F4SS IR Team

Meeting Minutes Dec 12th, 2019

Next Meeting January 16th 2020

10 AM EST

Zoom Meeting

Thank you for your participation

Attendees

Paul Blacklock- General Mills

Dave Egleston -Frain Industries

Don Sciolaro – F4SS

Dave Hempson – F4SS

Excused

Oscar Uzcategui – GoJo -Team Co-Leader

Annette Cutchens – Coregistics – Team Co- Leader

Matt O’Conner – Rockline Industries

Todd – Coregistics

Mark Blum -Clorox

John Nienhuis – Creative Werks

Tom Kent – Kimberly Clark

Blas – Beyond Meats

Brittany Hama – Gojo

Joe Turcotte -Creative Works

Chris Rayos – Beyond Meats

Lance Olmsted – Red Zone

Gary Moffatt – F4SS BOD Sponsor

Jim Bandelow – Creative Werks

Jess Malvin -General Mills

Bill Messmer- General Mills

Jon Gordon – GoJo

Carolina Velez – Kimberly Clark

Paul Statchuk – Nulogy

Sheri De Vries – Continental Mills

Lori Vilkanskas-Continental Mills

Chris Conley – Continental Mills

David Graber -Continental Mills

Cathy Montplaiser – Continental Mills

Team Vision – The Integrated Replenishment team will focus on how supply chains must evolve to meet the demands of a very dynamic e-commerce/omni channel market. The team will work to find new technological solutions to old

problems, engaging with thought leaders in the areas of replenishment, forecasting and supply chain reliability.

Dec 12th Meeting Minutes

1. The team reviewed the pilot opportunities on deck and will continue to work with F4SS members to engage and trial these options a. Solvoyo b. Ariba c. Vested d. SRM e. Reconciliation

2. The team discussed the Solvoyo project – the question was raised whether

F4SS would sponsor the pilot establishing the standard for the integrated replenishment process between customers and suppliers

a. Define process in generic terms so other technology providers can participate

b. Working with BSI to develop a standard that can be launched globally so suppliers and customers are aware of the process requirements to share information creating a customer centric supply chain

c. The standard will include required technology, process automation, connectivity requirements, interoperability, may include ability to sense the market, cross functional alignment, predicative analytics, among other needs

3. The IR Team will review additional options for fully integrated customer/supplier solutions -a few to consider -to help narrow the field the team will set up a call with Lora Cecere to gain some insight and her opinion on categorizing the tech providers into tiers – tier 1-3 a. Solvoyo b. AERA TECH c. Ariba d. Nulogy e. Symphony f. JDA/Blue Yonder

4. The F4SS BOD will review the role F4SS will play in the development of a

standardized solution for data exchange and planning to facilitate and automate the process. The BOD will share the decision with the IRT.

Nov 7th Meeting Minutes

1. The IRT team reviewed a number of pilot opportunities to leverage F4SS technology providers to solve complex problems a. Solvoyo – Oscar researched a pilot with Solvoyo technology – the proposal provided

was reviewed – the cost for the digital automation was deemed prohibitive for the value gained – ongoing costs of $120,000 per year and establishment costs of SAP integration costs $50,000, Excel integration $30,000. As a result, GoJo will not be proceeding with a pilot at this time. Unilever and P&G have expressed some interest with the program.

b. Ariba – the IRT reviewed Ariba as a possible solution to digitize the replenishment process – the Ariba solution would meet the team’s expectations – however the cost of $300,000 was again deemed excessive for a CM to support

c. Vested – The team discussed the Vested approach to supplier management – Kate Vitasek has agreed to pilot an opportunity between a supplier and customer for no cost. The Vested program was exhibited at the Fall Connect in a break out presented by Annette and Oscar – a request for pilot participants was made – so far, we have no pilot volunteers -we will continue to research pilot opportunities

d. Reconciliation Project – the team was approached by Network of Networks, Boardwalk Tech, and Nulogy to develop a customer supplier material reconciliation project – this pilot opportunity was presented in a breakout session at the Spring Connect -we have been unable to secure a willing pilot pair.

e. SRM – Annette will reach out to Molly Louthan at State of Flux to evaluate the SRM tool -Annette will update the team at the next meeting

2. The team discussed a new approach to the IRT – leveraging advisors and technological providers to engage with pilots and help assist the team in fulfilling our mission by engaging with thought leaders.

3. To develop this new approach, the team will develop a roadmap for pilots, and begin to explore

providers and advisors that will have an interest in working with the team to support our

mission

August 28th meeting minutes

1. The team reviewed preparation for the F4SS Connect General Session presentation and the Break out session

2. Tuesday – 8:30 AM - The general session presentation will include an overview of the Vested work as well as the work on Integrated Business Planning – Don will coordinate a few overview slides – the IBP slide will include a chart from the book Transiton from S&OP to IBP, page 9 demonstrating the value gained from an IBP approach

3. Tuesday – 9:30 AM – the break out session will provide an overview of the Vested approach

a. Part One -Annette will provide an overview with a series of PP slides allowing the audience to understand what Vested means and how it can be applied to deliver improved results

b. Part Two – Oscar will provide an interactive session allowing participants to gauge where they lie on a continuum of customer supplier relationships and using sticky notes share where they think their current business models are located. Oscar will then challenge their thinking and openness to driving better relationships creating value for both participants – with a goal to interest folks into piloting the vested process – we will make sure to include discussion regarding the value proposition and share success stories from those folks who have implemented the Vested approach

c. Wed Breakfast – 7 AM – invite folks interested in piloting the process to join the IRT team for breakfast and develop a detailed piloting process. Oscar will check to see if there is a flow chart for how to engage in a pilot

4. We will read through chapter 5 in the Transition from S&OP to IBP for the next call and discuss the importance of leadership commitment and cultural change

August 5th meeting minutes

1. The team reviewed the presentations that we will issued at the fall F4SS Connect Conference a. General Session – Oscar will present an overview of the work of the IRT

– Vested, S&OP to IBP, and some of the tools available to members b. Oscar and Annette will lead a breakout session focused on vested – c. Dave has proved a PP Deck to Annette for introduction to the concept d. Annette will introduce the Vested concepts and principles e. Oscar will review the business models and provide an interactive

component to the session by having members determine what models they use

f. The goal of the session is to expand members thinking about their customer/supplier relationships and find partners who are willing to pilot the vested approach

July 10th meeting minutes

1. The team reviewed the Vested presentations conducted by Kate Vitasek at our face to face meeting hosted by Clorox

2. The agreed to present a break-out session at the Fall F4SS Connect conference – two potential topics were evaluated – Vested or Material Reconciliation -the consensus of the team was Vested.

3. Next Steps -Conference preparations

a. Develop a Power Point presentation for the breakout b. Dave to provide the vested overview slides c. Oscar will provide an abbreviated self-assessment to conference goers

to help attendees understand what business models they currently use (current state) as compared to the vested approach (future state)

d. Dave and Oscar to explain the vested principles, 2X2 matrix, and generate interest for a potential pilot between a customer and supplier.

