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SAP SNCSupply Network CollaborationKirsten Loegering & Ganesh Vellore Solution Manager SAP SNC

AgendaSAP SNC Overview SAP SNC Supplier Collaboration SAP SNC Outsourced Manufacturing SAP SNC Quality Collaboration SAP SNC Customer Collaboration SAP SNC Summary

2011 SAP AG. All rights reserved.

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AgendaSAP SNC OverviewCustomer Pain points Collaboration Challenges SAP SNC Value Proposition SAP SNC Solution Growth SAP SNC Customer References

SAP SNC Supplier Collaboration SAP SNC Outsourced Manufacturing SAP SNC Quality Collaboration SAP SNC Customer Collaboration SAP SNC Summary

2011 SAP AG. All rights reserved.

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Collaboration Customer Pain points

Customer Pain PointsReduced business visibility in multi-tier supply networks Increased supply risks Delayed response to shifts in demand Pressure to ensure customer satisfaction Pressure to ensure return on assets Need to minimize inventory and decrease cost Need to consolidate heterogeneous IT landscapes Pressure to synchronize data, people and processes internally and with external business partners

How can I address:Business needs Minimize TCO Efficient operation

2011 SAP AG. All rights reserved.

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Collaboration Six challenges to Your SuccessNetworking: Can Isynchronize my business with all involved partners?

Expertise: Can my businesspartners and my employees work effectively with the solution?

Investment: Does the solutionhelp me get a quick ROI?

Visibility: Can I manage mywhite spots?

Response time: Can Iincrease the speed of my business and order cycles?

On-boarding: Can I add newBusiness Partners easily over time?

2011 SAP AG. All rights reserved.

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Collaboration SAP Supply Network CollaborationHighlightsCollaboration and visualization layer for external partners Enabler of new business processes Enable of multimode communication (B2B, WEB UI, Upand Download)

Networking: Can I synchronize my business with all involved partners?

2011 SAP AG. All rights reserved.

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Collaboration SAP Supply Network CollaborationHighlightsQuick view and Micro Blog File Transfer and Worklists Exception management through Alerts

Expertise: Can my business partners and employees work effectively with the solution?

2011 SAP AG. All rights reserved.

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Collaboration SAP Supply Network CollaborationHighlightsShort Implementation time for Supplier Collaboration Pre-defined processes Rapid Deployment Solution (RDS) SAP SNC for Customer Collaboration

Investment: Does the solution help me get a quick ROI?

BenefitsLow implementation costs Lower Total Cost of Ownership (TCO) Quick and immediate business effects to achieve cost reduction, customer service optimization and process automation

2011 SAP AG. All rights reserved.

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Collaboration SAP Supply Network CollaborationHighlightsSupply Network Visibility (multi-tier subcontracting) Suppler Managed Inventory (SMI) Sales Forecast Collaboration (Demand Collaboration)

Visibility: Can I manage my white spots?

2011 SAP AG. All rights reserved.

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Collaboration SAP Supply Network CollaborationHighlightsEfficient operation via Worklists Event-driven via Alert Management Automation through pre-delivered backend integration

Response time: Can I increase the speed of my business and order cycles?

2011 SAP AG. All rights reserved.

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Collaboration SAP Supply Network CollaborationHighlightsSupplier Connectivity & Administration File transfer Capabilities (up/download) Multi-mode communication

On-boarding: Can I add new Business Partners easily over time?

2011 SAP AG. All rights reserved.

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SAP SNC is Enterprise-Wide Strategic Platform forAll Supply Chain Collaboration NeedsSuppliers Supplier s Customers My Subsidiary My Division

SuppliersSuppliers

My CompanyCustomers

SNC SNC3PL/DC

Customers / DCCustomers

Contract Manufacturers

SNC can be used for internal collaboration between divisions or lines of business and subsidiaries SNC can be modeled to allow for visibility and collaboration between suppliers suppliers and customers customers, as well as 3PL warehouses participating in the supply chain

Contract Mfg:ers

Contract Mfg:ers

2011 SAP AG. All rights reserved.

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SAP SNC is Enterprise-Wide Strategic Platform forAll Supply Chain Collaboration NeedsSAP SNC is a central supply chain platform for real-time collaboration with internal and external business partnersCustomers

Suppliers

Supplier Collaboration SMI Forecasts Purchase Orders SA Releases Kanban ASNs Invoices Shipments

