing capabilitiesMelissa Cook Mai-Britt Winther John SmithGlobal industry Sr. Program Manager VP Information technologySr. Director Microsoft Reily FoodsMicrosoft

Our visionfor the dynamic manufacturer

Drive innovation

I don’t think of manufacturing when I think of innovation…90% of US patents come from the manufacturing sectorhttp://www.industryweek.com/innovation/us-manufacturing-misunderstood-economic-powerhouse

Inventory control

packages

ERP

MRP II

MRP

In fact, ERP came from MRP….

?

60’s 70’s 80’s 90’s 2000

Bringing innovation across the stack

MS Stores Dynamics

SharePoint

Office

Windows

SQL Server

Windows Mobile

Surface

Kinect

Windows computers & Tablets

Microsoft Services

DeploymentConsumer

Applications

Devices

$9B annual R&D investment

Our visionfor the dynamic manufacturer

Drive innovation

Speed and agility

Research on enterprise applications

58%Poor cross-functional processes

42% 44% 9% 86%5%

58%Difficult to upgrade 43% 44% 9% 87%3%

58%Business

requirements versus apps mismatch

48% 32% 15% 80%5%

58%High cost of ownership 58% 33% 91%2%7

%

Very significant Significant Not significant or slightly significant Don’t know

Source: “Enterprise Apps Customers Have Issues,” Forrester Research, Inc., February 26, 2010.

Key differentiators

Time to market

Agility

TCO

Global

Flexible deployment optionswith Microsoft Dynamics®

Integrated, full suite

Workload, at-a-time

Manufacturing business scenarios in Microsoft Dynamics®

Horizontal operational business scenarios

Manufacturing operational business scenarios

Core administrative business scenarios

Finance HR

HCM Project Budget Formulation

Expense SRM Sales Force Automation

Marketing Automation

Customer Care

Supply Chain Planning

ManufacturingOperations

LogisticsSales Order Management

Product Data Management

Our visionfor the dynamic manufacturer

Drive innovation

Speed and agility

Empower people

Personal Office Factory

The human side of manufacturing

Personal and office productivity -leverage into the factory worker space

Process manufacturing capabilities

Food and beverage manufacturing

Industry characteristics Attribute ranges batch splitting attributes batch control private labelling

business intelligence nutrition trial production sampling

demand forecasting ease of use findcommodity pricing inherritence inventory FEFO/strict FIFO Shelf lifePackaging specifications Planning new product development price and

promotions attribute-based pricing formulas by-productsquality assurance

distribution visual inspections shop floor control

campaigning safety sequential production serial numbering

product safety sheets manufacturing instructions tracing costs

taste panels regulatory compliance co-products

Example of orange juice production

Bulk juice production

Bulk concentrate production

Private

label

Order fulfillment/customer requirements

Mixing

Juice bottling

Carton fillingEvaporati

ng

Washing

Extracting Finishing

Contoso Orange Juice Company

Formula definition Purchasing raw materials Producing juice concentrate and juice Containerized packaging Quality control with batch attributes Selling juice and co-products Catch weight for purchasing

Key scenarios

Juice production demo

Reily Foods

Customer view

John SmithVice President ITReily Foods

Company profile

Headquartered in New Orleans, Reily Foods manufactures and markets consumer brands across a variety of categories, including Luzianne Tea, French Market Coffee, Blue Plate mayonnaise, Swans Down cake flour, and Carroll Shelby Chili, to name a few.

Reily also manufactures private label coffee, tea, and mayonnaise for large retailers.

Reily’s customers include big box distributors, large and small retail grocery chains, and foodservice distributors and operators.

Product safety and traceability The challenge The situation The solution

Meet BRC (British Retail Consortium) Global Food Safety Standards to achieve and retain BRC Food Safety Certification

BRC traceability testing guidelines require a 4 hour maximum time frame to complete a traceability exercise

Previous trace process was manual with paper-based manufacturing records

Recall process was lengthy and inefficient

Resulted in need to recall far more product than necessary

Leveraging Microsoft Dynamics AX traceability functionality

Recording of raw ingredient usage by lot number

Recording of finished goods lot numbers on all transactions

Tight integration between Warehouse Management and Microsoft Dynamics AX systems

Full traceability within minutes instead of hours

Tracing the coffee beans

Purchasing and storing the beans

Growing Receiving

Storing

Processing the beans

Blending

Roasting

Grinding

Order fulfillment

Packaging

Shipping

BRC CertificationAchieved BRC Certification with “A” ratings at both manufacturing facilities

Globally recognized certification opens new markets

Competitive advantage when pursuing private label business

Project implementation approach – using SCRUM

Team engagement and ownership

Continious demonstration of progress

Personal growth of team members

The project plan

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Release 1General ledger

Accounts receivablesDSD sales

Financial planning

IntegrationsRedistributor sales

EDIMargin minder

Broker commissions

Release 3Pilot interfaces

Additional functionality with controlled customer base

EDITrade funds

PricingCommissions

Leverage functionality company wide:

Accounts receivables

Release 4BOSS warehouses

Production planningPurchasing

Accounts payableManufacturingFixed assets

Foodservice equipment

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Food and Beverage contact in R&D

mwinther@microsoft.com

© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.