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Business Needs/Challenges

Business Needs/Challenges. Today’s CPG companies face unprecedented challenges: Increased competition Growing supply costs Product proliferation Changing consumer priorities and tastes The convergence of brands

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Business Needs/Challenges

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  1. Business Needs/Challenges • Today’s CPG companies face unprecedented challenges: • Increased competition • Growing supply costs • Product proliferation • Changing consumer priorities and tastes • The convergence of brands • As a result companies are faced with forecast accuracy issues, increasing inventories to try and maintain service levels, lack of visibility across the extended supply chain, ineffective trade promotions and little visibility as to what is actually being sold in real time causing a disconnect between production and sales.

  2. SCM Value Proposition • CPG companies are all trying to profitably deliver what consumers want while simultaneously eliminate complexity, reduce costs, and increase reliability in their respective operations • Effective SCM can give you supply chains that improve margins, enhance overall business performance and drive competitive advantage.

  3. TXTPERFORM2008 Value Proposition • Based on best-in-class industry practices, TXTPERFORM2008 is a complete SCM suite including best of breed demand management and supply planning that delivers an exceptional combination of analytics capabilities and rich functionality • TXTPERFORM2008 supports Consumer Goods companies facing their unique challenges, spanning any critical CG process: • Demand Planning and attribute-based forecasting • Trade Promotions Management • Sales & Operations Planning • Distribution and Replenishment Planning • Inventory Optimization, aligned with sales and production rates

  4. TXTPERFORM2008 Value Proposition • TXTPERFORM2008 offers: • Concurrent planning and management of trade-offs • Inventory optimization for reduction of working capital • Collaborative forecasting and demand planning • One version of the truth • Metric based performance management • Cross-functional business process integration

  5. Solution Benefits • Empowers fact-based decision making to choose and apply the best planning scenario; have complete understanding of the implications and the impact on business performance that result from those decisions. • TXTPERFORM2008 enables companies to: • Translate data into a financial view; connect operational plans back to the overall company goals • Better manage demand; create an accurate picture of future demand for higher margins • Have greater visibility and control over supply costs • Manage by exception; create a balanced plan with continuous performance management

  6. Solution Benefits • Tangible business benefits to be had: • S&OP leaders see: • 10% improvement in forecast accuracy • 20% improvement in perfect order • 33% reduction in inventories • 5% lower supply chain • Improving forecast accuracy: • 15% less inventory • • 17% stronger perfect order fulfillment • • 35% shorter cash-to-cash cycle times • Improving visibility and integration through sourcing processes: • Improving inventory turns to as little as five to seven days • Achieving net margins of 15% to 20% • Racking up comparable store sales increases (stores opening one or more a year) of 10% to 12% • Fostering greater than 80% full-price sell through

  7. Benefits of Microsoft/Partner Stack Integration TXTPERFORM2008is a combination of “out of the box” technology from a market leader but is closer to the users’ current working practices through TXT’s across industry expertise. The functionality included in the product is the result of years of experience in our working closely with customers and incorporating their needs into our software. • Providing reduced TCO and a competitive advantage: • Best of breed solution with a greater ROI • Technology based on MSFT stack and UI is Microsoft Excel • Simplified IT landscape • Faster and reduced deployment cost • Performance and scalability • Seamless navigation • Integrates with ERP systems

  8. Case StudyTy.phoo Tea Business challenge: Improve demand forecast accuracy Solution: Demand forecasting Results: • 5% overall forecast accuracy increase • Greater agIlIty to demand

  9. Partner Overview • Founded in 1989, TXT e-solutions is an international software products and solutions vendor and leader in “Strategic Enterprise Solutions”; delivering the ability for organizations to better manage their value chain processes and improve their business performance to positively impact the bottom line.

  10. Contact Information Stefano Lena, VP Global Sales & Marketing E-mail: stefano.lena@txtgroup.com Phone: +1 646 715 2463 Phone: +39 348 2668624 www.txtgroup.com

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