The document discusses challenges in managing complex global supply chains. It notes that total US logistics costs reached $1.4 trillion in 2008 and outlines factors like globalization, shorter product lifecycles, and rising fulfillment costs that make supply chain management more difficult today. The document advocates for using technology and collaboration across the supply chain to optimize efficiency, lower costs, improve fulfillment and increase revenue and customer satisfaction.

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