Norcal Oaug Amit Sharma Triniti

ENABLERS OF THE VIRTUAL ENTERPRISE “Building Efficiency Into Your Supply Chain For Survival In Today’s Economy” Amit Sharma Principal Consultant Triniti Corporation The material contained in this document is proprietary to Triniti Corporation (Triniti). This material may not be disclosed, duplicated or otherwise revealed, in whole or in part, without prior written consent. ENABLERS OF THE VIRTUAL ENTERPRISE

Is it happening to you? • Demand is thinning; Orders are being cancelled • Inventories are mounting up • Margins are shrinking • Customers are looking for alternatives • Suppliers don’t want to take risk Is it happening to you? If Yes, You are not Alone ! ENABLERS OF THE VIRTUAL ENTERPRISE

How can you make that difference? Today’s economy has forced companies to work extra ordinarily hard to win the game ENABLERS OF THE VIRTUAL ENTERPRISE

The rules have changed ! Criterion Normal Economy Stressed Economy Organization Response Profit strategy Sales Cost Work out optimum Maximization Minimization expense mix Order to Cash Regular Irregular cycles Frequent credits cycles/Commitments checks and lesser response time Demand to Reliable forecasts With high quotient of Better Demand fulfillment uncertainty Management IT and HR costs ROI based decisions Short terms based Outsourcing and BPR decisions Procure to pay Best Quality / Good quality / best Optimize supplies reasonable cost costs Share holders Maximize value Maintain value Combination of all Equity above ENABLERS OF THE VIRTUAL ENTERPRISE

Why should I change? oYou don’t have your systems aligned to your current objectives oYou don’t have infinite cash oOthers are changing oEnd of the tunnel is not visible yet oYou cant work in a standby mode forever ENABLERS OF THE VIRTUAL ENTERPRISE

Tune your system for new economic challenges The Step by Step Process ENABLERS OF THE VIRTUAL ENTERPRISE

Demand Planning Reexamining Forecast • Switch from best /optimistic estimates to conservative estimates Reduce the exposure to • Use Forecast Expiration feature excessive inventory • Enable Demand time fence in your supply chain plan 1.Increase available • Perform Forecast consumption at Higher Levels cash on hand • Use Global Forecasting & consume globally 2.Mitigate against E&O • Re-evaluate your consumption Windows Prioritizing your demands Better customer • Perform Monthly Sales & Operations Planning Management at • Differentiate Customer forecast from Distributor minimum Risk forecast, • Use POS data for Planning • Re-evaluate your Allocations ENABLERS OF THE VIRTUAL ENTERPRISE

Demand Planning Demand Planning Toolbox Oracle ASCP Advanced Options Oracle MRP Options Oracle Trade Management Oracle Demantra / ODP Triniti Demand Prioritization ENABLERS OF THE VIRTUAL ENTERPRISE

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Managing your Orders Reducing Inventory Overhead • Using End Item Substitution Reducing cash • Using Item Relationship cross-sell/ up-sell tied up to unsold • Using Back to Back shipments reducing stocks units • Using Drop Shipments reducing in-house inventory • Re-using returns from the customers Aggressive sales • Re-evaluate Qualifiers & Modifiers for Pricing Attract more • Provide SMI (Supplier Managed inventory) for your customer, get customers business assurance • Prioritize your demands to achieve highest customer satisfaction • Share your production inventory data with your customers Minimizing Risk Avoid bad debts • Perform stringent credit checks ENABLERS OF THE VIRTUAL ENTERPRISE

Managing your Orders Process Efficiency • Using Defaulting Rules to auto-populate priority for Planning systems • Using Order Auto-schedule/ Auto-split using Prioritization • Using EDI to automatically create Orders using Customer POs • Drop Shipment / Back to back shipment Orders Management toolbox Triniti Demand Manager TDM OM advanced Features ASCP Advanced Features EDI tools ENABLERS OF THE VIRTUAL ENTERPRISE

