1. Supply Chain Management for Food and Agriculture – Software Platforms and Functionality Cristian Herghelegiu, PMP, Partner Account Manager, Micosoft Romania 01 November 2006 - Bucharest Regional Competitiveness Initiative Improve Cost, Efficiency, and Quality through Supply Chain Management IT Integration

2. Agenda Agribusiness - Key challenges Typical Supply Chain Management (SCM) SCM selected benefits Microsoft Dynamics solutions Summary & Actions…

3. Agribusiness players Producers & Vendors (small, medium and large) Fruits and vegetables Meat Industry Milk industry Beverage Integrated companies (meat, alcohol) Technology level (or absence) Standards lacks, raw materials quality Sales/Purchase Prices Purchase price (pressure on vendors)

4. Agribusiness key challenges Competition at all levels; Operational margins – operational; Prices (sales); Standards and regulations– ability to sell in further context; Level of investment; Human resources! Business Control!

5. What customers want * ? Precision Accesibility Partnership Consultancy *Gallup research

6. Challenges Globalisation Competition Customerrequests Standards TechnologicalEvolution Business results

7. Priorities Customer relationship excellence Suppliers relationship excellence Innovative products and services Operational excellence Cost reduction

8. How to hit priorities? 1.Business Acumen and vision! 2.Business tools to allow and support: Focus on main business and not on operations; The best operational pattern; Business Agility; Affordable costs (ROI, TCO); Easy adoption by the team (training time, operational cost); Easy to support (integrated with the rest of platform);

9. Short definition of SCM Supply-chain management simply refers to the management of the entire set of production, distribution, and marketing processes by which a consumer is supplied with a desired product. “…a set of interdependent companies that work closely together to manage the flow of goods and services along the value-added chain of agricultural and food products, in order to realize superior customer value at the lowest possible costs” *. Folkerts and Koehorst, Challenges in international food supply chains: vertical co-ordination in the European agribusiness and food industries. British Food Journal, 100, 385– 388.

10. Typical Supply Chain

11. Operational effectiveness Many aspects of SCM, are efforts to improve the operational effectiveness of a chain: –improved logistics, shared information systems, better information flows, reduced transaction costs, preservation of product quality, standards and integrity throughout the chain; Important in matching competitors; Increasingly SCM becomes necessary condition for access to certain markets (export markets, supplying to supermarkets); Will not guarantee a sustainable competitive advantage.

12. Basis Of Competition The Past... The Future... ProductversusProduct Supply Chain versus

13. Supply Chain Benefits ManufacturingDistributionRetailConsumer

14. Why SCM? – a vision at least… Sales forecasting Purchase planning | stock replenishment Capacity planning Capacity Load (resource allocation) Minimize inventory (to Just in time) Time to market Delivery cycle and Logistics Overall: cost reduction, higher return on invested capital, higher turn over… higher profitability

15. 6 keys for successful SCM Recent studies of supply chains in Australia identified six key principles of successful SCM (AFFA et al. 2002): 1.focus on customers and consumers; 2.the chain creates and shares value with all its members; 3.making sure the product fits the customers’ specifications; 4.effective logistics and distribution; 5.an information and communication strategy that includes all chain members 6.effective relationships that give leverage and shared ownership.

16. Benefits of Supply Chain Planning Competitive advantages due to a greater quality of service, shorter throughput times and cost savings. Lasting increase in customer satisfaction due to increased delivery reliability and increased ability to respond. Reduced costs due to minimization of warehouse stocks and more efficient resource planning. Increased efficiency due to assisted decision- making (planning algorithms, simulations) and alert functions.

17. Benefits of Supply Chain Controlling Reduced costs as problems in the supply chain are recognized and the appropriate measures set in motion early on. Lasting increase in customer satisfaction due to increased transparency and ability to react. Increased efficiency due to the optimal coordination of all supply chain processes. Competitive advantage due to the systematic recording and controlling of the complex relationships in the supply chain network.

