Putting Material Order Variability in Order

Customer Management Breakout Session –

inSIGHT 2013

Presented by Gary Neights

Elemica’s Customer Management Suite

Touch-less order processing

Increase the “perfect order” percentage

Improved supply chain reliability

Reduces errors

Improved customer service

Faster invoice payments

Agenda

Elemica Insights on Customer Management – Direct research

• Surveys and user group • CCSMG (business chapter of ICSA)

– Secondary research (Gartner, Aberdeen)

Customer Management Overview Delivery Schedule Launch

People Value Automation

Holiday, sick days, and training coverage is easier with standard, automated processes.

Protects our business. Servicing more customers, more efficiently keeps us strong and profitable.

Frees up time for the important tasks like … • Product availability and allocation • Order growth and contract consumption analysis • Exchanges, swaps, tolls, and transportation • Maintaining customer data

Fewer orders miss cutoff times when they flow into automated work processes.

How do I automate all my customers?

Automation impacts different people in different ways…

Automation solves issues with incorrect product identifiers, getting orders inside cutoff times, and high fulfillment costs in our specialty business.

Elemica has solved the problem of smaller customers ordering with the wrong unit of measure.

My business sells commodity products. Automation fixes issues related to shipping the right product to the correct location on the right date.

This results in 30% order cycle time improvements, 8-9% improvement in on-time delivery and fill rates, and 75% fewer order entry errors.

Best practices to get there

Process Design • Automate the routine:

– Transactions (order, invoices) • Standard instructions to CMIR

– 24x7 portals • Status, trace, and reports

• Free up brain power

– Customer inquiries / training – Expedite special instructions – Exceptions / complex orders – Customer insight / relations

Process Enablement • People

– Management buy-in & budget – Staff motivation and skill set

• Process – Automate transactions – People manage master data – When to involve people

• ATP Accuracy

• Technology – Right tools for the job – Data integrity

CUSTOMER MANAGEMENT OVERVIEW

The Elemica Supply Chain Operating Network

Analytics

Universal Business Concepts BI

Applications

Universal Business Concepts Rules Apps

Social UI

Discovery

Onboarding

Collaboration

Apply the Right Process

Derive Insight

Document Stream

Document Stream

Enterprise Systems of

Record

Enterprise Systems of

Record

Universal Business Concepts Network Master

Data Management Connectivity

Network Speak YOUR

Language

Automation Value

$

Process Enablement

$$

Market Insight

$$$

Order Automation

23-80% Automation Savings Order

Lower Error Correction Costs Data Keying Paper Handling Convert/Correct Data

Improve Agility in Operations

Missing order line Missing cut-off times

Better data quality

Better decision making Fewer downstream errors

$29.49 Cost of Manual Order

$5.99 Cost of Electronic Order

23%

80%

38%

Customer Management

Design Concept • Customers manage their business process in their system • Customer service manage their business process in their system • Elemica ‘standardizes and harmonizes’ the disparate processes • Internal IT focused on uptime, data accuracy, and process optimization

10

EDI/XML Orders

Complexity

ERP Process-able Orders

Your Customers

Your Systems

Single Channel to Manage

QuickLink

Simplify and Standardize

Elemica Products

Customer Sends Seller Receives

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Sales Order Management ✔ ✔ ✔ ✔ ✔ ✔ Repeat Order Entry ✔ ✔ ✔

Vendor Managed Inventory ✔ OP OP OP ✔ ✔

Rail Car Fulfillment ✔ ✔ ✔

Delivery Schedule ✔ ✔ ✔ ✔

11 Variation and Complexity Simplicity

OP = optional

DELIVERY SCHEDULE

Elemica Process: Delivery Schedule

Delivery Schedule Value

AUDITABLE. Provides confidence and visibility to the business. “The interface requires no training!”

Network Master Data Management. Extends the power of SAP. Technology and business staff manage their supply chain settings.

Does the same base tasks as before… • Compares sequential delivery schedules • Generates order changes, and ship notices • VALUE = Automates error prone task

SHIPMENT PROCESSING. Eliminates duplicate shipments.

EASY UPGRADE PATH. Most customers on legacy systems are asking for small upgrade projects.

DELIVERY SCHEDULE IMPROVEMENTS

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Major Application Upgrade

Ground Up Application Development On-line setup screens w/ default values Visibility – audit and research Improved functions

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Robust Functionality…

Ship Notice Integration Reference Value Processing Independence of Processing Logic Support for multiple “Order Cancel” triggers

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Network MDM

Network master data is user maintainable

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More User Control…

Robust network master data management

19 These settings do not exist in the ERP

More Visibility…

Track “processing results” over time…

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1st DFC Created Order

2nd & 3rd DFCs Matched

4th DFC Changed Requirement

Auditable results

Transaction Visibility…

“Snapshot” of each processing event Captures:

– a) what happened – b) network MDM settings at the time of processing

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Summary

Foundational processing remains the same New Functionality, User Controlled Flexible Parameters, Increased visibility for tracking & troubleshooting

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QUESTIONS/ COMMENTS

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