Managing the Business with better Information

1. Managing the Business with better Information Paul Hudson, IT Manager Bostik Ltd John Simpson, MD Simpson Associates

2. Adhesive & Sealant Business of Total Turnover € 1 Billion # 2 Worldwide Company Overview • UK & Ireland Turnover £130M (€185M) • Bostik Ltd (renamed Oct 1 from Bostik Findley Ltd) • Sovereign Chemicals Ltd • Evode Industries Ireland

3. Company Brands & Markets • Construction & Distribution • Builders Merchants, DIY, Professional • Grocery • Stationery & Education • Industrial B2B • Packaging • Automotive • Assembly

4. The Business History • 1997 Installed Movex ERP • Resolved Y2000 and Business process • Weak reporting tools via query • Acquired new business & implemented Movex at second site • 1999 Cognos Sales Analysis Cube – Client based • 2000 Merged with Evode – Business triples in size • Cognos development interrupted • Switch Evode to Movex platform • 2001 Extend Cognos BI • Web based • New cubes • Widespread deployment • 2003/5 Movex Upgrade • Intention to deploy Movex in Sovereign & Ireland • Built Data warehouse & linked cubes to warehouse

5. The Business Issues & Objectives • Business Issues • Requirements were Business driven – not by Finance or IT • Weak ERP reporting • Desire to remove IT dependence & introduce end user reporting • Common set of numbers – one version of the truth • Better decision making • Ease of distributing information • Purge ERP and Archive reporting data • Objectives • Cognos would be the management tool for non transactional reports • Key areas for business improvement identified • TWC, Fixed Costs, Delivery Performance, Purchasing analysis and supplier performance • Rapid availability of data • Accountability and elimination excuses • Resilient & robust production environment • Real time capability without impact on ERP

6. Service Provider Simpson Associates Business Intelligence Cognos Data Warehouse I Apps for Movex ERP Movex v 12 Infrastructure AS/400 The Solution • Desire to be independent of ERP supplier • Infrastructure AS/400, ERP Movex v 12 • Cognos BI solution • Data Warehouse SQL Server / I Apps for Movex • Service Provider Simpson Ass.

7. Simpson Associates • Enabling business to achieve higher levels of performance through improved planning processes, monitoring of key performance indicators and better understanding of current and historical information. • Cognos & DataMirror Platinum Partners • Cognos Partner of the Year (UK) 1995, 1998, 2000, 2001, 2003… etc • Cognos Accredited Solutions Provider; 1st in Europe • European Services Partner of the Year 2005 • 160 Customers – UK & International Excellent people, proven methodology, developed applications, satisfied customers and ten years experience implementing performance management solutions

8. What is iApps for Movex ? • A robust and scaleable business information application specifically developed for MOVEX Customers • Stores data in real time or batch……Customer choice not technical limitation • Recognises data changes as they occur • Does not require an overnight service window for batch updates • Very minimal or no impact on AS/400 performance • Based on industry leading software components, eg Cognos, DataMirror • Realises a uniqueness in consistency of decision making across organisations • One version of the truth ! • Regardless of data volumes or business sectors/divisions • Supports single or multiple Movex environments • Scalable application with support to multi company and multi-version Movex environments • Supports v9 to current version • Add other data sources, e.g. Excel, other ERP, HR etc • Archive & audit trail facilities • Implemented in known timescales and known costs

10. The Implementation • We do not manage ERP or BI as IT projects • Driven from the top • Clear message on overall strategy – Company wide solution • Clear Objectives on deliverables • Close involvement throughout project • Key managers involved & committed from the start • Defining requirements • Testing solutions • Cascading education and deployment within their teams • Eliminate all previous tools & mechanisms once fully operation • IT take responsibility for technical matters and system administration • Project delivered on time and on budget despite delay of ERP implementation • Archive data from Movex v 9 in I-Apps

11. Benefits Realised • Accountability • Reductions in administrative numbers employed • Speed of information • Month end closing on day 1 • Identifying errors • Consistent data • TWC capital reductions • Reduced stock obsolescence • Reduced order backlog • Improved delivery performance • Information available to those who need it when they need it – But information must generate Action.

12. Inventory Total Value reduced by 20%

13. Late Orders Reduced from > £1 M to ~ £0.3M

14. Aged Debt >61 days reduced by £1.3M (60%)

15. Lessons Learnt • Do not duplicate existing outputs e.g report formats • Do not underestimate the inability of some people to adopt new methods • Carefully control cube structures centrally • Ensure data sources are available & accurate • Education is on going • PC use • ERP structures & methods – if ERP data is inaccurate so are the cubes • Understanding the cube structures • Insist on use of the tool • For users who struggle supply view templates

16. Future Plans • Continue education on optimum use of existing cubes • Exploit cubes for others companies we add to the ERP platform • Develop customer profitability cube incorporating • Gross sales & discounts from sales cubes • Rebate structures not in sales cube • Logistics costs using data from external freight operators • Develop P & L cubes below our current SBU reporting • Extend reporting into Manufacturing environment