Supply Chain Planning Rationalizing Demand for the plan • Putting Demand Time fence based on item properties • Including your distributors in supply chain plan • Eliminate high risk forecast from the Plan Reducing Safety stock levels • Re-examining safety stock drivers • Reducing safety stock lead times • Keeping safety stock only at the lowest possible level • Converting Safety stock to transient Changing Objective for the Plan • Re-configuring LPs to reduce ending material • Running plan optimized for cost reduction Control Starts • Lot for Lot based Planning • Reducing the planning Horizon • Using Order Modifiers • Reconfiguring Planning inventory points (PIP) • Configuring the engine for Make to Order scenario • Reducing Release Time Fence ENABLERS OF THE VIRTUAL ENTERPRISE

Supply Chain Planning Finding cheaper alternatives • Using Shipping Receiving calendars to minimize freight cost • Using Component Substitution • Use alternate Resources/Routings & sourcing • Using Partial Demand Satisfaction Functionalities Planning Toolbox ASCP Advanced Features ASCP Rule based Optimizer ASCP Linear Programming Configuration Planning Data Analyzer PSI Balance – Workbench for Planners ENABLERS OF THE VIRTUAL ENTERPRISE

Procurement Controlling material inflow • Using supplier level order modifiers for ASL • Reducing the order size • Use Vendor Managed inventory (VMI) Evaluating your supply base • Use available supplies with alternate suppliers • Use RFQ to get better quotes beyond approved suppliers Applying automation • Use self service Requisition modules • Use Pay on receipts and automatic release • Use EDI for Purchasing documents exchange • Using supplier collaboration / LiveShare/ e2Open to get real time information from the supplier ENABLERS OF THE VIRTUAL ENTERPRISE

Procurement Controlling the process • Implementing stricter PO approval/ control mechanism • Use budgetary control while buying Purchasing Toolbox Oracle Purchasing Features 3rd party integration software ENABLERS OF THE VIRTUAL ENTERPRISE

Shop Floor Management Reduce Order size Reducing • Applying right Order modifiers exposure to • Re-examining Planning Time Fences (PTF) inventory Automation • Using Automatic WIP transaction • Good costing & variance reporting • Using Outside processing (OSP) to represent outsource work • Automatically Supporting master data ( Routings/Co-products) using supplier/MES data Minimizing Transaction & BPO Administrati on cost • Outsourcing for Automating & maintaining the transactional data ENABLERS OF THE VIRTUAL ENTERPRISE

Shop Floor Management Shop Floor Toolbox:- Shop Floor Open Interface Advanced Reporting tools Triniti’s supplier Integration toolkit OSFM – OSP Features ENABLERS OF THE VIRTUAL ENTERPRISE

Financials Automation • Payments thru EFT Improved working • AP Invoices thru Pay on Receive/EDI - AR invoices thru EDI capital • Receipts thru EDI management • Statements / Dunnings as per requirements • Automated E&O statements • Automated Inter company transactions Control & Management Spending funds • Utilizing Oracle Budgeting /Fund Check wisely • Using Minimum Tax strategy • Single Day books closing Cash forecasting Informed • Tying Cash forecasting to ASCP Plan decisions ENABLERS OF THE VIRTUAL ENTERPRISE

Financials Outsourcing • Integrate third party payment solutions • Integrate third party POS solutions Planning Toolbox Financial Parameters Triniti Commercial Flow Financial Out of box reports ENABLERS OF THE VIRTUAL ENTERPRISE

Management Reporting Inventory Control • Inventory Trend report • Supply Demand Dashboard • Inventory Turn Key Parameters Report Cash Flow Report • High value transactions report • Interactive E&O Report Performance Report • Configurable to align with companies’ objective • Planning Performance Report • Purchasing performance Report • Shipping Performance Report Beyond Reports • View & change simultaneously ENABLERS OF THE VIRTUAL ENTERPRISE

