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Managing your Logistics Supply Chain Paul Winkler Industry Marketing Specialist Consumer Vertical Support Group J.D. Edw

Managing your Logistics Supply Chain Paul Winkler Industry Marketing Specialist Consumer Vertical Support Group J.D. Edwards. Are You Feeling the Squeeze?. Earnings per Share (EPS). Increasing Customer Demands . Recent Consumer Packaged Goods Headlines.

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Managing your Logistics Supply Chain Paul Winkler Industry Marketing Specialist Consumer Vertical Support Group J.D. Edw

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  1. Managing yourLogisticsSupply ChainPaul WinklerIndustry Marketing SpecialistConsumer Vertical Support GroupJ.D. Edwards

  2. Are You Feeling the Squeeze? Earnings per Share (EPS) Increasing Customer Demands

  3. Recent Consumer Packaged Goods Headlines • Profits aren’t flowing like they used to at packaged goods companies. Can green ketchup and Tuna in a Pouch Save Heinz? - Fortune 9/18/00 pg 194 • Grupo Bimbo aims to boost Mexican biscuit market share - Reuters 13Oct2000 • “Sustainable high levels of sales and profit growth continued to elude many grocery manufacturers, retailers and wholesalers and Wall Street yawned at future projections for growth.” - Grocery Manufacturers of America

  4. So, what to do? • Supply Chain – EPS Connection Optimize Internally • Extend the Supply Chain – Collaboration • Internet Economy • Getting to “E”, studies, polls

  5. How can you relieve the pressure? Understand the Supply Chain – Financial Connection • Executives know that using SCM is a technique to lower overall operating costs but….it can be also used to drive earnings. • Over time, company valuation tends to be driven by • Growth • Profitability • Capital Utilization

  6. Supply Chain’s Potential Impact on Stock of Companies Revenue +1% = Stock Price +5% Operating Unit Expenses -1%= Stock price +6% Inventory Turns +20% = Stock Price +6% Day’s Sales Outstanding -5% = Stock Price +5% Fixed Asset Utilization +5% = Stock Price +3% Average Company on S&P Industrials per S. Timme – Finlistics Solutions

  7. J.D. Edwards Value Performance Analysis

  8. Yesterday’s Business Model: The Introverted Organization Inventory Finance ERP Shop Floor Distribution

  9. Today’s Business Model:The Extroverted Enterprise Customers Vendors Collaboration Suppliers Outsourcers

  10. Increasing Competitive Advantage Source: Gartner Group DigitalMarket-places Supply ChainPlanning Design 3PL Contract MFG. Value SelfService VMI Procure-ment EDI Forecasting Telephone Fax Collaboration

  11. Supplier Consumer Retailer Distributor Broker Manufacturer Consumer Supply Chains -Today Linear, sequential processing - each entity is limited by the entity before it with regard to knowledge of what is really going on!

  12. Consumer Broker Retailer Manufacturer Distributor Supplier J. D. Edwards Consumer E-Solutions - Vision Every participant in the Value Chain has a view of the Consumer! “Consumer Centric world”

  13. New business processes Trading communities Inter-enterprise collaboration Personalized response and speed “New Economy” = Changes

  14. The New Bottom Line • The new economy opportunity is enormous • Participation in trading communities a requirement? • New technology foundation to support collaborative business processes required • Speed

  15. A CPG Perspective on the Internet Consumer Goods Technology Magazine 5 Most Important Market Forces : 2000 • Pressure to reduce overall supply chain costs 47% • Pressure to compress total market cycle 40% • Greater buyer concentration & power 26% • Pressure to collaborate more effectively with partners 25% • Movement toward a more global marketplace 21% • Transform into an e-business (#8) 18%

  16. A CPG Perspective on the Internet Consumer Goods Technology Magazine First 5 Focus Area in E-Marketplaces • MRO (maint,repair,office)/indirect e-procurement 28.2% • Transportation 26.9% • Company’s Own Exchange 21.4% • Supplier Vertical (e-chemicals etc.) 20.5% • Data Synchronization 20.5%

  17. A CPG Perspective on the Internet Grocery manufacturers of America Survey Motivation to Increase e—business budgets • Increase efficiencies with trading partners 71% • Improve internal efficiencies 67% • Build brand awareness 64% • Increase sales with trading partners 60% • Increase Customer Relationship Management 60% • Protect market share 57%

  18. One Last Word Old Economy versus New Economy

  19. Thank you !!Paul_winkler@jdedwards.com

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