Vendor Solutions and Services

Rapidly Cut Costs, Reduce Inventory, and Drive Revenue with Best Practice Reports and Dashboards

Bill Copacino, President and CEO, Oco Steve Morandi, VP of Manufacturing Solutions, Oco

© 2009 Wellesley Information Services. All rights reserved.

Introductions

•    

Bill Copacino

CEO and President, Oco, Inc Recognized Leader in Supply Chain Management Previously served as Group Chief Executive for Global Business Consulting at Accenture Held management positions at General Electric, C&S Wholesale Grocers and Arthur D. Little, Inc. •    

Steve Morandi

VP of Industrial and Manufacturing Solutions, Oco, Inc Certified GE Six Sigma Master Black Belt Previous GE Global Services Leader for GE Aircraft Engines Previous VP of PLM Collaboration Solutions at Parametric Technology Corporation (PTC) 1

Agenda

•

Supply Chain Challenges & Capabilities

• • •  

Solution Overview

Oco and SAP BusinessObjects BI OnDemand Solution Demonstration   

Case Studies

Welch’s Beckman Coulter Global Equipment OEM

Summary and Q&A

2

Agenda

•

Supply Chain Challenges & Capabilities

• • •  

Solution Overview

Oco and SAP BusinessObjects BI OnDemand Solution Demonstration   

Case Studies

Welch’s Beckman Coulter Global Equipment OEM

Summary and Q&A

3

Summary Message

•

Supply Chain Management is increasingly a strategic and critical business function… even more so in the challenging 2009 economy

•

However, SCM has been slow to leverage Business Intelligence solutions

•

Thoughtful analytics and reporting provide powerful leverage to SCM

   Process Metrics Collaboration Advanced Analytics & Extended Functional Capabilities •

Supply Chain Leaders are now leveraging these powerful solutions to drive compelling value for their companies

4

Critical Supply Chain Process Metrics

Enhanced Internal Process Metrics Internal Cross Functional Metrics

•

Excess Inventory (Days Supply)

•

Variable Cost Productivity

•

Purchase Price Variance

•

Comprehensive Transportation Analysis

•

Cost of Quality

•

Cost to Serve

•

Adjusted Gross Margins

•

Product Profitability

•

Channel Profitability

•

Customer Profitability

•

Inventory Management Index (IMM SM )

•

Reasons for a Stock-Out Extended Supply-Chain Collaboration Metrics

•

Supplier Scorecard

•

Customer Scorecard

•

Total Landed Cost of Imported Items

•

Sales and Operations Planning

•

The Perfect Order

5

Supplier Scorecard Sample Report

6

7

Why Are Supply-Chain Analytics and Meaningful Reports so Difficult?

1) Requires insight that is both deep and comprehensive:

  Deep insight requires analytics that drive down to the root cause of over / under performance Comprehensive insight requires analytics that look across departments, global regions, and product centers to contrast different aspects of the business

2) However, this requires aggregating from across the extended supply chain:

   Different departments, functions, geographies and/or business units Different enterprise, department, legacy and manual systems including

SAP and non-SAP

Mixed of trading partners across globe

3) And these analytics must be pulled together quickly resources: and without significant

  Up and running in weeks to a few months Require low upfront investment in people and money 8

Analysis Requires Data From Many Sources:

Inventory Example Data Elements & Metrics

• • • •

Demand Planning & Mfg Execution (MES)

– Production & Services Supply-Chain

ERP Systems (Multiple Instances) Inventory Budgeting / Targets Spreadsheets Third Party Data

o o o

Released Orders Planned Orders Historical Usage / Demand

o o o

Min/Max Values Out-of-Stocks Order Cycle Time

o o o o

Customer Orders Customer On-time Delivery Back-Orders Order Fill Rate

o o o o

Inventory Planner Targets Customer Target Performance Business Unit Inventory Plan Product-Line Inventory Plan

o o o

On-Hand Inventory ($, Units) Months Supply Obsolescence Rates

o o o

D&B unique Customer ID D&B unique Supplier ID External Benchmarks (SCOR, etc) Multiple Sources Must be Accessed and Integrated to Achieve Network Visibility and Optimization… Even within One Business Unit

9

Analysis Requires Data From Many Sources:

Inventory Example (cont.) Challenge is Magnified Across Multiple Business Units Goals and Objectives

