1. Implementing SAP EBP 3.5 Replacing an ASP Solution

2. Jeff Rishel IT Director Kim Watkins Global eProcurement Manager

3. Growth focused company producing customized blow-molded plastic containers Approximately 3,900 employees 2002 Sales of $906.7 million 55 plants in 11 countries Graham Packaging Company LP

4. Our situation in 1998 Excessive Spreadsheet UseCustom Core Application Lack of Timely InformationCumbersome Core Applications Data Integrity ConcernsYear 2000 Issues Lack of Technology SharingNetwork Infrastructure Limited End-User Access to DataLinkage of Strategy to Budget Policy and Procedure DisciplineDeployment of Best Practices Reliance on Specific PersonnelCentralization vs. Decentralization Limited Detailed Production Information Performance Management Aging Hardware Platform

5. Why SAP? Customer Faster and more effective response to external customer needs Provide a competitive advantage People / Environment Greater response to internal customer needs Employees become more valuable as they gain a greater understanding of our business through effective access to reliable information Less time reporting results and more time analyzing information to drive performance Management Operate in a best practice environment Greater flexibility in accessing and formatting information Growth Accommodate acquisitions efficiently Accommodate organic growth with new plants and products produced globally

6. SAP R/3 Implementation Very Successful implementation –10 months to build, test, and train –Rolled out to 31 plants in US and Canada all in 1 weekend in April 1999! –Not just one module but 8 (AM, HRPAY, PS, FI, MM, PP, SD, COPA) Implementations continue –8 Countries (US, Canada, Mexico, France, Spain, Belgium, Brazil, Argentina) –51 Plants –10 Modules (AM, HRPAY, PS, FI, MM, PP, SD, COPA, QM, AR) ONE Global Instance

7. SAP R/3 4.6B Dell Servers running Windows NT 4.0 EMC SAN, approximately 500gig DEV, QAS, PRD, EBP systems SAP R/3 Landscape

8. Decentralized Procurement function Hand written requisitions PO Approval, Receipt, Invoice on same day 30 plants / 30 suppliers Same supplier providing different discounts No record of spend by material Procurement before the e

9. Questions Why do we have all these vendors? Can’t we use an automated system? How many checks under $1,000 do we cut? Can’t the IT department help? Why do we manually do requisitions? Why aren’t we getting better discounts? What is SAP doing for us? A New VP of Global Sourcing

10. Procurement without the e Decentralized to centralized purchasing Limited spend data – surveys and countless hours of research Outsourcing to procurement firms Consolidation and reduction of vendors Consistent pricing/discounts at all plants Hard dollar savings - $6 million in 2 years

11. Adding the e to Procurement Implemented with an ASP provider in February 2001. No capital cost Low monthly fee vs high software costs Quick implementation Limited use of internal resources Gain process and compliance experience

12. Implementing an ASP Implementation Process - 6 Weeks Reviewed “as is” and created “to be” processes Handling of direct vs indirect materials Data files from SAP Integration – POs, POAs and ASNs using IDOCs, conversion tables, eAdapter Scenario testing User training

13. Implementing an ASP Problems Multiple purchasing organization structures Handling of account assignment data Insufficient test environment Limited control - sharing system with other clients

14. Automate the payment process Payment via Evaluated Receipt Settlement (ERS) Firm and accurate catalog prices Data provided by supplier on the ASN POA and ASN is required before posting receipt in SAP Payment references invoice number

15. Why switch from ASP to SAP ASP financial problems ASP system problems Language capabilities Currency capabilities Closer integration with SAP Lower cost Internal control

16. Implementing 3.5 Implementation Process - 6 Months Hardware/Software Setup Integration BugsEye with EBP EBP with R/3 Loading of Catalogs Supplier Order & Response Center (ORC) Site Scenario Testing – EBP & ORC Documentation – User & Supplier User Training Supplier Training

17. Implementing 3.5 Challenges Organization Structure 4-Level Approval Override Product Category and GL Account E-Mail Alerts

18. Interfacing with Vendors Catalog Setup Monitoring and approving catalog changes eMerge Access Special request orders PO, POA, COA and ASN process Order & Response Center site Documentation and training

19. Order & Response Center Supplier is a user of our SAP system.

20. Order & Response Center Can view PO history in addition to sending POAs and ASNs. Also has access to SAP reports.

21. Order & Response Center Can select multiple POs to POA or ASN without jumping back and forth between screens.

22. Order & Response Center POA and ASN screens look similar for easy use.

23. Graham Procurement after e 93 suppliers on-line $310 million of spend on-line 87% of on-line spend paid via ERS Substantial reduction in maverick spending One shopping cart, one approval, multiple POs No more paper requisitions Complete and accurate spend data

24. Questions

25. Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 4401