Consumer Packaged Goods & Retail Activities, Trends, Innovation, Requirements 2014 Q2 Updates

Consumer Goods Opportunities in Play ERP Platform MarketSolutionStatus Northeast FoodsSAPFoodServiceRoute & PLBJoint presentation with SAP at prospect 2 nd week in June Eby BrownSAPFoodServiceRoute PLB, TRPExcellent demonstration HospiraSAPMedical DeviceRoute & PLBLooking to bring it into 2014 budget WeyhauserSAPLumberRoute & PLBMeeting 3 rd week in June for onsite review value assess. LennoxSAPHHGPLBOnsite meeting to discuss closure in June MedtronicsSAPMedical DevicePLBOnsite in NL’s SCA MexicoSAPPersonal CarePLBAwaiting signature on 2 week pilot Fuji FilmsSAPHHGPLBPricing Request CarefusionSAPMedical DevicePLBNurturing ExxonMobileSAPCG AutomotivePLBWorkshop in JUly

Marketing Strategy Jeff and other BU developing new marketing strategy Focus on “Predictive Commerce Platform” Targeting Retail, Consumer Goods More to come in future weeks

Key CG & Grocery Retail Challenges in How to grow revenue 2.How to address demand and promotion volume volatility 3.How to address multi channel without degrading service 4.How to align planning and execution for increased success 5.Focus on minimizing supply chain cost PlanningExecution

Consumer Good Drivers & Recommendations Need to find revenue growth is impacting how CG companies deliver value to their customers Continued demand volatility is increasing pressure to fulfill demand thus causing companies to leverage data analytics and integrated ETE networks Addressing multi-channel requirements without impacting customer and increasing cost-to-serve Business Driver Market Recommendation Develop e-commerce multi-channel fulfillment initiatives with key retailers Take advantage of downstream POS data to improve customer collaboration results. Use data to capture customer insights. Focus on analytics Perform cost-to-serve analysis to understand t he impact. Retailer and CG. Improve collaboration between retailer and manufactures. Alignment of planning and execution to ensure end to end value Move closer to execution by sensing and responding. “Perfect Logistics”. Continue to drive down supply chain costDeliver on sustainability initiatives. Focus on Warehouse & Transportation collaboration

Consumer Good Focused on Revenue Growth Need to find revenue growth is impacting how CG companies deliver value to their customers Continued demand volatility is increasing pressure to fulfill demand thus causing companies to leverage data analytics and integrated ETE networks Addressing multi-channel requirements without impacting customer and increasing cost-to-serve Business Driver Market Recommendation Develop e-commerce multi-channel fulfillment initiatives with key retailers Take advantage of downstream POS data to improve customer collaboration results. Use data to capture customer insights. Focus on analytics Perform cost-to-serve analysis to understand t he impact. Retailer and CG. Improve collaboration between retailer and manufactures. Alignment of planning and execution to ensure end to end value Move closer to execution by sensing and responding. “Perfect Logistics”. Continue to drive down supply chain cost Deliver on sustainability initiatives. Focus on Warehouse & Transportation collaboration

Consumer Good Solution Requirements  Network design opportunities to help manufactures identify the trade-offs and to segment their supply chain  Gartner insist retailers are after network design solutions to help them model the multi channel distribution network  Use the last mile cases to demonstrate omni-channel delivery capabilities  AHOLD and Delhaize Last Mile Delivery  Position our analytical strength to customers identify insights and outliers to improve customer demand

Consumer Good Focused on Revenue Growth Need to find revenue growth is impacting how CG companies deliver value to their customers Continued demand volatility is increasing pressure to fulfill demand thus causing companies to leverage data analytics and integrated ETE networks Addressing multi-channel requirements without impacting customer and increasing cost-to-serve Business Driver Market Recommendation Develop e-commerce multi-channel fulfillment initiatives with key retailers Take advantage of downstream POS data to improve customer collaboration results. Use data to capture customer insights. Focus on analytics Alignment of planning and execution to ensure end to end value Move closer to execution by sensing and responding. “Perfect Logistics”. Continue to drive down supply chain cost Deliver on sustainability initiatives. Focus on Warehouse & Transportation collaboration Perform cost-to-serve analysis to understand t he impact. Retailer and CG. Improve collaboration between retailer and manufactures.

Consumer Good Solution Requirements  Providing analytics capabilities to consumer good manufactures understand consumer insights  2 discovery initiatives underway with PG currently  Future Optimization of PG Supply Chain  Customer Order Pattern Analysis  Currently working with Terra Technology to be solution provider for demand forecasting. Terra is the front runner in this space with proven forecast accuracy. Strong Consumer Good customer base globally.  Can support the predictive commerce platform for demand planning  Strong customer base introduction into Pepsico, Kimberly-Clark, Campbells Soup and other consumer good targets

Consumer Good Focused on Revenue Growth Need to find revenue growth is impacting how CG companies deliver value to their customers Continued demand volatility is increasing pressure to fulfill demand thus causing companies to leverage data analytics and integrated ETE networks Addressing multi-channel requirements without impacting customer and increasing cost-to-serve Business Driver Market Recommendation Develop e-commerce multi-channel fulfillment initiatives with key retailers Take advantage of downstream POS data to improve customer collaboration results. Use data to capture customer insights. Focus on analytics Alignment of planning and execution to ensure end to end value Move closer to execution by sensing and responding. “Perfect Logistics”. Continue to drive down supply chain cost Deliver on sustainability initiatives. Focus on Warehouse & Transportation collaboration Perform cost-to-serve analysis to understand t he impact. Retailer and CG. Improve collaboration between retailer and manufactures.

