Cost of Visibility SCO enabling trust through visibility 2.0

Visibility Costs & Investments EASY to quantify, track or measure HARD to quantify, track or measure SCO enabling trust through visibility 2.0

Cost of Visibility Costs of Creating and Maintaining Visibility Investments/Non-Recurring Costs (Preventing Visibility Failures) Definition: One-time costs that improve visibility Examples: initial implementation of data standards, purchase of technology tool Recurring Costs (Appraising/Maintaining Visibility) Definition: On-going costs that improve visibility Examples: data standards maintenance, personnel training SCO enabling trust through visibility 2.0

Cost of Visibility Costs of Creating and Maintaining Visibility Investments/Non-Recurring Costs (Preventing Visibility Failures) Definition: One-time costs that improve visibility Examples: initial implementation of data standards, purchase of technology tool Recurring Costs (Appraising/Maintaining Visibility) Definition: On-going costs that improve visibility Examples: data standards maintenance, personnel training Costs Resulting from a Lack of Visibility Visibility Failure Costs (Internal Operating) Definition: Internal costs related to a lack of visibility Examples: wasted product, re-work, resources needed to address pricing & order issues, recall costs Visibility Failure Costs (External Customer Facing) Definition: External costs related to a lack of visibility Examples: lost sales due to stock out, brand damage, lost trust from consumers SCO enabling trust through visibility 2.0

COST OF VISIBILTY MODEL The trade-offs – what is the optimal level of visibility for our company at this time? Level of Visibilty Attained Cost Total Cost of Visibilty Where you really want to be Cost of Visibilty Failures Optimum Level of Visibilty Failures Cost of Enabling Visibility Where most are now SCO enabling trust through visibility 2.0

COST OF VISIBILTY MODEL Level of Visibilty Attained Cost Total Cost of Visibilty Where you really want to be Cost of Visibilty Failures Optimum Level of Visibilty Failures Cost of Enabling Visibility Where most are now Level of Visibility Attained is defined by: Speed Accuracy Completeness of Data Access Scope of Product Affected What is the appropriate level of speed and scope? Cost of Enabling Visibility rises at an increasing rate as speed and scope increases. Cost of Visibility Failure drops at a decreasing rate as speed and scope decreases. SCO enabling trust through visibility 2.0

COV Costs & Investments Consider the Total Financial Impact to your Organization COST OF VISIBILTY MODEL Level of Visibilty Attained Cost Total Cost of Visibilty Where you really want to be Cost of Visibilty Failures Optimum Level of Visibilty Failures Cost of Enabling Visibility Where most are now COV Costs & Investments Costs of Visibility Failure Costs of Enabling Visibility Categories Lost sales Training Inventory Data standardization Transportation Consultant/Solution provider fees Wages/Indirect labor Data/System audits Legal/Professional fees Scanning/Other technology SCO enabling trust through visibility 2.0