CSCMP India 2012 Conference

1-2 June

Mumbai, India

ITC Maratha MUMBAI

Creative Approaches to Supply Chain Profitability:

A Global Perspective from India

Sales, Inventory, and Operations Planning:

Fueling Your Companys Growth

Jeff Metersky Vice President, Sales, Inventory & Operations Planning

Chainalytics

Agenda

Who is Chainalytics?

Asia Market Growth and Implications

Sales & Operations Planning Introduction

Analytical Enablers for Effective S&OP

Who is Chainalytics?

4

TODAY

Over 80 FTEs Worldwide

Our Clients

More Than 180 Unique Clients

14 of AMRs Top 25 Supply Chains

57 Fortune 500 Companies

5 of Top 10 Retailers

7 of Top 10 Food & Beverage Manufacturers

5 of Top 10 CPG Companies

6 of Top 10 Forest, Paper and Packaging Companies

Our Experience

More Than 375 Engagements

1st Named to 100 Great Supply Chain Partners List by SupplyChainBrain; Recognized for 8 Years Running

Launch of Freight Market Intelligence Consortium (FMIC)

2001

2002

2003

2004

2005

2006

2007

2009

2010

2011

2008

Our Genesis

Market Lacked Proven, Focused Supply Chain Analytics Competence

Best Analytical Minds in Supply Chain

Empowering Fact-Based Decisions

Across Your Supply Chain

Launch of Sales & Operations Variability Consortium (S&OVC)

Mike Kilgore named a Pro to Know by Supply & Demand Chain Executive; Steve Ellet, Gary Girotti, Irv Grossman, Jeff Metersky, Matt Harding, and Kevin Zweier also named Pros to Know

Established Chainalytics India Private Limited in Bangalore

2012

Strategic Growth via Mergers & Acquisitions

Supply Chain Operations (Chainnovations)

Packaging Optimization (Adalis Packaging Solutions Group)

FMIC named Top Supply Chain Innovation by Supply & Demand Chain Executive

Named to ARC Advisorys 10 Coolest Supply Chain Boutiques

Years

Quarters

Months

Weeks

Planning

Horizon

Value-Driven Supply Chain Decisions

5

At what service

level can we

profitably satisfy

demand?

How should

we transport

product through

the supply

chain?

How much and

where should

inventory be

positioned in the

supply chain?

Can we reduce our

transport and

logistics costs by

improving cube

utilization?

Should our

warehousing

and material

operations be

insourced

or outsourced?

When should

we buy or make

product to make

the best use of

our capacity?

What is the

best flowpath? How well do

our current

operations

mitigate repair

and warranty

costs?

How can we

increase

visibility to

stakeholders?

Transportation

Service Supply Chain

Logistics Operations

Sales, Inventory & Operations Planning

Packaging Optimization

Supply Chain Design

Agenda

Who is Chainalytics?

Asia Market Growth and Implications

Sales & Operations Planning Introduction

Analytical Enablers for Effective S&OP

3%

24%

2%

16%

0%

5%

10%

15%

20%

25%

1975 2010 % W

orl

dw

ide

Mid

dle

Cla

ss

Asian Population Asian Purchasing Power

Asia's middle class

is expected to

continue its growth

trajectory to reach

2 Billion by 2020.

(More than double

current figure.)

By 2030, middle

class Asians will be

the next global

consumers and

assume the role of

US & European

middle classes

1 Historical Data Excludes Japan

Source: Rise of middle classes in India, China key to growth in Asia, The Economic Times, April 4, 2012

1 1

Rapid Rise in Asian Middle Class Population

160

267

0

50

100

150

200

250

300

2011 2016

Mill

ion

s

Indian Middle Class Population

Rapid Rise in Indian Middle Class Population

Indias middle class

is projected to reach

267 Million by 2016.

Source: India's middle class population to touch 267 million in 5 yrs, Hindustan Times, February 6, 2011

Significant Expenditure on Food in Emerging Markets

Food Share of Household Expenditures

33%CHINA

NIGERIA

40%

RUSSIA

28%

MEXICO

24%

PAKISTAN

46%

INDIA

35%

ITALY

14%

EGYPT

38%

BRAZIL

25%

JAPAN14%

KENYA

45%

INDONESIA

43%

CHILE

23%FRANCE

14%

SPAINAUSTRALIA13%

11%GERMANY

11%

CANADA9% U.S.

