Our offering for S&OPin a

SAAS Environment

SBI ConsultingWho are we?

• SBI Consulting is a dynamic, close-knit team of SAS® Business Intelligence experts.

• We offer our customers :

• Solutions,• forecast, demand planning and Sales & Operations planning

using SAS Software such as: Enterprise guide and Forecast Studio

• Customer Intelligence using Data Mining, Marketing Automation and Optimization

• High-quality services in Business Intelligence

• SBI Consulting is part of the Cronos Groep 15/04/20232

Silver Partner

SBI ConsultingWhat makes us Different

• SBI = Commitment

• If you engage with SBI, you get a team, not individuals

• We get things done no matter what.

• We offer Solutions.

• We work together with the customer and are proactively looking to add value.

• Our are above market standard

15/04/20233

Competences

Price

Forecasting and S&OP planning in a SAAS -

Environmentfor mid-sized companies

Pre-S&OP

S&OP is about the processS&OP Process Management

S&OP Preparation

Executive S&OP meeting

Plan communication

& execution

• To stakeholders

• To operational planning systems

• Demand

• Supply chain

• Finance

• R&D

• What-if scenarios

• Value-driven

• Integrated

• Decision-making

• One number plan

• Align with strategy

SBI - Values

Pragmatic approach Investment must be reasonable for the

customer Short time pay-back Easy Small Stepped approach Scalable solutions Flexible solutions Professional support

15/04/20236

The Resource Planning Model

Strategic and Business Planning used as drivers of the process. Sales and Operations Planning acts as an essential linkage, tying the Strategic and Business Plans together with the Master Scheduling function.

In companies without S&OP, there is frequently disconnect between the Business Plan and the Master Schedule.

Strategic Planning

Business Planning

VOLUMESALES &

OPERATIONS PLANNING

Operations Plan

Sales Plan

MIXMASTER

SCHEDULING

Detailed Planning and Execution

Systems

FOR

EC

ASTIN

G A

ND

DEM

AN

D

MA

NA

GEM

EN

T

CA

PAC

ITY P

LAN

NIN

G

Source: T.F. Wallace

Monthly Sales & Operations Planning Process

Step 1Run

Forecast Reports

Step 2Demand Planning

Phase

Step 3Supply

Planning Phase

Step 4Pre-SOP Meeting

Step 5Exec SOP Meeting

End of Month

Statistical Forecasts

Management Forecasts

Capacity Constraints

Recommendations and agendafor Executive SOP

DecisionsAuthorized GamePlan

Source: T.F. Wallace

The role of Demand Planning

Better processes yield better results and forecasting is no exception; better forecasting processes will yield better forecasts.

Forecasting: Inputs, Process, Outputs

Current Customers

New CustomersCompetition

EconomyNew Products

PricingPromotions

Management DirectiveHistoryOther

INPUTS

FORECASTS THAT:

Are Reasoned

Are Realistic

Are Reviewed Frequently

Represent the Total Demand

OUTPUTS

PROCESS

Source: T.F. Wallace

Class ‘A’ S&OP Cross-Functional Integration

The Business Entity

Integrated Business Management

Marketing

Sales

Demand

Source: Oliver Wight

Mfg.

Materials

Logistics

Purchasing

Distribution

SupplyProduct

Development

Portfolio Manageme

nt

Promotional Activity

Value Engineerin

g

Product Managemen

t

Financial Planning

Accounting

Finance

Quality

HR

Administration

Customer Service

Support

SupplyData

CustomerData

MarketData

Effective S&OP MUST have all components linked.

FinancialPlanning

MS

ResourceCapacityPlanning

OperationsMeeting

BusinessStrategy

DRP

StatisticalForecast

MarketData

ConsensusProcessField

SalesFcst

MarketingForecast

BusinessPlanning

SupplyChain

OneNumberForecast

History

Overall Reasons Executive Buy-in Any Time, Anywhere Access S&OP Ecosystem Connectivity Predictive Analytics

For Small & Midsized companies No hardware investment No IT Technical issues Quick deployment

Why SAAS

Key pressures to improve sales and operations planning

Improve top line revenue

Reduce supply chain operating costs

Management of increasing demand volatility

Customer mandates for faster, accurate and unique fulfillment

Need to utilize manufacturing assets with maximum efficiency

0 10 20 30 40 50 60

45

56

45

31

35

59

53

49

40

26

20102009

Source : Aberdeen Group, July 2010

Strategic actions taken by Best In Class Companies

Source : Aberdeen Group, July 2010

Manage demand forecasts within the S&OP plan

Integrating the financial planning and budgeting process with the S&OP process

Manage supply constraints with S&OP plan

Trying to reduce inventory to free up working capital

Provide executive visibility to the S&OP process

0 10 20 30 40 50 60 70 80

77

54

47

19

39

67

55

46

29

28

68

53

40

38

33

BICAverageLaggard

Technology adoption with respect to S&OP related areas

Executive reporting/dashboards

Inventory planning

Demand Planning

Supply Planning

0 10 20 30 40 50 60

19

26

30

26

24

32

33

28

33

51

53

58

Best in ClassAveragelaggard

Source : Aberdeen Group, July 2010

S&OP technology adoption in Mid-size and Large respondents

Executive reporting/dashboards

Inventory planning

Supply Planning

Demand Planning

0 5 10 15 20 25 30 35 40 45 50

22

29

30

32

32

45

47

49

Large repondentsMid-size Respondents

Source : Aberdeen Group, July 2010

Improved statistical forecast accuracy at all levels in the business hierarchy (e.g., Geo, Market, Channel, Brand, SKU, Customer)

Demand Sensing, Shaping and Translation capabilities (short-, medium-, and long-range)

Enterprise Executive Supply Chain Intelligence portal/dashboard view of business to monitor, track, and report with alerts for KPI’s

Advanced Demand Planning Workbench for collaborative/consensus forecasting

Data integration capabilities to access all the necessary data

Forecasting Advantages

18

S&OP Results AchievedImprovements can be achieved in each of the following key metrics

Forecast Performance (WMAPE) Forecast Bias Service Levels Average Inventory Material Losses Revenue Drains

Roadmap To World Class Forecasting Accuracy, Januray 25, 2009Stephen Crane, Page 19

WHY FORECAST?

