Streamline your supply chain communications with portal and dashboard visibility

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

2. 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

3. It Used To Be Simple

4. Order Ship Bill Collect Advanced Shipping Notice Payment Purchase Order Invoice What Does That Mean To You? Leverage integrated system-i solutions that standardize document formats and synchronize product data for streamlinedinformation flow across the order-to-payment lifecycle.

5. Supply Chain Spending Priorities 2006-2008

6. Dashboard Visibility and Integration

7. Assembling The Right Solution Set

8. Optimizing Supply Chain Communications Trading Community Management - Partner management - Connectivity - Content translation • Business Activity Monitoring • - Reconciliation tools • Transaction lifecycle • visibility and alerts • - Real-time interactive alerts • - Interactive reporting 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

9. 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

10. 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

11. Automating and Extending Processes

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Problem: 30 Day view 1,002 Errors were identified 524 Compliance Violations Results: 60 Days Later 187 Errors Identified 109 Compliance Violations Visible Results: Demonstrable ROI • A Community Analysis • Over 4000 Partners • 39,000+ Documents per month • Supplier Scorecards and Dashboard $16,600 Savings in Error Resolution Costs

19. 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

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