LLamasoft Customer Support

1. LLamasoft Customer Support

2. Customer Success at LLamasoft Mission Ensure customers are successful in pursuit of supply chain design excellence with our products and services Expect an Engaging, Active Experience • Access to Prompt Expert Technical Support:  • Typical time to resolution is within 6 hours – 1 out of every 3 customers engage our Support team each month • Four dedicated staff and 65+ solutions experts across the globe to assist as needed • Experts includes 8 PhDs in our Applied Research group, a Solutions Architecture team and over 300 years of supply chain design experience within our Solutions Delivery team • Expect Improvements Frequently:  • We aggressively improve our tools with over 45 staff dedicated to enhancements and developing new products

3. Customer Success at LLamasoft • Voice of the Customer is Loud and Clear • Participate in surveys that help to improve your experience – we send periodic queries to help guide our Products and Customer Experience improvement efforts • After training or projects, we ask for your feedback and incorporate your opinions • When you engage our Support Team, we give a clear, unfiltered voice to our Product Team to improve our tools • Engage in Supply Chain Design Best Practice Opportunities:Build your expertise and quickly • Attend our Summer Conference on supply chain design with innovated topics and a dynamic agenda • Regional supply chain design best practice meetings • Partner with us on a project to tap into a broad base of experience in supply chain design • Online Customer best practice forum (coming soon!) • Receive expert training with our professional education staff

4. LLamasoft Solutions

5. LLamasoft Solutions Engagement Options to Fit your Requirements

6. Alternate slides for LLamasoft overview

7. LLamasoft Overview We are: • The global leader in Supply Chain Design technology & solution services • Focused 100% on Supply Chain Modeling & Scenario Analysis • Headquartered in Ann Arbor, MI with support centers around the world We enable companies to: • Optimize their end-to-end supply chain operations • Reduce corporate risk and identify major cost savings • Perform continuous what-if analysis

8. LLamasoft Overview We are: • The global leader in Supply Chain Design technology & solution services • Focused 100% on Supply Chain Modeling & Scenario Analysis • Headquartered in Ann Arbor, MI with support centers around the world We enable companies to: • Optimize their end-to-end supply chain operations • Reduce corporate risk and identify major cost savings • Perform continuous what-if analysis

9. LLamasoft Overview Background • Global leader in Supply Chain Design • Offices in 6 countries • Flagship launch 2001 • Privately held • HQ Ann Arbor, Michigan • 12 years of growth, 70% year over year • 150+ employees

10. Who Works With LLamasoft 100+Leading Consulting & Supply Chain Practice Groups • A network of over 100 partners providing comprehensive supply chain design solutions for customers around the world • Strategic Alliances provide additional value for clients • Certified partners deliver on LLamasoft solutions • Worldwide partner network ensures presence in every corner of the globe • The world’s largest supply chain practice groups extend the value of LLamasoft offerings to their customers

11. Supply Chain Design Metrics R I S K • On Time Delivery • Fill Rate • Coverage Service Supply Disruption Transportation Variability Demand Volatility Supply Volatility Sensitivity to Costs Natural Disasters, Structural/Geographic Geopolitical Change • Profit, Total Cost, Total Revenue • Fixed and Variable Facility Costs • Transportation, Inventory, Taxes Financials • Facility and Equipment Footprint • Inventory & Capacity • Complexity, Sourcing Supply Chain • Greenhouse Gas Emissions / Energy • Hazardous or Banned Content • Waste Sustainability

12. Project Methodology & Knowledge Transfer

13. Project Methodology Project Specification & Scoping Data Collection & Analysis Baseline Modeling & Validation • Business objectives and problem definition • Existing supply chain structure and processes • Analysis objectives & high-level scenario definitions • Project Scope • Modeling strategy • Data requirements • Detailed Project Plan and Timeline • Team assignments • Summary of input data in multiple formats • Trends and patterns • Documentation of any assumptions or alternative methods for data gaps • Validated baseline model • Documentation of validation criteria • Comparison of operational and financial statistics against model results • Baseline presentation LLamasoft – Customer Project Team Scenario Analysis Business Plan Knowledge Transfer • Cost summaries by categories (e.g. transportation, handling, production, inventory, fixed and variable costs) • Service metrics (e.g. delivery times and service levels) • Capacity utilizations • Detailed maps for supply chain flows • CO2 emission implications Reports interpreting scenario results • Comparison of cost and service across scenarios • Scorecard comparison of scenarios along qualitative measures • Business case • Implementation roadmap • Final executive presentation • Knowledge transfer • Training • Support for other supply chain projects Steering Committee and Reference Group

14. Quick Start Program Project Specification & Scoping Data Collection & Analysis Baseline Modeling & Validation • Business objectives and problem definition • Existing supply chain structure and processes • Analysis objectives & high-level scenario definitions • Project Scope • Modeling strategy • Data requirements • Detailed Project Plan and Timeline • Team assignments • Summary of input data in multiple formats • Trends and patterns • Documentation of any assumptions or alternative methods for data gaps • Validated baseline model • Documentation of validation criteria • Comparison of operational and financial statistics against model results • Baseline presentation LLamasoft – Customer Project Team Scenario Analysis Business Plan Knowledge Transfer • Cost summaries by categories (e.g. transportation, handling, production, inventory, fixed and variable costs) • Service metrics (e.g. delivery times and service levels) • Capacity utilizations • Detailed maps for supply chain flows • CO2 emission implications Reports interpreting scenario results • Comparison of cost and service across scenarios • Scorecard comparison of scenarios along qualitative measures • Business case • Implementation roadmap • Final executive presentation • Knowledge transfer • Training • Support for other supply chain projects Steering Committee and Reference Group