The forecast drives supply planning, production planning, inventory planning, raw material planning, and financial forecasting

Companies that are best at demand forecasting average;

– 15% less inventory

– 17% higher perfect order fulfillment

– 35% shorter cash-to-cash cycle times

– 1/10 the stockouts of their peers

1% improvement in forecast accuracy can yield 2% improvement in perfect order fulfillment

3% increase in forecast accuracy increases profit margin 2%Source: AMR Research 2008

Advantages

FORECAST ACCURACY IMPROVEMENT

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

40

50

60

70

80

90

100

% F

ore

cast

Acc

ura

cy

Process, People,Statistical Forecasting

Exception AnalysisForecast Adjustments

Forecast SegmentationData Aggregation

World Class

+ 6%

+ 15%

+ 7%

INVENTORY LEVEL VS. FORECAST ACCURACY

Source: Aberdeen Group 2008

20% 30% 40% 50% 60% 70% 80% 90% 100%0

20

40

60

80

100

120

Forecast Accuracy at SKU Location

Inv

en

tory

Da

ys

of

Sa

le

55

60

65

70

75

80

85

Oct

-04

Nov

-04

Dec

-04

Jan-

05

Feb-

05

Mar

-05

Apr

-05

May

-05

Jun-

05

Jul-0

5

Aug

-05

Sep-

05

Oct

-05

27

30

33

36

39

42

45

Demand Forecast Accuracy (%)

Inventory Days of Supply

Target

Target

Forecast Accuracy vs Inventory DOS

20% Improvement

50

60

70

80

90

100

Pro

duct

ion P

lan A

dher

ence

(%)

38% Improvement

2009 2012

PRODUCTION PLAN ADHERENCE BY SUPPLY PLANNING ACCURACY

30

40

50

60

70

80

90

100

Direct

Pro

fit Acc

ura

cy

(%)

21% Improvement

2009 2012

FINANCIAL FORECAST ACCURACY

Statistical Modeling & Forecasting

Events

SAS® Demand-Driven Forecasting

Large scale automatic hierarchical modeling & forecasting

Flexible hierarchy across hundreds of thousands of data series

Ability to assign multiple models across hierarchy

Unlimited model repository

Including time series, ARIMA, Dynamic Regression, ARIMAX, UCM & customer algorithm

Statistically model events

Determine sales lifts associated with promotions, special marketing events, and other irregular activities

Consensus Forecasting Templates/Reports

w/workflow

SAS® Demand-Driven Forecasting

Demand Planning Workbench

Import & consolidate internal/external customer forecasts to determine gaps to gain consensus for S&OP Planning

Centralized, collaborative templates that simplify the enterprise-wide forecasting process

SAS® Demand-Driven Forecasting

Data Integration Flexible and reliable solution for meeting their basic data integration needs Import & consolidate

internal/external demand history, customer information, and external causal factors, like economic data using built in ETL capabilities.

Synchronize data, correct it for outliers automatically, and send results back to original data repositories for downstream planning purposes.

SAS can address all product segments

Value to

Company

High valueLow

Forecastability

High valueHigh Forecastability

Low valueLow Forecastability

Low valueHigh Forecastability

Evolutionary: Product line extensions or Short Life Cycle Productso Some surrogate or like

product history available

Revolutionaryo No available

surrogates or like product history available

High priority products

o Strong trend o Seasonal

fluctuations o Possible cycles o Sales promotions o National marketing

eventso Advertising driven

o Highly competitive

Low priority - regional specialty products

o Some trend o Seasonal

fluctuations o Irregular demando Local targeted

marketing events

Low priority products

o Strong trend o Highly seasonal o Possibly cycles

o Minor sales

promotions

Growth brands

New Products

Niche brands

Harvest brands

Demand

Shaping

Exponential

Smoothing

Intermitte

nt

Demand

Data Mining

Key Differentiators Supply Chain Intelligence Dashboard Award winning analytical forecasting engine “What If” simulation capabilities Consensus Forecasting Workflow Statistical generated “weighted” consensus Sophisticated event modeling (e.g., a sales promotion or policy

change) using multiple methods: ramp up, ramp down, pulse, and level shift)

Highly scalable Add Ins:

Financial Budgeting & Planning Inventory Optimization New Product Forecasting Microsoft Office integration

Integration with SAP APO

SAS® Demand-Driven Forecasting

SAS is THE Industry Leader in ForecastingMore than 34 years and more than 6500 SAS® Forecasting customers

Minimal Cost for Maximal Functionality Always Available from Everywhere Scalable as you grow No Investment in Hard & Software No maintenance anymore

SAAS EnvironmentOur Hosting Partner

Some Referencesof ARXUS

SAS Software No installation needed No continuous updates No backup needed No problems with security No technical personnel needed

Consulting No additional planners needed Quality of our forecasting team

SAAS EnvironmentOur Services

All this at a fairly low priceWhat are you waiting for ?