4. The IRT is supportive of building tools to help F4SS members transition from Sales and Operations Planning to Integrated Business Planning – to familiarize the team with this broad concept -we decided to purchase the book – The Transition written by George Palmer, with Colleen Crum and Oliver Wight – We agreed to read chapters 1-5 and come prepared to discuss at our next call.

5. https://www.dropbox.com/sh/qx9pribkwmguiq2/AACtT7EQb1c_kjs2pZqyaTyWa?dl=0 – this link will provide the information provided by Kate -please take some time and explore for our next meeting with special emphasis on the business models – our goal is to develop a tool for F4SS members to help them move to more collaborative and value generating models – model understanding is the key

6. We would like to expand the business model approach shared by Kate at our next meeting and determine if we can deploy this approach as a tool for F4SS members

June 10th and 11th meeting minutes

Hosted by Clorox -thanks to Clorox for their support

1. The meeting was called to order and the attendees introduced themselves.

2. The Team meeting began with a presentation by Kate Vitasek -the author of a number of books on supply chain – Vested – a means to develop business relationships that bring value to both partners -shared risk -shared reward – move away from power and leverage to a collaborative model -system thinking required

3. https://www.dropbox.com/sh/qx9pribkwmguiq2/AACtT7EQb1c_kjs2pZqyaTyWa?dl=0 – this link will provide the information provided by Kate -please take some time and explore for our next meeting with special emphasis on the business models – our goal is to develop a tool for F4SS members to help them move to more collaborative and value generating models – model understanding is the key

4. Options to consider for the IRT as provided by Kate -please review prior to our next meeting to discuss and develop a way forward:

• the licensed training materials around Sourcing Business Models. As discussed, I think

this is the best place to start is to expose members to why they need to think in terms of

Sourcing Business Models vs traditional approaches.

As a non-profit you can feel free to use these any way you would like.

Use as much or as little as you would like.

Feel free to modify (e.g, change out the examples to all contract manufacturing examples) if you think that will help

If you do want to commercialize (make money) on the material - we do ask you do a simple license agreement and do a one time “train the trainer”. The reason we ask this is if you are charging money then it sets a higher expectation and we’d want to help you facilitate your first workshop/training session to answer questions “just in case”. If you ware not planning on charging any members/profiting then no need.

• Sample articles. As discussed, I would love to collaborate to have you customize articles around Sourcing Business Models/Vested so that it helps your members under the concepts in their own language. Attached are several examples of how we have done this for Corporate Real Estate Journal where the target audience is corp executives who manage real estate/facilities management. Let me know if this is of interest. If so, I can send over the WORD docs and you can let me who to collaborate with. There’s a folder with all of the CREJ articles to give you some ideas of art of the possible that would be quick wins.

• A folder on “how to implement Vested” Oscar - if you do want to take an existing relationship here is the basics of how you would “flip” the relationship. You might consider starting with either a self-assessment, UT validation or a more comprehensive Deal Review. I have added a FAQ to show the differences. Each of these three approaches will show you where your current agreement falls short to Vested. Once you know your gaps/know you definitely want to tackle doing the work (e.g, implementation) to close the gaps from your existing agreement to Vested, you can start on doing the work to “flip”/restructure your agreement to close gaps. If you do decide to implement Vested as a pilot, I will commit to do invest the time on my end for a case study which can be freely shared with all of the F4SS members.

5. We decided to pilot this process with Oscar and Matt – to understand all options we will

review vested business models on our next call Day 2

6. We reviewed IBP -integrated business planning as a tool to include in the IRT tool kit

7. The team decided to read the book The Transition from Sales and Operations Planning

to Integrated Business Planning by George E. Palmatier and Colleen Crum | Apr 29, 2013

– please read chapters 1-4 for our next meeting – you can purchase a used copy of this book for about $20.00 on Amazon

8. We will reach out to Neil Ackerman for a fall discussion and get an update on the projects Neil is leading – track and trace – IBP – organizational integration

May 30th Meeting Minutes

1. The team reviewed the agenda for the IRT In-person meeting – (attached)

2. We currently have 7 attendees signed up for the in-person meeting hosted by Clorox a. The team requested additional marketing and promotion to attract more attendees b. The team requested that the marketing be focused on procurement professionals c. The team would like to target 15 attendees for the meeting

3. Continue to explore possible reconciliation partners to pilot the automated reconciliation process

April 15th

Meeting Minutes

1. IRT In-person visit – we are confirming the in-person visit at Clorox in Alpharetta Ga – (Dates to be developed following discussion with Kate

Vitasek April 24th at 1 PM)

2. We are developing an agenda for the June meeting – Draft Topics include a. Institute of Supply Management – Strategic Selection of Business

Partner – learn how to deploy the supplier selection tool b. Clorox operation tour c. IBP – Integrated Business Planning approaches d. Review IRT tools and integrate into the IBP process

3. Establish pre-conference with Kate Vitasek – April 24th -1 PM

4. Reconciliation Process - we are exploring a customer-supplier partnership to engage in a pilot of an automated reconciliation process – we are open to working with any

March 11th Meeting Minutes

1. The team recapped the points raised by Neil Ackerman – Demand Shaping and Sensing, Track and Trace, and Sensors. Dave shared that Frain incorporates sensors through Ethernet connections in the equipment they sell to assist with maintained and trouble shooting

2. The question was raised if the IRT can develop a model of tool to support Integrated Business Planning --Integrated Business Planning (IBP) is the business planning process that extends the principles of S&OP

throughout the supply chain, product and customer portfolios, customer demand and strategic planning, to deliver one seamless management process. Integrated Business Planning is industry's best practice model.

3. GoJo -Rockline Reconciliation project – Rockline and GoJo have decided to hold off on this reconciliation project for the time-being due to resource constraints -the team is exploring other pilot partners to test this concept.

4. Next call -- Oscar and Annette will lead the discussion regarding establishment of the teams objectives for 2019

Feb 11thth Meeting Minutes

1. The IRT invited Neil Ackerman Supply Chain Executive from JNJ as a guest speaker, to help the team develop the 2019 strategy – Neil has been attending many conferences and conventions and shared three burning topics with the team. a. Demand Shaping. Demand sensing - is the process of creating

incentives through with customers that smooth demand, or in eliminating pre-existing incentives such as promotions or end of quarter pushes which distort the demand history-making forecasting more challenging to perform

b. Please review this link prior to our next call to learn more on this topic - https://www.brightworkresearch.com/demandplanning/2012/01/demand-shaping-and-demand-sensing/

c. Track and Trace – enables companies to track each of the elements of the supply chain – machine learning – proactive diagnostics – process systems – integrated quality control – shipping data – temperature humidity data through a mesh network A mesh network (or simply meshnet) is a local networktopology in which the infrastructure nodes (i.e. bridges, switches and other infrastructure devices) connect directly, dynamically and non-hierarchically to as many other nodes as possible and cooperate with one another to efficiently route data from/to clients.

d. Sensors – Sensors are used to measure physical quantities such as temperature, light, pressure, sound, and humidity. Sensor technology is advancing rapidly -there are low frequency sensors being deployed to track shipments. Sensors are using in the home to automatically fulfill replenishment – Mele dishwasher example -when the number of cycles reaches a threshold -dishwasher tabs are automatically replenished to the consumer - sensors can be used throughout the supply chain to monitor every aspect of the replenishment process. JnJ considering using sensors in Listerine MW to detect when a consumer needs to reorder

E. Next steps – at our next meeting determine how and if we can integrate these concepts into the IRT teams work offering new solutions to our members.

