Streamline your supply chain communications with portal and dashboard visibility We bring order to your orders. Date: December 6, 2006.

Streamline your supply chain communications with portal and dashboard visibility

We bring order to your orders.

Date: December 6, 2006

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Where Losses Occur

• 20% of all orders across all industries are in error*– 26% for electronics manufacturers*

– 62% for CPG/retail suppliers**

– 43% result in deductions or overpayments**

• Suppliers attribute 6% of selling, general, and administrative expenses to resolving invoicing issues**– Deductions account for nearly 10% of invoiced sales**

• Lost sales represent 3.5% of annual revenues due to stock outs***

• Cost to resolve item data and invoice errors ranges from $40-$80***

* AMR 2006**GMA – 2004 ***GS1 2006

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It Used To Be Simple

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What Does That Mean To You?

Leverage integrated system-i solutions that standardize document formats and synchronize product data for streamlined information flow across the order-to-payment lifecycle.

CollectBillShipOrder

Purchase Order PaymentAdvanced Shipping Notice

Invoice

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Supply Chain Spending Priorities 2006-2008

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Dashboard Visibility and Integration

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Assembling The Right Solution Set

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Optimizing Supply Chain Communications

Business Analytics- Historical reporting- Deep transaction reporting- Online optimization tools- Rich data export capabilities

Process Automation-Not just for the traditional supply chain

- Internal operations support- Supporting the “Final Customer”

- Rule-based execution

Business Activity Monitoring- Reconciliation tools- Transaction lifecycle visibility and alerts- Real-time interactive alerts- Interactive reporting

Trading Community Management- Partner management- Connectivity- Content translation

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Visibility: Driving Results

• Synchronizing data

– Item baselines for RFID benefit

– Images for aiding in identification when dispensed

• Consolidating connectivity

– Increased control

– Consistent monitoring

• Achieving certificate-based authentication

– Internet-driven

– Standards-based

• Event management and BAM

– Exception-based action

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Trading Community Management: Visibility

• Compliance Guidelines Well Known

• Real-Time Transaction Visibility

– Notifications of Production Errors

– Proactive Error Management

• Understand the Full Transaction Lifecycle

– A document is not the transaction

– Get ahead of transaction errors

• Actively Monitor Production Activities

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Automating and Extending Processes

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Understanding Business Activity Monitoring

One alternative to expanding the mesh is to use value-added networks (VANs). Many enterprises already use VANs to exchange transaction information. VANs offer a common format of exchange with assured security and message integrity. BAM can be deployed within the VAN, analyzing message flow and alerting its members when significant events occur.

- Bill Gassman, Gartner

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Events: Impacting Business

• Translator Errors– Delaying Payments– Impacting Fulfillment– Inability to take advantage of Payment Discount Terms

• Communication Errors– Missing Acknowledgements

• Manual Intervention

– Delayed ASN’s• Chargebacks• Supplier Rating Impact

• Content Errors– Back Office Integration Failures– Invoice Errors

• Payment Delays

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BAM: Your Rules, Your Way

• Define Your Events– Define the what and when according to your business needs

• Internal Rules

• Partner Rules

– Multiple warning and violation conditions for each trading partner’s unique requirements

• Leverage Notifications– Define who gets notified, both internally and externally

• Utilize Dashboards

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Proactive Exception Management

• Business Activity Monitoring

– Leverage exceptions to get ahead of the transaction

• Proactively monitor the order fulfillment process

• Reduce Payment Cycles

• Gain confidence that business critical events will occur on schedule

– Fulfillment of Items

– The Truck will be Accepted at the Dock

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Analytics and Optimization

• Harvest production metrics from existing data flow.

– Make Real-Time Decisions Based on Facts

• Leverage Rule and Violation Data to identify Vendor compliance issues

– Prioritize Issues for Resolution

• Identify Opportunities for Continuous Improvement.

– Ability to validate the ROI of an initiative

• Increase the velocity of your supply chain

– Enable more participants

– Automate more processes

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Strategic payoff: Execution Efficiency

• Identify problems before impact your business: visibility preempts execution breakdowns via early warning alerts

• Shrink the number of exceptions, out of stocks, chargebacks, negative supplier ratings

• Single version of the truth: visibility of the complete picture

• Simplify and automate exception handling and resolution

• Improve the reliability, adaptability and timeliness of transaction and document flow across your trading network

Deep visibility = Execution excellence

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Visible Results: Demonstrable ROI

• A Community Analysis– Over 4000 Partners

– 39,000+ Documents per month

– Supplier Scorecards and Dashboard

Results: 60 Days Later

187 Errors Identified

109 Compliance Violations

Problem: 30 Day view

1,002 Errors were identified

524 Compliance Violations

$16,600 Savings in Error Resolution Costs

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Efficiency Adds Value• Lower Costs

– Increase Productivity• Focus on Exceptions only

– Reduce Charge Backs and Revenue Impact Events

• Improve Customer Service

– Reduce Time to Resolution

• Increased Production Control

• Optimize the Supply Chain

– Use and Analyze Historical Events

– Prioritize Improvement Initiatives based on Facts

Streamline your supply chain communications with portal and dashboard visibility

We bring order to your orders.

Date: December 6, 2006