Learn how Clorox, a leader in the Consumer Products industry, maintained its well coveted customer service levels of beyond 99.5% throughout a large scale SAP SCM implementation - across 8 business units. [Presented at the 2011 ASUG Community Focus Conference]

1. [ Transformational Steps on the Journey to
Demand Driven Supply Network
Padman Ramankutty, Intrigo Systems, Inc.

2. [ Learning Points
Learn how Clorox , a leader in the consumer products industry, maintained
its well-coveted customer service levels of beyond 99.5%, throughout a
large scale SAP Supply Chain Management (SAP SCM) implementation -
across eight business units
Examine how processes were enhanced to manage the variability of systems
across multiple brands to enable a demand-driven foundation
Learn which SAP SCM and partner components were selected to achieve a
demand-driven supply network
Identify key processes, technologies, and decision systems necessary to
move towards a DDSN
Real Experience. Real Advantage. 2

3. [ Best Practices
Leverage and fine tune statistical forecasting models with a
consensus based approach
Planning parameters based on demand and supply
characteristics (segmented approach)
Focus on strategic and tactical planning to minimize firefighting
in the near term
Align tools, business processes, and organization
Real Experience. Real Advantage. 3

4. [ About Intrigo
Premier Enterprise Consultancy, focused on orchestrating Customer Value
Networks at the confluence of Demand, Supply and Innovation using SAP
Technologies.
Respond Supply Demand Sense
Create
Source: AMR
Innovate
Provide solutions for our clients :
Insights about Customers and Channels ( Sense: TPM/Channel…)
Risk/Response modeling on Supply Side ( Risk Reduction: CTM/CTP/SC Risk..)
Accelerate the innovation cycle that impacts the Demand and Supply equations
Real Experience. Real Advantage. 4

5. [ Intrigo Approach & Offerings
Approach:
Implement an integrated base line capability, reduce risk
Help clients with the ability to ramp up new users and increase its
business operational capabilities, eliminate prolonged change
management and technological challenges including redundant
interfaces
Leverage common practice templates to reduce the design cycle time
Iterative realization methodology to reduce time/cost and risk
Offerings:
Authorized SAP reseller/VAR for High-tech
iSemi®: A solution for growing semiconductor
companies
Implementation & Support
SCM, S&OP, Collaboration, SCRM,
SCPM
ERP, Channel, PLM
SRM
BI & Analytics
TPM
IT Strategy/Architecture Roadmaps
CPG, Semiconductor, Hi-Tech, AFS
Real Experience. Real Advantage. 5

6. [ The Clorox Company
1913 - America's first commercial-scale liquid bleach factory – Oakland, CA
1914 - Product named Clorox® bleach.
Owned by Procter & Gamble 1957–1968
Growth through diversification
Worldwide manufacturer and marketer of consumer products- trusted &
recognized brands
8300 Employees worldwide
Real Experience. Real Advantage. 6

7. [ The Clorox Company - Today
Primary Products House Hold & Professional Brands
Laundry Cleaning Products
Home Cleaning Products
Specialty Products
Other Businesses
FY’10 Revenues of $5.2 Billion Global
North Europe Asia
America
Middle
East
Africa
Central
America
South
America
Pacific
Real Experience. Real Advantage. 7

8. [Clorox DDSN Vision & iPlan Foundation
Challenges
Advanced: Planning capabilities were limited by
Demand Shaping system complexity and outdated
Incremental: functionality
Demand Sensing Planning process/system landscape
Foundational: created long information flow cycle
Order Sourcing
Inventory Optimization
times resulting in supply chain losses
Demand Planning
Supply Planning
Deployment
Objectives & Scope
VMI
CUSTOMER
Load-building Deliver foundational capabilities
SUPPLIER
Retire Legacy Applications
required to enhance product supply
planning and execution processes
Planning & Execution Processes
Tools to deliver supplier-to-
Planning & Execution Systems consumer integration
Physical Network Strategy Supported by one SAP suite of tools and
one set of master data
Real time and visible
Demand driven
Synchronized end-to-end
Real Experience. Real Advantage. 8

9. [ iPlan
Strategy Planning supported by a single
suite of tools (SAP APO) using
Designed to improve efficiency and reduce cost by: one set of master data,
Implementation of new supply chain planning system and
process transformation
reducing maintenance costs of
Simplification of global supply chain network
3 highly customized systems
Eliminates existing non-SAP
Improve quality and reduce variability in supplier, carrier,
systems (Logman, Logility, i2)
and production signals
and implements leading-class
Increase agility/ability to react to changes in demand inventory management tools
and/or supply faster and more efficiently including:
Reduce 3 systems down to 1 (SAP SCM – APO module SAP APO
replaces Logman, i2, and Logility) SmartOps Inventory
Optimization
Provide best-in-class total response time*: < 10 days
LEO (Ortec) Load
* Response is the time it takes for a change in demand to be translated
into an actual response at a first tier supplier Building
Real Experience. Real Advantage. 9