F. Talent Management – Neil shared that JNJ was pursing a concept called the future of work. They are taking a deep dive into how to staff JNJ for the challenges ahead.

The strategies include – Upskill – training existing employees with new skills – partnering with others – hiring talent from the outside can be a risky proposition and many times is unsuccessful .

JNJ is investing in talent management and new approaches to ensure that they have the staff needed for the challenges ahead.

g. Integrated Business Planning IBP– Neil shared that JNJ has moved away from the S&OP planning model and has developed IBP to replace S&OP. JNJ is moving towards one fully integrated execution across all operating divisions eliminating the silos that exist today.

This is a very difficult transformation – 6 people are dedicated to the project – Neil is going to check if he can share additional information regarding the IBP process.

2. GoJo -Rockline Reconciliation project – Oscar and Matt O’Conner will be meeting in two weeks to flesh out the details of the project. A meeting with Boardwalk Tech – Supply Chain Insights and Nulogy was held earlier in the day. a. The group provided an overview of the reconciliation pilot and

proposed a project plan. The plan includes mapping the current process, building into the process the business rules, and then developing the software to trial. The projection is about a 4-month project to test the concept.

b. The project, if successful with be shared with Network of Networks. This sharing will enable others to engage.

c. The cost for the software is still to be determined – the pilot is at no cost to the participants

3. In-person meeting – Clorox, our new member was favorably inclined to support a in-person meeting in the spring - we will work to find dates that we can support.

4. We will hold a team meeting on March 26th – 7AM at the F4SS Connect conference -all are welcome to join for breakfast and discussion

Jan 9th meeting minutes

5 pillars include: a. Contract -reviewed annually – (Draft Contract on the F4SS Site for

reference) b. SLED – reviewed QTRLY – (SLED model on the F4SS Site) c. Scorecard – QTRLY Review – (Score Card on the F4SS Site) d. Loss Elimination - continuous improvement approach with milestones - e. Trust and a collaborative relationship where both the customer and

supplier work to support each other – (TAC Team Tool on the F4SS website)

1. The team discussed concepts to improve participation and attendance at IRT meetings. a. The team also discussed the initiation of pilots to prove the value of the

concepts developed by the F4SS IRT. -Reconciliation pilot requires participants needed – GoJo volunteered -Thank You

b. Pilots provide an opportunity to engage and drive adoption of the tools developed as well as demonstrate the value of participation

c. Schedule Face to Face for spring – if you would like to support and host the team please let us know – looking for a host company! – Don to evaluate Clorox interest and report – May Timeframe

2. Potential F4SS Connect Conference speakers

a. Oscar to Follow Up Rockline -has sent request – we would like to get the suppliers perspective from the IRT tools implemented between GoJo and Rockline

3. Material Reconciliation Proposal – We meet with Network of Networks,

Nulogy, to ascertain costs and answers to our questions -answers outlined below – no cost for this pilot – GoJo -Rockline to pilot -Dave to reach out to others to assess interest

Contract Manufacturing Materials Management

Improving Collaboration and Efficiency with Supplier-Managed Materials using Blockchain

Discussion topics:

1. Evaluate F4SS supplier’s willingness to allow tech participants access to ERP systems -what

protections that would be made available?

a. All integrations would be one-way to the digital ledger ensuring ERP data integrity and

separation

b. Nulogy and Boardwalktech have multi-national enterprise customers with stringent

security policies on authentication, data governance, and data security

c. Both companies bring the same capabilities to this POV project

2. Target suppliers already working with Nulogy for a pilot -less of a barrier to entry to ascertain

the data needed

a. Collectively, we thought this could lessen the effort of standing up the POV

3. What are the technical requirements a supplier would have to meet to participate?

a. An integration capability for supporting data exchanges between internal systems and

the blockchain digital ledger run in the cloud (could also be behind firewall in which case

a SQL Server/Oracle instance and a JAVA webserver is needed).

b. SME and technical staff to support process workflow and data integration needs

4. If this tool is developed -what would the cost be to participate on an annual basis for a supplier?

a. Both vendors use SaaS licensing – no per transaction or blockchain node pricing barriers

to adoption

5. Would this tool adapt to a variety of ERP systems?

a. Solution is not limited to any specific ERP system data environment

b. PP is attached for your reference

4. Member Survey a. Develop a survey for F4SS members to share areas that they like the IRT

to explore -Dave to provide draft and requests your input b. Please provide survey questions to Dave H for consolidation

dave.hempson@f4ss.org

5. Guest Speakers a. JnJ - Neil Ackerman – 2/11/19 – 2 PM EST -booked

Oct 10th 2018 meeting minutes

A. Recruitment -client stakeholder – reach out to new folks at our participating F4SS companies that can we can provide value to recruit new members.

B. Reconciliation Pilot – develop cost model to help team evaluate long term value for this new tool

C. Consultants – explore consultants that can offer value in areas we do not have the expertise

D. Target Mid-size suppliers/customers that could profit from the team’s tools and development expertise

The IRT reviewed the 5 pillars required for successful customer/supplier execution

5 pillars include: f. Contract -reviewed annually – (Draft Contract on the F4SS Site for

reference) g. SLED – reviewed QTRLY – (SLED model on the F4SS Site) h. Scorecard – QTRLY Review – (Score Card on the F4SS Site) i. Loss Elimination - continuous improvement approach with milestones -

j. Trust and a collaborative relationship where both the customer and supplier work to support each other – (TAC Team Tool on the F4SS website)

1. Based upon input from the team there is a need to upgrade supplier performance across these categories to meet the expectations of their customers in an ever-changing e-commerce/omni channel retail market place:

A. Faster response time to demand changes, greater agility from suppliers to accommodate demand changes -John Neinhaus, Jim Bandelow Solutions: a. To accommodate the agility required in the omni channel -e-commerce

world a completed SLED agreement is a mandatory requirement -define rules -bridge communication gaps

b. Sufficient trust to permit a VMI (vendor managed inventory) relationship is critical to success

c. Develop individual inventory management requirements for specific programs – once size does not fit all programs/skus – subset products manufactured based upon volatility, promotional nature, and other extenuating factors

d. Develop a robust communication process - both internally and externally to react to demand changes – leverage technology and tools available to facilitate rapid communication –

e. Create an S&OP (sales and operations planning) process that reacts much faster to demand changes

f. All stakeholders within an organization must interlock their communications insuring demand changes are conveyed to suppliers as quickly as possible enabling suppliers to adapt more quickly

