What is eMarketplace? Web Storefront Buyers Suppliers eMarketplace Manufacturers Corporate Buyers eMarketPlace eMarketPlace Content

Extending the Enterprise Collaboration adds visibility and decision making amongst a community of users “Marketplaces” are born Enterprise Wide Decision Support ERP 1 Legacy ERP 2 Database Hardware Hardware Hardware

Extending the Enterprise Initial solutions: EDI Manufacturer Supplier Purchase Orders, Invoices Benefits Automated manual processes Reduced paperwork and administrative costs Limitations Batch mode, not real-time Not collaborative Special software for translation Dedicated network, expensive & inflexible Small players excluded

Improved solutions: Collaboration and EAI Tools Supplier Manufacturer Supplier Contracts, Forecasts Supplier Benefits Real-time, two-way communication Public or private network Small players included Limitations One-to-one or one-to-many collaboration Special software for message translation “Hub” must address technology and business issues

Today’s World: Electronic Marketplaces Manufacturer Supplier eMarketplace Manufacturer Supplier Benefits Real-time, many-to-many communication Public or private network All size players included New market opportunities - Aggregators, Auctions, Exchanges Limitations “Spot” transactions only Focused on trading, not planning & optimization No multi-vendor and multi-carrier order placement and fulfillment

What is needed? An end-to-end trading community Supplier Manufacturer Purchase Orders, Invoices EDI transactions Manufacturer Contracts, Forecasts Supplier + strategic collaboration Manufacturer Supplier eMarketplace + many-to-many planning and trading

Types of eMarketplace B2C (Amazon, Dell) & B2B Public eMarketplace Private eMarketplace B2C (Amazon, Dell) & B2B Many-to-many vs. one-to-many Indirect vs. direct procurement Vertical focus (Chemical, computer,..) Process focus (logistics, procurement, indirect vs. direct material procurement) Other added-value services (financial settlement, freight tracking, tax calculation)

Significant Challenges of Marketplace Buyer Solution Supplier Challenges Buyer Challenges EDI EDI is expensive to install and maintain Limited integration of EDI to enterprise systems Limited EDI penetration Lack of supply chain visibility eProcurement Inability to create and maintain electronic catalogs Fear of commoditization Cannot provide order visibility Catalog Management Burden No transaction integration with suppliers Limited supplier support Collaborative Planning Multiple data formats Lack of planning tools to improve decision making Limited integration with enterprise systems Content challenges Lengthy implementations Lengthy supplier adoption process

Introducing i2 TradeMatrix Mareketplace

How i2 Empowers eMarketplace Sellers Buyers Supplier Enablement (Self-service portal) Catalog Mgmt. Up/Cross Selling Integration with Supply Chain (ATP) Requisitioning Approval workflow Purchasing Global Spend Mgmt. Supplier Scorecard Approved Vendor List Approved Component List Contract Mgmt. Negotiate (RFx) Auctioning Document Exchange (PO, POA, Invoice, ASN) Alert Demand/Supply Collaboration Order Mgmt.

Network Services: Supplier Services Distributor Storefront: Storefront and Order Management Auction Services: Hosted auction service, RFO Freight Matrix: Transportation execution Commerce Services Distributor Catalog: Hosted or self-maintained catalog management Content Services Direct Connect-Spoke: Transaction and Supply Chain Visibility Partner Connect: Collaboration with multiple buyer hubs Collaboration Services Production Planner: Rapid value production planning and replenishment planning Planning Services

Network Services: Buyer Services Commerce Services Reverse Auction: Hosted reverse auction service Financial Settlement Service: End-to-end financial services Logistics Execution: Logistics procurement and execution service Content Services Buyer Catalog Connect: Hosted, self-maintained catalog management and transaction management Direct Connect: Transaction and Supply Chain Visibility for Suppliers Transportation Bid Collaboration: Collaboration on transportation bidding Collaboration Services Planning Services Transportation Planning: Network planning, landed cost analysis, demand planning, and production planning

Integrated to Supply Chain Supplier Manufacturer Buffer Assembly/ Packing Distribution Centers Retailers Transportation Modes Retailer: How do increase my supply for X’mas promotion? Buyer: How can I track the location of my purchased item? OEM: When should I procure lower level components? Manufacturer: Am I capable to promise this PO of 10,000 Solaris? Supplier: I have been using all these expensive EDI to take PO. How can I integrate them to one view and reduce the cost?

Example of Integrated Supply Chain Eng. BOM Sourcing database Adv. Planning Sys. BOM Flatterner SCM AVL SRM Req. & Approval Select supplier & contract PO TradeMatrix Marketplace

Agenda What is eMarketplace? i2 TradeMartix Marketplace Marketplace with Supply Chain Marketplace Network Effect

i2 TradeMatrix Marketplace Benefits Suppliers Reduced cost/transaction Decreased order-to-cash cycles Increased customer satisfaction Reduce IT costs by using i2 proven technologies and network Marketplaces Leverage i2 Content Reduce time and cost of deploying solutions Increased acceptance by members due to broader footprint Buyers Reduce premium freight and inventory due to enhanced visibility Reduced cost/ transaction Reduce IT costs by utilizing i2 proven technologies and network How can an e-Business strategy create that kind of revolutionary value? By doing the business basics: reducing costs and increasing revenue By putting systems in place that reduce Cost of Goods Sold--pay less for what goes into your products Systems that reduce what you spend on mission critical plant equipment and spares Systems that reduce the amount of inventory in your supply chain Increase revenue by allowing you to reach markets more efficiently than ever before Increase customer satisfaction by improving delivery on after market service