Contec Group International Ltd. Madcap Providing Real Savings for Dairy Companies

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1 Contec Group International Ltd. Madcap Providing Real Savings for Dairy Companies Milk Analysis Data Capture and Processing

2 Madcap Providing real savings for dairy processors Madcap is Contec Group s Milk Supply Chain Management Software solution. It is currently used by dairy companies that supply around forty percent of the World's tradable dairy products including companies such as Fonterra and Nestle. Madcap is a data capture and processing software system that provides extensive dairy industry specific functionality, including: Transport Scheduling/Route Management and optimization Laboratory management Milk collection/procurement management Milk payments/supplier payroll Member/share equity management Supplier/Member portal Data warehousing Member relationship management System administration Asset/Job management. Supplier/Member communications In the current market climate in the dairy industry worldwide, deciding to invest in IT and business systems solutions requires a clear business case and return on investment. Madcap has been implemented by various New Zealand, Australian and United States based companies during some of the toughest market conditions for dairy companies in the past 30 years and is considered the industry standard in Australasia.

3 Why do dairy businesses, large and small, choose Madcap? Madcap offers dairy companies significant cost savings and increased efficiencies in a number of areas: Lower cost of Initial Investment Lower cost than Internal Development Lower cost of Operation Lower cost of Support Increased milk quality More efficient and cost effective milk Collection Better tracking and identification of losses during collection and processing On-time and accurate Information Proven reliability and innovation Efficient contract management between farmers and processors Lower cost of initial investment Contec Group experience with clients and tenders across the world is that the Madcap solution provides better value for money in terms of purchase price, implementation, support and in annual licence-fees than custom built or generic solutions. Contec Group is also proud to have the best-of-breed solution that is proven to have broader and deeper functionality than competing systems, and a higher return on investment. Lower cost than internal development Contec Group provide customers with a fixed, pre-agreed pricing for implementation and customisation aspects of installing Madcap. Choosing Contec Group as an external vendor provides dairy processors with a ring-fenced costing for implementing a best-of-breed milk supply chain solution without the variable costs associated with in-house development and generic solutions from alternate vendors. Lower cost of operation Madcap lowers operational costs via the speed, flexibility and integrated nature of the system. Changes in response to market conditions are implemented in most cases via changes to the configuration of the particular module or modules rather than custom development.

4 Madcap is efficient. Madcap solutions are currently implemented for processors with as few as 20 suppliers through to as many as The solution is robust and scalable. The resources required to manage a Madcap solution are minimal. Often the most expensive parts of any solution in terms of ongoing costs are the costs of maintaining relationships between different systems. Different skill sets will be required to manage the relationships between systems and modules. These costs are not part of a Madcap solution because of its integrated nature. All Madcap modules operate from a shared, common database. Integration with third party applications is also cost effective, with a fully documented Web Services interface and fully documented relational database structure. Lower cost of support Contec Group offers dedicated 24 hour support for Madcap installations at a fixed annual cost. The annual support fee also includes regular updates. This reduces total expenditure related to milk supply chain management systems as it is not necessary to retain a number of people on a permanent basis for situations where problems may occur. Country specific functionality The Madcap solution is fully compliant with country specific requirements, including the European Union quota system, the United States Federal Order system and the California Quota system. Madcap has also been configured to cater for the requirements other markets including South and Central America, China and India. Madcap allows processors that operate across multiple countries, states within a country or regions within a country to apply different rules, configurations and currencies as required. This allows a single system to cater for all aspects of the supply chain across all of the areas involved, allows separate or consolidated reporting and payment processing. In many cases, alternate solutions would force multiple instances of solutions to cater for these types of operating environments. Increased milk quality Madcap provides for the management of quality testing regimes. Madcap will ensure that the quality testing parameters are strictly adhered to, and will schedule and randomize the testing process. Monitoring and trace back allow processors to constantly monitor milk quality according to processor and/or state specified quality specifications. This monitoring functionality is then used to determine payment for the milk (or colostrum).

5 More efficient collection Madcap's integrated transport scheduling system allows milk to be collected in the most efficient and cost effective way. Apart from raw milk, the transport of that milk is one of the highest input costs in the manufacturing process. A one percent increase in the efficiency of raw milk collection can result in significant savings in milk collection costs. The Madcap transport scheduling system is an integrated part of Madcap. Changes in e.g. farm size, herd size, vat size etc are reflected immediately within the scheduling system. As a result even small changes can be accommodated in real time for maximum efficiency.. Tracking losses Madcap monitors the raw milk collection process, and via the extensive reporting and data collection capabilities Madcap detects potential raw product losses in the collection and manufacturing processes and can track back to an individual milk tanker or milk vat on farm. This ensures that the milk purchaser is paying for the correct amount of incoming raw milk and not paying un-necessary sums of money for milk that was not actually received due to equipment failure or unexplained loss. Timely and accurate information Madcap is an integrated system that offers on-time and accurate milk collection, quality and payment information. Madcap ensures that management can make informed decisions, particularly with regard to production planning decisions in situations where multiple factories or processing plants are involved. Madcap also provides forward forecasting tools, based on budgeted milk flows and future pricing considerations. Improved relationships with farmers Madcap provides extensive CRM/MRM (customer relationship management / member relationship management). This allows all communication with existing and potential suppliers to be recorded and managed. Madcap also provides a job management tool to allow jobs and farm visits to be tracked and recorded. Management reporting allows for a statistical analysis of the relationship and communication with suppliers to be assessed at any time. CRM functionality is also available via PDA (Personal Digital Assistants) in real time, operating on the Windows Mobile platform. Farmers can view a wide range of collection and test data pertaining to their farm via the Web.