1. Focus on core business Outsourcing of application monitoring to Merit Operations Infoteam 25. March 2014 Anne Berit R Sandvik System Manager Stokke AS

2. About Stokke Established as a Norwegian furniture manufacturer in 1932 Supplying children´s equipment in 50 countries Main office in Norway Sales offices in US, Germany, HK, Korea and Japan Most sales through retailer network All production is out-sourced All warehousing is out-sourced Approximately 300 employees in total Running M3 version 7.1 - Smart Office

3. About Stokke

4. Background Stokke ERP department’s core functions: Overall responsibility of the M3 solution Support business processes Basic data and parameters Training of super users Run or participate in all projects that involves M3 Support 100 M3 users worldwide EDI integrations Integrations between M3 and other systems

5. Background Stokke have developed many check lists to monitor transactions and integrations We have a running development of new check lists and routines Stokke ERP department used approximately half a man day to do daily check routines Merit Operations (Platform Partner) took over most of our daily check routines almost 4 years ago

6. Quality of basic data in M3 Customs codes and country of origin on item master Copy code on documents Items with assortment check and no assortment Quality of transactions in M3 Shipped orders not invoiced “yesterday” Over-allocated orders Orders on discontinued items Synchronicity of orders between M3 and our 7 3PL warehouses Check that all orders (inbound/outbound) transmitted from Stokke are uploaded in the WMS Check that all orders reported in WMS are updated in M3 Orders coming in from external sources Monitor MEC server for errors OIS275 error messages Other systems integrated with M3 Clarity, MI, Salesforce, Demandware etc Sending of documents Check for error messages in MNS206 Invoices on e-mail, check for sending errors, invalid address etc. What do we need to monitor? Some examples

7. To keep good quality on basic data To prevent errors in general To sort out errors as early as possible Overall purpose: Ensure that all our orders are processed correctly Ensure that all orders are invoiced Ensure that all our invoices are sent to the recipient Why do we need to monitor?

8. What causes the errors? System bugs Network issues Server issues on our end Server issues on partner’s end Operational mistakes

9. Some example check lists

10. Orders not invoiced yesterday

11. Invoiced orders with no invoice document attached

12. Orders that should be allocated

13. Wrong allocated qty in MITPLO

14. Orders wrongly held on credit stop

15. Items in status 80 with inventory

16. Items in status 50 and no inventory

17. Who does what when records are found Merit Operations: Solving issues that requires no contact with Stokke M3 users or external partners On agreed check lists, report back to Stokke for solving Stokke ERP: Handle all issues that involves M3 users Handle all issues that involves external partners

18. Result from checking reported to Stokke - example

20. Other application and service monitoring

23. Statistics

26. Important to evaluate the outsourced job regularily Don’t outsource and forget… Check lists run automatically in ETL designer have replaced some manual checks done by Merit operations Evaluation and development

27. Benefits for Stokke Highly qualified people are doing a relatively “boring” job for us Stokke can focus on core business and value added work