B. Focus on loss-elimination and cost reduction – safe-guarding profit while reducing waste - Oscar Uzcategui, Jon Gordon Solutions:

a. The customer must generate data to support the targets established for loss elimination – loss elimination can be an 18-month cycle

b. Ideation Session – develop strategies and tactics to address loss reduction opportunities – data must be available by line, by SKU

c. Data to be presented includes: Historical forecasts by SKU, Component lead-times and costs, line rates, shift through-put, QA samples taken for testing,

d. True Cost Analysis – develop protocols to generate a true cost analysis -taking into account all losses - inefficiencies, scrap, samples, line stops, material ordering patterns, inventory cost, etc., to provide a clear picture of where to address losses.

e. Establish focused loss elimination teams that can analyze the data generated and begin to leverage strategies and tactics to address.

f. Teams must be open minded and look for all options to reduce loss – including new packaging formats, equipment re-configurations, nothing is off the table.

C. Strategies to create smaller MOQ’s to reduce inventory carrying cost and

obsolescence - Sheri De Vries, Lori Vilkanskas, Chris Conley, David Graber, Todd Caraway Cathy Montplaiser Solutions: 1. Focus on sub-set of SKU’s that can be used to develop strategies and

practices that will accommodate this need 2. Late stage customization – drive collaboration with

sales/marketing/operations/engineering to develop products that leverage late stage customization opportunities.

3. Surge Capacity -develop processes that allow for surge capacity -extra sets of tooling -skilled temp work force – automation

D. Greater flexibility - Right mix of products at the right time - Jess Malvin, Bill Messmer Solutions: TBD

E. Faster and more accurate data exchange from both the customer and the supplier ahead of any digitization process – Streamlined forecast/demand process allowing for greater flexibility and response time -Paul Statchuk Solutions: TBD

F. Development of a tool to support suppliers through the development of a no-touch replenishment process. Tom Kent, Carolina Velez Solutions:

TBD

August 16, 2018

2. Based upon input from the team there is a need to upgrade supplier performance across these categories to meet the expectations of their customers in an ever-changing e-commerce/omni channel retail market place:

3. To help drive engagement and participation please review your assignment and come prepared to discuss at our next call

G. Faster response time to demand changes, greater agility from suppliers to accommodate demand changes -John Neinhaus, Jim Bandelow

H. Strategies to create smaller MOQ’s to reduce inventory carrying cost and

obsolescence - Sheri De Vries, Lori Vilkanskas, Chris Conley, David Graber, Todd Caraway Cathy Montplaiser

I. Greater flexibility - Right mix of products at the right time - Jess Malvin, Bill

Messmer

J. Faster and more accurate data exchange from both the customer and the supplier ahead of any digitization process – Streamlined forecast/demand process allowing for greater flexibility and response time -Paul Statchuk

K. Focus on loss-elimination and cost reduction – safe-guarding profit while

reducing waste - Oscar Uzcategui, Jon Gordon

L. Development of a tool to support suppliers through the development of a no-touch replenishment process. Tom Kent, Carolina Velez

5 pillars include k. Contract -reviewed annually – Draft Contract on the F4SS Site l. SLED – reviewed QTRLY – SLED on the F4SS Site m. Scorecard – QTRLY Review – Score Card on the F4SS Site n. Loss Elimination - continuous improvement approach with milestones -

TBD o. Trust and a collaborative relationship where both the customer and

supplier work to support each other – TAC Team Tool

July 11th Meeting Minutes

Team Vision – The Integrated Replenishment team will focus on how supply chains must evolve to meet the demands of a very dynamic e-commerce/omni channel market. The team will work to find new technological solutions to old

problems, engaging with thought leaders in the areas of replenishment, forecasting and supply chain reliability.

M. The team reviewed a process to automate material reconciliations for full service customer supplier relationships.

a. The team will review the draft brief on what would be expected. b. If the initiative has sufficient value the team will develop pilot

opportunities to test the automation of this reconciliation process. c. There is no cost to engage in the pilot

Draft Brief for pilot – approved

The F4SS IRT in collaboration with Nulogy – Network of Networks – and Boardwalk Tech is interested in executing a pilot with F4SS members to test the automation of material reconciliations required for full service contracts

Brief (Draft)

Full Service Contracts

1. Full Service -Turn Key – the supplier purchases the materials required to build the finished goods from raw material suppliers of the supplier’s choice – quoted costs are established for the raw materials

2. Full Service -Directed Buy – the supplier purchases the materials required to build the required finished goods from raw materials suppliers directed by the customer with pre-negotiated pricing -the quoted/directed buy costs are supplied by the customer to the supplier.

3. True-Up – at the end of a period – (usually a quarter) – the actual cost of the materials is compared to the quoted cost (or directed-buy cost basis) for the materials issued to the appropriate work orders.

4. Reconciliation – a detailed comparison of the actual PO costs for the materials utilized vs the standard cost/directed-buy cost -

5. Variables – a. PO quantity variation based upon customer demand fluctuations b. Gang printing savings vs. single run c. MOQ -minimum order quantity resulting in residual materials d. Variability in raw material costs due to commodity cost changes

e. Residual materials purchased to meet customer demand requirements, demand changes stranding materials

f. Directed-buy costs from different raw material suppliers g. Transportation cost changes – fuel surcharges for instance h. If there is a material mark-up or administrative fee applied to the

materials, this cost must be excluded

Brief

The IRT would be interested in an automated block chain application to provide F4SS members with a quarterly reconciliation comparing the cost of materials consumed as compared to the quoted/directed buy costs established in the quoted pricing.

The reconciliation would have to track the cost for the materials purchased as compared to the quoted cost established for the materials consumed within the quarter.

The reconciliation would provide objective, verifiable evidence for all transactions within the timeframe established.

A preliminary reconciliation each month would alert both supplier and customer of any significant changes in raw material costs – for example, any single component cost change over 10% would trigger a notification, leading to an investigation if warranted.

The team discussed a case study and pilot to develop the process.

Questions included

1. Evaluate F4SS supplier’s willingness to allow tech participants access to ERP systems -what protections that would be made available?

