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 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 Payment Advanced Shipping Notice Invoice

5 Supply Chain Spending Priorities

6 Dashboard Visibility and Integration

7 Assembling The Right Solution Set

8 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

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 ASNs 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 partners 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 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

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

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