Connected Experiences for Consumer Goods

TXTPERFORM2008Connected Experiences for Consumer Goods

Business Needs/Challenges

• Today’s CPG companies face unprecedented challenges:

– Increased competition– Growing supply costs– Product proliferation– Changing consumer priorities and tastes – The convergence of brands

• As a result companies are faced with forecast accuracy issues, increasing inventories to try and maintain service levels, lack of visibility across the extended supply chain, ineffective trade promotions and little visibility as to what is actually being sold in real time causing a disconnect between production and sales.

TXTPERFORM2008Connected Experiences for Consumer Goods

SCM Value Proposition

• CPG companies are all trying to profitably deliver what consumers want while simultaneously eliminate complexity, reduce costs, and increase reliability in their respective operations

• Effective SCM can give you supply chains that improve margins, enhance overall business performance and drive competitive advantage.

TXTPERFORM2008Connected Experiences for Consumer Goods

TXTPERFORM2008 Value Proposition• Based on best-in-class industry practices, TXTPERFORM2008 is

a complete SCM suite including best of breed demand management and supply planning that delivers an exceptional combination of analytics capabilities and rich functionality

• TXTPERFORM2008 supports Consumer Goods companies facing their unique challenges, spanning any critical CG process:

• Demand Planning and attribute-based forecasting• Trade Promotions Management• Sales & Operations Planning• Distribution and Replenishment Planning• Inventory Optimization, aligned with sales and

production rates

TXTPERFORM2008Connected Experiences for Consumer Goods

TXTPERFORM2008 Value Proposition

• TXTPERFORM2008 offers:

• Concurrent planning and management of trade-offs

• Inventory optimization for reduction of working capital

• Collaborative forecasting and demand planning

• One version of the truth• Metric based performance management• Cross-functional business process integration

TXTPERFORM2008Connected Experiences for Consumer Goods

Solution Benefits• Empowers fact-based decision making to choose and

apply the best planning scenario; have complete understanding of the implications and the impact on business performance that result from those decisions.

• TXTPERFORM2008 enables companies to:– Translate data into a financial view; connect

operational plans back to the overall company goals – Better manage demand; create an accurate picture

of future demand for higher margins – Have greater visibility and control over supply costs – Manage by exception; create a balanced plan with

continuous performance management

TXTPERFORM2008Connected Experiences for Consumer Goods

Solution BenefitsTangible business benefits to be had:

S&OP leaders see:

• 10% improvement in forecast accuracy• 20% improvement in perfect order• 33% reduction in inventories• 5% lower supply chain

Improving forecast accuracy:

• 15% less inventory• 17% stronger perfect order fulfillment• 35% shorter cash-to-cash cycle times

Improving visibility and integration through sourcing processes:

• Improving inventory turns to as little as five to seven days• Achieving net margins of 15% to 20% • Racking up comparable store sales increases (stores opening one or more a year) of 10% to 12%• Fostering greater than 80% full-price sell through

TXTPERFORM2008Connected Experiences for Consumer Goods

Benefits of Microsoft/Partner Stack Integration

TXTPERFORM2008 is a combination of “out of the box” technology from a market leader but is closer to the users’ current working practices through TXT’s across industry expertise. The functionality included in the product is the result of years of experience in our working closely with customers and incorporating their needs into our software.

Providing reduced TCO and a competitive advantage:

• Best of breed solution with a greater ROI• Technology based on MSFT stack and UI is Microsoft Excel• Simplified IT landscape

• Faster and reduced deployment cost• Performance and scalability• Seamless navigation• Integrates with ERP systems

TXTPERFORM2008Connected Experiences for Consumer Goods

Case StudyTy.phoo Tea

Business challenge: Improve demand forecast accuracy

Solution: Demand forecasting

Results:

• 5% overall forecast accuracy increase• Greater agIlIty to demand

TXTPERFORM2008Connected Experiences for Consumer Goods

Partner Overview• Founded in 1989, TXT e-solutions is an

international software products and solutions vendor and leader in “Strategic Enterprise Solutions”; delivering the ability for organizations to better manage their value chain processes and improve their business performance to positively impact the bottom line.

TXTPERFORM2008Connected Experiences for Consumer Goods

Contact Information

Stefano Lena, VP Global Sales & Marketing E-mail: stefano.lena@txtgroup.comPhone: +1 646 715 2463Phone: +39 348 2668624

www.txtgroup.com

Thank you.

© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, 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.