2. Target suppliers already working with Nulogy for a pilot -less of a barrier to entry to ascertain the data needed

3. What are the technical requirements a supplier would have to meet to participate?

4. If this tool is developed -what would the cost be to participate on an annual basis for a supplier?

5. Would this tool adapt to a variety of ERP systems?

Follow up activities:

N. The team reviewed options for the IRT to participate in CI Connect conference Oct. 1,2,3rd -Ideas included:

a. A Rockline presentation providing the supplier perspective of vender managed inventory -Oscar to determine if they will prepare a presentation – Need feedback from Oscar -the team supports this option

b. Nulogy Presentation -the team agreed to a Nulogy/Network of Network presentation.

c. Smuckers presentation demonstrating how Ariba was deployed to improve supply chain performance -Dave to reach out to Smuckers to gauge interest -No response from Smuckers outreach regarding their use of Ariba – Oscar will follow

O. The team reviewed ideas to improve attendance and membership for the

team a. Expand brand owner engagement b. Insure team objectives are compelling and addressing relevant issues c. Reach out to team-members prior to meetings to encourage

participation

June 13th Meeting Minutes

Team Vision – The Integrated Replenishment team will focus on how supply chains must evolve to meet the demands of a very dynamic e-commerce/omni channel market. The team will work to find new technological solutions to old

problems, engaging with thought leaders in the areas of replenishment, forecasting and supply chain reliability.

P. The meeting began with a presentation by Nulogy – Network of Networks and Boardwalk Tech describing a process to automate material reconciliations for full service customer supplier relationships.

Next Steps:

d. The team will draft a brief on what would be expected. Please edit draft as needed by June 29th

e. Team members that were unable to attend will provide their thoughts on the value of this initiative

f. If the initiative has sufficient value the team will develop pilot opportunities to test the automation of this reconciliation process.

g. There is no cost to engage in the pilot

Draft Brief for pilot

The F4SS IRT in collaboration with Nulogy – Network of Networks – and Boardwalk Tech is interested in executing a pilot with F4SS members to test the automation of material reconciliations required for full service contracts

Brief (Draft)

Full Service Contracts

6. Full Service -Turn Key – the supplier purchases the materials required to build the finished goods from raw material suppliers of the supplier’s choice – standard costs are established for the raw materials

7. Full Service -Directed Buy – the supplier purchases the materials required to build the required finished goods from raw materials suppliers directed by the customer with pre-negotiated pricing -the standard costs are supplied by the customer to the supplier.

8. True-Up – at the end of a period – (usually a quarter) – the actual cost of the materials is compared to the standard cost (or directed buy cost basis) for the materials issued to the appropriate work orders.

9. Reconciliation – a detailed comparison of the actual PO costs for the materials utilized vs the standard cost/directed buy cost -

10. Variables – i. PO quantity variation based upon customer demand fluctuations j. Gang printing savings vs. single run k. MOQ -minimum order quantity resulting in residual materials l. Variability in raw material costs due to commodity cost changes m. Residual materials purchased to meet customer demand

requirements, demand changes stranding materials n. Directed buy costs from different raw material suppliers o. Transportation cost changes – fuel surcharges for instance p. If there is a material mark-up or administrative fee applied to the

materias, this cost must be excluded

Brief

The IRT would be interested in an automated block chain application to provide F4SS members with a quarterly reconciliation comparing the cost of materials consumed as compared to the standard costs established in the quoted pricing.

The reconciliation would have to track the cost for the materials purchased as compared to the standard established for the materials consumed within the quarter.

The reconciliation would provide objective, verifiable evidence for all transactions within the timeframe established.

A preliminary reconciliation each month would alert both supplier and customer of any significant changes in raw material costs – for example, any single component cost change over 10% would trigger a notification, leading to an investigation if warranted.

The team discussed a case study and pilot to develop the process.

Questions included

6. Evaluate F4SS supplier’s willingness to allow tech participants access to ERP systems -what protections that would be made available?

7. Target suppliers already working with Nulogy for a pilot -less of a barrier to entry to ascertain the data needed

8. What are the technical requirements a supplier would have to meet to participate?

9. If this tool is developed -what would the cost be to participate on an annual basis for a supplier?

10. Would this tool adapt to a variety of ERP systems? Follow up activities:

Q. The team reviewed options for the IRT to participate in CI Connect conference Oct. 1,2,3rd -Ideas included:

d. A simulation – like the Beer Game to drive home the thought process needed to adapt to the e-commerce market place -Annette to lead the investigation for options – No success to date

e. A review of the SLED or other topics in a break-out session that help F4SS members adopt the tools we have developed – TBD

f. How to use problem solving tools developed by the team g. A Rockline presentation providing the supplier perspective of vender

managed inventory -Oscar to determine if they will prepare a presentation – Need feedback

h. An Ariba/Nulogy presentation demonstrating how digitization of replenishment can improve supply chain management and what is required to embark on this journey – Don-Oscar set up a time to explore – Difficultly making contact -Oscar can you support please

i. Smuckers presentation demonstrating how Ariba was deployed to

improve supply chain performance -Dave to reach out to Smuckers to gauge interest -No response from Smuckers outreach regarding their use of Ariba

Past discussions -Summary

R. The team discussed development of an approach to support suppliers through the development of a no-touch replenishment process. 5 pillars include p. Contract -reviewed annually q. SLED – reviewed QTRLY r. Scorecard – QTRLY Review s. Loss Elimination - continuous improvement approach with milestones t. Trust and a collaborative relationship where both the customer and supplier work to

support each other

S. Based upon input from the team there is a need to upgrade supplier performance across these categories to meet the expectations of their customers in an ever-changing e-commerce/omni channel retail market place:

T. Faster response time to demand changes U. Great agility from suppliers to accommodate demand changes V. Smaller MOQ’s to reduce inventory carrying cost and obsolescence W. Greater flexibility - Right mix of products at the right time X. Faster and more accurate data exchange from both the customer and the supplier ahead of any

digitization process Y. Streamlined forecast/demand process allowing for greater flexibility and response time Z. A well-executed contract and SLED to insure thorough understanding of responsibility AA. Focus on loss-elimination and cost reduction – safe-guarding profit while reducing waste

BB. The team reviewed options for the IRT to participate in CI Connect conference Oct. 1,2,3rd -Ideas included:

j. A simulation – like the Beer Game to drive home the thought process needed to adapt to the e-commerce market place -Annette to lead the investigation for options

k. A game that drives home a key point in the no-tough replenishment process l. A review of the SLED or other topics in a break-out session that help F4SS members adopt

the tools we have developed m. How to use problem solving tools developed by the team n. A Rockline presentation providing the supplier perspective of vender managed inventory -

Oscar to determine if they will prepare a presentation

o. An Ariba/Nulogy presentation demonstrating how digitization of replenishment can improve supply chain management and what is required to embark on this journey – Don-Oscar set up a time to explore

p. A Smuckers presentation demonstrating how Ariba was deployed to improve supply chain performance -Dave to reach out to Smuckers to gauge interest

CC. Development of a Customer -Supplier training program that guides partners through the processes required to achieve a no-touch replenishment solution leveraging industry experts, IRT tools, and team members to add value to F4SS members in achieving the expectations required to meet the e-commerce challenges

DD. Continue development and refinement of the Maturity Assessment Tool

April 26th/27th 2018 Face to Face Meeting

Thanks to Annette Cutchens and Coregistics for Hosting the IR Team meeting

EE. The team discussed development of an approach to support suppliers through the development of a no-touch replenishment process. 4 pillars include u. Contract -reviewed annually v. SLED – reviewed QTRLY w. Scorecard – QTRLY Review x. Loss Elimination continuous improvement approach with milestones