10. [ Business Units – Complexity & Requirements
Business Attributes
Unit
Laundry Multi-Plant Sourcing, Multi-Work Center Sourcing , Complex Network, Production & Storage
Capacity, Mutli-Echelon Inventory, Demand Categories
Homecare Multi-Plant Sourcing, Multi-Work Center Sourcing , Complex Network, Intermodal Shipments,
Production & Storage Capacity, Mutli-Echelon Inventory, Demand Categories
Kingsford Multi-Plant Sourcing, Multi-Work Center Sourcing, Complex Network, Upstream Process
Constraints, Storage Constraints, Seasonal Pre-Builds, Production & Storage Capacity, Mutli-
Echelon Inventory, Demand Categories
Glad Multi-Plant Sourcing, Multi-Work Center Sourcing , Complex Network, Upstream Process
Constraints, Global Sourcing, Intermodal Shipments, Production & Storage Capacity, Mutli-
Echelon Inventory, Demand Categories
Foods Multi-Plant Sourcing, Inter-Plant sourcing, Complex Network, Shelf Life, Production & Storage
Capacity, Mutli-Echelon Inventory, Demand Categories
Brita Multi-Plant Sourcing, Inter-Plant sourcing, Complex Supply Network, Long Lead Times, Global
Sourcing, Production & Storage Capacity, Mutli-Echelon Inventory, Demand Categories
Litter Single Plant, Global Sourcing, Multi-Work Center Sourcing , Intermodal, Production & Storage
Capacity, Mutli-Echelon Inventory, Demand Categories
Auto Multi-Plant Sourcing, Multi-Work Center Sourcing , Complex Network, Intermodal Shipments,
Production & Storage Capacity, Mutli-Echelon Inventory
Real Experience. Real Advantage. 10

11. [ iPlan Guiding Principles
Focus on servicing the business at 99.5% fill rate, while minimizing inventory
levels, spoilage, logistics, and manufacturing costs
Function as an integrated planning organization where there is a strong linkage
between Sales & Operation planning, Demand Planning, Supply Planning, CRP,
Deployment, and Load building
Collaborate and communicate effectively with the commercial side of the
business as well as with Manufacturing
Fully leverage available tools and technology and adopt an exception based
planning approach
Reduce need for near term fire-fighting by focusing on the medium to long term
Provide visibility to long-term (24 months) Production, Sales and Inventory plans
to drive strategic decision making
Drive to standardized processes across both supply and demand planning
Ensure that the team is trained on supply chain planning tools and technologies
Real Experience. Real Advantage. 11

12. [ Multi-Echelon Supply Chain Model
Co- Finished Goods Finished Goods
MFG located
Plant DC
Post- VMI
Suppliers WIP pone RDC Orders
DC
Co-Pack Co-
Plant Pack Customer
DC Orders
Manufacturing Locations: Postponement DCs: RDC Network:
Real Experience. Real Advantage. 12

13. [Integrated Process Overview
S&OP, Budget Planning
STRATEGIC Supply Inventory
Demand
PLANNING Planning Planning
Planning
(SCM- (SmartOp
(SCM-
APO) s-MIPO)
APO)
CUSTOMER
TACTICAL
SUPPLIER
PLANNING
VMI
Deployment
EXECUTION (SCM-APO)
(SCM-APO)
PLANNING
Load Building (ORTEC)
ORDER
EXECUTION
DISTRIBUT
DELIVER MAKE SOURCE
E
REPORTING MEASURE ANALYZE
= iPlan Process Area (APO) = iPlan Process Area (ORTEC)
= iPlan Process Area (SmartOps) = Execution Steps
Real Experience. Real Advantage. 13

