Competitive edge through value chain integrationThe sure way to achieve your goals

»Who knows the goal, can decide. Who decides, is at peace. Who finds peace, is secure. Who is secure, can reflect. Who reflects, can improve.«

Confucius, Chinese philosopher

The core competency of STREMLER AGBusiness potential lies in the value chain – at every single stage. In order to tap this potential, knowledge is indispensable – knowledge of the cause-effect relationship within the system. This is the core competency that STREMLER AG contributes as it accompanies its customers through operational implementation – on site, goal-oriented and successful.

Service portfolio of STREMLER AG

1 Business Segment Strategy—Identification of competitive advantages—Segmentation of market and service provision—Positioning, product and service strategy, value-added strategy —Product configuration management—Best-in-class service and lead-time classes

2 Planning and Control—Planning and control procedures across all stages of the supply chain —Sales planning / control —Production planning / control —Procurement planning / control —Distribution logistics—Operational tools for planning and control—Disposition, parameterisation and materials management—Collaborative planning—Consignment warehousing, VMI

3 Processes and Workflow—Process design —Integrated procedures from customer to customer —Standardisation of workflow and interface definition —Securing of efficiency, productivity and process quality—Documentation

4 Management and Monitoring—Management information system (MIS, KPIs)—Key indicator-based management and performance control—Activity-based cost management —Organisational structure and functional specifications—Skills and training at all levels

5 Information Management—Business model and blueprint definition integrated with the standard functionalities of the existing ERP system—Mapping of MIS, product configuration, planning & control, processes & workflow—Master data management and parameterisation—Accompanying support during implementation of the integrated information management system —Ensuring integration and interfaces to sub-systems—Ensuring quality during implementation and data security

� � Technology has made knowledge and information accessible globally and online. Communication today takes place in real time throughout the world.

Possibilities previously undreamt-of are opening up. And with them come challenges. In a world that grows smaller by the day, a critical issue for businesses is how to maintain and strengthen the competitive advantage. This is no longer determined by company performance alone – the entire value chain is now in the frame.

Success through professional supply chain engineering – this is what STREMLER AG stands for. Together with our customers we have been realising solutions since 1994 that accelerate the value chain process and ensure sustainable and efficient process design. Our knowledge and skills lie both in the processes themselves and in the planning and control information that is available decentrally and makes integrated value chain systems efficient. As a result, we not only ensure integrated processes for the most diverse sectors, but also integrated planning through to control of each individual stage. We connect the value chain with real market demand in real time, consistently using information management systems as a technological platform.

Successful companies are those that achieve maximum efficiency up and down the value chain with a low capital tie-up. But our vision of the supply chain goes further than this. We focus not only on making the processes as economically efficient as possible. We also realise the company’s reserve capacities in view of a best-in-class delivery service and a simultaneously low working capital. So that our customers can continuously develop their competitive edge and create lasting company value.

All this has made STREMLER AG the first-choice partner of a host of major companies and a premium provider in Europe. The return on investment of our projects is generally well under a year. We work closely with our customers, resulting in an effective transfer of know-how with a lasting and long-term benefit for the company. Together, we achieve ground-breaking results, by which STREMLER AG stands ready to be measured.

You, too, can realise the unique potential of your company’s value chain. Take advantage of the expertise, specific approach and long experience of STREMLER AG. Forge the way in service quality, cost leadership and speed without locking-up precious funds – and edge ahead of your competition.

Opportunities for business development Shape the future today

Dipl. Ing. Alphonse Stremler, Chairman

»In the global economy, it is crucial for businesses to design their value chain processes efficiently with all suppliers and service providers – precisely oriented to the market. The challenge ahead of us lies in the development and management of integrated production and distribution systems. Businesses that make this switch early will be lean, fast and highly competitive. And this will translate into market success and a very healthy balance sheet.«

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� � STREMLER AG designs, implements and optimises integrated supply chain solutions. We start in every case from the specific requirements of our client’s market. We engineer and re-engineer processes and process control at all stages of the value chain – along the entire cycle from customer order through performance provision to customer delivery.

More freedom to manage your businessBy orienting our approach consistently to the value chain, we can achieve lasting improvement of your company’s balance sheet. We create the best possible conditions for efficient use of resources. Money previously tied up in stock becomes available and your capital turnover increases. Significantly larger cash resources expand your freedom to take entrepreneurial decisions.

Best-in-class performance Based on your market requirements, we define, generate and stabilise together with you the specific, operative advantage in competition. By synchronising sequences, we reduce variances between performance /inventory and demand. Shorter throughput times and lead times as well as accuracy in controlling and managing your supply chain proactively give you the competitive edge.