Supplier Collaboration

My Company

Customer Collaboration

Customer Collaboration VMI Forecasts Promotions Replenishment ASNs

Contract Manufacturers

SNCQuality CollaborationQuality Collaboration Quality Notifications

Outsourced ManufacturingOutsourced Manufacturing Sub Con POs ASNs Invoices Shipments Work Order WIP Multi-tier Visibility

2011 SAP AG. All rights reserved.

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SAP SNC Collaborative Business Process enablementResponsive Replenishment Min/Max VMI Demand Collaboration

Customer Collaboration

My CompanySupplier CollaborationQuality PO Process Release Process Kanban Process SMI Process DCM (Reorder) Process DR (Forecast) Process 2011 SAP AG. All rights reserved. SMI = Supplier Managed Inventory CMP = Contract Manufacturing Purchasing DCM = Delivery Control Monitor DR = Dynamic Replenishment

Manufacturing CollaborationCollaboration CMP (Subcon PO) Process Work Order Process SNI (Inv Monitoring) Process

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SAP SNC Value Proposition

Value Proposition: What are the benefits of this Collaboration solution?

Improvements in accuracy and velocity of your Supply Chain Provides global inventory, supply and demand visibility reducing the need for large inventory buffers while increasing inventory turnover Enables higher customer service levels Reduces cost by eliminating need for manual data re-entry allowing for improved data accuracy and consolidation of data through one system Reduces operational costs by allowing for faster order to cash cycle and enabling exception based interaction Supplements structured collaboration with unstructured information Allows for reduction in administrative costs Enables consolidation of multiple systems into a unified frontend for all supply chain partners

2011 SAP AG. All rights reserved.

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SAP Supply Network Collaboration Current releaseOutsourced Manufacturing & Integration Focus Extensions, Outsourced Mfg & Usability Focus

SNC 7.0 EhP1

Initial SupplierSide Capabilities

ICH 4.0

Supplier Collaboration: Quality Collaboration Shipment Collaboration SNC 7.0 APO integration (Planning Supplier Collaboration: Collaboration) Invoice and Credit Memo Initial Customer Collaboration: Enhancements to SMI, PO Outsourced Enhancements to Responsive (FTR, Quickviews) Manufacturing SNC 5.1 Replenishment Capabilities Customer Collaboration: Supplier Collaboration: Outsourced Manufacturing: Forecast Collaboration Invoice and Credit Memo ICH 5.0 Enhancements to Outsourced Enhancements to Enhancements to SMI, PO Manufacturing Responsive Replenishment Supplier Collaboration: Addition of Customer Collaboration: (Batch Traceability) Kanban Replenishment Customer Outsourced Manufacturing: Collaborative Forecasting Delivery Control Monitor Hosting Enhancements Collaboration Enhancements to Work Order Collaboration Reorder Point Enhancements to Responsive Replenishment Enhancements to SMI, PO ICH 4.1 Outsourced Manufacturing Outsourced Manufacturing: Customer Collaboration: Supplier Collaboration: SCM 7.0 Stable Core Work Order Collaboration Responsive Replenishment Purchase Order Enhancements to Forecast Visibility Enhancements for SAP AFS Demand Combination Outsourced Manufacturing Enhancements to SMI, SNC Standalone Release Process, ASN Outsourced Manufacturing: Enhanced Customer Collaboration & Outsourced Manufacturing

Supply, Demand & Inv. Sevice Enablement BW Reporting KPIs Supplier Collaboration: Visibility at Contract Mfg. Customer Collaboration: SMI Subcontract POs Release Process Responsive ASN Maintenance Replenishment Alert Monitor 2003 2011 SAP AG. All rights reserved.

2004

2005

2007

2009

201016

Rapidly Expanding Customer Base750 Customers, 50 Reference CustomersSAP is a key enabler of our corporate strategy. SAP Supply Network Collaboration ensures we are tightly integrated with our manufacturing partners to maintain service, control costs, and uphold lean IT practices. Jon HardingCIO Conair Corporation

High Tech

Consumer Products

We have already seen significant benefits, and we expect more in the future. Gary BotineVP Information Technology Sauer Danfoss

IM&C

By the time the analysts start their work day, forecasts and replenishment plans have been updated, based on information about retailer activity that happened the previous day. Nicholas DaddettoSenior Manager Colgate- Palmolive Company

Life Science , A&D, Auto

SOLUTION TODAY 2011 SAP AG. All rights reserved. SAP AG 2010. All rights reserved. / Page 17

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SAP SNCTangible Benefits Gained by Customers66% reduction in early shipments 100% improvement in errors associated with direct material invoice discrepancies

Acknowledgement rate increased from 40 80 % Inbound decreasing for Stock/JIT : - 30 %

Reduced inventory