14. [ High Level Process Areas
Demand Inventory Deployment Load
Optimization / CRP / VMI
Planning Supply Planning / Planning Building
Objectives: Specify Inventory Produce a forecast Generate a Generate an
Produce a forecast Levels at different of VMI / CRP deployment plan executable load
nodes
of customer customer shipments, that complies with plan that complies
Produce a constrained generate and
shipments to be used approved strategies with approved
supply plan to be used execute
for supply planning, and policies, strategies and
for production planning,
sales planning, replenishment incorporating the policies,
plant budgeting tactical
plan that complies supply plan incorporating
financial analysis, and planning, long range
planning and distribution
with approved customer specific
external financial
planning that complies strategies and requirements
reporting policies
with approved strategies
and policies
Key Outputs:
Base statistical Constrained supply VMI forecast Replenishment plan Executable load
forecast plan
Replenishment Plan
Unconstrained consensus Inventory projection
forecast Lane velocity and
Metrics and Exceptions projected storage
Metrics
Forecast Accuracy Inventory Turns Service Levels TL Utilization TL Utilization
Forecast bias (over Inventory Days on Hand Inventory Turns IM Utilization
time) Capacity Utilization Customer Days of Redeployment
Forecast Volatility Supply
TL Utilization
Real Experience. Real Advantage. 14

15. [ A Nuanced Approach – Forecast Translation
APO DP UPC/ Forecast FERT/ APO SNP ECC
Ship To Translation Ship From Deployment
ORTEC LEO
Optimizer
Keeps the demand signal clean and provides for a more accurate picture of
the demand signal from the customer, aligns with Demand Driven Supply
Network (DDSN) vision
1 UPC : n Products (SKU). The mapping is a function of demand source
Prevents opportunistic shipments from becoming repeated as an ongoing
forecast
Role clarity & accountability
Demand Planners – Customer Demand
Supply Planners - Sourcing Decision and Supply Efficiencies
Real Experience. Real Advantage. 15

16. [ A Nuanced Approach – Segmentation
Cluster Analysis to Identify Segments
Demand predictability
Supply predictability
Assuming that the higher the volume, the more secure and predictable the
capacity is
High
Promotion-driven
Supply Predictability
Bread & Butter
Distribution-driven
Outlier
Low
High Low
Demand Predictability
Real Experience. Real Advantage. 16

17. [ A Nuanced Approach – Planning Parameter Definitions
% of Total Volume
Promotion
Bread & Driven
Butter
Distribution
Outlier
Demand Predictability
(Coefficient of Variation)
Segmentation:
Identifies SKUs that behave similarly
Structured approach to support differentiated supply chain
Development of business rules to drive results
Mass updates of parameter maintenance
Real Experience. Real Advantage. 17

18. [ iPlan Enabled Process Changes
Course
Demand
Planning
Supply
Planning Where we
plan today
Granularity
Deployment
Most time and
CRP/VMI energy is here
Load
Building
Fine
Near Time Far
Real Experience. Real Advantage. 18

19. [ Value Drivers
Demand Supply Planning Deployment Load
/ Inventory CRP / VMI
Planning Optimization Planning Building
Value Drivers: Value Drivers: Value Drivers: Value Drivers: Value Drivers:
Enhanced statistical Providing a capacity Deployment plans Synchronization of Build executable
forecasting constrained plan to generated based on demand planning and loads based on
capabilities finite scheduling and constrained supply CRP/ VMI forecasts deployment plan
Automated updates of deployment plans Improved management (includes CRP)
sales and marketing Improved master plan Improved management of product
intelligence into stability and reduced of product transitions
demand forecasting “fire fighting” transitions Improved truckload
solution Incorporation of Improved intermodal utilization
Ability to plan VMI supply planning and truckload
and non-VMI intelligence into utilization
demand forecast
Improved planning disaggregation
capabilities across Improved management
planning life-cycle of product
transitions
Cross Functional Value Drivers:
Single integrated system across planning
Exception based planning that is supported by customized alerts and reporting
Real Experience. Real Advantage. 19

20. [Benefits
Area Benefit Supporting Modules
Increase Inter-Modal Utilization Deployment, Load Building (ORTEC)
Transportation Increase Truckload Utilization Load Building (ORTEC)
Reduce Redeployments Supply Planning, Deployment
Reduce Outside Warehousing Supply Planning
Warehousing
Reduce RDC Variable Operating Expenses Supply Planning
Manufacturing Reduce Unplanned Overtime Spend Supply Planning
Obsolescence Reduce Liquidations Demand Planning, Supply Planning
Inventory Optimize inventory levels across the network MIPO (SmartOps), Supply Planning
MIPO (SmartOps), APO-SCM,
IS Operations Retire Obsolete Application Platforms
ORTEC (Load Building)
Real Experience. Real Advantage. 20

21. [Q & A
For additional information,
please contact us at info@intrigosys.com
or visit www.intrigosys.com.
21
Real Experience. Real Advantage.

22. [
Thank you for participating.
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For ongoing education on this area of focus, visit the Year-Round
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]
[ SESSION CODE:
1009
Real Experience. Real Advantage. 22