1. ATUL PATANKAR [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2000 LINDA WILSON [ ASUG INSTALLATION MEMBER MEMBER SINCE: 1999 JUERGEN LINDNER [ SAP POINT OF CONTACT MEMBER SINCE: 1998 [ ] Maximizing Profits: Best Practices in Inventory Planning Using SAP Business One [ ASUG SAP Business One Summit 2012 Tom Glacken Senior VP Sales & Marketing Valogix LLC

2. [ Real Experience. Real Advantage.  Since 1988, the Valogix founders are one of the early innovators in inventory planning & optimization and have themselves been inventory planners and managers and business managers.  Founded in 2001 Valogix focused its attention on the growing needs both the small and midsize enterprise markets (SME) for similar inventory planning solutions.  SAP Solution Partner since 2004  SAP Global Gold Level Partner and Multi-year Award Winner  SAP Certified Integration status since 2005  Over 400 SAP Business One customers and Value Added Resellers in 42 countries & growing Valogix Overview The Bottom Line: we help improve positive cash flow

3. [ Real Experience. Real Advantage. Managing a Tough Balancing Act Business Demands Decrease:  Inventory Costs   Inventory Costs  Shipments  L  Lost Sales Customer Demands Improve:   First-time Order Fulfillment   Competitive Price Position   Rapid Response

4. [ Real Experience. Real Advantage. Inventory Management Challenges  Recognizing “Demand variability”  Continual growth of new SKU’s  Long lead times  Difficulty in setting and maintaining accurate stocking levels  Dealing with critical “Stock-outs”  Low inventory turns  Excess and obsolete inventory  No ability to easily forecast more accurately  Wrong mix of in-stock items  Complexity in determining how much to order, when to order, and where to stock it

5. [ Real Experience. Real Advantage. Valogix Manages the Challenges Automates the inventory planning process:  Forecasting & Planning  Replenishment  Optimization Easy of Use and Affordable  Simple but effective – high degree of user acceptance  Exception based – alerts warn of potential future issues Provides visibility to all items and locations  Network balances details are on-screen for easy viewing Customer Master Warehouse Suppliers Remote Loc. 1 Week 2 Days 2 Weeks 5 Rolling Stock

6. [ Real Experience. Real Advantage. 110 115 120 Forecasting Alone Isn’t Enough Valogix Optimal Stocking Quantity  How much inventory is needed to protect for spikes over a particular period of time at a desired service level? Example 1 Lead Time = 15 Days Order Frequency = 15 Days Planning Horizon PH = 30 Days Forecast PH = 110 Target Service Level = 99% Ideal Stocking Quantity (SQ) = 158 Example 2 Lead Time= 15 Days Order Frequency = 15 Days Planning Horizon PH = 30 Days Forecast PH = 110 Target Service Level = 99% Ideal Stocking Quantity (SQ) = 119 110 115 120 The Difference is the Randomness Random Demand Steady Demand DemandForecastDemandForecast

7. [ Real Experience. Real Advantage. Exchange curve of service level vs. stocking quantity In the example, a stocking quantity of 585 units are needed to meet the desired service level of 95%. Optimization Exchange Curve Analysis © Copyright 2010 Valogix LLC

8. [ Real Experience. Real Advantage. Valogix Database SAP Business One Database New Buy Transfers Production Repairs High Moving Slow Moving Random Demand Seasonality Automated System Process Inventory Optimization Overstock analysis Spike Demand analysis Replenishment planning Order approval/placement Exchange curve analysis Exception Management Active Excess Obsolete Shortage Analytical  Dynamic  Adaptive  Predictive VALOGIX ® A DAPT Technology Lead Time Order Frequency Service Levels Qualifier Algorithm & Forecasting Analyzes History Selects Algorithm Displays which algorithm was selected High Moving Slow Moving Random Demand Seasonality Optimization & Rationalization System rationalize inventory mix Sets optimal Stocking Quantity (SQ) Lead Time Order Frequency Service Levels Inventory Analysis System checks inventory position versus SQ Determines items needing replenishment Analyzes Excess and Inactive stock Active Excess Obsolete Shortage Replenishment Creates Shortage & Excess Plans/Reports Sends POs, Transfers, Word Orders back New Buy Transfers Production Data Synchronization Valogix Advanced Technology

9. [ Real Experience. Real Advantage. 9 Product Demonstration See rapid value delivery in action.

10. [ Real Experience. Real Advantage. Value Delivered to Our Customers Valogix solutions provide superior results that help improve positive cash flow and your competitive advantage.

11. [ Real Experience. Real Advantage. ROI & Productivity Results in Less than 3 months Inventory Reduction: 12% Planning Time Reduction: 85% Revenue Increase: 10% over previous year Back Orders: Decreased by 12% Inventory Turns: 3 Fold Increase Improved Customer Service: High fill rates of customer orders Time to Value: 10 - 11 weeks On-Going Results at 14 Months Inventory Reduction: 20% Revenue Increase: 10% Back Orders Reduction: 70% Inactive/Dead Stock Reduction: 60% Average Discount with Suppliers: 3% Studies Completed: February 2006 and June 2007 Real Customer Results - Translectric “The time alone that Valogix saves me has more than paid for the solution and makes my job so much easier - the cost savings in the reduction of inventory and back orders is really just the gravy. Valogix has far exceeded our expectations. I can’t imagine planning without it.” ~Scott Toll, Translectric

12. [ Real Experience. Real Advantage. Manufacturer and Distributor of Security Products “We’ve reduced our inventory value by more than 14,000,000 ZAR or 2,000,000 USD in less than 6months by improving our stock turns. Valogix planning is the backbone or our strategic decision making – from budgets to supplier management. Valogix forecasting has also helped us negotiate better prices with our suppliers, helping us drop our stock costs by more than 5% on our A items and 2% overall, directly earning us millions in gross profit.” ~ John McCluskey, Inhep Digital Security ROI & Results in Less than 6 months  Improved stock turns to reduce stock level 14,000,000 ZAR or 2,000,000 USD  Reduction of inventory by > 35%  Providing vendors with forecast improved volume discounts and delivery performance  Reduced stock costs(COGS) by > 5% on top items  Reduced stock costs (COGS) by > 2% overall  Automated reporting and processing improves staff productivity  Increased fill rates and reduce inventory overhead  Developing a program to reduce excess and inactive inventory Real Customer Results – Inhep Digital Security

13. [ Real Experience. Real Advantage.  Safely reduces inventory by 15% to 20%, or more...  Automated planning - saves time/reduces overhead  Improves item availability - satisfies customers and increases sales  Auto-Replenishment efficiency - saves time and money  Provides rapid return on investment Benefits Summary

14. [ Real Experience. Real Advantage. 14 ]  Thank you.