Supply Chain Management for Food and Agriculture Software Platforms and Functionality Cristian Herghelegiu, PMP,Partner Account Manager,Micosoft Romania

01 November 2006 - BucharestImprove Cost, Efficiency, and Quality through Supply Chain Management IT Integration

AgendaAgribusiness - Key challengesTypical Supply Chain Management (SCM)SCM selected benefitsMicrosoft Dynamics solutionsSummary & Actions

Agribusiness playersProducers & Vendors (small, medium and large)Fruits and vegetablesMeat IndustryMilk industryBeverage

Integrated companies (meat, alcohol)Technology level (or absence)Standards lacks, raw materials qualitySales/Purchase Prices

Purchase price (pressure on vendors)

Agribusiness key challengesCompetition at all levels;Operational margins operational;Prices (sales);Standards and regulations ability to sell in further context;Level of investment;Human resources!

Business Control!

What customers want*?PrecisionAccesibilityPartnershipConsultancy

*Gallup research

Challenges

PrioritiesCustomer relationshipexcellenceSuppliers relationshipexcellenceInnovative productsand servicesOperational excellenceCost reduction

How to hit priorities?Business Acumen and vision!Business tools to allow and support:

Focus on main business and not on operations;The best operational pattern;Business Agility;Affordable costs (ROI, TCO);Easy adoption by the team (training time, operational cost);Easy to support (integrated with the rest of platform);

Short definition of SCMSupply-chain management simply refers to the management of the entire set of production, distribution, and marketing processes by which a consumer is supplied with a desired product.

a set of interdependent companies that work closely together to manage the flow of goods and services along the value-added chain of agricultural and food products, in order to realize superior customer value at the lowest possible costs *.

Folkerts and Koehorst, Challenges in international food supply chains: vertical co-ordination in the European agribusiness and food industries. British Food Journal, 100, 385388.

Typical Supply Chain

Operational effectivenessMany aspects of SCM, are efforts to improve the operational effectiveness of a chain:

improved logistics, shared information systems, better information flows, reduced transaction costs, preservation of product quality, standards and integrity throughout the chain;

Important in matching competitors;Increasingly SCM becomes necessary condition for access to certain markets (export markets, supplying to supermarkets);Will not guarantee a sustainable competitive advantage.

Basis Of CompetitionThe Past ...The Future ...

Product versus Product

Supply Chain

versus

Supply Chain

Supply Chain BenefitsManufacturingDistributionRetailConsumer

Why SCM? a vision at leastSales forecastingPurchase planning | stock replenishmentCapacity planningCapacity Load (resource allocation)Minimize inventory (to Just in time)Time to marketDelivery cycle and Logistics

Overall: cost reduction, higher return on invested capital, higher turn over higher profitability

6 keys for successful SCMRecent studies of supply chains in Australia identified six key principles of successful SCM (AFFA et al. 2002):

focus on customers and consumers;the chain creates and shares value with all its members;making sure the product fits the customers specifications;effective logistics and distribution;an information and communication strategy that includes all chain members effective relationships that give leverage and shared ownership.

Benefits of Supply Chain PlanningCompetitive advantages due to a greater quality of service, shorter throughput times and cost savings. Lasting increase in customer satisfaction due to increased delivery reliability and increased ability to respond.

Reduced costs due to minimization of warehouse stocks and more efficient resource planning. Increased efficiency due to assisted decision-making (planning algorithms, simulations) and alert functions.

Benefits of Supply Chain Controlling

Reduced costs as problems in the supply chain are recognized and the appropriate measures set in motion early on. Lasting increase in customer satisfaction due to increased transparency and ability to react.

Increased efficiency due to the optimal coordination of all supply chain processes. Competitive advantage due to the systematic recording and controlling of the complex relationships in the supply chain network.

