1. Supply Chain Management Gina Hishin Regional Product Manager Microsoft Corporation

2. What Is “Distribution?” Satellite, Regional & Overflow DCs 3PL W/H Central DC Mfg/Kitting Warehouse Small retailers, companies, and customers Large retailers Corporate Accounts Distribution Company Suppliers/VendorsCustomers Sell Side Buy Side Operations Private Fleet Common Carrier Buy goods ahead of demand: Multiple suppliers 100’s of SKU’s Long lead times Manage inventory buffers without excess or shorts: 100’s of SKU’s & multiple sites100’s of SKU’s & multiple sites Timely, efficient replenishmentTimely, efficient replenishment Demand spikes (promos, events)Demand spikes (promos, events) Provide High customer service Quote/accept/reject orders; track order status Schedule shipments Pick-pack-ship all order line items (ordre fill rate)

3. Customer Service (ATP e.g.) Suppliers In-TransitOrders Customer Orders & inquiries? On-Handinventory Inventory “Available to Promise” PlannedOrders PO’s “Available to Promise” Sales CustomerService Self-service(Web)?DistributionCenterInventory allocated to orders ? Can the enterprise address the needs of customers: To promise orders based on all available inventory? And keep that promise? Customers

4. Supply Chain Management Sales Order Processing Multi-departmental order processing workflow Complete Integration with Purchasing Series Automated Returns from Invoice Documents * Process Holds for customers over their credit limit * Customer Priority Ranking

5. Supply Chain Management Sales Order Processing cont’d Effective Distribution Management Advanced Distribution Advanced Distribution Control distribution while improving efficiency and profitability Advanced Picking Advanced Picking Maximize flexibility by tailoring inventory selection methods ATP – Available to Promise ATP – Available to Promise Meet customer needs with accurate order management Extended Pricing Compatibility

6. Supply Chain Management Inventory Extended Pricing Multi-bin capabilities Cycle Counting ABC Analysis Serial and Lot Tracking capabilities Historical Stock Status Report * Minimum Shelf Life * Lot Number Consolidation * Cradle-to-Grave Serial/Lot Tracking * Allocated/On-order quantity drill-downs

7. Supply Chain Management Purchase Order Processing Invoice and Receipt Matching Facilities Automated Purchase Order Generator Workflow Management Purchase Order Rollup Facility Revalue Inventory for Cost Variances Landed Costs POP Returns * Blanket Purchase Orders * Contract Number and Expiration Dates * Ship to Address per Purchase Order line * Multiple Manufacturing Part Numbers

8. Encumbrance Management * Allows you to track encumbrances at any point in time. Helps ensure funds will be available when payment is due Reduces the time it takes to track expenses Uses encumbrance accounting as an aid to fund managers in budgetary control Provides immediate tracing upon entering transactions Can help avoid overspending of specific accounts with automated messages Facilitates effective cash planning and control

9. Supply Chain Management Requisition Management Employees can enter online requisitions Automated routing for approval Online approval hierarchy Single PO can be created from multiple requisitions Multiple views provided for employees, supervisors and accounting department Ensures requisitions are entered against the appropriate budget

10. What are the customers needs? “DP is strategic to us as we need to deplete previous-year models just as the new models begin shipping.” “We need to provide better forecasts to reduce production lead time.” “Sales people are being measured on their ability to reach specific goals.” “We have to be better at predicting the future demand to avoid stock- outs.” “Ensure capability!” “New products”

11. The process of future demand with a confidence The process of estimating future demand with a known confidence  Helps businesses: Position goods for which there is demand Position goods for which there is demand Reduce inventory Reduce inventory Improve customer satisfaction Improve customer satisfaction Reduce operating costs Reduce operating costs  Precursor to other business planning activities: Production planning Production planning Purchasing and replenishment Purchasing and replenishment Resource planning Resource planning Logistics planning Logistics planning What is Demand Planning?

12. Demand Planner helps … Minimize stock outs & delays Increase Customer Service Levels Reduce inventory Reduce operating costs

13. Supply Chain Management Operations Working at Peak Efficiency Customer Testimonial “Colorbök needed an ERP solution that was both scalable and easy to adapt to our rapidly growing needs. Microsoft Great Plains helped our firm achieve record shipments in the first month after ‘go live’ date.” - Stuart P. Hall (MSIE/OR) – CFO, Colorbök

14. Transform time-consuming processes into tasks that can be executed quickly and accurately… Demo Scenario

15. Qty Available? Qty Available? Fulfill Order Fulfill Order Qty to Deliver Quote Sell Side - Pick - Pack - Ship - Pick - Pack - Ship Inventory Customer General ledger Order No Yes Available To Promise? Available To Promise? PO BO Qty to Back Order

16. Buy Side General Ledger InventoryCreditors Receive Invoice Enter Requisition Transfer Approve POApprove Req. Receive Goods PO … automatically created from Sales Order

17. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. To learn how Microsoft Business Solutions can help your business, click here.click here