supply chain functionalitysupply chain functionality

collaboration

analyticsanalytics

optimization

isibilitvisibility

Company Overview

The process industry has been undergoing dramatic changes over the past two decades due to globalization, industry consolidation, intensifying competition, and deteriorating margins. Companies in the process industry need supply chain systems that can deliver a competitive advantage through improved profitability, market share, and customer responsiveness.

WAM Systems is a highly focused company dedicated to building advanced l i t l d i d t h l f t i i

Since 1987,

WAM S t h

planning tools designed to help process manufacturing companies overcome these challenges. WAM is revolutionizing how such firms plan and manage their supply chains in today's increasingly complex and competitive world.

Founded in 1987, WAM Systems has a long history of providing supply chain solutions to many of the world's largest process firms. Our supply chain solution Picaso™ is proven to improve profitability competitiveness

Picaso™ at a Glance

The process industry supply chain is unique It has complexities challenges

WAM Systems has

been helping the

world’s leading

companies,

chain solution, Picaso™, is proven to improve profitability, competitiveness, and customer relations.

The process industry supply chain is unique. It has complexities, challenges and opportunities unlike other businesses.

Only the Picaso supply chain planning system was designed from the ground up to meet the specific requirements of process companies. It is powered by a single, common model that reflects the real-world operations and needs of the industry.

including

Celanese

LyondellBasellThe Picaso software solution is a comprehensive suite of decision support and optimization applications that supports a broad set of supply chain business functions including

• Demand planning and forecasting• Sales and Operations Planning

S l h i ti i ti

y

Evonik

Eastman

Banner Pharmacaps

Indian Oil • Supply chain optimization• Inventory targeting and optimization• Distribution planning• Production planning, scheduling & optimal policy setting• Raw materials planning• Available-to-promise order fulfillment analysis

Indian Oil

Honam

PetroChina

Advanced Supply Chain Planning Solution

Picaso delivers a

comprehensive solution that

helps you optimize every

aspect of your process supply

chain--from demand

management and distribution

planning through production

scheduling and sourcing Thisscheduling and sourcing. This

fully-integrated suite of

planning and optimization

modules gives you all the tools

you need to develop fast and

accurate plans that help you

maximize profitability and

productivity.

The Picaso suite of modules allows for seamless connectivity to your ERP system.

Picaso connects to SAP® using technology with SAP Certified Integration.

For each major planning area, Picaso’s unique analytical capabilities seek out

optimal solutions and include simulation and visualization tools that help you

understand the impact of various supply chain operating strategies and

Picaso works with today’s top

ERP systems, including SAP. p pp y p g g

unexpected events.

Picaso also helps you stay ahead in this fast-moving world with its innovative

Supply Chain Event Monitor, which maintains an up-to-the-minute simulation

of your supply chain and alerts you to problems or opportunities that could

It has been specifically

designed to extend the

functionality of your existing

ERP system by providing real-significantly affect your profitability or competitiveness.

Picaso also includes robust, easy-to-implement interfaces to a variety of

popular ERP systems to assure timely information is available to support

informed decision-making.

time visualization, collaboration

and “what-if” analysis tools to

your supply chain organization.

Supply Chain Event MonitorPicaso Supply Chain Event Monitor serves as the core

of the Picaso planning system. The highly graphical interfaces of Picaso's Grid Console provide an all-in-one

look at inventory projections, order status, planned production and material movements across all of the

products in a business.

Distribution Replenishment PlanningIntegrated with the Supply Chain Event Monitor, the Picaso DRP module uses product formulations and replenishment algorithms to compute and recommend just-in-time replenishment orders for raw materials. These replenishments consider the lead-time and typical lot size from each supplier. Raw material inventories and replenishment orders are automatically linked to the supply chain simulator suchreplenishment orders are automatically linked to the supply chain simulator such that a change in a production schedule that turns raw material plans infeasible will trigger algorithms to re-plan optimal replenishment.

