1. ТBМ-Logicon Logistic and Information Integration with Suppliers

2. Goal: Improvement of communication with suppliers for organization of lean supply system for TBM Customers Tasks: To raise the transparency and reliability of the stock turnover`s system To shorten delivery terms To raise the service level for customers To assist leveling processes of production To reduce costs Strengthening of cooperation between TBM Company, Supplier and Client. ТBМ-Logicon

3. www.tbm.ru Main principles of ТBМ-Logicon Information about demand in goods is passed to the producer`s system automatically The demand of goods is formed on the basis of system of «pulling» in which Customer is the most important part Producer gets information about demand in goods ТBМ presents software product for integration with ERP system of the Producer Producer completes deliveries in the system which is integrated with TBM Logicon to the address of TBM Company and bears responsibility for correct terms of delivery. Every day Producer receives information about stock remains, forecasts of sales and purchases, delivery discipline, reclamations.

4. ТBМ Logicon - Supply chain due to Kanban system We are forming the system of «pulling» in which Customer is the main part. Until the Customer «pulls» the goods, there will be no demand in production. Client «Accept into production» Demand in production is equal to the «pulled» quantity of goods Producer Order «Pulling» goods from system

5. Partial usage of the system Automated data exchange Information exchange Complete usage of the system

6. www.tbm.ru ТBМ Logicon Automatic data exchange Confirmations Invoices Supplier `s catalogue Reasons of short deliveries and corrected delivery terms Orders TBM`s information system There is no need for manual data input. Uploading of the documents is automatic. Information system of Producer

7. With the help of TBM-LOGICON you can see actual state of TBM`s logistic system at any point such as : Factual stock of TBM`s warehouses due to each supply chain 1 Monthly sales forecast for 12 months in advance 4 Purchases` forecast (monthly, weekly) for 12 months in advance 5 Short-deliveries 6 Estimation of delivery discipline 7 Quality deliveries estimation (quality reclamations, estimation by the system Six Sigma). 8 ТBМ Logicon Information exchange 2 Basic stock due to each supply chain 3 TBM`s current demand due to each supply chain

8. ТBM - Logicon. Main interface You can see the factual stock of TBM`s warehouses due to each supply chain 118 of producers are included in the system 30 of producers are working in the system now TBM-Logistik, 10 divisions and branches are participated in the system The system includes 12 report forms

9. ТBМ - Logicon. Calculation of the actual needs Every field contains important info about the state of TBM`s logistic system

10. ТBМ - Logicon Interface: Short deliveries. The Producer can see all short - deliveries, indicate reason of delay and correct the planned delivery date.

11. ТBМ - Logicon. Interface: Modeling of purchases Fact – ordered Plan – will be ordered. Fact + Plan = Total sum of demand for week. Purchases` forecast for 12 months in advance is available. Fact – ordered Plan – will be ordered. Fact + Plan = Total sum of demand for week. Purchases` forecast for 12 weeks in advance is available.

12. ТBМ - Logicon. Interface: delivery discipline You can see the calculation and graphic display of delivery discipline per article.

13. ТBМ - Logicon. Interface: Claims You can see all the claims and quality deliveries estimation (quality claims, estimation by the system Six Sigma) among TBM rated producers (from top 100 rating by turnover).

14. ТBМ - Logicon. Interface: Main indicators of the activity With the help of this form you can see the report form with the main indicators of activity and estimate the quality of the work.

15. ТBМ-Logicon – TRUST between partners

16. Leveling processes of production will help to improve production schedule Increase the speed and reliability of the information exchange process Reduction of working hours for maintenance of process of supply Producers receive on-line information on the state of the TBM`s logistics system Increasing of customer`s service level Improving of cooperation between our Companies Obtaining of «dividends of high trust» ("The Speed of Trust" by Stephen M.R. Covey, Rebecca R. Merrill.) ТBМ-Logicon Advantages for producers

17. Client`s demand is forwarding to the Producer`s information system instantly. Increasing of service level Client can see actual delivery terms Improving of cooperation between Client, TBM and Producer. Obtaining of «dividends of high trust» ТBМ-Logicon Advantages for Clients

18. ТBМ-Logicon Advantages for TBM. The speed and reliability of the information exchange process increases Reduction of delivery terms Reduction of working hours for maintenance of process of supply. Improvement of delivery discipline and service level for Clients Improving of cooperation between Client, TBM and Producer. Obtaining of «dividends of high trust»

19. Producers` participation in ТBМ-Logicon system TBM Logicon System has been working since year 2008 Quantity of the Producers in LOGICON

20. COMPLETE ELECTRONIC AND INFORMATION EXCHANGE Electronic documents circulation (orders, confirmations,invoices) Automatical uploading of the orders to the Producer`s system Access to LOGICON`s information block ELECTRONIC AND INFORMATION EXCHANGE WITH POSSIBILITY OF ORDERS` MANUAL CORRECTION Electronic documents circulation (complete or partial) Access to LOGICON`s information block INFORMATION EXCHANGE Access to LOGICON`s information block 28% input stream of supply 18% input stream of supply 25% input stream of supply

21. Information or ТBМ LOGICON`s resources pointed out by Suppliers as the most important: Automatical uploading of the orders to the Producer`s system Information about stock remains Information about sales` forecast and modeling of purchases Information about open orders

22. Thank you for Your attention!