Data Management Timely Complete Create Validate Reliable Data Data Purge Maintain Data Data Automatic Accurate ENABLERS OF THE VIRTUAL ENTERPRISE

Reporting & Data Management PDA: Taking the control Data management Toolbox PDA – Your data dashboard Editable Viewer OBI Oracle Alerts ENABLERS OF THE VIRTUAL ENTERPRISE

How Actual Companies are The Actual Response reacting From Silicon Valley The Study A Study ENABLERS OF THE VIRTUAL ENTERPRISE

Study Details Time: January 2009 Participants: Selected Triniti Clients from Valley Industry: Fabless Semiconductor Methodology : Interviews /Questionnaire Participates: Supply Chain Heads/ IT Heads ENABLERS OF THE VIRTUAL ENTERPRISE

Participants [A] Fabless Semiconductor Revenue: 300 M [B] Fabless Semiconductor Revenue: 300 M [C] Fabless Semiconductor Revenue: 60 M [D] Fabless Semiconductor Annual Revenue: 600M ENABLERS OF THE VIRTUAL ENTERPRISE

Factors affecting the response • OEM/Generic • Number of customers • B2B Vs B2C • Product life cycle • Product mix - High value/Low value • Size ENABLERS OF THE VIRTUAL ENTERPRISE

Impact of Economy Proactive Maintaining Less affected Focus on Shift to low cost low cost by economy customer relations Cost/ Risk Fabless Fabless Fabless Fabless A B C D Sales Growth Sales Growth Sales Growth Sales Growth Normal economy Current economy ENABLERS OF THE VIRTUAL ENTERPRISE

Areas of Improvements ENABLERS OF THE VIRTUAL ENTERPRISE

Concentration Fabless Fabless A B Automatio n Control Control Reducing Cost Automation Reducing Cost Reducing Risk Reducing Risk Fabless Fabless Fabless D D Fabless C C Reducing Out-sourcing Cost Increased Reducing Cost Sales Focus Out-sourcing Reducing Risk Reducing Risk Control Control Automation Automation ENABLERS OF THE VIRTUAL ENTERPRISE

So what do I take from here? Analyze your business changes Choose the right tools Choose the right partners Align your system to support your business objectives ENABLERS OF THE VIRTUAL ENTERPRISE

Triniti Corporation The Global Solution Provider ENABLERS OF THE VIRTUAL ENTERPRISE

T R I N I T I : Customers ENABLERS OF THE VIRTUAL ENTERPRISE

Triniti Products Suite Supply Demand Order Data Chain Procurement Mfg Finance Mgmt Planning Management Management Planning Triniti Auto Invoice Triniti Triniti Demand Triniti Lot Triniti KPI Forecast Triniti PDA Matching Commercial Product Prioritization eDapter Reports Manager Flow Modeler Automated Inter- Triniti Output PDA Triniti Lot Shipping company Txn Triniti Viewer Routing PSI Balance Starter Application Analyzer eDapter Delay Triniti Die Delivery Tri2 TTT Management Analysis tool Triniti Plan Pre- processing

The missing area: The IT Cost Rationalizing Demand • Realizing that there is a demand • Enter the demand in smallest possible lot size Supply – Pay on Use • Don’t pay for Idle hours – Pay for Results • Zero Recruitment overhead • Zero Negotiation overhead • Zero Liability • VMI – Vendor Managed Intelligence Collaboration & Automation • More than 20 Plug in play products on top of oracle E- business suite • More than 250 out of the box reports to help you run & control your business • Web 2.0 tools to manage the communication ENABLERS OF THE VIRTUAL ENTERPRISE

So if this is how you felt about today’s economy! ENABLERS OF THE VIRTUAL ENTERPRISE

We can make it look like This ! ENABLERS OF THE VIRTUAL ENTERPRISE

Together .. we can make it work Contact Info : salamela@triniti.com asharma@triniti.com 21-Jan-2009 ENABLERS OF THE VIRTUAL ENTERPRISE