FF. The process is outlined in the attached PP and includes: a. A signed agreement b. An executed SLED agreement c. Process built on trust, collaboration and transparency d. Operational improvement – flexibility e. Capacity optimization -lean six sigma f. Documented work processes g. Loss Elimination

GG. The team discussed how systems like ARIBA or other similar processes can be leveraged to drive

no-touch replenishment a. IR Team is looking to execute pilots to expand the opportunity to develop a no-touch

replenishment process b. Please reach out to customers and suppliers to evaluate opportunities

HH. The team reviewed the IRT tools to add to the F4SS website

a. SLED

b. Model of Non-Performing Inventory accountability NPI c. Phase I and Phase II Handbooks d. Business Models -Traditional AKA (Free Issue/Tolling) – Full Service – Directed Buy – Turn

Key e. Fish Bone Diagrams f. Score Card

II. The team reviewed options for the CI Connect conference in Oct. Ideas included

q. A simulation – like the Beer Game r. A game that drives home a key point in the no-tough replenishment process s. A review of the SLED or other topics in a break-out session t. How to use problem solving tools u. Invite an ARIBA representative to share their process and work concepts v. Would Smuckers be willing to share their process to pay work with ARIBA w. Speed networking – providing customers and suppliers an opportunity to meet x. Rockline willingness to share their experience with the pilot implemented with GoJo

May 14th Meeting Minutes

1. The team discussed scheduling a face to face meeting – Target date April 26th and 27th – Coregistics plant Chicago – Please mark your calendars – details to follow

2. The team reviewed the feedback from the survey conducted at the F4SS Connect Event –(actual survey results below) take always from the survey discussion included:

a. Design for an e-commerce environment - b. Demand – develop tools to manage fluctuations in demand – providing more agility c. Training for new product introduction processes that incorporates e-commerce demands d. Responsiveness from weeks to hours – tools to accomplish e. Faster -shorter lead-time – how to guide - to accomplish f. Improve planning processes to be more responsive to demand changes g. Re-design processes – take existing processes and improve to be more agile and responsive

to changing demand in an e-commerce market h. Automate production lines, faster changeover, more efficient run strategy i. Shift planning to supplier allowing optimization of run strategy, material procurement,

shorter lead-time, less loss and obsolescence

j. Build trust to allow supplier to plan replenishment process (T&C) k. Adapt existing IRT tools to accommodate the new e-commerce environment – SLED -add tab

for e-commerce expectations – get specific with responsibility and accountability – execute an annual review of the SLED

l. Coordinate with other teams – CI, T&C to help cover e-commerce expectations

3. SAP has developed a new platform on top of the SAP a. Explore collaboration with SAP – F4SS -SAP joint conference with e-commerce theme b. Review IR systems and share best practices

4. Develop a roadmap or process for execution of the SLED document a. Update SLED b. Annual review and update c. Add E-commerce tab

5. Survey results

1. What are the major challenges your company faces as E-Commerce and Omni channel distribution continue to grow? a. Ability to react to volume spikes b. Ability to adjust to lower than expected volume c. Amazon algorithm directing consumers away from your brand d. Packaging XX (to meet e-commerce specifications) e. Cost XX -Cost of packaging -efficiency and logistics f. Variability in package design to survive shipping and be “green” g. Small run sizes XX -Unilever and P&G h. Production inefficiencies due to schedule changes i. Short lead-times j. Skill set to address lacking k. Keeping up with the changes l. We do not worry -not started

2. Where can the IR Team lend support to help you navigate this dynamic e-commerce world? a. Too tough a question b. Case Studies c. How do you transform your supply chain to address the variables listed in question

1? XX

d. 3rd parties should offer brands expertise and flexibility in small run sizes, and package development

e. Scheduling solutions – how to predict demand f. Remove the fear of corporate secrets being shared

3. Do you have difficultly predicting demand in an e-commerce environment? a. Yes, same as internal XXXXXX (Da) b. Most run to forecast – same with combination of running to order

4. Are you finding it difficult to develop packaging solutions that can withstand the rigors

of e-commerce shipping cost effectively? a. Difficult -from pre-testing to development b. Yes, continued demand for customization driving smaller multiples c. Yes XX d. Yes, the key being cost effectively e. Yes, purchase new equipment – expensive

5. Is sustainability a challenge in the e-commerce environment? a. Yes, less efficient b. Additional packaging is required for SIOC (ship in own container) -not all is recyclable c. Yes, extra packaging -more durable packaging d. Yes -no ship in own container e. Yes

6. Are your e-commerce customers requiring one-off packaging solutions w/o incremental cost? a. Yes, they want their own b. Requesting, yes, is it sustainable? No c. Absolutely d. Yes XX e. They are trying

7. Are the specifications changing typical cases and pallet distribution programs to new

specifications required to meet the e-commerce channel is presenting a challenge? a.Yes X X X X X X b. Most re-packs and upgraded packaging solutions, new SKU creation

8. Has your company adopted a new mind set to adapt to this new market? a. Some b. Yes X c. Not fully, companies will need to adapt or outsource to succeed d. Yes, we have to, to stay competitive e. Some have -some still struggling f. Evolving -feeling behind g. No

9. Has your company adopted an approach to product ideation, package design, and collaboration to meet the fast-growing e-commerce market requirements and rigorous ship test expectations? a. Some -not yet b. No XX c. Yes XX d. Some have processes formalized XX, other don’t e. We think so -no packaging suppliers at our table

10. Are data system requirements and data integration requirements from e-commerce retailers presenting additional challenges? a. Yes, Amazon (ated) as an example – require within 16-24 hours of receipt of PO –

how many to provider will ship b. Yes, even the data/forecast Amazon provides is inaccurate c. Yes, integration d. Yes XXX

11. Are quick response times to demand changes requiring extreme flexibility in your

manufacturing operations? a. No kidding – Yes b. Yes, more small runs with greater customization

c. Yes XXXXX

IRT Meeting Minutes:

1. 2018 Team objective – what is it we would like to accomplish this year? Where can the IR Team offer support and assistance to the F4SS Membership?

2. Next Steps: a. Create a survey with some questions pertaining to the challenges of E-Commerce (attached) b. Distribute the survey to IRT members attending the F4SS Connect Feb 26-28th c. At the lunch tables on February 27th, ask for input from the folks at your table to respond to

the questions -record their input d. Give Dave H the record of the input -we will consolidate and discuss at our next team

meeting to help use prioritize our objectives for 2018

Potential topics Include: a. Predicting demand in an e-commerce environment has proven very challenging for

customers (brand owners) and their suppliers. b. Development of packaging solutions that can withstand the rigors of e-commerce shipping

cost effectively and sustainability is a challenge. One off packaging solutions are needed w/o incremental cost.

c. Changing typical cases and pallet distribution programs to new specifications required to meet the e-commerce channel is presenting a challenge to customers

d. Mind sets must change to adapt to this new market e. A different approach to product ideation, package design, and collaboration is required to

meet the fast-growing e-commerce market requirements f. Data system requirements and data integration requirements from e-commerce retailers is

presenting additional challenges. g. Quick response time to demand changes requires extreme flexibility in the manufacturing

operations h. Efficiency cannot be sacrificed to meet demand shifts and new packaging formants and

maintain profitability i. New ship tests are required to ensure packaging can withstand the rigors of the e-

commerce distribution channel.

