Resources Credentials Bayer CropScience: Supply Chain Transformation for High Performance NOTE: Remove this cover page if credential will be inserted into another deck.

Copyright © 2012 Accenture All rights reserved. 2 Bayer CropScience partners with Accenture to transform its supply chain and achieve high performance. Facing a number of challenges including increased market volatility and high inventories, Bayer CropScience (BCS) partnered with Accenture to optimize its long-term structure and processes in order to improve its supply chain performance. Working with Accenture, BCS has achieved numerous high-level benefits, including the establishment of new supply chain organizations and a new global warehouse network, placing the organization on the path to high performance. Bayer CropScience: Supply Chain Transformation for High Performance

Copyright © 2012 Accenture All rights reserved. 3 Bayer CropScience: Supply Chain Transformation for High Performance Company profileHow Accenture helped Bayer CropScience (BCS) is a division of Bayer, operating in the areas of health care, nutrition and high-tech materials. BCS has annual sales of approximately US$9 billion, and is a world leader in the areas of crop protection, nonagricultural pest control, seeds and plant biotechnology. Accenture helped BCS define and set up initiatives to address immediate and short-term targets (e.g. working capital reduction focused on inventories, production reduction). In addition, Accenture and BCS formed the TRUST project, in which they worked jointly to optimize BCS’ long-term structure and processes in order to improve and sustainably drive supply chain performance. Accenture used established methodologies, together with its supply chain and agrochemical expertise, to benchmark BCS’ performance against its competition. In addition to the direct scope of the work, Accenture supported other initiatives related to the project, including master data management and systems assessment, and provided in-depth knowledge which was of high benefit to BCS. Throughout the engagement, Accenture successfully teamed with both the BCS project members and the Bayer Business Services consultants, such as in the area of change management. This collaboration contributed greatly to the project’s success and was highly valued by the client. Business challengeHigh performance delivered BCS was facing a number of challenges, including: Increased market volatility in the changing agro- chemical industry, a strong dependence of sales on worldwide weather conditions and obligations to meet customer demands. A very complex planning environment due to long production lead times. High inventories maintained at local markets and large finished-goods inventories vs. active ingredients (AI), due to limited confidence in supply, limiting ability to respond to customer demand changes. Increased working capital requirements, prohibiting the potential for additional business investments. Accenture was chosen for this engagement due to its strong cross-industry and supply chain expertise, as well as its ability to deliver on its promises. Working with Accenture, Bayer CropScience has realized the following benefits: The establishment of new supply chain organizations within BCS: Global PUSH organization responsible for AI planning and production, regional supply chain organization responsible for formulation, filling and packing within a region, governance organization for business process management. Differentiated product segmentation and forecasting, which not only provides more transparency and allows for clearer prioritization of demands and orders, but also ensures higher service levels for key products within the flexible PULL supply chain.. The introduction of service level agreements and inventory KPIs, resulting in the reduction of inventories across the supply chain globally, regionally and within countries (days on hand reduction by approximately 20%). The establishment of a new global warehouse network, resulting in less stock keeping points and stock volumes for raw materials, AIs, intermediates and finished goods (AI stock reduction of approximately 25%). Bayer CropScience and Accenture successfully teamed on this engagement, positioning BCS to move to next level of “best-In-class” supply chain, and placing the organization on the path to high performance.