15. Next Steps

16. Supply Chain Design Client Use Cases

17. What Does My Supply Chain Look Like?

18. Four Regional Distribution Centers

19. Customers Throughout the Country

20. Widely Varying Demand by Customer

21. As-Is Costs and Operations

22. Optimized As-Is Supply Chain

23. Supply Chain Segmentation

24. Transport Time Variability Transport Time Variability Transport Time Variability $ $ $ $ Finished Goods Holding Costs Safety Stock Optimization Sourcing Variability Production Variability Demand Variability Multi-Echelon Safety Stock Optimization Increasing OTIF to 97% increases working capital by 14% while Decreasing OTIF to 93% decreases working capital by 10% Demand & Lead Time Profiling Key Benefits and Usage • Multi-Echelon Safety Stock optimization allows the model to achieve savings in working capital while simultaneously maintaining or increasing service level to stores • Scientifically quantify cost or benefits of service level, sourcing, and contractual lead time agreement changes. • Combine with network optimization to set optimal inventory planning policies. ie Reorder point, order quantities by site by product • Model can automatically profile historical sales data or use forecast and forecast error as inputs • IO Select functionality allows automated filtering of products with non-normally distribution demand

25. Optimized As-Is Supply Chain

26. New Optimal Structure

27. New Transportation Routes

28. Designing An Optimal Supply Chain

29. Service Based Optimization Service Based Greenfield Formulation 1 Day service increases by 38% from baseline with Center of Gravity Analysis. It further increases by 5% when Service Based GF Analysis is applied Center of Gravity Greenfield Formulation Key Benefits and Usage • Depending on the objective, Greenfield analysis can either be performed using Center of Gravity or Service Based methods • Service Based Optimization allows the model to decide “How Many?” And “Where?” given customer locations and service requirements. • Service Based Optimization can provide a strategic advantage from a service lead time perspective. The objective is to cover the most number of customers using the fewest number of distribution points within a defined set of service goals. • Center of Gravity Formulation solves the “Where?” question given customer locations, demand volumes and number of DCs as inputs. • The Center of Gravity method can often yield the lowest cost solutions from a freight perspective. It is often utilized for completely realigning the current footprint or identifying the next best location to setup a facility.

30. Sales & Operations Planning Sales & Operations Planning Pre-Position Pre-Build Demand

31. Business Continuity Planning Facility Outage Simulation Baseline Sourcing Pattern Huanghua DC shut down increases freight spend by 2% while service distance increases by 7% Business Continuity Plan Predict & Visualize Operational Impacts with Discrete Event Simulation Storage Capacity Limit Reached Stock Out

32. Risk Management Commodity Pricing Shocks Baseline Sourcing Pattern At 180% increase in fuel price, freight spend justifies setting up operations locally for sourcing SUPPLIER INBOUND LANES SUPPLIER INBOUND LANES WRDC TO DC TRANSER LANES WRDC TO DC TRANSER LANES Business Continuity Plan Key Benefits and Usage • Pre-plan supply chain responses in response to various risks in supply, demand, weather and geo-political events. • Identify optimal alternate suppliers, carriers, production sites, distribution paths, etc. prior to supply chain risk events occurring • Understand the impact to capital expenditures, operating expenses and service to customers • Combine optimal designs with discrete event simulation to predict and anticipate impact to daily operations • Model varying lengths of risks for different supply chain responses

33. Sustainability Optimization Baseline GHG Network Profile STANDARD NON-GREEN CARRIER STANDARD NON-GREEN CARRIER REDUCED EMMISSIONS CARRIER REDUCED EMMISSIONS CARRIER 35% GHG Reduction Network Profile Key Benefits and Usage • Quantify financial benefit or costs of achieving sustainability goals • Built in published emission factors accurately models and outputs emissions from various forms of transportation • Optionally, carbon offsets are calculated as a part of the profit and loss calculations • Fees and duties as a result of non-green equipment/facility usage can be incorporated into the overall profit and loss calculations • Ramp up of sustainability efforts can be modeled as a multi-year green house gas reduction initiative

34. Tax/Duties Optimization Optimized Network without Tax Considerations Tax Efficient Network Key Benefits and Usage • Optimize network with tax/duties considerations • Apply tax/duties/tariffs based on transfer pricing across regions • Calculate tax/duties/tariffs based on revenue • Calculate tax/duties/tariffs based on import/export arrangements • Capture region specific product standard cost based on production cost and exchange rate differences • Determine tax/duties/tariffs based on region to region movements • Account for tax/duties/tariffs based on invoicing locations

35. Freshness Considerations Baseline Sourcing Pattern Key Benefits and Usage • Production with freshness – what if’s to optimize production lot size against probability of dumping • Product flow contingency planning with freshness – flow paths that minimize freight, inventory and spoilage costs • Inventory planning with freshness – minimize inventory with respect to shelf life, service level agreements and production constraints • Ability to track to true age of productions • Minimize obsolescence and cost write downs for high turn-over items (ie fashion, electronics)

36. Product Demonstration

37. Supply Chain Guru Modeling Elements

38. Supply Chain Guru Modeling Elements