Innovative, Sustainable, and ResponsiveFood and Beverage Manufacturers Evolve for the New Economy

•Name•Title

•Company

Food and Beverage Market Challenges Worldwide

Consumer Group

InterestsFood Safety

Growth of Private Label

Product Needs per

ChannelRegulatory Compliance

Demand Volatility

Complex Partnerships

Source: Cambashi Limited White Paper: Innovative, Sustainable, and Responsive: Food and Beverage Manufacturers Evolve for the New Economy, Julie Fraser, January 2010

Primary Business Challenges

Innovation Success

Market Responsiveness

Sustainability Leadership

Gain advantage with creative

packaging

Collaborate with partners to respond

and innovate effectively

Deliver to new markets quickly and flawlessly

Provide services that help

customers succeed

Meet government regulations

Sense market shifts

immediately

Discover and adopt new lean

practices to save costs

Drive “green and lean” processes while mitigating

risks

Ensure environmental, ecological, and

humane practices

Develop successfulnew products for growing niches

“A ‘new economy’ is emerging with constant changes in demand trends, niche markets, regulations, and competitors (including retailers). This new business environment clearly presents profitable opportunities for food and beverage companies that are ready to unlock their innovation potential, demonstrate their commitment to sustainability, and respond faster to changing market requirements.”

― Julie Fraser, Principal Industry Analyst, Cambashi Limited

Evolving to Be Innovative, Sustainable, and Responsive

Source: Cambashi Limited White Paper: Innovative, Sustainable, and Responsive: Food and Beverage Manufacturers Evolve for the New Economy, Julie Fraser, January 2010

“Changes in demand, growth of private label, and new niches are fuelling unprecedented opportunities across the food and beverage industry. To innovate effectively, companies must create an environment that fosters creativity and collaboration. Progressive manufacturers can rapidly adapt to market changes by adjusting procedures and processes.”

― Julie Fraser, Principal Industry Analyst, Cambashi Limited

Innovation Success: Capturing Increasing Opportunities

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Source: Cambashi Limited White Paper: Innovative, Sustainable, and Responsive: Food and Beverage Manufacturers Evolve for the New Economy, Julie Fraser, January 2010

Challenge: Innovation SuccessIdentify and respond to new product demands

quickly.Improve collaboration internally and across the channel.

Establish strategic partnerships to deliver innovation.

Speed processes to bring products to production faster.

Reduce costs of and delays in production.

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Microsoft Dynamics ERP Fuels Innovation Success

Microsoft solutions help drive collaboration, innovation

Measure product

success with advanced reporting

and analysis

Drive rapid inventory insight,

response, and control

Speed collaboration

with integrated systems

Provide real-time and

role-based visibility

across the value chain

Boost BI by reporting on role-specific KPIs in easy-

to-use portals

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Challenge

ResultsSolution

Food and Beverage Manufacturer Drives Innovation

“Now we’re much more skilled at determining which markets to go into with which brands, and we have a better understanding up-front what the profitability from these endeavors would be.”

Since 1991, New Belgium Brewing has experienced double digit growth. It’s now the third-largest craft brewer in the U.S. To sustain that growth, they needed to better forecast and track customer demand, supply, production, and distribution.

The company now uses extended capabilities of Microsoft Dynamics® ERP and Microsoft® SharePoint® Server to provide forecasting, planning, and analysis to employees and business partners so they can sense demand changes faster.

• Fifty percent reduction in shipment forecast errors

• Faster response to market changes

• Extended access to supply and demand information across the organization

• Improved visibility across the supply chain

Challenge

ResultsSolution

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

“Environmental sustainability is the new criterion that will determine which companies will thrive and lead in the new economy. More customers consider ‘green’ practices in their purchasing decisions than ever before and the proportion is growing steadily.”

― Julie Fraser, Principal Industry Analyst, Cambashi Limited

Sustainability Leadership: Building Brand and Success on Social Responsibility

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Source: Cambashi Limited White Paper: Innovative, Sustainable, and Responsive: Food and Beverage Manufacturers Evolve for the New Economy, Julie Fraser, January 2010

Meet regulatory compliance and consumer demands.

Challenge: Sustainability Leadership

Reduce waste and cost while providing “green” packaging.Streamline supply and manufacturing for better efficiency.Provide consumers easy access to product and service information.

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Track, trace, and report on product details from ingredient origins to market shelf.