Revolutionizing Midmarket ProductivityProductivity, from each entity to whole organizationEmpowerment: simple access to business vital informationExpertise

Integrated solutionsCategorii de solutii:Financiar, Resurse Umane, Salarii, Mijloace Fixe Categorii de solutii:Automatizarea vanzarilor, Marketing, ServiceCategorii de solutii:Automatizarea lanului de aprovizionareGestiune, Stocuri,Automatizarea serviciilorCategorii de solutii:Enterprise Reporting, BI, KPIEnterprise ResourceManagementSupply Chain ManagementCustomer Relationship ManagementEnterprise ResourceManagement(ERP)BusinessOperations (SCM)AnalyticsCustomer Relationship Management(CRM)

The Breakthrough

The StrategyMicrosoft Dynamics

Significant Investment In Business Applications 23 years in business applications9,300 partnersOver 298,000 customers worldwide** Includes Microsoft Dynamics, Microsoft FRx, Microsoft Forecaster, Microsoft Retail Management, Microsoft Small Business Financials and C5 customers

The Challenge

Why Microsoft Dynamics?

Beyond The 2005 ReleasesFamiliar Look & Feel All level integration with Microsoft OutlookRole basedApril

Platform integrationSecure the investment in technology

Trusted decisionsThe right information, at the right time and in the right format

Specializare/Verticalizare

Microsoft Dynamics platforma ideal pentru verticalizareSute de soluii disponibile n prezentFlexibilitate pentru partener valoare adaugata pentru clientProductivitate pentru partener

RetailTransport i LogisticProducieDiscretDe procesHigh TechModUtilaje Alimente, Buturi, Tutun Componente electrice i electroniceSisteme de calcul MobilDistribuieAlimente & ButuriProduse de consumProduse industrialeServiciiFinanciare Leasing, AsigurriIT - Computer & SoftwareManagement & ConsultannchirieriDealership AutoFocus pe industrii

Portofoliul Microsoft Dynamics in RomaniaO suita CRM completa incluzand automatizarea fortei de vanzari, marketing si managementul contractelor de serviceSuita de aplicatii pentru managementul firmelor si institutiilor incluzand functionalitati de management financiar, SCM, CRM si planificare si control bugetar

i-luciat - INSTITUTII MICI

Model de Business Indirect

Referine - RomniaPeste 100 de implementari - 80 in ultimii 2 aniFlanco, SPAR, URBIS, Eurocom, Edy Spedition, Nexans, KD, TVR, Agip, Konica Minolta, Flaro, ROEL, Hachette Lagardere - MMP, Mercury Promotions, GEDP, BASF, 3D, Eurofarmacia, Farmec, HILTI, Verder, Eurocom, Toyota, Autonet, Knauf Ghips, Sanofi, Phoenix Mecanoplastic

ConclusionsIn new agro-industry development, building a supply chain has been demonstrated to be just as critical to the success of the industry as establishing adequate agronomic and pest-management practices;

Microsoft Dynamics offers the integrated solution in order to optimize the operational, financial and customer and supplier related operations.

Actions

Contact us at:www.microsoft.com/dynamics

Contact us and our partners at:www.microsoft.ro/dynamics

cristian.herghelegiu@microsoft.com

Objective: Emphasize the challenges that midsize businesses face and how those challenges impact business success.Talking points:Midsize companies often feel squeezed between their smaller competitors that might offer more intimate service and their larger competitors that drill down the price with economies of scale. Midsize companies are under increasing pressure from:Competition:New entrants into their markets.Global competitors (such as firms in China, India).Larger competitors that are acquiring companies to dominate the market.Increasing government regulations.Outsourcers grabbing market share.Investor demands for results.High customer expectations and low customer loyalty.Difficulties keeping up with changing technology.Even customers in businesses that are currently running well and perceived as successful are continually looking for ways to drive sustainable competitive advantage.Transition:What is the key ingredient?Objective: Introduce the business priorities.