Consumer Good Solution Requirements  Position our Supply Chain Design solution to identify cost to serve.  Partner with Terra Technology/Toolsgroup to support inventory optimization

Consumer Good Focused on Revenue Growth Need to find revenue growth is impacting how CG companies deliver value to their customers Continued demand volatility is increasing pressure to fulfill demand thus causing companies to leverage data analytics and integrated ETE networks Addressing multi-channel requirements without impacting customer and increasing cost-to-serve Business Driver Market Recommendation Develop e-commerce multi-channel fulfillment initiatives with key retailers Take advantage of downstream POS data to improve customer collaboration results. Use data to capture customer insights. Focus on analytics Alignment of planning and execution to ensure end to end value Move closer to execution by sensing and responding. “Perfect Logistics”. Continue to drive down supply chain cost Deliver on sustainability initiatives. Focus on Warehouse & Transportation collaboration PlanningExecution Perform cost-to-serve analysis to understand t he impact. Retailer and CG. Improve collaboration between retailer and manufactures.

Consumer Good Solution Requirements  Position our solutions as “One Platform” to address end to end planning to execution.  Blurr the lines between the solutions to demonstrate cohesive integration.  Partner with Terra Technology/Toolsgroup to support inventory optimization

Example: Planning & Execution Orchestration ToolsGroup and ORTEC joint marketing at Gartner event converging planning and execution

Consumer Good Focused on Revenue Growth Need to find revenue growth is impacting how CG companies deliver value to their customers Continued demand volatility is increasing pressure to fulfill demand thus causing companies to leverage data analytics and integrated ETE networks Addressing multi-channel requirements without impacting customer and increasing cost-to-serve Business Driver Market Recommendation Develop e-commerce multi-channel fulfillment initiatives with key retailers Take advantage of downstream POS data to improve customer collaboration results. Use data to capture customer insights. Focus on analytics Alignment of planning and execution to ensure end to end value Move closer to execution by sensing and responding. “Perfect Logistics”. Continue to drive down supply chain cost Deliver on sustainability initiatives. Focus on Warehouse & Transportation collaboration Perform cost-to-serve analysis to understand t he impact. Retailer and CG. Improve collaboration between retailer and manufactures.

Collaboration Example Goal: Improve supplier collaboration to deliver improvements in visibility and fulfillment. Challenge: Demand Volatility Supplier Lack Visibility Overall Supplier Performance Solution:E2Open Cloud Based Supplier Collaboration Share Forecast with Suppliers Benefits:Reduced cycle planning and increase supplier performance

ORTEC Answer to Customer Focused on Spend Goal: Increase transportation and warehouse collaboration Challenge: 50-80% full-truck load utilization to some customers LTL vs. FTL decisions Warehouse handling cost Solution:ORTEC Transportation Collaboration Build multiple supplier trucks delivered to the same customer Allocate cost based on truck utilization Benefits:Reduce cost, reduce number of single shipper loads, give retailer what they want This is Our Opportunity!

Transportation Collaboration Industry Value  Inventory reductions; improve working capital position  Maintain or improve in-stock position  Enable top line growth  Less receiving dock congestion  Improve logistics expense  Sustainability gains  Improve strategic alignment with retailer  Maintain or improved in-stock  position  Enable top line growth  Improve logistics expense  Sustainability gains Potential ABC Retailer Value Potential Partners Value Depending on existing ordering and supply chain profiles, value can show up differently across companies

Innovation Opportunities

Market Driven Transportation Forecasting Definition  Connects demand sensing with truckload optimization via predictive orders.  Provides the ability to shift from reacting to orders to proactively managing capacity requirements.  Predicting transportation capacity in advance reduces the reliance on spot markets, locks in carrier commitments sooner, and improves time to adjust to logistical issues in a tight carrier market.  In addition, it improves carrier collaboration, increases intermodal shipment opportunities, and provides the ability to smooth warehouse resources

Transportation Challenges Demand Variability Promotional Timing Capacity Issues Orders vs. Scheduled Shipments Mode Selection Timing Spot Market Carrier Selection Visibility to Demand Signal Reacting

The Process Customer Sales Activity Promotions & Seasonal Patterns POS History What are the Short-Term Demand Patterns What Are My Most Important Sales Customers Doing? How are they consuming the demand? SKU – Location Level Daily Replenishments Carriers Lane Mode Equipment Class Forecast Shipments by Carrier/Lane Weekly Master Plan Warehouse Resource Schedule Procure Carrier Commitments Earlier Schedule Workforce to Load Capacity OTD vs. Intermodal Balance Dock Door Scheduling Available Labor SKU Dimensions Load Rules

Transportation Forecasting Benefits Synchronized Manufacture and Distribution Plans Reduce reliance on spot markets Increase intermodal Decrease deadhead Warehouse resource smoothing Improved collaboration with carriers Time to adjust logistical issues

Transportation Forecasting Analysis

SAP Route Planning Delivery Visibility Needs Current GAP:  No ability to track/trace truck deliveries in planning board  No ability to review “Proof of Delivery” Requirement:  Ability to receive GEO information from mobile devices  Ability to receive “proof of delivery signature”