Boston BPCS User Luncheon ERP Lx

Boston BPCS User Luncheon ERP Lx May 8, 2007

Today’s Agenda • ERP Lx Overview Including: • Order Entry-to-Cash • Purchase-to-Pay • Planning-to-Finished Goods • Security & Database • Demo “Tour” of the System

Order Entry-to-Cash • Customer Order Entry • Various Order Entry Methods • Electronic Commerce Manager • Release Management • Pricing and Promotions • Sales Order Control Center • Allocations • Outbound Logistics Management • Billing • Accounts Receivable • Trade Funds Management

Order Class and Document Linking Process Steps – Entered, Pick Release, Pick Confirm, Ship Confirm, Invoiced Status of the Order and Order Line Customer Hierarchies Sales History Corporate Customer Service Representative profile Cancellation reason code at header or line String search within item description or extra description for improved item number search Link special lines to specific regular line Customer Order Entry

Fully valued order at order entry Charges and allowances promotion type supports freight charges calculated and added to the order during order entry Calculate financial discount at order entry Review balance of financial discount after partial shipment Customer Order Entry (Cont’d)

Various Methods for Entering Orders • Shopping Lists • An optional customer-specific list of items the customer has purchased in the past, ranked by sales order value • Builds list of items from existing sales history • Configuration – Number of Best Sellers, Number of time Periods to consider • Standing Orders • An optional customer specific list of products that are normally purchased by the customer at given intervals • Includes item numbers and quantities • Periodic; By day of month (01-31), Last day of month option (32),By day of week (51-57), All days (99)

Various Methods for Entering Orders • Global Orders • A list of products available to all customers • Typical usage: prompt for special deals, new products, other product offerings • Template Orders • A list of products applicable to all customers that are related or commonly purchased together

Report multiple errors Allow soft deletion of order lines Enhanced outbound PO to add address data Enhance priority recognition Multiple ship to addresses in ECM609 Multi-processing ECM help file Automatically convert inbound ASN to RMA for packaging return Back-to-back order creation using outbound PO ASN Extraction uses packing group number as key to define shipment on outbound ASN transaction/order Add ship-from warehouse address information when creating an outbound ASN Electronic Commerce Manager - ECM

Added customer/item to contracts Enhanced customer shipping parameters Auto-create packaging Pallet/carton range numbers Automotive ASN/pack group key on shipping documents Enhanced invoicing Retro-active invoicing Sequenced shipments Self-billing Firm vs. forecast order line designation Pick release allows selection of order lines to exclude forecast lines Release Management System - RMS

Advanced list pricing Promotion qualifiers Store date or warehouse date Shipping warehouse or pricing facility Automatically assign by promotion Least/best discount/surcharge Promotion types Full pallet quantity Penalty/upcharge amount Assign by promotion what details to print to which documents User-defined promotion application sequence Create/revise multiple promotions at one time Lock out order line from promotion consideration Credit order promotions provides greater discount accuracy Pricing and Promotions

Promotions & Deals • Promotion Capping • Business purpose: Allows user to place limits on incentives offered by a promotion • Optional for each promotion • New Promotion Cap Amount in Promotion Master • New logic compares “Discount To Be Offered” on the current order to the Discount Taken for that promotion • Three levels • Off: standard promotion qualification and assignment • Error: promotion considered “not qualified” and not assigned • Warning message displayed on panel if possible • Warning message printed on audit trail if display is not possible (example: Batch Pricing) • Proper assignment of qualified promotions and correct Net Price are more important than Warning

Promotions & Deals (Cont’d) • Maximum Free Goods • Business purpose: Allows user to place limits on incentives offered by a free goods promotion • Applies to Line and Order level free goods promotions • Does not alter basic free goods promotion qualification or assignment logic, only the maximum quantity

Allocation Enhancements • Batch Allocations • New Selection Ranges • Sold To Customer • Ship To Number: • Order Class • Order Number • Item Number: • Request Date • Schedule Date • New Selection Fields • Back Order Code Range • Include Picked Lines • Include Lines on Loads • Back Orders Only: Inclusion or exclusion • Lock Selected Order Lines

Allocation Enhancements (Cont’d) • Fair Share Allocations • Customer Orders • When Insufficient Inventory Exists • Batch Allocation processing • Order Entry System Parameters - Allocation Exception Flag • No Exception • Item • Warehouse • Item/Facility • Exceptions • Kit parents & Kit components • Final Assembly Scheduled items (FAS parents & FAS components) • Configurator items • Non-inventory items • Managed warehouse lines utilizing a defined multiple of picking Qty • Release Management System (RMS) items • Items not affecting inventory (Special lines, Drop ship lines) • Post ship orders