Talking points: Extensive research of midsize companies worldwide reveals that midsize organizations are focusing on executing well in four key areas to survive and thrive in a competitive landscape:Building and strengthening profitable customer relationships to build customer loyalty.Developing innovative products and services at a faster pace than ever before.Streamlining business operations to reduce costs.Leveraging relationships with partners and suppliers to create the most profitable and competitive business model. Transition: Lets take a look at how the use of technology and software can help you achieve one of those priorities: developing and strengthening profitable customer relationships.Third is SCM or Supply Chain Management. For organizations that need to carry inventory, manufacture products, and get them to the retail store, or customer location, automating the supply chain process is very important to company profitability by means of trimming costs and making processes more efficient. The MBS SCM applications help businesses manage these types of processes, so that nothing is overlooked, and in many ways, things take care of themselves through pre-built applications from us, designed to meet the customers needs.

Market Pressures and Customer Requirements Are Forcing a Movement Toward Demand PlanningIn recent years, margin pressures among large retail and industrial customers have spurred intense efforts to reduce costs, and haveyielded volumes of research into the cost impact of supply chain inefficiencies.For instance, according to Harris Interactive and Industrial America, 15 percent to 20 percent of inventory being held across the retailsupply chain at any given time could be eliminated through improved planning, forecasting and replenishment methods. This amounts to$150 billion to $200 billion worldwide, and $40 billion to $50 billion in the United States alone.For most organizations, a 15 to 20 percent difference in inventory levels could easily make the difference between poor fiscal performanceand a robust bottom line; it could also determine a companys position in a competitive market. As market pressures continue to squeezemargins at all points in the supply chain, more and more distribution organizations will be forced to recover that 15 to 20 percent costinefficiency through greater automation and productivity.

Last Update: 4-1-05Notes about what changed: New to deckOwner/Author: Kara Ellefson (kellefso@microsoft.com)Audience: Customer/Prospect ready (Can be presented to customers, but please do not give them this file. Instead, share the Product Plan and Q&A documents listed below)Region: World wideIntended Usage: This entire deck is intended to tell the product strategy story to partners and customersEvent Usage if applicable:Supporting documents: Product Plan paper and the Q&A document on //infoweb/mbs > strategy as well as Satyas BLOG on http://blogs.msdn.com/satyanadella

Key Messages:Breakthrough is really cracking the code in delivering bizapps that accelerate deeply on all 3 business critical dimensions MBS delivers best today with enterprise players falling short on low cost and hosted/off the shelf falling shortMicrosoft is in a unique position with assets across 20+ years of acquired business applications expertise combined with tools and server technologies and windows and office desktop experience There are vendors delivering against 2 of these at a time, but no one can do all three

Speaker Notes:Deliver on this challenge, is really about cracking the code, if you will, to deliver business applications that accelerate on three critical dimensions:

Rich Functionality - all of you desire rich functionality. There isn't one of you out there that I have met that where software Microsofts or others - does everything you want it to do. As rich as we make it, you've got one more thing or five more things that you want it to do. So we're going to continue to pursue functionality, functionality, functionality, in a deep, deep way, ourselves and with our ISV partners to deliver that functionality.

High Adaptability - The backdrop that you're facing is a world undergoing continuous, rapid and accelerating change; you need to have processes that adapt to, rapidly adapt to the changing environment that you work in and you don't want to have that adaptability come with high costs whether they be people costs or systems cost. We want to have that high adaptability come at low cost and augment the rich functionality which brings us to the third dimension lower costs.

Lower Costs Essentially, you want your applications, updates, changes to happen easily, you want software thats easy to use and that works the way other software works; and you want it at a low cost.

It turns out that delivering rich functionality with high adaptability and at low cost is not only our passion, it's also we're the best at it today. Today in the markets that we serve for by and large the most parts we are the low-cost provider of software, we do have the richest functionality and with the tools that we have today we do have the best and lowest cost adaptability.