Secure and lasting successThe success of a new or optimised supply chain concept becomes evident only when it is implemented. Understanding this, we support you very closely in this phase and until the new structures and processes are part of your company’s daily life. Only then do we consider our job done.

Competitive edge through best-in-class lead times

Performance capability

Synchronisation of performance and demand

MarketCustomers

Engineering of internal and external supply chain based on individual market requirements

Supply Chain EngineeringOur profession

The key objectives of our approachOptimum delivery service to the customer with minimum capital tie-up and maximum process productivity.

Your success is our challenge.

Synchronisation of performance and demand creating competitive advantage

Performance provision Value creation

Market requirements

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� � Customer focus, delivery service and revenue First-class delivery service and precise management of the supply chain draw a clear line between you and the competition. Customer loyalty strengthens and your revenue potential improves. —Better level of delivery service —Improved response times to market—Reduced lead times with simultaneous improvement in delivery capability—Implementation of service classes and internal lead times

Liquidity and working capital Your company is sustainably strengthened by a high return on investment and the freeing up of financial resources.—Efficient and timely realisation of the performance the market requires—Integrated materials management concept with leeway for standard materials along the whole value chain —Reduction in throughput times and cash cycles and thus also in capital lockup

Lower costs and higher productivityPerformance control and the structural revision of all order handling processes significantly increase your productivity.—Reduction in direct and indirect costs across all value chain stages —Simplification of structures, processes and standardised workflows —Transparency and measurability of performance provision

Results improvement�0%

Faster progress through a catalytic effectWith STREMLER AG as your partner, you achieve change much faster. And experience shows that projects started internally are often abandoned when there is no external support.

Projects undertaken with our assistance reach successful completion � to 10 times faster.

Increase in delivery reliability stable at over 98%

Increase in delivery capability stable at over 9�%

Increase in productivity over �0%

Reduction in lead times more than �0%

Reduction in inventory more than �0%

Return on investmentless than 1 year

Supply Chain EngineeringYour advantage

Figures we stand by

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8 9 Production system, market-synchronised value chain planning and controlThe STREMLER production system specifies the levers and characteristics of a value chain that is geared exactly to the requirements of your market.—Synchronisation of performance and demand—Documented planning and control concept with defined stages, horizons, frequencies, parameters, interfaces and responsibilities—Flexibilisation and demand-oriented production and procurement

Integrated information management platform and real-time informationThe STREMLER production system can also be mapped in your ERP system. —Use of existing ERP system functionalities with system adaptations and parameterisation as close as possible to standard —Real-time information along the whole value chain—Creation of blueprint as basis for IT implementation—Accompanying support and quality control during IT implementation—Improved data quality along the whole order processing chain

Leadership structures and sustainabilityWorking with you, we create structures that will allow for continuous improvement. You learn the adjustment mechanisms for continuous optimisation of your company’s supply chain and how to operate these yourself.—Installation of tools for key indicator-based control at all management levels—Implementation of a management cockpit (Management Information System – MIS)—Definition of clear interfaces and responsibilities—Job specifications at functional level

Shaping change together Our consultants combine outstanding specialist expertise with extensive professional and management experience as well as strong interpersonal skills. As part of the team, they will enable staff at all levels of your company to accept and shape the change.

Who is convinced and motivated, forges new ways.

Supply Chain EngineeringYour advantage

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1� 1� Our dual cycle model has proved itself time and again. It is based on the two control cycles of »Procurement and Production« and »Sales and Distribution«. Our planning and control model describes the synchronisation of these control cycles and their processes at the interface of performance provision.Control and proactive management is critically important in order to maximise performance and organise the overall system efficiently. This is a unique feature of our approach.

Our planning and control system is based on —the spectrum of products or services being offered to the market,—the requirements of each market segment,—the product assembly, service options and configuration possibilities,—the stages of product or performance provision taking into account the vertical range of manufacture,—the processes and materials management strategies, and—the information management and IT structure.

Our teams of experts accompany you through conception and implementation until the new system has been adopted in the company and the project objectives have been achieved for the long-term. During this process we will have created a new platform in your company, which allows you to independently adapt the parameters to current requirements as needed, and thus to continue to develop your competitive advantage.

Production programme Market requirementsService classes

Sales anddistribution cycle

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Synchronisation of performance and demand

The STREMLER Dual Cycle ModelApproved for all sectors

External and internal work flows are optimally interlinkedThey harmonise and synchronise the opposing requirements of desired production continuity and market fluctuation.

Only when the new structures are part of your company’s daily life do we consider our work done.