Microsoft Dynamics ERP Drives Sustainability LeadershipMicrosoft solutions help drive “green and lean” practices

Provide consumers

with product info and self

service

Track origin, location, and shelf life to improve

quality and customer

satisfaction

Standardize processes and

integrate data to meet

changing regulations

Drive environmental and business sustainability

with improved BI and lean practices

Deliver more eco-friendly products,

reduce waste with better

visibility, KPI monitoring

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Challenge

ResultsSolution

Food and Beverage Manufacturer Improves Reporting, BI

“For the price and the feature set available, there really is no better business management system than Microsoft Dynamics.”

Each bottling plant for G&J Pepsi-Cola was using multiple systems for accounting, payroll, and human resources (HR). The company wanted to centralize key business management functions to streamline operations.

The company extended its corporate implementation of Microsoft Dynamics ERP to standardize these functions, control costs, and consolidate business data for enhanced analytics and reporting.

• Improved reporting • Better financial control • Enhanced business intelligence• Better visibility into financial processes company-wide• Centralized administrative duties • Projected annual savings of U.S.$560,000

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

“Responsiveness has two fundamental dimensions: the ability to detect market shifts and the capacity to respond. One is not effective without the other. Getting an accurate view of demand is a challenge, since food and beverage companies rely on retailers and others who serve consumers.”

― Julie Fraser, Principal Industry Analyst, Cambashi Limited

Market Responsiveness: Balancing Demand with Supply Is Increasingly Complex

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Source: Cambashi Limited White Paper: Innovative, Sustainable, and Responsive: Food and Beverage Manufacturers Evolve for the New Economy, Julie Fraser, January 2010

Challenge: Market Responsiveness

Respond promptly to frequent changes in demand.

Control costs while meeting new demands.

Deliver products to market faster with shorter lead times.Provide private brand and localized products economically.

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Capture the opportunities of new niche markets without increasing complexity.

Microsoft Dynamics ERP Helps Drive Market ResponsivenessSense and respond effectively with Microsoft solutions

Configure formulas and packaging to

deliver private brands to

specialized customers

Monitor KPIs and alerts to help control costs and

meet delivery

schedules

Provide real-time data about changes in orders to help spot demand trends quickly

Report and analyze product

trends by group or location

Automate, simplify complex

processes across

channels

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Challenge

ResultsSolution

Food and Beverage Manufacturer Gains Market Responsiveness

“Each factory can maintain independent buying and manufacturing operations, while allowing analysis and comparisons, from any location.… The portals allowed us to cut down the average lead time roughly by a third.”

Südzucker Polska, one of the largest sugar producers in Poland, was formed in 2003 by merging 18 independent manufacturers. The company needed to merge vital information from all entities while allowing each factory the autonomy to conduct business with local suppliers and respond effectively to local customers.

The company and their certified Microsoft partner implemented Microsoft Dynamics ERP to integrate data, standardize and automate processes, and improve collaboration across multiple facilities, locations, and partners. They can now use resources from across the company to respond to any customer.

• Cut order lead time by 30 percent

• Improved tracking • Easy access to data • Better planning • More efficient

customer service • Optimized costs

INNOVATION SUCCESS

SUSTAINABILITY LEADERSHIP

MARKET RESPONSIVENE

SS

Systems to help improve market responsiveness

Tools to improve innovation success

Support for sustainability

leadership

Seamless access to critical information at all levelsLower cost of doing business with technology that grows

with youImproved operational efficiency and connectivity across value

chain

Products that are easier to deploy, use, and manage

Microsoft Delivers Business Benefits

Technology Benefits

Scalable technology that future proofs your investment

Solutions that allow

you to leverage

your existing

infrastructure

investments

Lower TCO investment

with “out of the box”

integration

Reduced IT knowledge

requirements help

minimize risk

Single software

vendor and partner network

committed to customer

success

Business Process and IntelligenceMake the right information available throughout the business process with

easy access to role-specific BI.

Communication + Collaboration• Keep coworkers, partners, and customers in sync.

• Provide collaborative workspaces.• Unify communications.

Improving Manufacturing Productivity with Microsoft Solutions

Manageability and SecurityMake it easy to manage and deploy around the globe.

Office Business PlatformMake it simple to provide rich client and Web-based business applications.

Enterprise Content Management• Author, manage, and organize complex content.

• Provide customer and partner extranets.• Implement enterprise-wide search.

Improve Productivity with Microsoft Dynamics® ERP

Q&AFor more information about Microsoft Dynamicsplease contact us at:• U.S./Canada toll-free (888) 477-7989 • Worldwide (1) (701) 281-6500• www.microsoft.com/dynamics

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it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.