(MAPICS) Production Demand Planning (I2,Legacy,etc) Services Demand Planning (MCA) Corporate Global ERP Instance (SAP) ERP Europe (Custom System) Inv. & Planner Budget S/Sheet Third Party Data (D&B, etc)

Business Unit 1:

10

Analysis Requires Data From Many Sources:

Inventory Example (cont.) Challenge is Magnified Across Multiple Business Units Goals and Objectives

(MAPICS) Production Demand Planning (I2,Legacy,etc) Services Demand Planning (MCA) Corporate Global ERP Instance (SAP) ERP Europe (Custom System) Inv. & Planner Budget S/Sheet Third Party Data (D&B, etc)

Business Unit 1:

ERP North America (MAPICS) Production Demand Planning (I2,Legacy,etc) ERP North America (Navision) Corporate Global ERP Instance (SAP) (Custom System) Inv. & Planner Budget S/Sheet ERP Europe Sales Force CRM ERP North America (MAPICS) Production Demand Planning (Legacy MES) Services Demand Planning (MCA) EPR Asia (Legacy System) Inv. & Planner Budget S/Sheet ERP Europe (BPICS)

Business Unit 2: Business Unit 3:

11

Analysis Requires Data From Many Sources:

Multi Business Unit Inventory Analysis Examples Inventory Management Data Source Complexity Production Demand Planning (I2) Third Party Data (D&B, etc) Corporate Global ERP Instance (SAP) ERP North America (MAPICS) Multi Business Unit / Region / Product Line Inventory Visibility Inventory Budget S/Sheet 3 ERP Europe (BPICS) Inventory Budget S/Sheet 1 Demand Planning (Legacy MES) ERP Europe (Custom System) Inventory Budget S/Sheet 2 ERP North America (Navision) Services Demand Planning (MCA) Sales Force CRM ERP Asia (Legacy System) Business Questions 1.

Determine planner performance vs. budget in North America for all responsible items within new production across Business Units 1 & 2 2.

Determine global services excess inventory across all stocking locations and cancel released and planned service orders or shift service supply to fulfill production demand.

3.

What are our Customer Service levels and current backlog status for all global customers in Business Unit 3 and how does that compare to target levels?

12

Agenda

•

Supply Chain Challenges & Capabilities

• • •  

Solution Overview

Oco and SAP BusinessObjects BI OnDemand Solution Demonstration   

Case Studies

Welch’s Beckman Coulter Global Equipment OEM

Summary and Q&A

13

Complementary BI Advantages

Complementary BI Drives Rapid ROI, Leveraging Existing BI and Data Infrastructure

•   

Companies are focused on high value, urgent business needs

Revenue growth, cost reduction, inventory reduction, operational improvement Analytics driven with data from multiple sources… both SAP and non-SAP sources Users can not wait months or years to get access to critical data •  

However, IT teams are stretched on existing projects

Addressing strategic projects on the corporate IT roadmap Focused on urgent, day-to-day fire fighting •   

Therefore, many IT organizations are leveraging alternative, “complementary” approaches

Leverages existing SAP business intelligence and data management infrastructure Focuses on specific, high value business needs and incorporates best practice analytics Provides a low cost and low resource solution that can be quickly deployed 14

SAP BusinessObjects / Oco

OnDemand

BI Solution

3 2 1

•

On Demand SaaS Solution

•

One Integrated Solution

•

Deployed in 10 weeks

•

Fixed Cost, Fixed Time

•

Mix of Tools for Different Users

•

Leverages Existing BI and DW Infrastructure

15

Unique Value Proposition

•   

Solution is deployed in a quarter of the time of traditional solutions

Deployed in six to ten weeks Prepackaged solutions developed for different industries and for specific business problems Rapidly able to integrate data from multiple source systems •  

Affordable solution, often a fraction of the cost

 

of competing offerings

Delivered on a fixed-time, fixed-cost basis (Oco owns any over-run, not the customer) All hardware, software and support delivered on-demand Rapid data mapping through powerful, patented tools More efficiently leverages IT and business users time •   

Relentless focus on value creation

Compelling ROI and rapid payback Best practice solutions for specific areas Solution requires minimal involvement from IT and the business users 16

SAP BusinessObjects / Oco

OnDemand

BI Solution

We Can Quickly Drive Benefit to Your Business in 90 Days Mission

Enable our customers to rapidly make accurate, insightful business decisions that have a significant impact on:    Revenue Growth Cost Reduction Inventory Reduction    Operational Performance Customer Satisfaction Asset Utilization • • •

Solution Impact

Provide high impact business analytics on your business with your data in 6 to 10 weeks Drive payback in 90 days or less Achieve ROI of 3x investment

“We have found many opportunities for savings by being able to analyze and view this information in an integrated way, and we expect to be able to recover the Oco investment in the first 30 days of the solution implementation.”