Dynamic SchedulerThe Picaso Dynamic Scheduler is used in Raw order / inventory status

before a production schedule cycle-based production environments to determine optimal production plans. The

Dynamic Scheduler determines optimal cycle characteristics such as cycle length, product

sequence, and frequency and considers variable production costs such as product-to-

product transitions and off-grade production. It

phas been created. Stock outs for each SKU line are indicated in red.

Manually-created production schedule that addresses most needs, yet still includes

f t i i dalso considers customer service impacts to maintain customer service levels. The end

result is a production schedule—created and/or updated in a matter of seconds—that

provides the best balance between transition costs, inventory holdings,

and customer service.

some future issues in red that require attention

Production schedule from Dynamic Scheduler offering the best balance between production costs and customer service

Customer Service WorkstationThe Customer Service Workstation provides Available-To-Promise (ATP) functionality and order status updates to support day-to-day activities of the customer service personnel. The Available-To-Promise analysis p ysynthesizes inventory, production schedules, orders and forecasts to compute availability for any moment in the future, and also recommends alternate sourcing options if preferred sources are at capacity.

Collaborative Sales ForecastThe Picaso Demand Planning and Forecasting Module creates statistical forecasts and supports the collaborative forecasting process.

• Generate statistical forecasts using a flexible, multi-tier tournament of statistical forecasting models

• Collect sales forecasts from field sales personnel• Allow sales and customer service representatives,

marketing planners and business managers to view, analyze, and override statistical forecasts based on marketing intelligence and unique

Production SchedulingThe Picaso Production Scheduling module provides users with powerful

g g qknowledge of customer requirements

• Create personalized analytics to evaluate forecasting effectiveness

The Picaso Production Scheduling module provides users with powerful simulation capability, wherein key operating parameters such as product

transitions, equipment rates, and yield values can be modified to help create the best candidate schedule. In addition, changes made to the schedule are automatically incorporated into the Supply Chain Event

Monitor, allowing schedulers to immediately determine the feasibility and effectiveness of their changes.

Inventory TargetingPicaso Inventory Targeting provides a means for calculating safety stock recommendations based on targeted customer service levels. It also compares optimum inventory levels to anticipated inventory levels based on current supply chain management policies.

Advanced Planning and S&OPThe Picaso Advanced Planning module provides the capability to

support Sales and Operations Planning (S&OP) activities and analyses. The tool can be used to determine optimal production and

sourcing policies that reduce costs and maximize profitability. In addition, it provides a means of rapidly determining not only what

portion of the forecast is feasible to produce, but what product mix is most profitable to produce. In situations where capacity exceeds

demand, the tool identifies opportunities to increase profits by recommending expanded production and sales of key products.

Picaso @ Work

Excellent expertise. WAM’s

consultants all are ex-SCM users

Increased

forecast accuracy

from 45% to 85%We expect to improve customer service,

and experts. They know the tools

and the business. This was a

differentiating factor.

The Picaso optimization modules

Our selection of the Picaso solution

Reduced inventory

by 25%

Increased

on-time shipments

supply chain productivity and financial

performance significantly with WAM Systems’

integrated solution.

paid for themselves within the first

year of use.

The powerful combination of

Picaso integrated with our SAP

was greatly influenced by its ability to

quickly and easily model the complexities

of process supply chains, providing visual

displays and powerful optimization

capabilities.

p

by 15%

Provided global

visibility across 4

different ERP

ERP system provides a solution

not available in any single tool.

WAM has played a key role in

meeting our supply chain

WAM Systems’ Picaso offered the

ideal solution to quickly install and

begin helping our planning staff while

we continued to move forward with our

systems

Reduced

scheduling

overhead by 50%

g pp y

performance objectives. Our

expansion of Picaso to support

worldwide operations extends these

benefits throughout the enterprise.

