1. Supply Chain Execution- Solving business issues or just yet more headaches ? Presented by: David L Marshall PreCognition Ltd Business consulting in technology

2. In the land of the blind the one eyed man is king - why visibility dramatically reduces returns Return on Investment, strategists dream or an FD’s real business case scenario ? Soft World or hard reality - How do you select and implement the right software project to provide hard benefits Collaboration or Integration, how SCEM is the logical progression from electronic trading Agenda

3. Supply Chains are under Pressure Globalization Less vertical integration Brittle supply chain Supply uncertainty Demand uncertainty Consumer behavior Demand Forecast Error Shorter Product Life Cycles Longer Supply Chains

4. Critical business issues by type MARTEC International © Business process Supply chain visibility Technical constraints Other Communications 22% 15% 9% 6% 5% % of total responses 30 27 24 21 18 15 12 9 6 3 0 Supply chain visibility

5. Financial No benefits Suppliers 38% 22% 14% 12% 7% 6% % of total responses StockCustomers MARTEC International © Benefits - Improving Information Exchange Supply chain visibility

6. Return on Investment, strategists dream or an FD’s real business case scenario ? Optimisation ?

7. Firms overspend on optimisation.. Average budgeted amount: €9.7m Average amount spent to date €16.9 m “How much did your supply chain optimisation implementation cost? How long did the project last?” Base: 25 European companies implementing supply chain optimization

8. Direct Communication Fax/E-mail Paper 1% 11% 2% 76% 9% Traditional EDI % of total responses Web EDI 100 95 90 85 80 75 70 65 60 55 45 40 35 30 25 20 15 10 5 0 UK Suppliers Direct Communication Fax/E-mail Paper 0% 3% 87% 7% Traditional EDI Web EDI 100 95 90 85 80 75 70 65 60 55 45 40 35 30 25 20 15 10 5 0 100% EU Suppliers MARTEC International © Communication methods 2003 Low exploitation of available technologies 11% 3% Traditional EDI and Web based electronic trading – poor take up Is EDI dead ?? Or just pining ??

9. To develop adaptive supply networks firms must embrace three principles Adaptive Supply Network 3. Implement adaptively Deploy supporting technologies incrementally 2. Operate adaptively Manage business processes by exception 1. Organize adaptively New structure and performance metrics implemented to enable organizational flexibility Adaptive supply networks

10. Kewill integrated solutions

11. ASNs let firms proactively respond Optimisation focus Input for decision-making Problem-solving Origin of demand information Executive imperative Cost-cutting Efficiency Historical data Centralised Manual Crystal ball Efficiencyandagility Leading indicators Decentralised Software assisted Point-of-sale data Risk management In today’s supply chains In adaptive supply networks

12. “ 40% growth in sales and profits over 3 years” BUT No increase in stock No increase in warehouse space Improved customer service Maintain product profit margins The FDs objectives...hard realities

13. Real-time order processing Supply chain event management SLA / KPI management Reduce on hand stock Cross dock integration Automated billing Moving to Direct Dispatch

14. Direct Dispatch – removing DCs

15. Improved efficiency Direct dispatch from supplier to customer Supply chain collaboration –suppliers –call centre –carriers Visibility of the complete supply chain The Solution from Kewill Systems

16. Kewill provision of exceptions visibility

17. CustomerJDWKewillSupplierCarrier CustomerJDWSupplierCarrier Kewill Current System New System Adaptive workflow from Kewill

18. Reduced order cycle time Increased range and volume of products with no increase in stock or commitment Improved customer service Reduction in cancelled orders Reduction in supply chain costs Benefits derived from Kewill

19. To adaptive supply networks

20. Actions can be taken to reduce the likelihood of returns Pre-emptive shipment reporting Choosing the right software Soft worlds – Hard realities

21. Choosing the right software Collaboration in action…. Whiteboards for Supply Chain partners Shipment status alerts

22. PreCognition Working together making it stronger www.precognition.biz info@precognition.biz