Bill Coyne, Director Purchasing & Logistics, Welch’s Foods Inc.

“The visibility to inventory metrics and actionable details provided by the Oco solution allowed us to reduce our multi-

million dollar global spare parts inventory by over 17% in

less than 5 months with minimal impact on customer service levels”

Craig Cole, Global Strategic Operations Director, Beckman Coulter

17

Industry-Specific Modules for the Spectrum of Users

Management Team Functional Managers Staff Analysts Casual Users Sales & Profitability Industry-Specific Solution Modules Sourcing & Procurement Quality & Production Customer Management Products & Innovation Inventory Transportation & Logistics Asset Management Services Performance

18

SAP BusinessObjects/Oco

Inventory Management Module Metrics

• • • • • • • • • • • • • • •

Inventory Turns Months (or Days) of Supply (SCOR) Target Levels (Days, Units, $’s) Actual Inventory Value - $ (SCOR) Order Fill Rates (SCOR) Order Fulfillment Cycle Time (SCOR) Customer Delivery Cycle Time (SCOR) Complete Order Percentage Customer On-Time Delivery Percent (SCOR) Customer Back-Orders Out-of-Stock Parts Stocking Location Quantities Historical Demand / Usage Obsolescence Rates Cost for Inventory Planning (SCOR) Advanced Analytics

•

Inventory Trending (Months Supply vs. Targets)

• •

Inventory Timeline Time Supply Histogram

•

Top 10 Inventory Excesses and Shortages

•

Top 10 Projected Inventory Value Changes

•

Back-Order Trending and Aging Buckets

•

Top Out-of-Stock Parts

•

Customer On-Time Delivery Variation

•

Inventory Management Index (IMM) SM Inventory Management Index (IMM SM )

(%OTD) – (% Items Back-Ordered) – (% Items Exceeding Days On-Hand Supply Targets)

19

SAP BusinessObjects/Oco

Sourcing and Procurement Module Metrics

• • • • • • • • • • • • • •

Supplier Total Spend vs. Plan ($) Supplier Unit Cost Supplier Accounts Payable Supplier Quality (DPMO) Damage Rate Percentage Supplier Problem Resolution Times Supplier Quoted Lead Times Supplier Order Fill Rates Supplier On-Time Delivery Percentage Supplier Delivery Cycle Time Complete Order Percentage Back-Order Quantities Invoice Accuracy Supplier Inventory Days On-Hand Advanced Analytics

•

Supplier Item Cost Productivity (Yr over Yr)

•

Supplier Total Cost Productivity (Yr over Yr)

•

Supplier Purchase Price Variance (PPV)

•

Supplier Aggregate Rank (Top & Bottom 10)

•

Trending (Rejects, Ship Complete, Invoice Accuracy)

•

Supplier Back-Order Trending and Aging Buckets

•

Supplier On-Time Percentage Variation

•

Supplier Cost of Poor Quality

20

SAP BusinessObjects/Oco

Transportation Module Metrics

• • • • • • • • • • • •

Cost per Mile (by mode) Cost per Case (assigned by cube weight) Cost per Hundred Weight (assigned by cube weight) Cost per Hundred Weight Miles On-Time Shipment Percent Total Network Miles Total Network MPG Cost versus Plan Cost Versus Last Year Analysis by Mode Analysis by Carrier Analysis by Lane Advanced Analytics

• • • • • • • • •

Percent of Truck Capacity Utilization Accessorial Charges as Percent of Total Cost Percent On-Time Delivery to Customer Percent Empty Return Miles (Fleet) Cost-to-Serve Comparative Analysis of Detailed Accessorial Charges by Carrier Cost Benchmark Comparisons Total Transportation Budget Tracking Lane Analysis (for any lane defined by sum of zip codes for origin and destination)

21

Agenda

•

Supply Chain Challenges & Capabilities

• • •  

Solution Overview

Oco and SAP BusinessObjects BI OnDemand Solution Demonstration   

Case Studies

Welch’s Beckman Coulter Global Equipment OEM

Summary and Q&A

22

Sample Reports

23

Agenda

•

Supply Chain Challenges & Capabilities

• • •  

Solution Overview

Oco and SAP BusinessObjects BI OnDemand Solution Demonstration   

Case Studies

Welch’s Beckman Coulter Global Equipment OEM

Summary and Q&A

24

Welch’s Company Background

• 

Welch’s is a large manufacturer of beverages and food (jams, jellies) made from grapes