In choosing a partner for our supply

chain initiative, we spoke with industry

analysts and evaluated dozens of

vendors WAM Systems provides the

SAP / APO initiative.overhead by 50%

Improved

inventory mix

by 50%

We selected WAM Systems to provide

our supply chain solution based on their

process industry track record. They offer

a targeted solution that mirrors our

planning needs, and they bring a vendors. WAM Systems provides the

winning combination of process industry

expertise and high value solutions built

specifically for our needs.

p g y g

knowledge of industry best practices that

we consider every bit as important as

their software offering.

Id tif i th Hidd V l i Identifying the Hidden Value in Your Process Supply Chain

The supply chain is one area of process operations where significant performance improvement opportunities remain. Process manufacturers invest large amounts of capital in complex production and distribution assets, and the

The

WAM-IDProcessco p e p oduct o a d d st but o assets, a d t e

utilization of these assets generates the bulk of the cost of goods. Incremental improvements in supply chain operations can unlock tremendous corporate value.

Companies that employ industry best practices in the supply chain often gain significant competitive advantages in terms of margins capital employed and customer satisfaction

ProcessThe WAM ID Process™ was developed to provide process manufacturers with a structured approach to identify opportunities to improve their supply chains in ways thatof margins, capital employed and customer satisfaction.

Identifying and quantifying opportunities within the supply chain isn't easy

Supply chains are highly complex. Supply chain business

to improve their supply chains in ways that will increase corporate value. The WAM ID Process is effective whether a company is considering a comprehensive solution to support its overall supply chain planning needs or whether a company is looking to identify targeted solutions to resolve specific supply chain challenges

functions span multiple departments and business units and involve the participation of dozens or hundreds of people. Poor data quality and a lack of analytical tools compound the challenge of uncovering opportunities to improve operations and reduce costs.

WAM Systems has years of experience helping process

supply chain challenges.

There are several phases within the WAM ID Process. The first four phases lead to the development of a business case for change. The last three phases assure a successful implementation and long-term fulfillment of identified business improvements andy y p p g p

companies improve decision-making and control costs. Using our knowledge of industry best practices, we help companies assess their operations to identify high value, quick-return supply chain improvement initiatives.

identified business improvements and enabling technologies.

WAM Systems – North America

Corporate Headquarters

600 West Germantown PikeBenchmarking Surveys

600 West Germantown Pike

Suite 230

Plymouth Meeting, PA 19462

Phone +1.800.358.8305

Fax 484.530.4854

Email info@wamsystems.com

WAM Systems is conducting a series of benchmarking

surveys with process companies throughout the world in an

effort to assess the overall maturity of industry supply chain

practices. The purpose of these surveys is to help you

’ l h i t it ith Web www.wamsystems.com

WAM Systems – South America

Av Nações Unidas, 12551

9th and 17th floors

CEP 04578-903 - São Paulo

compare your company’s supply chain process maturity with

that of your industry peers. Each survey is composed of a

telephone interview and final report. Sign-up now to

participate and receive your personalized company report.

Partner Program

At WAM Systems, we continually reinforce our commitment

to create competitive advantages for our customers by

teaming up with key business partners. We have developed

CEP 04578 903 São Paulo

SP - Brazil

Phone +55.11.3443.7732

WAM Systems - Asia

80 Raffles Placeteaming up with key business partners. We have developed

strategic alliances with leading technology companies to

deliver supply chain planning solutions to substantially

improve profitability through measurable cost reductions and

optimization of operations. WAM Systems is always looking

for top-notch partners. If you are interested in establishing a

Level 35 UOB Plaza 1

Singapore 048624

Phone +65.6248.4772

WAM Systems – Europe

Gustav-Stresemann-Ring 1mutually beneficial alliance with WAM Systems, please

contact us at our corporate headquarters.

Copyright © WAM Systems / All rights reserved.

Gustav Stresemann Ring 1

65189 Wiesbaden

Germany

Phone +49 (0)611.97774.410

Email eu@wamsystems.com

SAP and APO are the registered trademarks of SAP AG in Germany and in several other countries.