Managing Global Supply Chains in a Period of Increasing Complexity and Advancing Technologies

1. Managing Supply Chainsin a Complex World Pete Sinisgalli President & CEO Manhattan Associates

2. U.S. Logistics Costs in 2008 Total logistics costs as a percentage of sales: more than 9% Total U.S. logistics costs: $1.4 trillion

3. SCM Ecosystem NetworkPlanning Forecast InventoryPlanning / Optimization ForecastError Demand / EventPlanning TransportationConstraints Forecast TransportationPlanning SupplyPlanning Available to Promise Sell-Side Collaborative Planning Buy-Side Collaborative Planning Orders OrderPromising Work Constraints Forecasts NetRequirements WarehouseManagement ProductionScheduling ProductionPlanning Deployment /Allocation Planning Production Constraints Demand Constraints Source: Gartner (December 2008)

4. Frozen Peas . . .

5. Global Market Statistics The global out-of-stock rate is 8.3 percent About a third of all products are sold at a discount There is about $5.5 Trillion in global inventory The cost of moving freight has gone up 20% in the last decade and is expected to increase by 65-70% by year 2020

6. Today’s Challenges globalization & outsourcing shorter product lifecycles emerging technologies regulations rising fulfillment costs & agility integration channel convergence

7. Manhattan Associates’ Vision To be the global leader providing technology-based solutions that optimizesupply chain effectiveness & efficiency for our customers.

9. Investment in Research & Development Cumulative R&D (Millions) $208 $171 $123 $76 $34

10. Amsterdam London Indianapolis Mishawaka Tokyo Paris Atlanta Shanghai Bangalore Singapore Sydney Melbourne

11. Customers in All Segments are Market Leaders

12. The Impact of Out of Stocks Source: IHL Group, Dec 2008

13. 25% 28% 47% Out Of Stock Causes Source: Retail Out of Stock, A Worldwide Examination of Extent,Causes and Consumer Responses Grocery Retail

14. 9% 31% 26% Worldwide Consumer Responses to OOS 15% 19% (Average across eight categories) Source: Retail Out of Stock, A Worldwide Examination of Extent,Causes and Consumer Responses Grocery Retail

15. 15-20% inventory reductions ThePerfect Order 10-20% fill rate improvements 5-10% lower fulfillment cost The Perfect Order 2-4% margin improvements 15-25% lower labor costs 1-3% increase in service levels 10-20% transportation savings 10-20% improvementin operating efficiency 10-15% increases in revenue 10-15% fewer markdowns 5-30% improvement in real estate utilization, through better use of distribution centers 10-20% fewer lost sales 10-20% better utilization of equipmentin the warehouse and on the road 10-20% improvement in promotion effectiveness

16. Supply Chain Executives Must Follow This Path Cost/Risk Focused:59% Growth/Customer Focus:54% Source: Gartner, 2010

18. Be notified when new stock arrives in store

19. Remotely schedule an in-store consultation

21. Buy/reserve online, pick up in store

23. Be notified when my order is ready for pick up

24. Receive items from a store if not in-stock online

26. Every Every Every Customer Employee Day