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    Improve Service Parts

    Planning and StreamlineBusiness Processes

    May 18th, 2016

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    Jeffrey D. DevineManager, Bus iness Sys temsInventor y Plannin g Systems

    Grainger Global Sourc ing Systems

    Service Parts Planning Implementation

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    Graingers Purpose

    Grainger helps professionals save time and money in keeping thoperations running and their people safe.

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    Facts and Figures

    $10 billion in

    sales in 2015

    668 branches

    More than 1.5 millionproducts stocked

    11th largest e-retailer

    in North America

    More than 4,800key product suppliers

    18 LEED certifiedlocations

    34 distribution centers

    25,700 team members

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    Handoff and manual work have resulted in system instability Any additional capabilities required custom developed program

    Prior to the implementation of SPP for Grainger there were differesolutions for DCs and Branches.

    Before The SPP Implementation

    Function DC Solution Branch S

    Demand Management Demand CaptureCustom built BW rep

    Access databases

    Forecasting and PlanningSAP Advance Planning andOptimization (APO) module

    Offline Access Data

    Fulfillment and ReplenishmentUses a manufacturing based (MRP) ordering system, customdistribution based (DRP) ordering system

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    A solution that would: Create a Common Platform Bringing all Data and Processes

    Provides a Consistent Planning Method for DCs and Branch

    Contains Multiple Standard Forecast Models and Approache

    Introduces Additional Industry Standard Methods to Current

    Desired State

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    The Implementations

    US Implementation

    US Distribution Network

    Approximately 120 Million SKUs across the US network Five Year Implementation and Rollout

    Americas Implementation North American Distribution Network

    Added Canada and Mexico Distribution Network

    Increased SKU Count to Approximately 180 millionAcr

    Network Introduced:

    Shared products across US & Mexico

    New product types for Canada

    Occurred Concurrent with US Implementation and Rollo

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    The Challenges

    Challenges (at a high level)

    Volume Related Performance Largest SPP Database in the World

    Approximately 180 Million SKUs Across the North AmericaDistribution Network

    Inability to Extend Everything Everywhere

    New Functionality Issues

    Support of Existing System in Same Environment

    Limited Exposure to SPP in the Industry

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    Overcoming the Challenges

    How did we move forward?

    The Obvious ways: Staff was trained Prior experience with APO was leveraged

    Leveraged SAP SAP MaxAttention Experts Consulting Resources On-site Management

    Extended Business Continuity Testing (BCT) Activian Effort to Reduce Risk

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    The Wins . So Far

    We Have Met Our Desire Outcome

    Improved Planning Tool Set Creation of a Common Platform Consistent Planning Method for DCs an

    Branches Operationalize End-to-End Processes

    Across Countries

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    SAP MaxAttention Services

    Our Relationship with SAP MaxAttention A Little Different than the Norm

    SAP MaxAttention was There Immediately As Needed

    Engaged via Engineering Package

    Ability to Contact Dedicated/Specific Resources

    Co-innovation with Grainger Pushed Functional Changes Through SAP Development

    Provided Needed Technical Fixes/Consulting Immediately

    Created New Features for Grainger to Satisfy Functional aTechnical Requirements

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    Area Type of Co-Innovatio

    Flow Control Performance and Functional Enhancem

    Deployment Functional Enhancements to STO Cons

    Stocking Service Functional Enhancement to Force Stoc

    Consistency Checks (CCRs) Performance Optimization for Volume P

    Flexible BoD New Development Elimination of ExteEverything/Everywhere

    Handling Large CIF Volume New Development for Grainger ReleaSAP Customers

    Co-Innovation Areas

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    Area Type of Co-Innovatio

    Buffer build program New Development Unique Way to ExPlanning Services

    Data extraction for reporting Utilize Planning Service Manager Archithe custom extracts

    Service Parts Planning on HANA LiveRoadmap

    Review Deployment of Service Parts Pon HANA Live as a Side Car Scenario fTime Reporting

    Nightly Batch Performance and Processing Optimizat

    Memory Reduction for PlanningServices

    Performance Optimization

    LiveCache Memory Reduction Performance Optimization and Space R

    Co-Innovation Areas

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    Working with SAP MaxAttention

    Has Been There with us From the Start

    SAP Brought in the Best for Grainger

    Continue to Leverage SAP MaxAttention to This Day

    SAP MaxAttention was Instrumental in Making SParts Planning a Success at Grainger!!

    SAP MaxAttention Services

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    Q&A

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    Thank You!!