We call this breakthrough affordable adaptability, and its centered on both a people and process-centric application design delivered through a model-driven approach. Last Update: 4-1-05Notes about what changed: New to deckOwner/Author: Kara Ellefson (kellefso@microsoft.com)Audience: Customer/Prospect ready (Can be presented to customers, but please do not give them this file. Instead, share the Product Plan and Q&A documents listed below)Region: World wideIntended Usage: This entire deck is intended to tell the product strategy story to partners and customersEvent Usage if applicable:Supporting documents: Product Plan paper and the Q&A document on //infoweb/mbs > strategy as well as Satyas BLOG on http://blogs.msdn.com/satyanadella

Speaker Notes:How can we deliver on this breakthrough we call Affordable Adaptibility? We have unique strengths as an organization, to have the platform, the desktops and the biz apps, together with the broad ecosystem all come together. Our deep, deep experience on the desktop with hundreds and hundreds and hundreds of millions of users using Office allows us to understand interfaces and get feedback about the way people utilize and work with unstructured data. Our hundreds of millions of customers that are using our platform products today allow us to deliver breakthrough in terms of process adaptability. Again, Microsoft started as a tools company and we grew and developed and had great success as a tools company because we lowered the bar in terms of what it took to be able to do customizations over the years with the innovations that were built in products or with separate products like Access that allowed people again to sort of reach the masses at a low cost.

Microsoft is in a unique position to more deeply deliver on this vision through assets across 20+ years of acquired business applications expertise combined with tools and server technologies that enable new business process scenarios. Combined with the windows and office desktop experience we bring these process to the PEOPLEAnd naturally extending this entire integrated platform with broad ecosystem of partners to deliver very vertical specific and customer specific solutions.

That's the central passion that we have as an organization and that's what we stand for, that's what we want our brand to stand for, that's what we want to deliver to all of you.

--end notes--Last Update: 5.19.2006Notes about what changed: Customer number updated note that the customer number includes MBS solutions outside of the Microsoft Dynamics lineOwner/Author: Jaime ONeill (jaimeon@microsoft.com)Audience: Customer/Prospect ready Region: World wideIntended Usage: The slides within this deck are intended to tell the product strategy story to partners and customers Event Usage if applicable:Supporting documents: Product Plan paper and the Q&A document on //infoweb/mbs > strategy as well as Satyas BLOG on http://blogs.msdn.com/satyanadella

Speaker Notes: Key Message: Microsoft is serious about business applicationsMicrosoft organized around 3 key areas Having 3 divisions enables us to achieve greater agility in managing the incredible growth ahead and executing our software-based services strategy. The Platform Products & Services Division includes Windows Client, Server & Tools and MSN. Our MSN organization has a track record of innovating quickly and delivering software-based services at scale, while the existing platforms groups possess great expertise in creating a software platform and user experience that touches millions of people. Uniting these groups enables us to bring together these businesses, harness our services capabilities and deliver greater value to our customers. The Entertainment and Devices division includes the Home & Entertainment and Mobile & Embedded Devices business groups - consolidating our industry engagement around devices to deliver even richer and more relevant scenarios for individuals at work and at home. With the Business division we have a unique opportunity to take Office to a new level by more deeply infusing it with the capabilities needed to address core business processes within organizations. And, we make it easier for Microsoft Dynamics to automate business processes with familiar and easy-to-use programs, servers and services that already touch hundreds of millions of information workers around the world. With one of the Top 5 R&D budgets and interoperability with Microsoft Office, we can continue to invest in our Microsoft Dynamics product lines today and focus on the convergence of our solutions into next gen solution.Partners are critical component of our businessWe acquired strong competitors sound businesses with loyal customers. We (MBS) have a strong history of doing the right thing by our customers (Great Plains Accounting was supported for 10 years after Dynamics (now Microsoft Dynamics GP) was released. More detail later in this presentation as to our strategy with these solutions.--end notes--

Last Update: 4-1-05Notes about what changed: New to deckOwner/Author: Kara Ellefson (kellefso@microsoft.com)Audience: Customer/Prospect ready (Can be presented to customers, but please do not give them this file. Instead, share the Product Plan and Q&A documents listed below)Region: World wideIntended Usage: This entire deck is intended to tell the product strategy story to partners and customersEvent Usage if applicable:Supporting documents: Product Plan paper and the Q&A document on //infoweb/mbs > strategy as well as Satyas BLOG on http://blogs.msdn.com/satyanadella

