SAP FOR WHOLESALE DISTRIBUTION

WHOLESALE DISTRIBUTION BUSINESS EVOLUTION TRADITIONAL WHOLESALE DISTRIBUTORS Revenue driven Organization all redundancies Customary product based Multiple touch points Slow to react INNOVATIVE WHOLESALE DISTRIBUTORS Margin managed Shared services New sibling products and services One face to the customer Real time decisions LIMITED BY MULTIPLE COMPLEX AND AGING TECHNOLOGIES TO SUPPORT BUSINESS GROWTH USE INTEGRATED AND SIMPLIFIED TECHNOLOGY TO ENABLE STRATEGIC INITIATIVES 2015 SAP SE or an SAP affiliate company. All rights reserved. 2

SAP WHOLESALE DISTRIBUTION VALUE MAP FUEL PROFITABLE GROWTH IN WHOLESALE DISTRIBUTORS OPPORTUNITY TO CASH PROCURE TO PAY SUPPLY CHAIN PLANNING AND EXECUTION PROFITABILITY OPTIMIZATION Agile Marketing Business Network for Supplier Collaboration Sales, Inventory, and Operations Planning Customer Stratification and Cost-to-Serve Collaborative Quote to Cash Strategic Sourcing and Supplier Transportation Procurement Insight Service Process and Operations Excellence Procure to Pay Warehouse Supply Chain Optimization E-Commerce Supply Chain Monitoring Cost Recovery and Rebates HUMAN RESOURCES Core Human Resources and Payroll Talent Time and Attendance FINANCE Financial Planning and Analysis Accounting and Financial Close Treasury and Financial Risk Collaborative Financial Operations Enterprise Risk and Compliance General Trading INFORMATION TECHNOLOGY Application Lifecycle IT Infrastructure IT Portfolio and Project IT Service IT Strategy & Governance TECHNOLOGY AND PLATFORM Big Data Real-Time Enterprise Real-Time Analytics Enterprise Mobility Enterprise Information Application Integration Cloud Solutions 2015 SAP SE or an SAP affiliate company. All rights reserved. 3

WHOLESALE DISTRIBUTION TRANSFORMATION JOURNEY REIMAGINING DISTRIBUTION IN THE CONNECTED WORLD INNOVATIVE TECHNOLOGY STANDARDIZED FOUNDATION EXTENDED SOLUTIONS DIFFERENTIATE TRANSFORM Introduction of applications and analytics to build a standardized foundation to reduce risk during business growth Build on and optimize your baseline solutions and extend the coverage for business performance acceleration Differentiate your business by utilizing new technologies to provide superior information and value added services Become a thought and transformation leader by leveraging innovative process and models for the customers in your industry 2015 SAP SE or an SAP affiliate company. All rights reserved. 4

FINANCE ACCOUNTING, TREASURY & RISK MANAGEMENT RECORD functionality to support all the phases of financial management, and business analysis from accounting and controlling to business analytics. The capabilities enable efficient general ledger and asset accounting, and financial supply chain management FINANCE Accounting and Financial Close Treasury and Financial Risk Financial Planning & Analysis CAPABILITIES General Ledger Accounts Payable Accounts Receivable Fixed Assets Receivables Controlling Planning & Consolidations Collection EXAMPLES KEY BENEFITS Enhance reconciliation capabilities through a central data repository Improve data accuracy by matching, reconciling, and eliminating offline processes Reduce manual data manipulation by configuring automatic processes and reports Minimize closing effort and errors by systemically completing tasks before start of closing cycle Wolf: 50% reduction in budgeting cycle time Volvo Aero: 20% reduction in time needed to close books 2015 SAP SE or an SAP affiliate company. All rights reserved. 6

OPPORTUNITY TO CASH COLLABORATIVE QUOTE TO CASH SELL functionality to support all the phases of the orderto-cash scenario, from the creation and pricing of sale orders to the execution of billing procedures. The transactions enable, sales order generation, customer credit checks, inventory availability checks, product allocation strategies, and customer invoicing. OPPORTUNITY TO CASH Agile Marketing Collaborative Quote to Cash Service Process & Operations Excellence CAPABILITIES Sales Order Solution Sales Configuration Pricing Availability Check Credit Check Invoice Commissions Promotions EXAMPLES KEY BENEFITS Facilitate the use of profitable multichannel sales management tools Reduce administrative costs by automating sales order management processes Ensure high customer satisfaction by delivering accurate and timely information to customers Increase responsiveness and resolve customer issues faster E-Commerce Medline: Increased internet order volume to 15% of sales Chordus: Reduced days sales outstanding by 10% 2015 SAP SE or an SAP affiliate company. All rights reserved. 7