Suggestion - On-Line E-commerce hand-book for F4SS members – how to guidebook helping members navigate the e-commerce world – integrate with other teams to help develop sections of the hand-book – one stop shop for data and information -this concept will be further developed with input from our other teams.

a. Predicting demand b. Incorporate standards -package design c. Package design considerations d. Manufacturing solutions

e. Leveraging best practices f. Sustainability requirements

3. Suggested approach for the IR Team to consider a. Visit with an Amazon of other e-commerce provider to learn what is required to be

successful in this channel and adapt our team to assist F4SS members to provide. b. Determine which customers are already meeting the demands of e-commerce and leverage

their experience and best practices to other F4SS constituents to reduce the time needed to adapt and accelerate the learning curve.

c. Work with the CI Connect team this fall to participate in an Amazon DC tour to gain perspective

d. Meet at the F4SS Connect in February as we gain additional insight into the e-commerce world form the conference speakers to further refine our 2018 direction

e. Order management systems development – logistics – incorporating tools, training, sharing best practices, develop next steps

f. Finalize OTIF metrics as a component of the SLED document

4. Maturity assessment tool – continue to develop the tool and refine to assist F4SS members with their internal evaluation – updates provided – Consolidate all teams input into one document – post on the F4SS website -continue to refine and link to appropriate tools

IRT Meeting Minutes:

5. The team reviewed the team vision for 2018 and agreed with the overall direction -

As a result, the IR initiative team will begin to incorporate the needs for this dynamically changing e-commerce retail environment into their focus areas.

6. The IR Team is already focused on leveraging advances in technology to support this very dynamic market. Current challenges facing F4SS members include: j. Predicting demand in an e-commerce environment has proven very challenging for

customers (brand owners) and their suppliers.

k. Development of packaging solutions that can withstand the rigors of e-commerce shipping cost effectively and sustainability is a challenge. One off packaging solutions are needed w/o incremental cost.

l. Changing typical cases and pallet distribution programs to new specifications required to meet the e-commerce channel is presenting a challenge to customers

m. Mind sets must change to adapt to this new market n. A different approach to product ideation, package design, and collaboration is required to

meet the fast-growing e-commerce market requirements o. Data system requirements and data integration requirements from e-commerce retailers is

presenting additional challenges. p. Quick response time to demand changes requires extreme flexibility in the manufacturing

operations q. Efficiency cannot be sacrificed to meet demand shifts and new packaging formants and

maintain profitability r. New ship tests are required to ensure packaging can withstand the rigors of the e-

commerce distribution channel.

7. Suggested approach for the IR Team to consider g. Visit with an Amazon of other e-commerce provider to learn what is required to be

successful in this channel and adapt our team to assist F4SS members to provide. h. Determine which customers are already meeting the demands of e-commerce and leverage

their experience and best practices to other F4SS constituents to reduce the time needed to adapt and accelerate the learning curve.

i. Work with the CI Connect team this fall to participate in an Amazon DC tour to gain perspective

j. Meet at the F4SS Connect in February as we gain additional insight into the e-commerce world form the conference speakers to further refine our 2018 direction

8. Maturity assessment tool – continue to develop the tool and refine to assist F4SS members with their internal evaluation – updates provided -

9. SELD -we have harmonized on the acronym – SLED – Site Level Executed Document

10. Next Meeting 2-14-18 -2PM EST

IRT Meeting Minutes:

1. Review and edit the draft revised Team Vision -the team discussed the team vision – if you have specific input please let us know and we will incorporate

Team Vision - The team will focus on how supply chains must evolve to meet the demands of a very dynamic market. The team will work to find new

technological solutions to old problems, engaging with thought leaders in the areas of replenishment, forecasting and supply chain reliability.

2. The F4SS BOD has established a focus on E-Commence, Digital, and Omni channel distribution.

As a result, the initiative teams should begin to incorporate the needs for this dynamically changing retail environment into their focus areas. The IR Team is already focused on leveraging advances in technology to support this very dynamic market. We are looking for break-through technology solutions for our members.

▪ The Maturity Assessment Tool will demonstrate how to deploy the tools already developed.

▪ To advance our mission and support our members on their journey to world class, the team will refocus on the cutting-edge thought processes, innovative solutions and explore new supply chain approaches.

3. Develop the Maturity Assessment Tool for use by our members. Draft attached for review.

John – Business Model

Annette –Finished Goods Planning

Erica – Raw Material and Planning & Purchasing

Carolina – Production Execution and Delivery Performance

Oscar – Loss Elimination

Inventory Management – TBD

4. Develop an annual meeting calendar:

Next Meeting - 1/10 2pm ET,

2/7 2pm ET.

Thereafter, the second Wednesday of each month at 2pm ET.

2/14/18, 3/14/18, 4/11/18, 5/9/18, 6/13/18, 7/11/18, 8/08/18, 9/12/18, 10/10/18, 11/14/18, 12/12/18

5. The BOD of F4SS is working to establish a CI Connect at an Amazon site, the IRT will work with the F4SS BOD to integrate a program that meets our mission.

6. Tools Update - Link to the tools: https://drive.google.com/drive/folders/0B2gmYcMDh2pOUDQ1cmlFQm14UjA?usp=sharing

o The tools that were deemed no longer relevant will be deleted from the program.

o The CSOP Handbook will be reviewed and edited. o The SLEA and GOJO Case Studies will be added to the new website. o The relevant tools will be linked to the Maturity Assessment Program in

development.

KC Face to Face Meeting Minutes

I. Team Charter – we reviewed the original charter – Development of a No-touch

replenishment process for customers and suppliers – we agreed that this goal was still the

driving force behind the work of the team.

A. To accomplish this goal, we decided to continue to focus on the building blocks of the

fully integrated process as detailed in the pyramid.