Speaker Notes: So what's the challenge that we have? The challenge has been with us for decades, which is how do we create software that works the way companies work, and I would say the way companies work is all about people. On one side of the equation you've got a set of people and a set of roles, on the other side you've got a set of things that are processes. Those processes tend to be more structured. And you've got very structured processes with accounting data, for example. Most of us work using unstructured data e-mail, internal memos, post it notes, etc all which are really unstructured. So how do you blend the unstructured nature of things like e-mail with the structured nature of processes like accounting transactions and have that all work together, have it all work the way you would like it to work?

We believe that Microsoft is in a unique position to bring these assets together, Microsoft is the world's leader in working with unstructured data, with products like Office and we have a great infrastructure capability that we bring to bear through the other parts of Microsoft, which again we believe that we can bring those assets in here to attack this challenge in a deep way.And so if that's the challenge, if the challenge is how to make all this work the way that you want to work and to keep up with the pace and change you're facing, how do we articulate that as sort of our core passion for Microsoft Business Solutions, how do we describe that as our sort of central strategy? And when I say strategy, I talk about that at this particular thing we want to be better at this than our competition, that's one form of strategy.

--end notes--Speaker Notes:The Microsoft Dynamics line works like and with other Microsoft products you and your employees are already familiar with, like Microsoft Office. Designed with a focus on the roles people play throughout your company, Microsoft Dynamics delivers an individualized, task-based user experience and allows your employees to easily customize and automate based on their own preferences and work style. That means less training and development time and an immediate return on your investment. This is the leading message of Microsoft Dynamics and the unique value that it provides for our customers it works like and with the Microsoft software they already own and use. So, in a nutshell, why should a customer consider Microsoft Dynamics? Whats its unique value?

Microsoft Dynamics:

(is) Familiar to Your People: The Microsoft Dynamics line works like and with other Microsoft products our customers are already familiar with, like Microsoft Office. Designed with a focus on the roles people play throughout your company, Microsoft Dynamics delivers an individualized, task-based user experience and allows employees to easily customize and automate based on their own preferences and work style. That means less training and development time and an immediate return on investment. Fits with Your Systems: Microsoft Dynamics works the way our customers current technology works, and fits easily and seamlessly into their existing systems helping them maximize their technology investment. does. This in turn allows employees to use a powerful business management solution within a familiar environment. It also offers the opportunity to take advantage of other Microsoft product innovations, including Microsoft SQL Server and Microsoft Windows. Microsoft Dynamics developed in conjunction with other Microsoft software and built to work with industry standards is the right solution for our customers most pressing business challenges. Fuels Your Business Productivity:The plain truth of the matter is that if a business isnt productive, it wont succeed. By automating business-critical operations and adapting to fit the type of company, Microsoft Dynamics helps fuel business productivity. How? By bridging different types and areas of work, fostering collaboration across lines of business among employees, vendors and customers, changing and evolving as the business and technology needs, and by integrating financial, customer relationship and supply chain processes.

Enables Confident Decision-Making: The business landscape in which our customers thrive or fail is demanding. They need to be able to respond quickly to changing conditions. They need complete insight across their organization. They need the confidence to make informed decisions that have an impact. Microsoft Dynamics provides access to critical data that can be easily analyzed using familiar tools such as Microsoft Office Excel. Microsoft Dynamics strikes a balance, offering employees direct access to the information they need to drive business success while also providing managers in your company the ability to control access to sensitive data.