PROCURE TO PAY SOURCING, PROCUREMENT, & SUPPLIER MANAGEMENT SOURCE functionality to support all the phases of procure-to- pay scenario, from materials sourcing to purchase order optimization, and inventory management, to invoice verification CAPABILITIES Strategic Sourcing Contract Purchase Requisitions Purchase Order KEY BENEFITS Take full advantage of special buying and load-building opportunities by applying analytics to your purchasing decisions, reducing cost of goods sold Increase buyer productivity and enable informed decisions PROCURE TO PAY Business Network for Supplier Collaboration Strategic Sourcing and Supplier Procure to Pay Investment Buying Line Buying Indirect Procurement EXAMPLES Increase efficiency through the automation of end-to-end procurement processes that extend to the entire business ecosystem, including partners, suppliers, and customers West Chester: Increased warehouse space availability by 14% Pacific Coast Supply: Reduced purchasing error rate by 80% 2015 SAP SE or an SAP affiliate company. All rights reserved. 8

PROFITABILITY OPTIMIZATION VENDOR COST RECOVERY RECOVER functionality to support all the phases of vendor cost recovery, including rebate and chargeback management capabilities from establishing contracts to reconciliation and settlement PROFITABILITY OPTIMIZATION Customer Stratification and Cost-to-Serve CAPABILITIES Agreement Chargeback Rebate Accrual Reconciliation Settlement KEY BENEFITS Identify every vendor cost recovery opportunity that is due Connect rebate and chargeback process with procure-to-pay, order-tocash and finance processes, eliminating costly errors, disputes and delays Increase worker productivity and overall financial performance and profitability Procurement Insight Supply Chain Optimization Cost Recovery Analytics EXAMPLES Reduces open vendor AR balances Cost Recovery and Rebates Summit: Increased chargeback claims 114% Border States: Cost recovery received within 1-3 days of filing 2015 SAP SE or an SAP affiliate company. All rights reserved. 9

WHY SAP FOR WHOLESALE DISTRIBUTION? SAP KEY VALUE PROPOSITION INDUSTRY SPECIFIC Wholesale distribution functionality that enables holistic planning, procurement, logistics, sales, chargeback,and financial management processes ENABLING MISSION CRITICAL PROCESSES SIMPLE Wholesale distribution capabilities and reach, where the solution can be configured and personalized, not modified, to meet business and user requirements RELIABLE Wholesale distribution solutions, designed to meet current needs without compromising the ability to meet future business requirements SCALABLE Wholesale distribution platform that can leverage non SAP applications and data for complete business visibility 2015 SAP SE or an SAP affiliate company. All rights reserved. 10

INDUSTRY SPECIFIC WHOLESALE DISTRIBUTION COMMUNITY SOLUTION INNOVATION SAP Executive Advisory Councils (EAC) are strategic boards comprised of senior level executives from our most important customers. They share best practices and drive innovation jointly. Members of EAC s have the opportunity to share their most important priorities and to influence SAP s strategic direction, roadmap, and product portfolio for wholesale distribution industry. WHOLESALE DISTRIBUTION SIG LEADERSHIP Chair: Bill Immer, Butler Supply Program Chair: Bob Oldrati, Powell Electronics SOLUTION IMPROVEMENT Wholesale Distribution Special Interest Group (SIG) is an independent organization that provides a forum for over 4000 members to influence software development improvements, and exchange ideas and best practices. The SIG is dedicated to the understanding, productive use and advancement of SAP solutions. 2015 SAP SE or an SAP affiliate company. All rights reserved. 12

SIMPLE EASILY PERSONALIZED NOT MODIFIED USER EXPERIENCE APPLICATION LAYER Customizing is the process of configuration to make the required system settings changes. Customization activities are performed through the Implementation Guide (IMG). The IMG is the tool which adjusts how the SAP System behaves, to meet the requirements of a company PRESENTATION LAYER Deliver a consumer-friendly experience to your enterprise software users with SAP Fiori, a collection of apps that support the most broadly and frequently used SAP software functions. Allow your employees to complete workflow approvals, information lookups, and self-service tasks for an instant productivity boost. 1979 2015 2015 SAP SE or an SAP affiliate company. All rights reserved. 13

SCALABLE NEW FUNCTIONALITY DELIVERED WITHOUT DISRUPTION SAP ENHANCEMENT PACKAGE RELEASES Enhancement packages for the SAP ERP application provides new or improved software functionality that you can implement in a modular fashion. There's no need to run a major upgrade project. Enhancement packages bundles, of enterprise services. Each bundle provides new services that extend and reconfigure processes. SAP BEST PRACTICE RELEASES SAP Best Practices provide complete preconfiguration to run specific key processes with minimal installation effort. They continue to evolve to meet the industry specific needs of the wholesale distribution industry, and can be leveraged to rapidly ensure a quick return on SAP solution investments. 2005 SAP ERP BEST PRACTICES TODAY EhP 2 EhP 3 EhP 4 EhP 5 EhP 6 EhP 7 2015 SAP SE or an SAP affiliate company. All rights reserved. 14

