1. Sarlink implemented a new collaborative sales, operations, and production planning (S&OP) process to improve alignment between sales, supply chain, and manufacturing. 2. Previously, sales determined demand and manufacturing determined supply without coordination, resulting in increased inventory. 3. The new process segmented products, aligned customer service levels with production capabilities, established a fixed S&OP meeting cycle, and implemented collaborative forecasting and reporting. 4. As a result, Sarlink reduced inventory by 70% without negatively impacting customer service levels. Key performance indicators are now regularly reviewed to monitor ongoing progress.

1. Sarlink & the S&OP Process
Business Forecasting & Planning Summit, Amsterdam, March 11th, 2010
Caspar Jans
Manager Supply Chain Mngt, Information Mngt & Back Office for Sarlink

2. Disclaimer
Royal DSM

3. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

4. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

5. What is ThermoPlastic Vulcanisate (TPV)?
TPV is a unique product
• Mechanical properties
• Specialty plastic
• Tear resistance
• Closest mimic to a synthetic rubber
• Plastic processability
Sophisticated process technology • Hardness range
• Consistently blending a high EPDM rubber • Compression set
content into a very small plastic content • Low temperature
• At the same time consistently vulcanizing the performance
rubber to control the morphology
EPDM rubber Sarlink TPV Plastics (PP)
Made as Rubber Plastic Plastic
Processed as Rubber Plastic Plastic
Feels like Soft rubber Soft rubber Hard plastic
Markets Rubber Rubber, Plastic Plastic

6. How to make Sarlink TPV: equipment
Main motor Gearbox Process part

7. Sarlink: global presence
Sittard, Netherlands
Detroit, MI, US
Genk, Belgium
Leominster MA, US
Shanghai, China
Singapore
Production
Sales/marketing
R&D/general office

8. The world of Sarlink applications

9. The world of Sarlink applications

10. The Sarlink offering: a trusted brand
The Sarlink identity is strongly based on 3 key values:

11. Sarlink Key Values
1. Quality
Undisputedly, best in the world
Highest consistency in the industry

12. Sarlink Key Values
2. TPV Specialist
For over 20 years, we only focus on TPV
Our staff is dedicated to and experienced in TPV
We are not distracted by multiple product ranges
1. Quality
Undisputedly, best in the world
Highest consistency in the industry

13. Sarlink Key Values
3. Customer Intimacy
We strive to offer highest service level in the industry
We live, feel and breathe customer intimacy
We believe this is the key differentiator of Sarlink
2. TPV Specialist
For over 20 years, we only focus on TPV
Our staff is dedicated to and experienced in TPV
We are not distracted by multiple product ranges
1. Quality
Undisputedly, best in the world
Highest consistency in the industry

14. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

15. 2. How it was…
S&OP Process @ Sarlink (2006-2008): Management Team
• On paper, the process looked great;
M&S Mfg
SCM
• In reality:
• No pre-determined, fixed meeting schedule;
• Sales determined what was sold (small orders, lots of customers);
• Manufacturing determined what was produced (big production runs);
• Due to lack of focus and review, huge stock increase
• SCM had to work based on a bottom up human (AM) forecast
• No alignment between the SLA with the customer and the internal capabilities
• Lot of one-on-one discussion between sales and production, leaving SCM in the
dark

16. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

17. 3. What happened?

18. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

19. 4. What did we do?
Collaborative Optimization Method for Production Allocation, Sales & Supply chain

20. 4. What did we do?
Structural, organization wide change was required:
• Product offering reviewed & segmented from a planning point of view
• Segmentation aligned over functional departments (M&S, SCM, MFG)
• SLA’s with customers aligned with delivery capabilities
• Focus S&OP process much more on the (relevant) customers
• Focus on terminating obsolete stock
• Fix the production cycle in length, not in order of grades
• Changed to a segmented, system generated, human validated forecast

21. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

22. 5. Where are we now? feedback
Inventory Demand Supply
Regional
S&OP
EMEA
Demand Supply
Review Review
EURASIA EURASIA
Regional
Global
S&OP
Global S&OP
ASIA
Inventory
Review
Demand Supply Regional
Review Review S&OP
North North North
America America America
SCM department SCM department SCM department SCM department SCM department
Sales Coordinator Mfg manager Mfg manager Management Team
Sales Directors

23. 5. Where are we now?
• Structured, fixed cycle S&OP mechanism with defined input/output,
members and agenda;
• Transparent & consistent reporting on inventory, demand and supply (all
aligned with monthly financial reporting);
• Focus on collaborative customer/sku combinations;
• No more one-on-one discussion between M&S and MFG.
Management Team
M&S Mfg
SCM

24. 5. Where are we now?
KPI’s Logistical Complaints
(Index per 1.000 orders)
Management Team
M&S 4 Mfg
5
Administrative
Complaints
SCM
(Index per 1.000 orders)
6/7
YTD Cum Forecast
Accuracy 2 3 1
6: Regional volume
Sales based stock health Production based stock
7: SKU Level
(moving vs non-moving) health (prime vs off spec)
SCM Capability Index
(stock sold after 2,5 months)

25. Topics
1 Introduction Sarlink
6 Results… 2 How it was…
5 Where are we now?
3 What happened?
4 What did we do…

26. 6. Results
• Stock reduction of 70% (without jeopardizing the service level to customer)

27. 6. Results
• SCM Capability (what % of production of month M has left our warehouse at the end of month M+2)

28. 7. Questions