Performance capabilityInternal lead time classes

Procurement andproduction cycle

Pur

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Pro

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Basic principles of the planning and control system within the STREMLER dual cycle model

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1� 1� Implementation is achieved together with our customers in the following steps:—Goal-directed analysis of all specific requirements, based on the market requirements of the sector and customers, differentiated by market, performance category, product, lead time, etc. Introduction of first improvement measures

1 Market applications— Which products and services for which market?— What are the specific requirements of each market segment?

� Product architecture and configuration— Which configuration options and variations are offered?— Which product and service components are general, and which order-specific?

� Value chain stages and processes— What are the internal and external processes involved in service provision?— What technical and capacitive flexibility and / or restrictions exist?

� Service classes— Which lead times to market for which configuration option as default target for supply chain orientation?— Which lead time classes can be created for each combination of product, specification and volume?

� Internal lead time classes— Which internal and external replenishment and response times for which service?— Which planning and disposition processes and parameters result from this for each article and each lead time class?

� Materials management— How can the utilisation and productivity of resources be increased through an efficient stocking strategy with a minimal capital tie-up?— Which parts and components in which quantities at which value chain, warehousing and distribution stage?

� Planning— Which levels and stages of integrated planning?— Which interfaces and responsibilities exist at each planning stage?— How are needs and service optimally coordinated?— How is mapping in the ERP system done?

8 Control— Which value chain stages and processes must be controlled, how and with which tools?— How are deviations from planning measured and spotted?— What are the general framework and concrete intervention options for control?

—Concept for an internal value chain that will fulfil these requirements —Description of the production system taking into account the standard functionalities of the ERP system —Mapping in the customer-specific information management platform (MIS, ERP and sub-systems)—Implementation in close cooperation with your staff

1 Market applications Requirements per market segment

� Product architecture and configuration Vertical segmentation

� Value chain stages and processes Horizontal segmentation

� Service classes Lead time classes to market

� Internal lead time classes Disposition procedure, parameterisation

STREMLER Dual Cycle ModelOur areas of activity

The more layered the relationships, the more complex process optimisation becomes. Knowledge and experience are critical.

In implementing the STREMLER planning and control system we focus primarily on the following areas of activity.

8 Control Performance control and disposition

� Planning Planning stages and principles

� Materials management Stocking strategy

Everything is interlinkedInterdependencies and cause-effect relationships create a highly complex system. Only an integrated approach enables full utilisation of the company’s potential.

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1 Automotive DaimlerAG Gebr.BodeGmbH&Co.KG ThyssenKruppAG GeorgFischerVerkehrstechnikGmbH ElringKlingerAG ContiTemicmicroelectronicGmbH Knorr-BremseAG

2 Electronics RheinmetallAG EADSDeutschlandGmbH HirschmannCarCommunicationGmbH HirschmannAutomotiveGmbH TemicElectronic-SystemsGmbH LITEFGmbH MoellerGebäudeautomationGmbH R.StahlSchaltgeräteGmbH SickAG SchaltbauGmbH MoellerGmbH BoschThermotechnikGmbH SpinnerGmbH

3 Food HügliNahrungsmittelGmbH AlfredRitterGmbH&Co.KG

4 Textiles/Trade FreudenbergVliesstoffeKG CoatsGmbH LauffenmühleGmbH&Co.KG

tapGmbH&Co.KG5 Chemicals/Pharmaceuticals BayerHealthCareAG KarlWörwagLack-undFarbenfabrikGmbH&Co.

6 Plastics/Woodprocessing alescoGmbH&Co.KG EnsingerGmbH

7 Steelprocessing/Flat-steelrefinement ArcelorMittalCommercialRPS ArcelorMittalS.A. ArcelorMittalDudelangeS.A. ArcelorMittalWireSolutionsS.A. ArcelorMittalBelval&DifferdangeS.A. ArcelorMittalRodange&SchifflangeS.A.

8 Mechanicalengineering/Plantengineering andconstruction MTUFriedrichshafenGmbH DeutzAG VATVakuumventileAG RenaSondermaschinenGmbH

9 Transportation/Logistics CFLCargoS.A.

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»Changeisbornebyopennesstonewwaysanddiscoveries.«

AlphonseStremler

ReferencesWehaveworkedsuccessfullywiththefollowingcompanies

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STREMLER AG, Am Schönbühl 1, D-88131 Lindau / Lake ConstanceT +49(0)8382 9352-0, F +49(0)8382 9352-52, info@stremler.de, www.stremler.dePostal address: Otto-Hahn-Strasse 2, D-88131 Lindau / Lake Constance, GermanyRegistered office: Lindau / Lake Constance, County court: Kempten HRB 9903Supervisory Board Chairman: Dipl.-Kfm. Ulrich Dörnhaus, Chairman: Dipl.-Ing. Alphonse Stremler