7%

UK9%

Source: Nielson Emerging Markets Global Forces White Paper March 2012

New Product Introductions

From 1992 2009 in the USA

there were only 10 times were

new product introduction

declined for CPG products (1)

2009 India ranked 6th Globally

for Personal Care product

introductions (2)

2010 FMCG Companies

introduced 10,000+ New SKUs

in India (3)

Sources: (1) Datamonitor; (2) Personal Care in India Research and Markets May 2010; (3) Eat, pray, love innovations

Business Today India June 12, 2011

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1992 1994 1996 1998 2000 2002 2004 2006 2008

New

Pro

duct

Intr

oduc

tion

sFood and Beverage Nonfood

United States

Boundaries

Supply Economy Traditional Media

Brick & Mortar Set Pricing

FIXED MODEL FLEXIBLE MODEL

Varied Distribution Points + Traditional and New Media

$

@

Negotiated Pricing Boundless

+ Demand Economy

New Economy Based on Information Age

Source: Nielson Emerging Markets Global Forces White Paper March 2012

Challenge for Asian FMCG Companies and Retailers Build and Maintain Brand Loyalty Under

Rapid Pace of New Product Introduction

Associated SKU Proliferation

Demand Uncertainty and Volatility

Expanded Supply Chains with Global

Coordination and Local Execution

Multi-Channel Fulfillment Designed for:

Flexibility, Responsiveness, Adaptability

Agenda

Who is Chainalytics?

Asia Market Growth and Implications

Sales & Operations Planning Introduction

Analytical Enablers for Effective S&OP

Sales & Operations Planning is Crucial for Success

14

Business Strategy

Competitive

Differentiation

Geo Strategy

Financial Targets

Financial Planning

Revenue Forecast

Budgeting

Capital Plans

Cost Control

Market Planning

Prod Forecast

Promo Plans

Brand/Channel

Strategy & Pricing

R & DCategory Mgmt

New Prod Into

Prod Lifecycle Plan

Prod Mix/ Pricing /

Placement

Sales Planning

Sales Forecasts

Customer Business

Policies/Plans

Demand Planning

Historical Demand

Stat Forecasts

SUPPLY

DEMAND

CORPORATE

Supply Planning

Prod Forecast

Promo Plans

Brand/Channel

Strategy & Pricing

Demand Management

Product Allocation

Operations Planning

Sales Forecasts

Customer Business

Plans

Product Allocation

Logistics Planning

Historical Demand

Stat Forecasts

Selected S&OP Objectives

15

Increase Profits

Free Up Capacity

Focus Resources

Increase Flexibility

Manage Complexity

Business Strategy

Competitive

Differentiation

Geo Strategy

Financial Targets

Financial Planning

Revenue Forecast

Budgeting

Capital Plans

Cost Control

Market Planning

Prod Forecast

Promo Plans

Brand/Channel

Strategy & Pricing

R & DCategory Mgmt

New Prod Into

Prod Lifecycle Plan

Prod Mix/ Pricing /

Placement

Sales Planning

Sales Forecasts

Customer Business

Policies/Plans

Demand Planning

Historical Demand

Stat Forecasts

SUPPLY

DEMAND

CORPORATE

Supply Planning

Prod Forecast

Promo Plans

Brand/Channel

Strategy & Pricing

Demand Management

Product Allocation

Operations Planning

Sales Forecasts

Customer Business

Plans

Product Allocation

Logistics Planning

Historical Demand

Stat Forecasts

Effective S&OP Enhances Company Performance

Performance Drivers

Sales

Price

COGS

SG&A

Working

Capital

Fixed Assets

Revenue

Growth

Cost

Reduction

Asset

Utilization

Return on

Capital

Employed

Value Chain Solutions