Allocation Enhancements (Cont’d) • Fair Share Allocations • Customer Orders • Batch Allocation processing • Order Entry System Parameters - Allocation Exception Flag • No Exception • Item • Warehouse • Item/Facility • Exceptions • Kit & FAS • Configurator items • Non-inventory items & or lines • Fill Rate Percentage • Establish Minimum at customer item level • Batch allocation used to override Fair Share • Pick Fill rate test at Pick Release

Warehouse Time Scheduled date/time Request date/time Ship date/time Order Order class Order number Customer/ship-to Customer type User ID Backorder code Allocated orders only Item OLM Ship date/time Load number Carrier Route Managed warehouse Picking/main area Zone Picking select code RMS Inbound delivery number RMS source Firm RMS lines only Pick Release Filters

Single load created for different docks OLM maintenance screen records ASN #, ship date, trailer equipment #, means, pro #, route dock, trailer serial #, seal #, etc. Returnables and multi-level packaging Packaging items Tracking of packaging within the warehouse Packaging by customer Deposit charge Packaging stock valuation Planning for packaging items Centralized package return warehouse Outbound Logistics Management - OLM

Added invoice filters for warehouse and facility Access Item Master macros from billing Proof of delivery Notice by load, order, BOL, or PRO number Invoice release uses quantity received Customer self-billing ECM or RMS orders only Create post-ship order by identifying self-bill reference number to the order line Validate inbound self-bill reference number Billing

Cash and Memo Posting Quick entry payments Filter by reference number Aging reporting Aged Trial Balance By Company report uses original document number to pull data Sub-totals on aging reports Online aging totals available in Customer Account Inquiry without CDM installed Multi-level financial discounts Billing financial discount/charge on customer invoice Interest invoicing Customer currency toggle Auto-generate customer number Cartera by BPCS company Accounts Receivable

Samples $50,000 Off Invoice $250,000 Advertising $200,000 Claims $50,000 Radio Spots $25,000 Display $2,000 Discounts $23,000 Rebates $12,000 Slotting $8,500 Coupon Printing $10,000 Sample Product $4,500 Co-Op Ads $17,000 ORD BIL PRO ORD BIL PUR ACP TFM Claims TFM Settlements ACR ACP Trade Funds Management Marketing Program Fund Brand X Introduction $1,000,000 Integration with BPCS products

Purchase-to-Pay • Purchasing Order Management • Contracts • Inbound Logistics Management

Vendor quotations Quote price mass update PO re-pricing Quote close Purchasing by facility Vendor approved list Item/Vendor quality maintenance Store manufacturer at PO entry Added PO profit center as criteria for consolidating requisitions Purchasing

PO delivery notes Contract lines and quotes by family code Three-way match using inbound ASN PO receiving against Goods Receipt Note (GRN) PO/GRN Inquiries display advice notes and GRN numbers by PO Process three-way match of advice notes in A/P by posting or invoice date Purchasing (Cont’d)

Vendor consigned inventory Vendor self-billing Requires supplier contract Self-bill invoice triggered at material receipt or material consumption Returnables and multi-level packaging Create packaging on the order Automatically receive packaging when receive item Vendor return-to address Purchasing (Cont’d)

Item X Purchase Order Item X Cost Item Y Purchase Order Item Y Cost Item Z Purchase Order Item Z Cost Freight P.O. (Weight) Duty P.O. (Value) Broker Fees P.O. (Fixed Amt.) Inbound Logistics Management Reduce administrative costs of matching and tracking Costs allocated to items

Planning-to-Finished Goods • Lean Manufacturing Process • Planning • Capacity • Yield • U/M Conversion • Inventory • Lot Management • Mfg. Execution • Costing

Automatic Credit Review Receive and enter Customer Order Automatic Release SO Issue Material/ Report Labor/Receive Pick/Ship/Invoice CO Lean Make to Order

MRP Work Bench Facility buyer/planner code Global and facility MPS/MRP simulation to optimize existing inventory and purchase decisions BOM Comparison Inquiry of product structures 9,999 lines on customer order, purchase order, shop order, BOM Seiban project control number Manufacturing: Planning

Capacity Enhancements • Work Centers and Shifts • Work Center Maintenance – up to 9 shift overrides • Shop Calendar Maintenance – shift override • Production Lines • Global production lines with default quantity per hour for all shifts • Facility production lines with gateway work center and quantity per hour for all shifts • Item/facility specific production lines with quantity per hour for all shifts