18. Revolutionizing Midmarket Productivity Productivity, from each entity to whole organization Empowerment: simple access to business vital information Expertise Microsoft Dynamics CRM NAV Microsoft Dynamics AX „Microsoft Green“

19. Integrated solutions Categorii de solutii: Financiar, Resurse Umane, Salarii, Mijloace Fixe Categorii de solutii: Automatizarea vanzarilor, Marketing, Service Categorii de solutii: Automatizarea lanţului de aprovizionare Gestiune, Stocuri, Automatizarea serviciilor Categorii de solutii: Enterprise Reporting, BI, KPI Enterprise Resource Management Supply Chain Management Customer Relationship Management Enterprise Resource Management (ERP) Business Operations (SCM) Analytics Customer Relationship Management (CRM)

20. The Breakthrough

21. The Strategy Microsoft Dynamics

22. Significant Investment In Business Applications 23 years in business applications 9,300 partners Over 298,000 customers worldwide* * Includes Microsoft Dynamics, Microsoft FRx, Microsoft Forecaster, Microsoft Retail Management, Microsoft Small Business Financials and C5 customers

23. The Challenge Sara,CFO Julia,Systems Benjamin, Marketing Karl,Logistics Kevin, Account Mgr. Inga, Purchasing Penny,Payroll Finance Operations Sales & Marketing IT

24. Why Microsoft Dynamics?

25. Beyond The 2005 Releases Familiar Look & Feel All level integration with Microsoft Outlook Role based April “Very few know how many verifications and what work is required within the payment process. "

27. Platform integration Secure the investment in technology

28. Trusted decisions The right information, at the right time and in the right format

29. Specializare/Verticalizare Microsoft Dynamics – platforma ideală pentru verticalizare Sute de soluţii disponibile în prezent Flexibilitate pentru partener – valoare adaugata pentru client Productivitate pentru partener Retail Transport şi Logistică Producţie Discretă De proces High Tech Modă Utilaje Alimente, Băuturi, Tutun Componente electrice şi electronice Sisteme de calcul Mobilă Distribuţie Alimente & Băuturi Produse de consum Produse industriale Servicii Financiare – Leasing, Asigurări IT - Computer & Software Management & Consultanţă Închirieri Dealership Auto Focus pe industrii Core Manu- facturing Core RetailCore Distribution Core Professio- nal Services Core Public Sector Financial Management Core CRMSCMAnalytics Vertical Law Firms Govern- ment Health- care Not-for- Profit Educa-tion Motor Vehicles Specialty Retail Hospita-lity Physi- cians Relief Orgs Private Schools Municipa-lities Restau-rants Patent Lawyers Pharma-cies Military vehicles

30. O suita CRM completa incluzand automatizarea fortei de vanzari, marketing si managementul contractelor de service Suita de aplicatii pentru managementul firmelor si institutiilor incluzand functionalitati de management financiar, SCM, CRM si planificare si control bugetar Management financiar pentru intreprinderi mici Managementul firmelor de retail si POS Managementul contactelor, contabilitate si servicii online, integrate in pachet cu Microsoft Office Portofoliul Microsoft Dynamics in Romania

31. Model de Business Indirect Produse, Branding, Marketing Suport & Metodologie Localizare, Produs & Marketing local Suport, Certificare şi training pentru parteneri Analiză, Design, Configurare, Dezvoltare, Implementare, Training Suport Microsoft Business Solutions Microsoft Business Solutions Birou MBS local Birou MBS local Reţea de parteneri Clienţi Vânzări, Informaţii de piaţă Vânzări, Informaţii de piaţă Vânzări, Informaţii de piaţă

32. Referinţe - România Peste 100 de implementari - 80 in ultimii 2 ani Flanco, SPAR, URBIS, Eurocom, Edy Spedition, Nexans, KD, TVR, Agip, Konica Minolta, Flaro, ROEL, Hachette Lagardere - MMP, Mercury Promotions, GEDP, BASF, 3D, Eurofarmacia, Farmec, HILTI, Verder, Eurocom, Toyota, Autonet, Knauf Ghips, Sanofi, Phoenix Mecanoplastic …

33. Conclusions In new agro-industry development, building a supply chain has been demonstrated to be just as critical to the success of the industry as establishing adequate agronomic and pest- management practices; Microsoft Dynamics offers the integrated solution in order to optimize the operational, financial and customer and supplier related operations.

34. Actions Contact us at: –www.microsoft.com/dynamicswww.microsoft.com/dynamics Contact us and our partners at: –www.microsoft.ro/dynamicswww.microsoft.ro/dynamics

35. cristian.herghelegiu@microsoft.com