Last Update: 8-30-05Notes about what changed: New to deckOwner/Author: Kara Ellefson (kellefso@microsoft.com)Audience: Customer ready (Can be presented to customers, but please do not give them this file. Instead, share the Product Plan and Q&A documents listed below)Region: World wideIntended Usage: This entire deck is intended to tell the product strategy story to partners and customersEvent Usage if applicable:Supporting documents: Product Plan paper and the Q&A document on //infoweb/mbs > strategy as well as Satyas BLOG on http://blogs.msdn.com/satyanadella

Speaker notes: The roles-based UI coming out this year is significant in terms of understanding our customers and delivering solutions that will make them more productive. With Windows Vista and the next release of Office Office 12, we go further. Heres what you can expect across all our solutions still within Wave 1 with the next releases of Windows and Office.

--end notes--

Last Update: 10-8-2005Notes about what changed: Updated with Microsoft Dynamics brandingOwner/Author: Kara Ellefson (kellefso@microsoft.com)Audience: Customer/Prospect ready Region: World wideIntended Usage: The slides within this deck are intended to tell the product strategy story to partners and customers Event Usage if applicable:Supporting documents: Brand whitepaper and Q&A documents posted on //infoweb/mbs > Strategy > Field Response

Speaker Notes: Microsoft business solutions are integrated business applications and services that allow small and mid-sized businesses, large organizations, and divisions of global enterprises to connect employees, customers, and suppliers for improved efficiency. The financial management, customer relationship management, and supply chain management applications work with Microsoft products such as Office and Windows to streamline processes across an entire organization, giving businesses insight to respond rapidly, plan strategically, and execute quickly. Microsoft Business Solutions applications are delivered through a worldwide network of channel partners that provide specialized services and local support tailored to a companys needs. Our Microsoft Dynamics family of business suites provide financial management, supply chain management and customer relationship management functionality.

In addition to the broad business suites, Microsoft offers a complete CRM suite Microsoft CRM - that enables organizations of all sizes to more effectively manage sales, marketing, and customer service relationships throughout the pre- and post - sales lifecycle. Greater customer insight, consistent information access, and the ability to deliver meaningful customer interactions with every touch point results in improved customer experiences, builds deeper customer loyalty, and increases sales and marketing effectiveness. Microsoft CRM works the way our customers work, reflects the way they do business and provides Easy IT because to ensure that customers are successful with CRM requires that the solution is designed around, and embraces an organization's fundamental user, business, and IT requirements.

The business management suites and Microsoft CRM serve the needs of mid-size businesses, large corporations and divisions of global enterprises. Microsoft also offers solutions for small business customers including Small Business Financials which is just that financial management solutions for small business, Retail Management and Point of Sale as well as Business Contact Manager and Small Business Accounting which are integrated contact management, accounting and online services packaged with Microsoft Office

Microsoft Small Business Financials is a highly affordable, fully integrated business management solution for growing businesses that need more than basic accounting functions. With integrated financials, fixed asset management, sales, purchasing, inventory, payroll, and reporting capabilities, Microsoft Small Business Financials adapts easily to changing needs with increased financial controls, reliable multi-user access, unlimited storage capacity for transactions and records, and the ability to grow with customers as their business grows. Microsoft Small Business Financials is built on the same code base as the more robust Microsoft Great Plains Standard and Microsoft Great Plains Professional editions, which gives businesses ability to add functionality and features as needed as their business grows.

--end notes--

100% indirectExpertizSuport din mai multe direcii=Minimizare risc implementare

Presenter ScriptAs mentioned before Microsoft Business Solutions has a applied an indirect business model for the distribution and services of our products. This means that Microsoft Business Solutions only distribute and service our product indirectly though our large and global network of Partners.

This means that Microsoft Business Solutions does not compete against our partners. The partners are responsible for the customer engagement. We therefore co-operate with our partners to deliver solutions to the customers.

Microsoft Business Solutions does therefore not compete against our partners we co-operate with our partners. And we invest in our partners by providing free of charge product and methodology training. Why? We do this to increase our partners competencies around our products. Because only if our partners are successful, Microsoft Business Solutions will be successful. This is what we call a true partnership.

This has proven to be a very successful business model where each party leverage their core competencies.

(Click)These are a few quotes showing how Microsoft Business Solutions for Financial Management Navision benefits our customers.