B. It was discussed how critical communication between the customer and supplier to meet

the goals established – the handbooks provide communication guidance to achieve the value

in the process.

c. Team stability was also a critical component for the process to function – significant

turnover can lead to disruption to the process.

d. Only key strategic suppliers will be involved in a process this rigorous - the savings from full

implementation of a fully integrated process are significant as demonstrated by the GoJo pilot

results

II. A good IR process will include a. Definitive Agreement

b. SLED -Site Level Executed Document

c. Scorecard – to evaluate performance in an objective discussion

d. Loss Elimination -continues improvement objectives

e. These tools can be found at F4SS.ORG

f. Master Data accuracy evaluation

g. Defined working model

h. SLOB approach that is effective for both parties

i. Open transparent communication

j. GoJo visibility tool format as an intermediate step to the develop of a linked ERP system

Oscar, Annette, Dave will review the tools already developed and work to organize them in a way that

enables F4SS members to better incorporate into their day to day operations

III. SLED Update – feedback from last IRT meeting was incorporated in the updated SLED

document -

a. The IRT has asked to have the QPLT review the document in relation to the Quality

sections of the SLED. – Dave will follow up with Chris Calhoun to advance the

coordination of the two teams with regards to the score card

b. It was decided to incorporate a costing process tab to the SLED – Annette and Oscar

will work together and will add a section to accommodate this improvement

c. To implement a SLED, it was recommended that customers/suppliers be tiered – Tier

1, Tier 2, Tier 3 – focus and passion around implementing a SLED will start with Tier 1

suppliers

d. Value Equation for the work involved in building a detailed SLED with your

customer/supplier

i. Provides operational discipline

ii. Mitigates supply chain risk as communication is enhanced

iii. Expectations are clearly defined and understood

iv. Metrics provide trending data -issues can be addressed before they become

catastrophic

v. Monthly review provides opportunity to address issues collaboratively and

cooperatively enhancing relationship – SLOB, Forecast Accuracy, Usage Variance vi. Scorecard

How it is used with Customers - the F4SS scorecard is a good base, needs individual modifications for their use which is not time consuming

IV. Project Pilot Updates

The pilots are designed to prove the concept that sharing Finished Goods demand from the customer to

the supplier, in a more efficient and integrated manner, we can reduce replenishment lead-time resulting

in less inventory, reduced out of stocks, improved fill rates. There is an opportunity to reduce the FTEs

required to plan both for the customer and supplier reducing the redundancies inherent in the current

process. Overall enhancing the customer – supplier value equation.

Pilot 1- Smucker and Supplier –Annette will follow up with Smucker’s Laura Ingraham to determine

their involvement with the IRT team and pilot status.

Pilot 2- GoJo – Wipe Partner – Rockline -Excellent progress

Step 1 - Define accountability with updated Contract and SLEA, followed by Master Data Audit to insure

accurate data, development of an EDI process to expedite transaction efficiency.

Step 2- A robust CSOP (customer -supplier operations planning) process helps create a pro-active

opportunity to resolve constraints and address issues in a collaborate environment.

The project is designed to provide supplier – forecast, sales history, days of inventory, GoJo will block 2

Step 3 - Weeks’ production (frozen zone) at supplier on a dedicated line, provide demand and forecast,

allowing supplier to create PO’s for week 3 – this process will permit the supplier to optimize their run

strategy, reduce changeovers, and improve efficiency.

Step 4- Plan based upon trust, open and honest communication, transparency and stable working teams

with the supplier to optimize their production while meeting case fill rates and weekly attainment

expectations.

Step 5- Supplier creates an optimized transportation plan building efficient Truck Loads

Kimberly Clark – is evaluating a pilot opportunity at year end – developing an RFP to determine the best

partner to improve customer -supplier interface

V. Pilot Metrics –

To evaluate process effectiveness for each of these pilots, we are requesting that pilot participants

capture key metrics to build a case for expanding the IR process and gaining additional support.

Market promotions System EDI

Change Control Forecast Generation

Communication failures Data Availability

Management of complexity RCCP

Trend analysis

Process Management

Updating master data

Schedule optimization

Run Strategy

Supplier technical capability

VI. System Integration Status Update

Current Solutions –

a. Excel shared between customer and supplier

b. EDI – data shared via EDI transaction sets mapped to customer and supplier system

c. WEB form – ad hoc format designed to link customer and supplier ERP systems

d. FTP (protocol) – customized solution requiring mapping between customer and

supplier ERP systems

e. Portal – customer opens a portal to their ERP system allowing supplier to access data

needed to develop replenishment plan

f. API – a type of web form

Better option -Our goal would be to develop a solution that enables data sharing from

many systems allowing both customers and suppliers access to demand data, as well as upstream

suppliers – this network would provide real-time updates and reduce delays leading to a more

efficient solution

Options to evaluate

1. GP Nexus

2. Ariba

3. Dell

4. MuleSoft

5. SAP

6. Greenfence

VII. Innovation Sub-Team

The team’s charter will be to investigate and evaluate new and cutting edge

concepts in replenishment and leverage those learnings to the F4SS membership

Team Members

Oscar Uzcategui – GoJo -Team Leader

Matt O’Conner – Rockline Industries

Carolina Velez – Kimberly Clark

Chris Conley – Continental Mills

Ask QPLT for a representative

Dave Hempson -F4SS

Next Steps

1. Explore University connection – evaluate hosting the next IRT meeting at Harvard,

Princeton, Kent State or another university where we can leverage state of the art

thinking with practical applications – full day case study -target Oct./Nov

2. Focus on forecast improvement – 50% accuracy is considered a good target today

3. Oscar and Annette will coordinate and develop an approach for this innovative

concept

VIII. Target New Members – 1. We have found that networking of team members is the most productive way to

recruit

2. Please reach out to two potential new members and work to have them join the IRT

We will discuss your efforts at our next team meeting

3. Seeking a volunteer to create the first blog. The subject matter could be a best practice, perhaps something you've recently achieved that is noteworthy. It may also be an industry trend. Oscar volunteered to write the first blog. It was suggested it could be about their recent success of applying the F4SS tools to their working relationship with Rockline.

4. Don to get date from Lauren on when the blog will be needed but the target is sometime in May. Webinar topics

5. Perhaps a case study with the GOJO/Rockline experience. Target date would be sometime in June.

6. However, it was stressed for best practices sharing we really do need more case studies and we need to work on getting them.

7. To help prepare for the webinar, it was asked if F4SS has any templates or guidelines that would be helpful. Don will check with Lauren.

8. In regard to blogs, the Nulogy Learning Center has several samples that can be viewed. These mostly relate to industry trends but will serve as a good guideline for our blog.

IX. Next IR Team meeting

1. Matt O’Conner has volunteered Rockline as a site for the October meeting

2. Supply Chain Best Practice discussion - future meeting should be in or near a

manufacturing plant or somehow coupled with a Supply Chain event or program. 3. Perhaps a company like the Waffle House or Roskam Baking

or perhaps a company that is an event organizer like a major concert organizer

4. Should we use some kind of online action tracker or monthly calls to keep in touch and do status updates? It was suggested we schedule calls for now.

X. Wow Factor We would like your input as to what would create a compelling wow to increase

involvement and participation with our team -no suggestion is too outlandish – please

send your ideas to Oscar, Annette, and Dave

Thanks to all who attended – we appreciate your commitment

and involvement – as we continue to advance the customer –

supplier interface there is significant value to extract from the

processes we are working to pilot and improve.