Food processing and marketing arm of The National Grape Cooperative Association •

Sell through both distributors and directly to end customers (grocery stores, restaurants)

•

Operations in 35 countries

•

$600m in revenues and 1,200 employees

25

Problems Welch’s Encountered: Management Reporting for Transportation

• 

Many different IT systems across the business and in many different departments

Transportation has 3 different systems: Oracle ERP, Freight Pay, Legacy • 

Welch’s was going through an upgrade to a new ERP system

New ERP system does not have a Transportation & Logistics reporting module •  

Welch’s wanted to reduce costs and improve service levels in transportation and logistics

Welch’s needs better visibility into its transportation operations Better analytical tools for $50MM + in transportation expenditures 26

Selection of Solution

•  

Oco Solution for Transportation Reporting

Different reports and key performance indicators Data from three systems organized into single data warehouse •   

Solution is extremely user friendly

Intuitive user interface required little training Usable by both power users and everyday staff Ability to slice and dice entire data warehouse across different dimensions • 

Affordable solution that could be deployed quickly

Required very minimal support from an overburdened IT staff • 

Compelling value proposition that would drive financial ROI

Reports focused on address specific business questions to improve Welch’s bottom line 27

Solution Usage and Benefits

Oco’s Solution allows Welch’s to address a number of key issues, for example

  Ensure outgoing customer shipments are fully loaded Identify intra-Welch’s shipments on critical shipping days  Analyze costs, utilization, and performance in different ways   Year-over-Year cost trends Comparison between carriers   Budget variance analysis Customer cost-to-serve

Welch’s expects benefits to drive financial bottom line impact

 Understanding and analyzing detailed costs by different dimensions      Slice and dice by geography, plant, distribution center, carrier, customer, ship form (frozen, refrigerated), type of cost, any time period One data warehouse with all the relevant data Drill all the way down to the individual freight bill Identifying opportunities to consolidate shipments to reduce carrier costs Expect to identify opportunities to optimize scheduling to improve service levels

“The solution gave us the ability to very rapidly combine information from several different information systems, and their solution provided a view of detailed distribution costs, order flows and distribution operations that we did not previously have.

We have found many opportunities for savings by being able to analyze and view this information in an integrated way, and we expect to be able to recover the investment in the first 30 days of the solution implementation.”

Bill Coyne, Director Purchasing & Logistics, Welch Foods Inc.

28

Beckman Coulter Company Background

$2.7 billion global medical device company

• • 78% of sales from recurring revenue Direct presence in 130 countries

97-98% Customer Service Level commitment 50,000 Service Parts

• • • 33,000 with On Hand Qty Cost range $.01 to $50,000 Vast majority internally supplied

106 Different Global Stocking Groups 10 Different US Based Business Centers 3 Major International Distributor Relationships

29

Beckman Coulter Company Background (cont.) ERP roll out in North America

  Completely lost our reporting Connections into necessary legacy systems were broken

US Field Engineer Mobile Implementation

 Conversion from laptop oriented system to handheld PDA as primary information exchange mechanism

Service Restructure

 Global Service Organization Formed 30

Problems Beckman Coulter Encountered

Customer Service Level problems

  Days when orders wouldn’t go through Orders were misrouted

Supply Problems

  Damaged legacy connections hampered restocking Slow adoption of new reverse logistics processes

Tremendous organizational inefficiencies and cost

   Multiple repair visits Excessive shipping Over targeted stock levels by 15-20%

Customers were letting Beckman Coulter know!!

31

Selection of Solution

Minimal IT burden

 Ftp transfers

Short Time Line

 8 Weeks to go live

Global Access for Single view

  Intuitive User Interface Export to Excel for more detailed looks

Integration into Legacy System Complementary Approach to World Class Tools

32

Results Found

Over 17% Year End Inventory $$ Reduction and CSL Targets Achieved in Less than 5 Months!!

