Productive Systems’ SmartEDI™ Parts Fulfillment Solution

1. Productive Systems’ SmartEDI™Parts Fulfillment Solution Who is Productive Systems? What is SmartEDI™ • Productive Systems is a Microsoft Certified Solution Provider and a Navision Solution Center specializing in e-business solutions built on the Windows platform • Since 1986 we’ve worked with Honda and Honda Suppliers on a variety of projects • Various mainframe systems, AS/400 systems, PC/LAN systems, barcoding applications, and SmartEDI™

2. History of SmartEDI™ • 1989 - Version 1 STAR Compliance • First EDI solution to use SmartLabels • First EDI solution to use Reconciliation • 1993 – Version 2 ANSI/X12 Translator / Multi-OEM • 1998 – Version 3 DELTA Compliance • 1999 – Version 4 Windows 2000 compliance • 1999 – Add RF Scanning capabilities with advanced scanning workflow • 2001 – Integration with Navision e-business solution • 2001 – SmartTeam™ initiative to deliver supply chain management through multiple tiers of supply chain segments

3. Recognizing the opportunity • By our first version in 1989 it appeared that most suppliers had already made EDI software selections • However, even today, we continue to observed ineffective use of EDI inside supplier-side operations (rip-n-read syndrome) • It is clear that SmartEDI™ is unique • So, our strategy emerged • Support and extend the functionality for our current clients • Promote solution to new suppliers • Promote solution to suppliers disenchanted with their “1st choice” • Position to support supply chain of other plants in the US and Canada • Position to support e-business level supply chain management

4. So, what makes SmartEDI™ unique? “The difference is in the details.”

5. Honda’s DELTA Project EDI Design Goals • 1 – Receive orders via EDI • 2 – Print high quality AIAG labels • 3 – Scan to collect shipment information • 4 – Reconcile scanned data to order • 5 – Create ASN and MPL from scanned data • 6 – Receive payment via EDI

6. All approved EDI solutions meet these objectives The SmartEDI™ difference is in the way the work to meet these objectives gets done. Parts Fulfillment with EDI - Process Flow Scan to Ship Print Labels Reconcile Settle Up Work Work Work Work Work ASN & MPL Receive EDI

7. Step 1 – Receive orders via EDI Automatically • Convert inbound EDI data into application database • Detect new information and build support records • Organize information into logical shipments • Incoming document can be • 3060 or 4010 ANSI/X12, XML, CSV, proprietary • STAR or DELTA • 830-MR, 850-PO, or 862-SS • ANY source of “order” such as Case Sheets or BOM/SQR Receive Orders via EDI Print high quality AIAG labels

8. SmartEDI™ Navigator

9. Translation

10. SmartEDI™ Navigator

11. SmartPick™ – Release shipments for picking

12. Step 2 – Print high quality AIAG labels Automatically • Determine STAR or DELTA specifications • Calculate number of S/1S container labels • Suppress pre-printed labels from calculation • Calculate number of 4S master labels • Suppress masters when “container is the pallet” Print high quality AIAG labels Scan to collect shipment data

13. SmartEDI™ Navigator

14. SmartLabel™ – Automatically calculate labels

15. Step 3 – Scan to collect shipment data Automatically • Keeps track of multiple shipments on same scanner • Consolidates work of multiple pickers into shipment • Manages the scanning process for maximum operational efficiency Reconcile scanned data to order Scan to collect shipment data

16. Scanner processing

17. SmartEDI™ Navigator

18. SmartLoad™ – Load and reconcile the shipment

19. Step 4 – Reconcile scanned data to order Automatically • Reconciles individual shipments on a load separately • Integrates additional scans for iterative balancing • Calculates Over and Under conditions • Feeds back status of reconciliation to user on-line • Detects Design Change Level • Warns if EC D/C Level discrepancy • Prohibits shipping if BE D/C Level discrepancy Reconcile scanned data to order Create ASN and MPL

20. SmartLoad™ – Load and reconcile the shipment

21. Reconcile Report (Over / Under)

22. Reconcile Report (D/C Level Discrepancies)

23. Reconcile Report (Balanced)

24. Quick Receive Labels

25. Step 5 – Create ASN and MPL from scanned data Automatically • Insures that reconciliation process has been run • Insures that incorrect BE D/C Level cannot ship • Feeds back status of the loads • Creates STAR or DELTA format for ASN and MPL • Creates other types of inventory transfer advice such as the CCTT Receive payment via EDI Create ASN and MPL

26. SmartEDI™ Navigator

27. SmartASN™ – Create ASN and MPL

28. Send EDI Transmission file • Sends via externally controlled process object (e.g., a .bat process, Windows DCOM control, or web part) – can substitute any file transfer protocol or communication technique necessary to deliver the message. • Currently support: • ANSI X12 format • CSV format • CCTT format • Proprietary (flat file) format • XML format (very soon)

29. SmartEDI™ Implementations

30. SmartEDI™ Implementations SmartEDI™ is the EDI solution of choice for Honda’s largest parts handlers and consolidation centers for the following reasons: • Easy to learn – typical training time 2-3 hours • Easy to use – typical time to complete the entire order fulfillment process – 1-3 minutes • Easy to maintain and support – does not require expensive Information Systems or EDI expertise

31. Foundation for the enterprise • SmartEDI™ has been successful at fully automating the parts fulfillment process. But our clients are asking for more. • In direct response to our client’s requests for advanced business solutions (like Inventory, Purchasing, Manufacturing, and Accounting) Productive Systems has become a certified Navision Solution Center.   • With the addition of Navision Manufacturing and Financials to our offering we can complete the process of automating all of the operations of our clients.

32. SmartEDI™ Enterprise Implementation EDI Documents via VAN Non-Integrated Tier 3 Navision®Manufacturing and Financials ASP Integrated Tier 2 SmartEDITM 820 DELTA–Remittance Advice Sales & Receivables - Cash receipts Journal - Sales Orders - Invoices Smart ASN, SendEDI.Callback 856-Advance Shipping Notice Auto print if problems with ASN 824 DELTA–Application Advice ManufacturingPlanning & Control - Production Orders - MRP - Purchase Orders 830 DELTA-Weekly Release Work Orders 850 STAR-Planning Order Purchase Orders 830 STAR-Material Release Ship Schedule 850 DELTA-Purchase Order Honda 862 DELTA-Ship Schedule Inventory - Raw Material - WIP - Finished Goods 832 DELTA-Price Catalog Inventory Ship To 846 DELTA-OB Inventory Advice 846 DELTA-IB Inventory Advice Inventory Advice Auto print if problems with ASN 861-DELTA-Receiving Advice SmartTeamTMSupply Chain Integration 864 DELTA-Text (associated with all documents) Auto attach to associated document Transparently created by translator 997-Functional Acknowledgement

33. The combination of SmartEDI and Navision represents an e-business solution for the Honda supply chain that cannot be matched.

34. SmartTeam™ Supply Chain Integration And for the (not-so-distant) future, keep this in mind: • Navision and Productive Systems can deliver web (or other wide area network) based solutions – today! • A few advantages of an e-enabled supply chain: • Shared scheduling through multi-level / multi-company work orders and shop floor data collection • Certified suppliers to eliminate of redundancies in the QA effort • ISO / QS 9000 certification integrated across tiers • Supply chain segment cross-training and a self-sustaining user-community • True B2B teamwork is a byproduct of the integration

35. Please contact us today to find out more about how SmartEDI™ and Productive Systems can help you meet your EDI implementation goals and return value for your EDI investment! Thank you!