Content: Goal: Integrated business management requires the integration of all the business into that considering the processes, people & behaviors, and tools. The maturity of this integration will reflect direct in the results of the business, bottom line. Key learning points: a) All organizations are on a journey that never ends to performance improvement – what are the challenges b) The Integrated Business Model and the maturity chart c) The importance of the Integrated Business Management (IBM) / Sales and Operations Planning (S&OP) process into the Integrated Business Model d) The Proven Path to goes through the journey consistent e) The Integrated Supply Chain Management and the IBM/S&OP importance to support it, and reflected on both models – Oliver Wight and the SCC – SCOR

1. Integrated Business Model The Journey to Sustainable High Performance & Profitability “It never ends” April - 2009 W. Stefano Jr., Principal Oliver Wight Americas [email_address] www.oliverwight-americas.com [email_address]

3. Business / Supply Chain Realities Facing the challenges © Oliver Wight Challenge 2007 2008 200 . . . Level of Customers’ Satisfaction (even considering the SLA they still have poor customer service )    Competitors    Environments – replete of uncertainty    Products life cycle – reducing    Agility and Flexibility (lean organization)    Entire business control in a structured form    Strategy alignment    Strong team spirit culture    Communication, integration and alignment through all functions in the short, medium and long term   

4. Business / Supply Chain Realities Facing the challenges © Oliver Wight Challenge 2007 2008 200 . . . EBIT (the bottom line, the value of the business)    Costs    Working capital    Inventory reduction, but grows the customer service level    Slow moving, obsolete products and materials    Delivery time    Lost revenues, Misguided capacity plans, Ineffective transportation, Missed production schedules, Missed promotions plans . . . and so on . . .

6. All organizations are on a “Journey to Performance Improvement” The Challenge © Oliver Wight

7. Integration © Oliver Wight Initiativitis No Data Quality PEOPLE & BEHAVIORS TOOLS PROCESSES Class A EFFECTIVE TRAINING INTEGRATION FOCUS ALIGNMENT DIRECTED EMPOWERMENT

8. Integrated Business Model © Oliver Wight OWI 0004-03a MANAGEMENT BUSINESS REVIEW DEMAND MANAGEMENT MARKET MANAGEMENT SALES MANAGEMENT DEMAND REVIEW PROCUREMENT MANAGEMENT PROCUREMENT MANAGEMENT SUPPLIER MANAGEMENT SUPPLY POINT MANAGEMENT SUPPLY REVIEW PRODUCT MANAGEMENT REVIEW RESOURCE MANAGEMENT PORTFOLIO MANAGEMENT PROJECT MANAGEMENT SUPPLY CHAIN MANAGEMENT STRATEGY BUSINESS PLAN PERFORMANCE

10. Integrating the Business - Maturity © Oliver Wight OWI 0001-01

11. Class A Checklist 6 th edition Milestone Templates Milestone Paths © Oliver Wight 1 D&L Std 3.0 or 3.5 (Foundation level) Std 4.0 (Advanced level) Std 4.5 (SHP&P) 12 BI 10 Str 11 MLP 13 P&S 14 D 15 IS 16 ES 4 BI 9 IBM 5 P&S 6 D 8 SC 7 ES 2 IBM 1 P&C 3 En 18 En 17 SC

14. The Oliver Wight Proven Path © Oliver Wight

15. The Oliver Wight Proven Path A series of improvement programs © Oliver Wight

16. Integrated Business Model © Oliver Wight OWI 0004-03a MANAGEMENT BUSINESS REVIEW DEMAND MANAGEMENT MARKET MANAGEMENT SALES MANAGEMENT DEMAND REVIEW PROCUREMENT MANAGEMENT PROCUREMENT MANAGEMENT SUPPLIER MANAGEMENT SUPPLY POINT MANAGEMENT SUPPLY REVIEW PRODUCT MANAGEMENT REVIEW RESOURCE MANAGEMENT PORTFOLIO MANAGEMENT PROJECT MANAGEMENT SUPPLY CHAIN MANAGEMENT STRATEGY BUSINESS PLAN PERFORMANCE

17. SCOR model © Oliver Wight / W Stefano Jr SCOR® is a registered trademark of the Supply-Chain Council in the United States and Europe www.supply-chain.org www.scorlabs.org Supplier Customer Suppliers’ Supplier Source Internal or External Internal or External Your Company Return Deliver Make Source Return Plan Deliver Return Source Return Make Source Return Plan Deliver Return Deliver Make Plan Return Return Customers’ Customer

18. The Extended Supply Chain Challenge: Balancing Demand & Supply © Oliver Wight Consumption Our Customers Our Suppliers OPTIMIZED / SYNCHRONIZED PLAN Supplier Manufacturing Customer EXTENDED SUPPLY CHAIN MANAGEMENT Our Distribution Sales Company Our Production

19. SCOR model © Oliver Wight / W Stefano Jr SCOR® is a registered trademark of the Supply-Chain Council in the United States and Europe www.supply-chain.org www.scorlabs.org Supplier Customer Suppliers’ Supplier Source Internal or External Internal or External Your Company Return Deliver Make Source Return Plan Deliver Return Source Return Make Source Return Plan Deliver Return Deliver Make Plan Return Return Customers’ Customer