Yield • Cumulative lead time • Operation type Routing based yield • Product type Routing based yield • Routing based lead time • Fixed Duration operation

Inventory • Dynamic Weights and Measures • Material status • Cycle counting • New selection criteria by due date, negative inventory, forced count • Set upper limit of count records created • New summary cycle count capability provides directional inventory feedback without updating inventory

Two-character user-defined lot status codes Use lot actual cost for inventory valuation option Lot archiving Multi-usage expiry and retest dating by: Redesignation through INV/WHM Inventory Customer order lot allocation qualifiers Shop order lot allocations Inventory: Lot Management

Enhanced production reporting Re-open closed shop orders Reverse shop order completion including child items Automatically receive scrap or by- and co -products into inventory when receive parent Manufacturing: Execution

Cost Accounting integration Exclude a component from cost rollup process Generate ITH cost variances at shop order close Recipe reformulation/ BOM change Usage variance Alternate material/method Direct labor rate variance Direct labor efficiency variance Manufacturing: Execution (Cont’d)

Costing • Ability to include/exclude set up costs and yield factors in cost rollups • Reserved cost set 5 now used for “going-to” cost set • Inclusion of frozen and going-to costs at work centers and routings • Rates and cost buckets for Frozen and Going to Costs are added • Four additional Rate sets of fields are added so user can have additional cost buckets used for more cost breakdown • Outside operation costs can roll into bucket sets for any of the 8 “rows” • Actual cost calculations will examine all 8 rows

Costing (Cont’d) • Additional fields for employees for overtime, holiday and shift pay differentials • Standard hours in a work day are added for overtime calculations • Shift 2-8 premium and holiday premium are also added • Premiums can be determined by adding a monetary rate or by a multiplication factor • Additional fields for actual cost calculations corresponding to work center cost codes • Labor reporting uses 8 rate fields to accommodate the additional rates • WIP and variance reporting uses all 8 rate fields • Cost rollups and transfers now include the Going To cost set as well as standard and frozen • Shop Order close now includes the 8 rate fields and updates actual costs for up to the 8 cost buckets

Security and Database • Electronic Signature • Enhanced Security • Expanded Field Lengths • Technical Highlights

Electronic Signature • Objectives • Comply with Article 21 CFR Part 11 requirements • Allow for re-engineering of business processes to use electronic signatures as replacement for handwritten signatures for process authorization • Method • Pop-up window to enter user ID, password and quick comment • User configurable • Multiple levels of authorizations • Electronic records

Company / Facility / WH / Transaction Level Security Company 100 USD Consolidation Company 101 USD Company Company 102 EURO Company Facility AA Facility AB Facility AC Facility BA Facility BB Facility BC W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 • User Security at each level • Unlimited lists • Applies to all subsystems at appropriate level in hierarchy • Transaction Security at each level

ERP LX Attributes Prior Attributes Field Description Item A 35 Item number A 15 Vendor P 8 Vendor number P 5 Customer P 8 Customer number P 6 Customer Name A 50 Customer name A 30 Customer Address A 50 Customer address, each of lines 1 - 6 A 30 Vendor Name A 50 Vendor name A 30 Vendor Address A 50 Vendor address, each of lines 1 - 6 A 30 Expanded Field Lengths

Expanded Field Lengths (cont’d) ERP LX Attributes Prior Attributes Field Description Customer PO Number Customer purchase order number A 23 A 15 P 8 Customer order number Customer Order P 6 P 8 Purchase order number Purchase Order P 6 P 8 Shop order number Shop Order P 6 Warehouse A 3 Warehouse number A 2 Lot A 25 Lot number A 10 Location A 10 Location A 6 Facility A 3 Facility A 2 Planner/Buyer A 3 Planner/Buyer A 1

Better performance and easier-to-understand printer and job submission override flows in programs View and print 198-column reports Create job control data areas New library for optional storage of job control data areas Special values allowed Fields expanded to allow for special settings for double-byte printers Separate BMRs no longer required to single- and double-byte BPCS programs Assign remembered keys by user or workstation Licenses tracked at user level Technical

Exit Points added to ERPLX programs ECM use of Business Data Entities (BDE) replacing SMG’s Migration from AS/SET to Native RPG No Client / Server Interface Webtop User interface Webtop runs in tandem with Green screen SSA Webtop consists of SSA Webtop Server SSA Webtop for ERPLX IBM WebSphere SSA Webtop Studio Technical (Cont’d)

Questions?

Boston BPCS User Luncheon ERP Lx