• • • •

Opportunities Found Within the First Few Weeks of Solution Deployment



Quickly Identified Data Clean Up Issues $1 million obsolescence, in transit, expensed items



Global Movement to Eliminate Orders $900 K relocated to deployable locations



Eliminated Excessive Inbound Orders $1 million changing demand, phase out



General Collaboration Improvements $750 K manual project identified

33

Global Equipment OEM Multi-Business Unit Project

• • •   

Company Background

Multi-billion dollar global Corporation Solution was for a $350 million global Division Large acquisition footprint       

Solution Overview

Provided reporting and analytics across three independent business units (BU’s) Aggregation across all BU’s along with detailed analysis 19 multi-dimensional reports and 3 functional dashboards Covered

Sales

,

Inventory

Multiple languages ,

Sourcing & Procurement

and

Customer

functional areas Global sites (multiple US sites, Netherlands, UK, Germany, Malaysia, Singapore) Multiple currencies (USD, local, transactional)   

Source Systems

8 unique ERP systems (including SAP ) 3 rd party systems (D&B) Multiple Excel spreadsheets 34

Agenda

•

Supply Chain Challenges & Capabilities

• • •  

Solution Overview

Oco and SAP BusinessObjects BI OnDemand Solution Demonstration   

Case Studies

Welch’s Beckman Coulter Global Equipment OEM

Summary and Q&A

35

Unique Value Proposition

•  

Solution is deployed in a quarter of the time

 Deployed in six to ten weeks

of traditional solutions

Prepackaged solutions developed for different industries and for specific business problems Rapidly able to integrate data from multiple source systems •    

Affordable solution, often a fraction of the cost of competing offerings

Delivered on a fixed-time, fixed-cost basis (Oco owns any over-run, not the customer) All hardware, software and support delivered on-demand Rapid data mapping through powerful, patented tools More efficiently leverages IT and business users time •  

Relentless focus on value creation

 Compelling ROI and rapid payback Best practice solutions for specific areas Solution requires minimal involvement from IT and the business users

We are willing to invest in a 2 week Proof-of-Concept (POC) in an identified part of your business where you are attempting to drive immediate 2009 improvements… Seeing is Believing!

36

Sample of World Class Customers

37

7 Key Points to Take Home

1.

2.

3.

4.

Opportunity for SCM to leverage BI and drive value for their organizations Joint SAP BusinessObjects and Oco Solution is complementary with existing BI solutions and maximizes existing SAP investments and infrastructure Solution can be rapidly deployed in as few as 10 weeks.

90 day payback and 3x ROI for our customers 5.

6.

Target specific business opportunity areas to drive rapid ROI

- Welch’s Foods, Beckman Coulter and others have generated substantial savings in critically short time intervals

Incorporates data from multiple SAP instances (SAP R3, SAP CRM, SAP BW, etc.) and non-SAP data sources 7. We are prepared to invest with you in a well defined proof-of-concept (POC)… seeing is believing

38

Resources

•   

To learn more about the SAP BusinessObjects-Oco OnDemand Business Intelligence Solution please contact: Steve Morandi (Oco), 781 810-2508, [email protected]

Bill Copacino (Oco), 781 810-2123, [email protected]

Aaron Mittler (SAP BusinessObjects), 416 224-7592, [email protected]

• 

You can find additional information on: SAP BusinessObjects at www.ondemand.com/businessintelligence



Oco at www.oco-inc.com

Stop by our Booth # 120 to learn more about our 2 week Proof of Concept (POC)

39

Question and Answer

How to contact me: Steve Morandi [email protected]

40

Disclaimer

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® , Duet ™ , PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor 41

Sample Graphical Scorecard

42

Solution Demonstration

43

Solution Demonstration (cont.)

44

SAP BusinessObjects & Oco Provide Rapid Access to Information

Oco and SAP BusinessObjects provide rapid access to information- ---from any corporate, trading partner or 3 rd -party IT system

•   

Provides a comprehensive analytic and reporting solution

Includes powerful drill-down reports, dashboards, key performance indicators, and exception reports Access to SAP BusinessObjects and Oco suite of reporting through our strategic partnership Addresses users’ needs for time sensitive, critical reporting needs •   

Delivers a complete solution as a Software-as-a-Service offering

Data transfer, data discovery, data mapping, data model, data base, user access via a web browser Distinct ability to rapidly assemble data from multiple data sources… SAP and non-SAP sources Report development, quality assurance, on-going data base maintenance & customer support •  

Offers compelling value proposition

Solution in a quarter of the time (6 to 10 weeks), at fractional costs, without risk of traditional approaches Solutions do not compete or replace existing BI solutions, but  Are complementary to and leverage existing BI investments  Efficiently utilizes the time and resources required from IT and business users 45