1. ©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 1 Christian Verstraete – Chief Technologist – Manufacturing & Distribution Industries April 2010 Improve Operations By understanding the Value Chain

2. 2 Footer Goes Here 2 Industry Trends and Business Environment

3. 3 Footer Goes Here 3 Supply Chain = Eco-system  Supply chain visibility matters to everyone across the value chain  However, each supply chain stakeholder has different needs  Top-down alignment is necessary to ensure operational behaviors support strategic objectives  The Solution provides Real time end to end visibility, predictive alerts, Real time KPI visibility and Analytics to improve desired business outcomes. End-to-End Supply Chain Visibility and Performance Management Depth of Strategic Insights and Decision Support Trends, Tactical Planning and Root Cause Analysis VP, Supply Chain Supply Chain Manager Supply Chain Planner

4. 4 Footer Goes Here 4 Four key components required Collaborative Partners Standardized Processes & Measures Information Backbone Data & Analysis Methods

5. 5 Footer Goes Here 5 Supplier/Partner Relationships Building Partnerships – Build win-win relationships with suppliers taking into account: Cultural issues Trust issues Risk issues – Share information before requesting some from the supplier – Ensure he experiences the benefits before having to invest – Agree on data content & format – Design integrated business processes to avoid overlaps – Establish proper escalation processes

6. 6 Footer Goes Here 6 – Consistent Process Definition – Standardized KPI measures – Available Benchmark Data – Best Practices documented Standard Processes & Measures www.supply-chain.org

7. 7 Footer Goes Here 7 Develop an Information Backbone Point to PointHubCloud

8. 8 Footer Goes Here 8 Three Planning Levels OperationalTacticalStrategic Operational addressing production scheduling, sales order management and inventory. Tactical is related to market development, product development, business scenario’s, customer plans and resource/capacity adaptation Strategic focuses on markets, technologies, customer priorities, organizational set-up and investments. Source: Managing demand uncertainty in supply planning, Gupta and Maranas

9. 9 Footer Goes Here 9 Three steps to optimize Supply Chain Redesign to Optimize Scenario PlanningSimulation Analyse Trends Spot issues earlyIdentify Problem Areas Gain Visibility Reduce InventorySpot Issues Operate Improve Transform

10. 10 Footer Goes Here Manage The Supply Chain

11. 11 Footer Goes Here 11 Work around three time horizons MODULESHORIZONFUNCTIONALITYEXAMPLES 6 Months or more Strategic Decisions Inventory Analytics Weeks/MonthsTrend Analysis Perfect Order Fulfillment KPI’s linkages and root cause analysis 1-10 DaysOperationalOrder Tracker

12. 12 Footer Goes Here 12 Monitoring Cockpit - Functionalities Tracking order status across the value Chain Visibility into product returns for a product and corresponding action plan Sales Exceptions Inbound and Outbound Transportation Delay Visibility Upstream and Downstream availability of Inventory across nodes Decision Support Enablement: Streamline the Supply chain by better upstream and downstream visibility enabling consistent delivery performance Track exact products responsible for high returns and launch root cause analysis Provide insightful data to substitute products and provide options for up- sell Sensitivity analysis on Forward days of Inventory to create scenarios aiding in better inventory performance Enable routing and changes in existing transport plans by providing alternate options

13. 13 Footer Goes Here 13 VCPA Monitoring Cockpit- Scenario Potential Stockout alert for a product at a Dealer User clicks on the alert to see the Inventory Planning book

14. 14 Footer Goes Here 14 Manage Stock and Delivery

15. 15 Footer Goes Here 15 Diagnosis Board - Functionalities Monitoring Total Supply Chain Management cost and do a root cause for optimization Warranty and customer service analysis and corresponding KPI Linkages across the value chain Level 1 KPI’s (Performance) High Level Business Outcome Sourcing KPI’s (Performance) Manufacturing KPI’s (Performance) Customer KPI’s (Performance) Distribution KPI’s (Performance) Root Cause Trends Continuous Improvement Delivery Performance and linkages to the entire value chain Inventory Optimization and its linkages to the entire value chain Order to Delivery Cycle time optimization across the Value chain

16. 16 Footer Goes Here 16 VCPA Diagnosis Board Scenario Production Schedule adherence for a product has a negative variance with the goal Clicking on the Production Schedule adherence graph will allow a user to identifying the products causing maximum adherence problems

17. 17 Footer Goes Here 17 Analysis of Forecast versus Actuals

18. 18 Footer Goes Here 18 Analyze Service LevelsSupplierManufacturerDistributorDealer End Customer

19. 19 Footer Goes Here 19 Finding Trends

20. 20 Footer Goes Here 20 VCPA Analysis Room - Functionalities Inventory Analytics Warranty Analytics Overall Supply Chain Cost Spend Analytics Sales and Customer Analytics C-level Dashboards, Slice and Dice reporting and robust Analysis Templates for easing strategic decision making and continuous improvement plan to realize business outcomes

21. 21 Footer Goes Here 21 VCPA Analysis Room - Scenario Overall delivery performance is less than the target goal Over a period of six months the delivery performance has been inconsistent

22. 22 Footer Goes Here 22 Identify and Optimize Product Categories Gross margin as % of Product Price Inventory Turns

23. 23 Footer Goes Here 23 Develop Mathematical Supply Chain Models

24. 24 Footer Goes Here 24 What Service Level Agreement to aim for?

25. 25 Footer Goes Here Close The Loop

26. 26 Footer Goes Here 26 Strengthen the Supply Chain Understand what happens Identify Risk Areas Develop Responses Mitigate RiskAvoid the Risk Gain Visibility Gain Understanding Become Pro-active Redesign your Supply Chain Reduce Implications

27. 27 Footer Goes Here 27 – Will your competitor suffer from the same issue? – How fast do I need to respond? – Can I present myself as in control? – Can I take market share away? – What is the cost of not reacting or be late? Don’t forget an Issue is also an Opportunity

28. 28 Footer Goes Here 28 – Start from measures – Use standards to facilitate comparisons – Align focus areas with company strategy – Identify whether you need to go beyond the company – Build collaborative partnerships – This is a never ending story Final Thoughts

29. 29 Footer Goes Here Outcomes that matter. Mail: christian.verstraete@hp.comchristian.verstraete@hp.com Blog: www.hp.com/blogs/manufacturing-distributionwww.hp.com/blogs/manufacturing-distribution Twitter: @christianve