SCALABLE NATIVELY INTEGRATED AND OPEN TO NON-SAP SYSTEMS NATIVE INTEGRATION For over 40 years, SAP has provided natively integrated enterprise applications. These solutions have been designed from the ground up on the SAP NetWeaver platform, providing tight integration with any SAP Business Suite application (ERP, PLM, SCM, SRM, CRM, etc). SAP FOR WHOLESALE DISTRIBUTION PLAN BUY STORE Supply Chain Planning Procure to Pay Warehouse PROCESS INTEGRATION SAP NetWeaver Process Integration (PI) provides one common infrastructure for process collaboration between SAP and non-sap applications. It reduces the complexity of a company s system landscape and increases the overall performance. SELL ROUTE RECOVER RECORD Collaborative Quote to Cash Transportation Cost Recovery and Rebates Accounting and Financial Close 2015 SAP SE or an SAP affiliate company. All rights reserved. 15

RELIABLE TOP DISTRIBUTORS RUN SAP 8 OUT OF 10 OF THE LARGEST WHOLESALE DISTRIBUTORS RUN BETTER WITH SAP FOR WHOLESALE DISTRIBUTION COMPANY SIZE SAP ERP CUSTOMER McKesson $122B Yes Cardinal Health $102B Yes AmerisourceBergen $94B Yes Bunge $58B Yes Sysco $50B Yes Ingram Micro $36B Yes Tech Data $40B Yes Avnet $27B Yes C&S $26B No Arrow $21B No 2015 SAP SE or an SAP affiliate company. All rights reserved. 16

RELIABLE MAINES RUN SIMPLER WITH SAP QUICK FACTS MAINES PAPER & FOOD SERVICE, INC. Location: Conklin, New York Industry: Wholesale distribution Products and Services: Foodservice distributor Revenue: US$1.95 billion Employees: 1,900 Web Site: www.maines.net SAP Solution and Services: SAP ERP, Vistex Chargeback & Incentive Implementation Partner: Answerthink We chose SAP to replace our legacy financial system because we need more than just a tactical replacement we re gaining a business process platform for the long term. Christopher Mellon, CEO Maines Paper & Food Service, Inc. CHALLENGES AND OPPORTUNITIES Lack of functionality and visibility to support business growth Many manual processes: offloading of data to Excel and Cognos, procuring indirect items, approvals Lack of reporting flexibility OBJECTIVES Replace aging financial systems from IDS with a strategic financial solution Integrate payroll and HR systems HIGHLIGHTS Phased implementation approach WHY SAP SAP served as a trusted advisor and helped identify the value of implementing an integrated business process platform, instead of a tactical financial application SAP s wholesale distribution solution and platform strategy Maines felt that SAP was a viable business partner, committed to their success PROJECTED BENEFITS Integrated IT environment; one system of record Industry best practices Improved data visibility A platform for growth, enabling new business opportunities and cost-efficient expansion Automated business processes 2015 SAP SE or an SAP affiliate company. All rights reserved. 17

RELIABLE CHEYNEY BROTHERS RUNS SIMPLER WITH SAP QUICK FACTS CHENEY BROTHERS INC. Headquarters: West Palm Beach, Florida Industry: Wholesale Distribution Products and Services: Foodservice Distribution Revenue: US$ 800 million Employees: 1400 Web Site: www.cheneybrothers.com SAP and Partner Solutions and Services: it.wholesale, a qualified SAP Business All-in-One partner solution Implementation Partner: intelligence CHALLENGES AND OPPORTUNITIES Need to improve the alignment and efficiencies of financial, HR and operational processes Need to adapt quickly and cost effectively to changing business, market and industry requirements OBJECTIVES Improve productivity Improve business insight Enable business growth HIGHLIGHTS SAP win over Oracle WHY SAP SAP understood our business SAP offered the best solution to support our industries processes PROJECTED BENEFITS SAP will help our business run more efficiently SAP will let us continue our focus on providing exceptional service Improved supplier integration Improved margin management Improve cost control SAP will enhance our ability to understand and anticipate our customer s needs. Joe Haber, CIO Cheney Brothers 2015 SAP SE or an SAP affiliate company. All rights reserved. 18

SAP FOR WHOLESALE DISTRIBUTION ENABLING THE POWER OF ONE ONE: COMPANY It is clear that distributors want to evolve to sustain growth by increasing revenue while controlling operating expenses. ONE: PLATFORM Distributors of all sizes continue to invest in ERP technology to unite the company over time towards a common set of information systems. ONE: STEP AT A TIME The SAP product strategy for the wholesale distribution industry allows for simple, scalable and reliable solutions to be deployed by business process or segment, ensuring that distributors can accomplish goals in phases. 2015 SAP SE or an SAP affiliate company. All rights reserved. 19